Overview

IYK uses Near Field Communication (NFC) and blockchain technology to digitize physical objects and real-world experiences, creating a seamless connection between the physical and digital worlds. By integrating NFC chips and blockchain, IYK provides brands, musicians, and artists with innovative solutions for digital-physical experiences.

IYK’s products support NFC and blockchain technology, enabling physical items to be seamlessly linked to NFTs, attendance tokens, web links, and other exclusive content. Additionally, IYK offers APIs and modular tools for developers, allowing customized experiences that enhance engagement between brands and their audiences.

Source: https://platform.iyk.app/

Background

In today’s market, brands must build strong communities and continuously offer value to their fans. The ability to identify and reward loyal supporters is essential.

However, the gap between the digital world and real life (IRL) makes this challenging. In industries like music and fashion, intermediaries and third-party platforms often disrupt brand-fan interactions. Fashion brands struggle to track customers who purchase their products through third-party retailers or resale markets, while musicians often lose direct contact with their fans due to ticketing platforms monopolizing data. This disconnect prevents brands from giving back to their communities and forces loyal fans to compete against bots and scalpers for tickets and merchandise.

For instance, independent artist VÉRITÉ has pointed out that ticketing platforms “hijacked” her concert data, preventing her from directly reaching her fans. This issue is widespread across fashion, entertainment, and other industries, where the disconnect between brands and fans makes it difficult to foster loyalty and create truly valuable experiences.

Funding Information

On September 28, 2023, IYK announced the successful completion of a $16.8 million funding round, signaling strong recognition from investors. The round was led by a16z Crypto, with participation from Collab Currency, Lattice Capital, 1kx, and industry figures such as gmoney, snowfro, and Justin Aversano. This funding highlights IYK’s success following its participation in a16z’s Crypto Startup School and provides a solid foundation for future growth and expansion.

Source: https://www.rootdata.com/Projects/detail/IYK?k=NzM0NQ%3D%3D

Technical Features and Advantages

IYK’s platform leverages cutting-edge digital-physical technology to remove barriers between brands and fans, blending online and offline experiences. By embedding NFC chips into physical products, IYK allows consumers to verify ownership while also unlocking interactive and exclusive content digitally.

Source: https://iyk.app/drops/verite-crewneck

Partnership Cases

By integrating NFC chips into physical products, IYK is opening up new possibilities for brands. These chips provide digital identities for products and enhance consumer engagement. Some notable examples include:

Adidas NFT NYC 2023 Limited Jersey: A collection of just 512 jerseys, each digitally authenticated for authenticity. Every jersey is also randomly assigned one of eight “Alter Egos,” adding to its collectible value.

9dcc’s Connected Products: Thousands of brand ambassadors participate in gamified ownership experiences by interacting with NFC chips, engaging in weekly competitions, event check-ins, and referral programs to boost brand awareness.

VÉRITÉ’s Crewneck: Fans can tap the chip to get early access to new music and sign up for exclusive updates. The non-shareable link design incentivizes more purchases.

BB3 Labs’ Technical Goods: Encourages fans to meet up in person to unlock rare digital rewards.

These examples highlight a growing trend: physical products are bridging online and offline experiences. To date, IYK has partnered with over 100 creators in fashion, music, and art, continuously proving the potential of this model.

Source: https://www.iyk.app/

Products

IYK’s products are equipped with Near Field Communication (NFC) chips, tokenizing physical items and events, including NFTs. IYK also provides developer APIs and modular tools for further customization.

IYK NFC Disc

IYK discs are made of resin and produced in the UK, designed to create interactive experiences for attendees at parties, concerts, and other live events. Their foam-backed design allows them to be stably placed on inclined surfaces.

Attendees can simply tap their phone on an IYK disc to mint a POAP (Proof of Attendance Protocol) linked to the event, commemorating their experience. Each disc is associated with an NFT and can be claimed upon physical delivery. Once claimed, users can manage the disc through IYK’s dashboard, upload POAP minting links, and adjust which POAP the disc points to at any time.

Source: https://iyk.app/shop/disc

IYK Card

The IYK Card is a tool that allows users to share their on-chain digital identity using NFC technology easily. With a simple tap, users can display their blockchain profile, share contact details, distribute POAPs, and link to their favorite content.

