The A-Z of Buying Land In The Metaverse

The A-Z of Buying Land In The Metaverse

Recently, the metaverse is drawing significant attention. It has a high potential for growth and revolution in the world as we see it today. It is the next step toward the digitalization of the real world. Metaverse technology is a combination of augmented reality (AR), virtual reality (VR), and video. The metaverse offers its users a virtual world, which can be used to work, play and interact. 

While there are several things that you can use metaverse for, the sector that is gaining the utmost attention of investors is virtual real estate. Several property deals of metaverse are making the headlines these days, recording million-dollar worth of transactions every other week. There are big companies and celebrities across the world who are taking a lot of interest in the virtual real estate of the metaverse. 

This article will give you a brief idea of how you can purchase land in the metaverse. 

Before getting into the nitty-gritty of metaverse land purchase, let's understand what metaverse land is and why its gaining attention. The metaverse can be loosely stated as a 3D, immersive virtual environment where users can interact with each other. It uses digital objects, and AI-powered avatars to portray highly realistic and natural experiences. It is an interoperable platform where the users can move between different virtual lands, and several platforms can exist in the same ecosystem. The metaverse ecosystem has no single owner. It is a democratized and decentralized system where anyone can invest and use the environment, space, and technology available. 

As the metaverse is featuring greater prospects to be used as a virtual replica of the actual world, the concept of metaverse real estate is rapidly gaining popularity. The plots of these virtual land parcels in the metaverse are primarily 3D blocks of space. Developers can integrate objects and overlay experiences apart from designing virtual reality worlds. The decentralized governance body of the metaverse takes decisions concerning the creation and allocation of new land parcels, determining assets suitable for investment in real estate, etc. 

At the moment, several businesses and real estate investors are trying to estimate how far they can push the limits of virtual real estate. However, several common-use ideas have already been developed. For instance, one can open a digital billboard business on their virtual land real estate, and sell ad spaces to the companies that are taking interest in testing the waters of this new ecosystem. One can also create a shopping complex and rent out individual sections to generate passive income.

Some of the biggest business owners are exploring to make the most out of the possibilities of the metaverse. They create a digital replica of their company headquarters to arrange meetings with their staff and clients. Such creation of interactive experiences based on the branding, sponsor events for their targetted audiences, etc. helps in expanding their company's footprint. 

Recently, several brands like Gucci, Dolce & Gabbana, Adidas, etc. have also been attracted towards metaverse to create virtual apparel and garments. They sell their unique clothing items for the avatars with the use of NFTs. This has paved way for a whole new revenue system for these brands. a whole new revenue stream.

The said 'Big Four' owns the majority of the real estate in the metaverse, and plays a significant role in the economy of the Metaverse. Decentraland, Sandbox, Somnium Space, and Cryptovoxels, the 'Big Four', together own a total of 268,645 highest-priced metaverse land parcels.

Sandbox

Currently, The Sandbox takes the lead in owning the metaverse real estate. It owns approximately 62% of the entire market. At Sandbox, the LAND costs $11,000 on average, with the premiums plots being sold between 20 to 30 thousand dollars. The place consists of family homes, commercial spaces, art galleries, hangout corners, etc. Everything on this UGC-voxel platform is built by the community for the community.

Decentraland

This is a three-dimensional, virtual reality ecosystem based on the Ethereum blockchain. You can get ownership of land parcels on this platform through a reference to the details of land parcels and LAND NFTs' specific coordinates on the grid. On this platform, the users must have MANA (in-game currency of Decentraland) to purchase LAND. 

You can find districts in the Decentraland world, each of which has its unique content. These districts help the brands and creators to get more targeted traffic. With this, they can bring their products to a specific set of audiences, who can be potential buyers. 

Cryptovoxels

Cryptovoxels can be especially homely for those who have been playing Minecraft. At Cryptovoxels, you purchase land and use monochrome blocks to build infrastructure on it. You can add colors or purchase other elements with native $COLR tokens to customize your designs. With this platform, you can also build and edit avatars or interact with others. Here, a parcel of land generally costs around $5000 per plot. However, depending on the size and location of the property, the price can rise over $10,000. 

Somnium

This blockchain VR metaverse platform has been developed entirely by the players themselves. Its virtual space is divided into land parcels of three sizes. The users can choose from the waterside or the roadside properties and use them to build their own spaces. They can also import avatars or construct digital assets of their own. The land parcels and the in-game assets in this ecosystem are tokenized. It uses Ethereum and Solana blockchain to authenticate and record the ownership of these lands and assets. The average price of the land parcels on Somnium is $11,500. However, the users can also grab smaller parcels which are sold at around $2,000 to $4,000. 

