Investors Buy Virtual Land In A Metaverse Ghost Town
Critics respond that much of the excitement around all things crypto is the result of marketing buzzwords rather than reality and that enthusiasts have a vested interest in promoting hype. Critics point to the lack of proven business models for crypto markets, price volatility within crypto markets, security risks, and disappointing user experiences on many platforms as signs that the Metaverse does not have the potential that others claim. One way to think about it is like buying a domain name or crocheting a good social media handle. Instagram Facebook or Instagram-were the foundations of Web 2 for each of us, then personal property in the form of virtual real estate could be the version of Web 3. The difference is that instead of requiring vendors or platforms to design, regulate and control the experience, Web 3 ownership is meant to be something that you, the end user, can build yourself. For brands, it could mean something much more interactive and active than their current digital presence.
It is not for nothing that investors speculate about the value and potential of “virtual land” within the Metaverse, where land sales in 2021 exceeded $500 million and attracted a lot of attention and Publicity. Sandbox, Decentraland, Somnium Space and CryptoVoxels are the most active platforms, and owners can build almost anything on their virtual plots. The open-source Ethereum blockchain, with self-executing smart contract functionality, functions as the fundamental layer for most platforms. Land plots in Sandbox and Decentraland are purchased with cryptocurrencies on their platforms and can also be sold and purchased on secondary markets such as OpenSea. The Web 3.0 open cryptographic Metaverse networks solve this problem by eliminating the capital controls imposed on these virtual worlds by Web 2.0 platforms. This new paradigm allows users to own their digital assets as non-fungible tokens, exchange them with others in the game and transport them to other digital experiences, creating an entirely new Internet economy that can be monetized in the real world.
Simply put, these are packages on the platforms of the digital metaverse that are purchased as non-fungible tokens using cryptocurrencies. This makes them unique and tradable digital assets whose ownership is recorded on the blockchain. Owners can sell their land on a secondary market through a third-party exchange or the metaverse ecosystem. Many celebrities and brands are beginning to venture into the metaverse, an immersive virtual space that mimics the real physical world using augmented metaverse property reality, virtual reality and blockchain. It is a digital space where people can use their avatars—their online representations, to meet virtually, attend meetings and concerts, collect exclusive NFTs, etc. The metaverse is a fully immersive virtual world, in which people perform many of the activities they can in everyday life, from socializing, shopping and gaming, to exchanging digital assets, says Richard Shearer, CEO of the artificial intelligence financial technology company Tintra.
On March 29, 2022, it was announced that the Ronin Network, an Ethereum-linked network used for the Axie Infinity game, where players battle cartoon pets to earn cryptocurrency and collect NFTs, was the victim of a $600 million hack. The platform is owned by Sky Mavis, a Vietnamese company, and although it is working with law enforcement officials and forensic cryptographers to try to recover the funds, refunds can take months or years. The possibilities for requesting a refund are limited, and the appeal is minimal. Surprisingly, the company admitted that the hack began in November 2021 when the user base swelled to an unsustainable size and “forgot” to re-tighten its security.
Players enter a digital world where they can interact with other people and often transact in digital currencies and economies. Keiffer eventually joined a virtual real estate company called TerraZero as Metaverse director. Their goal was not just to buy digital land, but to develop it and even rent it. The company helps users to install virtual buildings and organize events on land plots, which may require the use of the Decentraland software development kit.
By dematerializing physical space, distance and objects, the metaverse will change our online experiences, especially in games, social networks, e-sports, online shopping (clothing, real estate, etc.)), “live” events around music, sports, etc. Moreover, the market has not yet been tapped; Zatulove cites the three billion people worldwide who are gamers and who are used to spending time in virtual environments. Even if Sandbox hasn’t caught your attention yet, the potential is there. “The joy at this time of virtual real estate is that he recognizes that there is an opportunity ahead that he is preparing for himself,” she says. The Sandbox is a virtual world where players can build, own and monetize their gaming experiences using ARENA, the platform’s main utility token.
More Metaverse platforms are also emerging, with better capabilities and customization. Users can take as much time as they need to make a decision about virtual real estate investments. Real estate professionals might assume that their experience in the real world will translate well into the Metaverse, especially when virtual platforms seem to mimic the physical world. However, investors buy a piece of software code designed into a video game-like interactive experience, and fundamentally different considerations and risks apply. Basically, real estate in the real world and virtual real estate in the Metaverse are different in several important ways. Augmented and virtual reality are also important components of the metaverse because they give users a completely new way to interact with virtual spaces.
In some cases, the bad actors are the crypto companies themselves. For example, at the end of 2021, the creators of The Squid Game coin, which had no ties to Netflix or the popular show, Squid Game, scammed investors and took an estimated $3.38 million. Unfortunately, such stories are common in cryptocurrency headlines. Staggering amounts of money are being spent on virtual real estate within World Wide Web Land and other metaverses. In June, a Metaverse investment company called Republic Realm spent $ 913,000 on a plot in Decentraland, another metaverse.
In the not-too-distant future, consumers in the metaverse will be able to test drive new cars, tour home renovation plans and attend live concerts anywhere in the world, potentially unlocking an additional $5 trillion in consumer spending associated with new, more immersive experiences. “The first thing to do is invest in the infrastructure of the platforms and ecosystems of the metaverse,” he says. Companies like Facebook are investing in the software and hardware to support virtual Metaverse displays. The scalability of these virtual worlds has not yet reached far on the blockchain, outside of some games or platforms known as Decentraland.