Each card is fully customizable. Once set up, others can access a user’s digital identity by tapping their phone on the card—no app required—offering a seamless offline-to-digital experience.

Source: https://cards.iyk.app/

Usage Instructions

IYK Card V2 allows users to showcase and share their digital identity with a simple tap, without requiring an application. Each card is embedded with an NFC chip, enabling functions such as displaying blockchain identity, sharing contact information, collecting digital collectibles, and showcasing links.

Users can create or edit their cards, setting up Web3 profiles, POAP events, contact details, and custom text. With a configured card, others can access the user’s Tap page directly by tapping their phone.

Users can also own multiple cards and edit or reuse them anytime. For IYK Disc or IYK Card V1 and V1.1 versions, users can upload POAP minting links via the management dashboard and associate them with the product. Simply tapping the product allows others to claim the POAP.

Source: iyk.notion.site

Creation Platform

Although one-on-one collaborations have achieved significant success, IYK realized that solely relying on individual brand and artist recruitment was insufficient to achieve a larger vision. Therefore, on September 28, 2023, IYK launched a self-service platform. This platform is designed to be easily accessible without requiring technical expertise, helping brands, musicians, artists, and any creators effortlessly build digital-physical experiences.

The core of the IYK platform lies in its high customizability and scalability, allowing various creators to integrate digital experiences with physical products seamlessly. Through a simple registration process, brands can purchase ready-to-use NFC chips and embed them into their products or utilize the modules provided by IYK to customize digital experiences, creating unique content with ease freely.

The core functions of the IYK platform include:

IYK platform’s core functions include:

1.Ready-to-use chips: After registration, users can order NFC chips in various forms, which can be used independently or embedded in products, with home delivery.

Source: https://x.com/iyk_app/status/1707782075250524371

2.IYK Modules: Customize experiences without coding, such as providing exclusive videos via IYK Beams or using NFTs to mark special events. The platform also supports third-party integrations, such as the weekly blackjack competition in collaboration with 9dcc and Internet Game. \

3.IYK API: Offers features like digital twin recognition and chip scan verification, enabling developers to create personalized brand worlds, such as ENS custom cards or Tokenproof event check-ins.

These tools allow brands to create digital engagement experiences with fans without relying on complex technical teams, further strengthening brand loyalty and fan relationships.

Source: https://x.com/iyk_app/status/1707782082565489094

Similar Projects

Most similar projects use blockchain and NFC technology, with some incorporating AR to enhance interactivity (e.g., VeVe). The core function of these platforms is to integrate digital experiences with physical products. However, some focus on collectibles (e.g., TopShot and VeVe), while others emphasize interaction between brands and fans (e.g., IYK and 9dcc).

Regarding market positioning, IYK primarily provides customized experiences for brands, artists, and musicians. In contrast, Nike, TopShot, Rally, and others focus more on sports, fashion, art, and the mass consumer market. While all these projects center around merging digital assets with physical goods, they differ in specific product and experience design.

Source: https://www.nike.com/launch/t/nike-x-rtfkt-cryptokicks-irl-public-draw

Future Outlook

As technology advances, the boundary between the physical and digital worlds is becoming increasingly blurred. Digitalization has gradually permeated all aspects of our daily lives. In the future, the digitalization of physical objects and real-world experiences will become the norm, driving profound transformations in lifestyles, brand interactions, artistic creation, and business models.

Through Near Field Communication (NFC) and blockchain technology, physical objects can obtain digital identities and establish deep connections with the virtual world, making every product and event part of a digital experience. Consumers will be able to unlock digital rewards, exclusive content, and personalized experiences by touching objects, participating in events, or purchasing goods. This intertwining of the digital and physical worlds offers new ways for brands to engage with consumers and provides broader creative possibilities for artists and creators.

In the future, the digitalization of physical objects will extend beyond the products to create entire experiences. Brands, artists, and musicians will be able to build closer relationships with their audiences through digital products and experiences, leveraging innovative tools such as digital identities, NFTs, and POAPs to enable deeper interaction and reward mechanisms. Consumers will also be more active in shaping experiences, enriching their digital lives through customization, interaction, and sharing.

