Nowadays, everything is becoming virtual. Virtual tools are now a common part of most people’s daily lives, whether they are used for artwork, concerts, marketing, or meetups. What about real estate, though? In a virtual environment, is it feasible to own digital property? Yes. Add real estate in the metaverse.
Real estate in the metaverse doesn’t involve using online technologies to buy and sell actual properties because people already do that every day. Additionally, it differs from a regular family renting an apartment in Seattle, Washington, or purchasing a home in Phoenix, Arizona. A network of online marketplaces known as the “metaverse” allows for the purchase, sale, and rental of virtual web3 real estate software development as well as the connection of complete strangers.
The goal of proponents of the metaverse is to alter how people live and engage with the physical world. Making virtual property ownership widespread, approachable, and enjoyable is one of these goals. Can this be done? Exist any drawbacks? Continue reading to find out extra about the virtual world living and to discover the truth behind the hype.
Important terms
A few ideas must be understood before continuing.
Metaverse: In general, the metaverse (a component of what is referred to as Web3) is a collection of virtual, interactive worlds where individuals can engage with one another and live their lives. Video games, smartphone apps, and social media platforms are just a few examples of the various ways that it is both an idea and a reality at the moment. It sets itself apart from other virtual worlds by utilizing decentralized blockchain and cryptocurrency technologies.
Decentralization: Decentralization refers to a situation in which there is no central authority. Instead, a group as a whole makes decisions. This decentralized structure is intended to be more equitable and guard against the focus of power in the hands of one individual.
Data can be stored and distributed using a blockchain. It organizes data into chronologically connected pieces rather than utilizing tables. Many businesses use it for basic data storage because it’s safer and more durable than other storage options.
Cryptocurrency: A cryptocurrency (or crypto) is a decentralized, encrypted blockchain-based form of money. Cryptocurrency is ungoverned, in contrast to conventional money. Instead, all of its users are equally accountable. A cryptocurrency like Bitcoin can be used to buy and sell items, but it is not widely acknowledged.
A non-fungible token, or NFT, is a special digital asset that is typically exchanged on the Ethereum (a cryptocurrency business) blockchain. They may be anything, from a dog photo to a tweet from the previous year, and they’re made to be unique, much like an original painting. NFTs are purchased, sold, and traded in the metaverse.
What exactly is a metaverse?
The metaverse predates time. There were online communities where users could communicate and engage before the internet was even thought of. With the advent of video games like Mazewar and Habitat, these worlds have been there since the 1970s. Video games with graphics soon followed, which increased their realism.
The metaverse is frequently pictured as a digital, interactive world that is lifelike. Neal Stephenson first proposed it in his 1992 book “Snow Crash.” The metaverse was envisioned in the book as a place where individuals would go to live virtual lives as avatars. Theoretically, this interactive space would eventually take the role of actual reality, and people would start to live totally within them, predicted Stephenson. The way of life on this planet would be identical to the way it is in the real one: individuals would own homes, trade products for cash, make friends, and enjoy social interactions.
While most of this was theoretical at the time, it has now been realized in less evident ways. Since the invention of the internet, our physical and digital lives have been increasingly entwined. Phones can now take 3D scans of the environment, applications can utilize location data to offer you relevant adverts, and you can purchase a home without leaving your room.
What does the metaverse currently look like?
Although there is just one notion of the metaverse, there are currently numerous different technologies within it, each with a different level of immersion. People can accomplish many activities they would ordinarily do in real life online in the metaverse. And as technology advances, realism also advances. For many supporters of the metaverse, the concept of virtual “presence”—feeling as though you are physically present with other people—is a defining characteristic. The goal is to enable a greater overlap between our digital and physical lives in terms of wealth, socializing, productivity, shopping, and entertainment, whether in VR, augmented reality (AR), or on a screen.
For businesses wishing to engage their audience, video games are a typical and popular way to enter the metaverse. Virtual concerts and in-game social gatherings hosted by games like Fortnite draw millions of users from different platforms to their virtual worlds. Digital shoes are being released by brands in virtual worlds like Roblox and The Sandbox.
There is more to the metaverse than just video games. The metaverse encompasses a wide range of activities, including accessing social media, viewing live streaming, and video chatting with friends around the world. It is predicted to eventually surpass the current “mobile internet” and develop into a vast, varied collection of open virtual communities.
What is real estate in the metaverse?
To put it simply, pixels on a computer are what make up the land parcels that make up the metaverse. With cryptocurrencies, people typically buy and sell this land as investments. The most well-known metaverse websites, such as Decentraland and The Sandbox, feature areas for real estate leasing, renting, and buying.
How do individuals interact with the property in the metaverse?
Like in a video game, people can interact with metaverse real estate. They sign in, communicate with friends, and explore the globe. They also consider the available land parcels. There isn’t a single platform for the metaverse; instead, it’s made up of individual video games.
As long as you have the funds, you can do whatever you want with a piece of property that you own. It can be used to sell things and create skyscrapers, dance floors, or public parks.
Many businesses are attempting to purchase a share in the metaverse real estate market in addition to consumers. Adidas purchased a plot intended for unique brand content, Samsung opened the Samsung 837X metaverse retail location, Atari owns the virtual property where users may play their video games, and Samsung created a metaverse store location.
