You can acquire landed properties without going through the bureaucratic process involving plenty of paperwork, exhausting signatures, various payments, a specialist intermediary, a professional lawyer, a professional accountant, and other tiring procedures. With blockchain technology revolutionizing every sector, real estate is no exception.
Evidently, as the metaverse evolves as a social technology, it's a new reality with the potential to quickly become a part of everyone's daily lives. This is because the metaverse would be a hybrid of real and virtual worlds. As a result, it promises to add a new dimension to human communication by allowing people to interact and perform any activity – go to work, play with friends, go shopping, or have any other type of fun – in a virtual world. This gave rise to the idea of Metaverse Real Estate.
What is Metaverse Real Estate?
The metaverse is a parallel digital world in which users from the real world can create and interact with entire virtual ecosystems. As a result, metaverse real estate refers to land parcels in virtual worlds. This means the metaverse real estate consists of virtual pieces of land or commercial and residential buildings. In the most basic sense, the metaverse real estate objects are pixels on your computer screen. As a result, these digital buildings (pixels) are programmable areas in virtual reality platforms where people can socialize, attend meetings, attend conferences, attend virtual concerts, play games, sell NFTs, and engage in various other virtual activities.
Metaverse Real estate is a revolutionary concept, allowing users to prove ownership of precise digital spaces and products. NFTs are adopted for digital ownership. The owner of an NFT can use the land for socializing, advertising, workspace, gaming, and other purposes. Because they are NFTs, ownership of the land and its digital assets can be easily proven, and every transaction involving the metaverse real estate is publicly recorded.
How Does Metaverse Real Estate Work?
The metaverse is a hybrid of the internet and spatial computing that allows users to interact with one another via a 3D avatar. These avatars can also be used to interact with digital humans and 3D virtual objects like real-world interactions. The metaverse aims to bring a fully immersive natural world experience to the digital space.
Each metaverse platform comprises codes subdivided into a finite number of plots, similar to how longitudes and latitudes are represented on a map. Following the sale of a plot, the buyer's information is recorded in an NFT written with codes to the blockchain made publicly available. This code serves as a rare identifier and ensures the security of the chain of title. When someone purchases metaverse real estate, the transaction is recorded on the blockchain, and the buyer is given the corresponding NFT in their digital wallet. Typically, the purchase of an NFT and the record made on the blockchain is similar to a deed and the chain of the title given to a buyer in a physical real estate transaction.
Why Purchase Metaverse Real Estate
New Property Acquisition
Digital real estate has emerged as a good asset class. Its value is increasing significantly, making it an attractive investment opportunity. Metaverse real estate is an investment, just like physical real estate. Users have shown a strong desire to participate in metaverses. For example, PwC, a consulting firm, is one of the most recent to jump in, having paid an undisclosed sum for real estate in The Sandbox, a virtual gaming world.
Redefines Physical Land Value
When valuing land in the physical world, size, location, and utility are crucial factors. However, utility is less critical in Metaverse real estate because the buyer will not physically visit the property. As a result, the goal of purchasing land in the metaverse is to develop or rent it to a third-party enterprise, so size and location become far more critical motivators.
The Process of Purchase is Simple
Metaverse real estate eliminates the difficulties of buying and selling real estate. For example, in physical real estate, there is a lot of paperwork, maintenance, and taxes to pay. All of these are not the case with digital real estate. Also, land purchases are more secure and traceable since blockchain is the underlying technology.
Additional Income Opportunity
Metaverse real estate opens up new opportunities for earning money. Building art galleries, implementing advertising campaigns, organizing concerts, and making money are examples of things you can do to make money.
How to Purchase Metaverse Real Estate
Purchasing metaverse real estate is similar to purchasing any other NFT. This means properties can be purchased, rented, traded, and sold, and ownership is recorded as NFT. However, to get started, you must first acquire cryptocurrency. So, to begin your metaverse real estate portfolio, you'll need your digital wallet to store your assets.
Step 1: Get a cryptocurrency wallet.
Before purchasing a metaverse property, you must have a cryptocurrency wallet to access your cryptocurrencies. The wallet should ideally be integrated into your browser. Using a web-based wallet is simpler and more convenient as there will be fewer issues.
Step 2: Choose a Metaverse platform
No single metaverse but multiple virtual universes are competing with one another. For this reason, you must decide where you want to purchase. You can purchase property on several virtual metaverse platforms. Decentraland and The Sandbox are the two most popular options. However, the reasons for purchasing the land will impact the project you choose.
Using NFT platforms, which serve as brokers for metaverse real estate, is another choice. OpenSea or NonFungible are two options to consider. There are different virtual worlds to choose from with them, and you can compare the cost of various properties, amenities, and value based on the virtual neighborhood in which the plot is located.
Step 3: Search and select a piece of land
Now all you have to do is search through the available land and choose the one you want to buy. You can see how far your property is from more well-known locations. Property prices tend to rise close to popular destinations.
Once you've decided on the digital plot of land you want to buy, click on it to learn more about it. It is important to remember that a specific metaverse property platform will only allow you to make a purchase using their approved cryptocurrency. For example, you can buy virtual real estate on Decentraland with either ETH or MANA.
Step 4: Connect your wallet
After deciding which virtual land to purchase, some platforms allow you to make an offer to the owner before completing the transaction. To complete your purchase, you must connect your wallet to your account. Click on sign in and sign up with your wallet. Your virtual real estate will be delivered to your wallet once you sign up and confirm your purchase. You will be the official owner of that virtual property, and anyone on the blockchain will be able to verify its authenticity.
Step 5: Finalize your purchase
The transaction process will go through as long as you have enough money in your wallet and the agreed-upon price. When you finish the transaction, the digital land you purchased is saved as NFTs in your connected digital wallet. You can view your newly acquired land in your digital wallet by going to the 'NFTs' tab.
Real estate in the metaverse is a virtual space that replicates real-world conditions. It used augmented reality, virtual reality, and 3D image technologies to create a digital environment where users can interact, play, and virtually communicate as they do in real life. However, the success or failure of metaverse real estate or the metaverse generally is still unknown. Still, given that technology is the way of the future, all that remains is for us to adapt to yet another technological advancement and investment opportunity.