The growing availability of open platforms and tools will allow developers to easily create digital experiences tailored to their brand characteristics, fostering more personalized and innovative business models. All of this stems from a shared vision—to bridge the gap between the physical and digital worlds, allowing us to not only enjoy the beauty of real-life experiences but also infinitely expand them through digital means.

As this trend continues to evolve, the digitalization of physical objects and real-world experiences will bring both opportunities and challenges. It will transform how we interact with the world and open up new avenues for brands and creators alike.

Source: https://iyk.mirror.xyz/mw-PQ5THEea4NLjLpICEAblFVfgmTJBv7hoffvc6RIA

Risks

While the future of digitizing physical objects and real-world experiences holds great potential, it also comes with certain risks. Below are some key risk factors:

1. Technological Risks

Technology Stability and Security: The stability of technologies like NFC chips and blockchain is crucial for the successful implementation of this digital transformation. If these technologies have vulnerabilities or security flaws, they could lead to consumer data breaches or digital identity tampering.

Interoperability Issues: Compatibility problems between different technology platforms, blockchain networks, and hardware devices may result in unstable or inaccessible connections between physical objects and digital experiences.

Mitigation Strategies:
Enhancing Technology Stability and Security: Adopt robust encryption algorithms and security protocols to ensure the safety of NFC chips and blockchain technology; conduct regular vulnerability scans and security audits to promptly address potential security risks.

Improving Interoperability: Use industry-standard APIs and protocols, such as ERC-721/1155 (NFT standards) and DID (Decentralized Identity), to enhance compatibility across different platforms and hardware devices, reducing fragmentation issues.

2. Privacy and Data Security Risks

Personal Data Breaches: Digital experiences often involve consumer personal information, transaction data, and behavioral data. If security measures in data storage and transmission are insufficient, users may be vulnerable to hacking attacks or data leaks.

Privacy Concerns: As physical objects become integrated with digital experiences, brands and developers will collect vast amounts of user behavior data. This could lead to privacy violations, especially if there is no transparent privacy policy or user consent.

Mitigation Strategies:
Data Encryption and Secure Storage: Implement end-to-end encryption and zero-knowledge proof technologies to ensure user data remains secure during storage and transmission.

Privacy Compliance and Transparency: Establish clear privacy policies and provide users with control over their data, ensuring compliance with GDPR, CCPA, and other privacy regulations while allowing users to manage and delete their own data.

Source: https://www.infosecurity-magazine.com/news/iot-data-breach-exposes-27-billion/

3. Consumer Acceptance and Adaptability

Technical Barriers: Although self-service platforms enable non-technical users to participate, some consumers may still struggle to adopt new technologies, especially in understanding and using concepts like blockchain and cryptocurrency.

Consumer Trust Issues: Since blockchain and NFT technologies are relatively new, some consumers may doubt their underlying mechanisms, authenticity, and value, potentially affecting their willingness to engage and purchase.

Mitigation Strategies:
Lowering Technical Barriers: Provide simple and intuitive user interfaces and guides, and use low-code/no-code tools to reduce entry barriers, enhancing accessibility for general users.

Building Trust Mechanisms: Brands can utilize smart contracts for transparent transactions and regularly publish security audit reports to strengthen consumer confidence in blockchain and NFT technology.

4. Legal and Compliance Risks

Regulatory Uncertainty for Blockchain and NFTs: Different regions have varying regulations on blockchain and NFTs, and as the technology evolves, legal frameworks may require continuous adjustments. Brands and developers may face compliance challenges, particularly regarding data protection, consumer rights, and intellectual property.

Taxation Issues: With the rise of NFT and digital asset transactions, tax compliance for digital products is becoming increasingly complex, posing risks of tax audits and penalties for businesses and consumers.

For example, the SEC filed a lawsuit against Telegram’s TON project, arguing that its TON tokens constituted securities and were not registered in the U.S. Telegram ultimately agreed to halt the project and pay a $188 million fine. Similarly, the SEC penalized EOS (Block.one) for conducting an ICO that violated securities laws, requiring them to pay a $240 million settlement.

Mitigation Strategies:
Compliance Operations: Establish a multinational legal advisory team to ensure that NFT and blockchain applications comply with regulatory requirements in different countries, and regularly update compliance strategies.

Tax Planning: Implement a compliant tax structure and engage with local tax authorities to ensure NFT and digital asset transactions adhere to tax regulations while providing consumers with clear tax guidelines.

