Let’s take a look inside the Metaverse of virtual lands:
Virtual lands have been selling for thousands of dollars, even though we can’t even touch the soil they are built on in the real world.
What makes a plot of land inside a computer worth almost a million dollars?
Today, we’ll learn everything about virtual lands and what makes them so valuable.
What is the Metaverse?
The Metaverse is an alternative digital universe where VR, AR, and ER combine with lifestyle. The Metaverse isn’t precisely one digital dimension: many types of metaverses have their metaverse tokens. Some famous examples include Decentraland and the Sandbox, but even the game Fortnite could be considered a type of Metaverse in its way.
In this article, we explain what is an NFT and how NFTs work inside the Metaverse in better detail.
What is a virtual lands?
A virtual land is a piece of digital real estate existing on a metaverse platform. Virtual lands work similarly to NFTs, representing proof of ownership of a digital plot. Some of their uses include social events, advertising, gaming, and renting to other users.
Virtual land is digitalized land present in virtual metaverses. It works similar to real estate in the real world: you purchase it using the land’s currency, and you can start building on it or reselling it for a profit.
Estimates by cryptocurrency asset manager Grayscale have foreseen the virtual real estate market possibly reaching up to 1 trillion, so it’s no surprise that big brands and celebrities have also been dabbling into purchasing virtual lands for profit.
How to reach virtual lands
Virtual lands can be accessed through standard computer screens, though developers such as Meta and Oculus plan to release 360-degree immersive worlds.
In the Metaverse and the digital lands the Metaverse is based on, you can go to music concerts, museums, art galleries, and even universities. Artists such as Justin Bieber and Marshmello are performing using their avatars too.
How to buy virtual lands?
To purchase virtual land, you’ll need to visit the Metaverse’s NFT marketplace and purchase it using its respective token. Some metaverses also allow you to buy land through NFT marketplace OpenSea.
For this guide, we’ll use Decentraland as an example for purchasing virtual lands:
- Decentraland has a maximum of 90,000 plots, which are 16 meters by 16 meters each.
- On Decentraland’s marketplace, sign in and select “Parcels and Estates.” Afterward, click on “View All.”
- You’ll have to browse through the available pieces of land and select whichever you desire.
- You’ll be shown the MANA price of the land, and then you’ll have the option to buy it.
- Your wallet must be connected to the marketplace to perform this purchase, and the wallet must have enough MANA or ETH to fulfill the purchase and the gas fees.
- Once the purchase is complete, confirm the LAND on your wallet of choice.
How to use virtual lands
Virtual lands have been selling for massive prices. One such example is a record-breaking $913,000 virtual land sale on Decentraland, purchased by virtual real-estate firm Republic Realm. They purchased 259 parcels of digital land with 1,295,000 MANA.
Essentially, the virtual landlord should use their plot to host events, display NFTs for sale, and gain notoriety in a game.
Similar to real life, the value of the virtual land is determined by its market speculation and utility. A plot near a celebrity could fetch a higher price than a standard virtual neighborhood in the Metaverse.
For example, if the land in question is located in a frequently visited digital district, it’s a prime spot for advertising.
Think of it as a significant avenue in a big city in the real world: it’s going to be plastered with brands and companies showcasing their products.
The platform the land is purchased on is also crucial to determine the product’s price. Major platforms such as The Sandbox and Decentraland command higher prices due to market supply.
If you want to benefit from virtual lands, such as hosting a virtual event, you can also rent instead of purchasing a plot.
Renting is better for you if you’re hosting a single event or if you already own land but want to promote your event in a more popular district for a special occasion.
As you can see from these metaverse examples, it’s entirely possible to construct virtual infrastructure in Roblox, The Sandbox, and Decentraland.
How to monetize virtual lands
However, virtual lands aren’t just static pieces of digital real estate waiting to be resold. Intelligent investors can put them to work by hosting parties or events, charging those who you’d like to see attend.
Landlords can also use their virtual land for advertising, an NFT video game, or even a virtual office space.
One such example is famous socialite Paris Hilton, who created an island in the Metaverse, Paris Island. On New Year’s Eve, Paris DJ’ed an electronic set for partygoers. The island was built on Roblox and allowed visitors to explore a digital version of her Beverly Hills estate, sail a Sunray yacht, drive sports cars, and even book a ride on a jet ski.
Hilton isn’t the only celebrity who has attempted to join the Metaverse, though. Snoop Dogg also hosted an exclusive party; instead of throwing it on The Sandbox, attendees had to purchase an NFT as an access pass.
What is Decentraland?
Decentraland is a virtual world where users can purchase digital plots of land and monetize them.
Well-known software engineer Esteban Ordino founded Decentraland, also one of the co-creators of Bitcore. Decentraland uses a metaverse token (link) called MANA.
In Decentraland, buyers purchase parcels, which work as virtual plots of land. These parcels also work as NFTs. Decentraland’s Metaverse can be explored using an in-game avatar where you’re also able to interact with the Metaverse’s digital facilities and purchase NFTs at the Crypto Valley Art Gallery. The avatars are similar to player characters created in MMORPGs.
The buyer can build practically anything they want on a parcel and publish what their heart desires. The land is permanent of their property and is decentralized, meaning that no one can take over your land once it’s sold.
As with all Blockchain transactions, these are forever recorded in its ledger.
What is Decentraland MANA?
MANA is the metaverse token used in Decentraland, an ERC-20 token used as the primary currency of the platform. MANA also provides holders with voting rights in Decentraland. Other Metaverse tokens used in Decentraland include LAND and Estates, which represent the plots of land owned by the user and the different plots owned by a player, respectively.
What is The Sandbox
The Sandbox is another Ethereum blockchain-based gaming metaverse where users can monetize their virtual lands. Instead of MANA, The Sandbox uses SAND as its metaverse token.
Arthur Madrid and Sebastian Borget founded the Sandbox. In it, players contribute to the Metaverse by completing tasks.
Just like Decentraland, The Sandbox has its NFT marketplace, which allows players to monetize the assets they create by selling them to other The Sandbox players, creating a player-driven economy in virtual lands.
The Sandbox also has a game maker, which you can use to create 3D game experiences inside the Metaverse, even without prior coding knowledge.
A non-tech-savvy person can start building games on The Sandbox, such as puzzles, art galleries, social hubs, and whatever the user can imagine. Solo adventures tend to be very popular, where players are sent into a digital experience where they can find treasures, fight enemies and discover secrets.
The Sandbox definitely lives up to its namesake in the creativity department.
Snoop Dogg is currently constructing a virtual mansion on his plot of land in this Metaverse, which even caused an NFT collector to purchase a nearby plot of land to be his neighbor for $450,000. He’s building a digital version of his California mansion, where he’ll also include a music venue for concerts.
What is The Sandbox SAND?
SAND is The Sandbox’s respective metaverse token, an ERC-20 token. You’ll need SAND in your wallet to purchase LANDs from the in-game public sales.
It’s also a governance token, similar to how MANA works in Decentraland. SAND holders have voting rights, and The Sandbox team will sometimes host events where players can gain SAND by playing some games in The Sandbox.
Final words
While digital real estate isn’t going to replace physical real estate anytime soon, it’s wise to start looking into the investment in virtual lands for the future.
Virtual lands can be a profitable way for metaverse enthusiasts to invest their tokens or a creative way to express and collect their NFTs online.
There’s still a lot to learn about virtual lands, so it’s wise to stay on the lookout for significant updates regarding their functionality.