Apart from these, there are several other platforms too where you can purchase or rent metaverse lands. You can browse through Axie Infinity, Bit Country, Aavegotchi, TCG world, OpenSea, etc.

Safety and security can be one of the biggest concerns, especially if you plan to invest a big amount. Like cryptocurrencies and NFTs, purchasing virtual land also involves risk factors. This market base is highly deregulated. This implies that if something goes haywire, you might find that you're on your own. The channels where you can ask for indemnity are undeveloped.

To add to it, there are technical aspects that might contribute to the risk factors. As the transactions take place in cryptocurrencies and NFTs, you must be capable of storing these assets securely. You must be confident that you wouldn't forget your password or the means that you use to authenticate your ownership. 

However, as long as you remember your credentials, the risk of anyone stealing your metaverse real estate, or repudiating agreements of payment of rents, is highly unlikely.

Another concern can be regarding the possibilities of future technologies like quantum computing. They might have the capacity to effectively replace cryptographic security measures. While it is not a problem today, you must keep this in mind if you are planning on making long-term investments. 

Should You Buy Land In The Metaverse?
Two main charms might pique your interest in purchasing land in the metaverse.

  • #First: It is probably the safest across the globe on this day, if you wish to use the land to build a house to live in, or some premises for your work. And by living, it means having a place which you can call 'home', having friends over, and showing off your possessions. It is more like having a personal web page from the days when the internet was introduced. Metaverse 'homes' can be an online means for individuals to express who they are. They can also store the collections of their digital assets and unique virtual possessions.
  • #Second: Another reason is the investment purpose that the metaverse real estate serves. With several brands, businesses, and celebrities taking interest in the metaverse, the value of metaverse land is increasing rapidly. There is an increase in the average prices by a factor of 10 since last year.
  • FAQ

    How do you buy space in the Metaverse?

    Usually, you can purchase land on the metaverse by using cryptocurrencies, like Ethereum, SAND (currency of The Sandbox), MANA (currency of Decentraland), etc. The Sandbox and Decentraland are the favorite platforms of investors when it comes to purchasing virtual real estate. If you want to purchase land on these platforms, you can do it directly from the platforms. The process of recording is done via the transfer of NFTs. Apart from the system of direct purchase, these platforms also have a third-party resellers' market. OpenSea, nonfungible.com, etc act as decentralized agents for the place. They help sellers to list their prices and properties, and buyers negotiate and purchase.

    How Can You Use Digital Real Estate?

    At the moment, several businesses and real estate investors are trying to estimate how far they can push the limits of virtual real estate. However, several common-use ideas have already been developed. For instance, one can open a digital billboard business on their virtual land real estate, and sell ad spaces to the companies that are taking interest in testing the waters of this new ecosystem. One can also create a shopping complex and rent out individual sections to generate passive income.

    Some of the biggest business owners are exploring to make the most out of the possibilities of the metaverse. They create a digital replica of their company headquarters to arrange meetings with their staff and clients. Such creation of interactive experiences based on the branding, sponsor events for their targetted audiences, etc. helps in expanding their company's footprint. 

    Recently, several brands like Gucci, Dolce & Gabbana, Adidas, etc. have also been attracted towards metaverse to create virtual apparel and garments. They sell their unique clothing items for the avatars with the use of NFTs. This has paved way for a whole new revenue system for these brands. a whole new revenue stream.

    How much does the metaverse land cost?

    Unlike several other investments, you can get started with an investment in digital real estate for free. According to the type of virtual real estate you wish to invest in, it could cost you from a few dollars to a few thousand dollars. In some cases, you can also get them free of cost. 

    There is also a provision where you can create your digital products for free and sell them online. However, to monetize your blog, you will have to invest some money. Plus, it would be difficult to build the trust of potential consumers if you don't have your domain. 

    The purchase of digital costs might rise to hundreds and thousands of dollars. However, irrespective of the virtual real estate you choose, you can start building and developing your digital assets without having to pay that hefty amount. You can escape this part by investing more of your time and efforts to build a robust, digital machine to generate revenue. 

    Can I invest in the metaverse?

    Yes! You absolutely CAN! Most people assume that building and managing a website requires advanced technical knowledge and decent experience in the sector of web designing. Due to this, they refrain from investing in this sector. The reality, however, is quite the contrary. 

    You don't need any such experience or expertise to set up a website or invest in virtual real estate. The advent of new technologies and software platforms has made the process a lot easier. The web platforms have simplified the task of setting up and running a portal within minutes. You don't need any technical experience as such when you are investing in the virtual real estate of the metaverse. 

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