Source: https://www.sec.gov/newsroom/press-releases/2020-146

5. Market Competition Risks

Market Saturation: As more brands and creators enter this digital space, competition will become increasingly intense. Without a unique value proposition or an innovative business model, brands may risk being eliminated from the market.

Risk of Technological Obsolescence: The rapid evolution of digital technology means today’s innovations could quickly become outdated. Brands and platforms must continuously innovate to stay ahead of industry trends.

Mitigation Strategies:
Differentiation Strategy: Brands should establish a unique value proposition (UVP), such as integrating AI, social interactions, or dynamic NFTs, to maintain their competitive edge.

Continuous Technological Iteration: Build agile development teams to ensure regular technology updates, keep products aligned with market demands, and adapt quickly to emerging technological trends.

6. Fragility of Brand-Fan Relationships

Dilution of Brand Value: Overuse of digital products and experiences may cause brand-fan relationships to lose their personalization and authenticity, potentially affecting brand loyalty and market perception.

Misuse of NFTs/POAPs: If brands excessively use NFTs or POAPs purely for promotional purposes without delivering meaningful experiences, consumers may feel exploited, leading to reputational damage.

Mitigation Strategies:
Focus on User Experience: The use of NFTs and POAPs should emphasize value rather than mere marketing, offering meaningful digital experiences such as exclusive membership benefits or personalized content.

Community Co-Creation: Encourage user participation in the brand ecosystem, such as through voting on decisions or collaborative content creation, to strengthen fan engagement and sense of belonging.

7. Ecosystem Instability

Blockchain Volatility: The fluctuations in blockchain networks and digital asset prices can impact consumer purchasing decisions and influence brand market strategies.

Centralization Issues: If NFC and blockchain platforms retain excessive control, participant freedom may be restricted. Over-reliance on a single technology provider or platform could introduce systemic risks.

Mitigation Strategies:
Reducing Blockchain Volatility: Support cross-chain or off-chain solutions (e.g., Layer 2) to minimize risks from fluctuations in a single blockchain, and provide multiple payment options to reduce dependence on cryptocurrencies.

Decentralization and Openness: Choose a more decentralized technology architecture to avoid single points of failure while supporting open protocols to enhance ecosystem flexibility.

8. Complexity of Consumer Experience

Fragmented User Experience: As digital experiences become increasingly integrated with physical products, the user experience may become more fragmented and complex. Poor design or implementation could negatively impact engagement.

Over-Reliance on Digitalization: If brands excessively rely on digital assets and experiences, they may alienate consumers who prefer traditional purchasing and engagement methods, leading to market imbalances.

Mitigation Strategies:
Optimizing the User Journey: Simplify NFT claiming, transactions, and interactions to ensure seamless online and offline integration. For example, users can quickly access digital benefits by scanning NFC tags with their smartphones.

Balancing Digital and Traditional Experiences: Offer diverse options for different consumer preferences, supporting digital and physical interactions to meet the needs of various user groups.

Effectively mitigating these risks requires a combination of technological innovation, legal compliance, market research, and strategic brand management.

Conclusion

Through innovative NFC and blockchain technology, IYK has successfully bridged the gap between physical objects and the digital world, creating a brand-new way for brands and fans to interact. This technology provides brands, musicians, and artists with a unique solution for digital-physical creation and offers consumers a more personalized and interactive experience.

With its continuously expanding self-service platform and customizable tools, IYK is breaking the boundaries of traditional business models, providing creators and brands with greater room for innovation. In the future, as technology continues to advance, the fusion of the physical and digital worlds will drive profound transformations across industries, allowing us to experience the value of products in real life while also interacting with them digitally—creating new lifestyles and business opportunities.

The future of digitizing physical objects and real-life experiences is full of potential, but it also comes with certain risks. Challenges related to technological stability, privacy and data security, consumer acceptance, legal compliance, market competition, brand relationships, ecosystem stability, and user experience could all impact the success of digital transformation. If technical vulnerabilities, data breaches, unclear regulatory frameworks, or intensified market competition arise, they could damage brand reputation, reduce user trust, or pose investment risks. Businesses must address these risks effectively through technological innovation, compliance measures, and strategic planning.