How is Property Developed in the Metaverse?￼
Imagine a virtual world where you will be able to visit sites, go shopping, drive across town, and meet at a café with friends. All these scenarios will be made possible in the virtual world. You will be able to accomplish all your imaginations thanks to the rapid advancement of this technology.
Metaverse is not a new technology. It has been there for some time. The only difference is that decades ago, the new advancements that we are seeing now had not been developed.
They existed in the form of multiple online playing games. Currently, we are on another level that brings out the true meaning of fun and opportunities, and sooner, we will enter an era that will not be distinguishable from the real world.
Companies Like Decentraland and Somnium Space have already begun to develop their new societies. With the users trading items, settling the land, and interacting through games.
For a society to function, it needs a stable and working economy. Every digital item is verified in the metaverse from cars, clothing, pictures, and buildings. This in turn ensures that the economy is secure and functioning. For the metaverse to grow, it will need the freedom to move to other metaverses trading, selling, and even purchasing.
Digital assets are stored in the blockchain. With NFT, the authentication process will be smooth. Every item will be verified and this will ensure that identity theft is not achievable.
NFTs are protected by a key called a cryptographic key. This key ensures users’ data and personal information is not hacked or even replicated. Also, it guarantees there is a strong verification process to protect the user’s possessions.
Apart from NFTs selling their arts at large sums of money, they also open new opportunities where users can engage freely, sign contracts, have independent ownership of property just like the real world.
The COO of Crypto.com Eric Anziani pointed out that aside from NFT being recognized for digital art, it was going to be the platform that will represent any item or asset in the metaverses in the future.
The Metaverse: How is Property Developed in the Metaverse?
When you log in to Decentraland, there are so many activities that you will find. You will meet people chatting by the fountains, guests walking in a casino, and people going to movie theaters.
All these activities are achievable with the aid of virtual world real estate development. People buy land and build scenarios that happen in real life but the metaverse.
This technology has not reached its completion and there is still a lot to be done to make the physical and the virtual world similar. Some of these creators say that the technology is still in its early stages.
But this has not stopped people from flocking the metaverse in search of new business opportunities, social interactions, as well as exploring the metaverse.
Note that, the value of the virtual land will depend on the place you want to purchase that land. For instance, if you want a place that resembles Beverly Hills, it will come at a high cost.
The notion of Decentraland and other metaverse economic development relies on their closeness of land.
All metaverses border each other and on a specific location. This concept in turn results in a shortage of goods and services. Scarcity raises the prices of items and property based on the law of demand and supply.
Property possession, selling, and trading of items in the metaverse are all handled by NFT. It provides proof of ownership of land, a building, or and any other item.
Anziani pointed out that, NFT database was impossible to replicate or corrupt due to the smart system that has been put in place to prevent any duplication.
He further explained that if you owned property or an asset in the metaverse and you have all the documents and files for proof, you can claim the ownership rights of that property.
Is Property in the Metaverse Worth all the Hype?
Currently, real estate is a booming business in the metaverse. These came after the evolution and advancement of the real estate industry.
In June, a parcel of land in Decentraland sold for $900,000; it was purchased by Republic Realm, a company that specializes in digital investment.
This company is aiming at transforming the digital land into a mall that will be called Metajuku named after Harajuku which is a district in Tokyo.
These are the activities that will bring investment opportunities to the metaverse, Real estate investment funds (REITs) have begun their plans to shift their businesses in it. Corroborating what the creators had hoped for when they launched it in 2017.
A proposal by Decentraland to its application developers was that they take full sponsorship of the economic interactions between the users and their applications. One of the metaverse declarations reads that “for the economic interaction to work, three things have to be traded: currency, goods, and services”.
When metaverse was first developed the fashion industry was the first to join in. And over the years this industry has seen tremendous growth. Louis Vuitton developed its own video game called LOUIS THE GAME and another company like Luxury house Burberry created accessories that were used to play a video game in the Blankos Block Party.
A shoemaker of metaverse sneakers has recently posted over millions of dollars in sales. He designs unique sneakers and sells them through NFT for players.
More people are open to the idea of Cryptos. Five months ago, there were 100 million users. Currently, the number of users is at 200million and this number is expected to go up”. says Anziani. He strongly believes that the combination of virtual worlds and blockchain will result in the tremendous growth of metaverse.
At some point in life, we have all heard or come across identify theft where a person’s name and personal information are stolen. Even in the virtual world identity theft can happen.
The creation of highly sophisticated games that have multiplayer and the technological advancement surrounding the metaverse might bring a challenge to security. These advancements require a lot of time and money to ensure they are secure. So, how can we ensure that the metaverses are safe and secure?
For one, the metaverses developers need to come up with better ways that are advanced and that can match the technology that is currently being used in the metaverse. They can decide to generate unique codes that will be impossible to replicate. So that, if you need let’s say create some content, no one can claim ownership or rather use them without the codes. Look at it like the genetic codes that are used to confirm the identity of a person.
NFTs can provide the solution to the problem of insecurity. The sale of memes, digital art, and playing cards has been so huge in the last few years that it has taken the world by surprise. Shockingly, this year’s sale of US $69.3 million seems to be the tip of the iceberg from what NFT offers in general.
If digital concert tickets can be stored in the blockchain to protect the rights and ownership of their creator or the user, why not virtual identity?
There are always loopholes in every technology. With that said, 100% guarantee that technology can have unbreakable security is next to impossible.
But with blockchain effectiveness and its decentralization, assures users a new level of experience that will make it easier to protect their identity for them to move freely in the metaverse.
The COO of Crypto.com Eric Anziani said that NFT would enable its users to showcase their skills and have an identity across their platforms. This identity will assist the users to have ownership of their content and therefore, selling and trading of their items would be made easier.
He later pointed out that several digital platforms were open to the idea of users having identity across platforms and some companies had started using it.
The Future of NFT in Open-Loop Metaverse
It is not an easy task to provide digital or rather virtual reality players security that is impenetrable by other networks. A lot of time and money has to be spent to make this possible.
NFT offers its users the freedom to choose and develop what interests them based on the social, economic, and political life of the world.
NFT databases can offer a more secure identity in virtual reality than you can get in the real world. Passwords can be stolen, passports duplicated, and biometrics can be hacked. With NFT, blockchain can secure your identity and ensure nothing is replicated.
The idea of allowing identity in the metaverse is to enable people to move freely in the metaverse and also to create a platform where users can explore and exhaust these worlds.
The breakthrough of NFT may be found from the idea of adopting the human’s smooth movement from the physical to the virtual world, as well as from one metaverse to the next whilst creating and securing a strong identity for the users.
This was the point Anziani was trying to convey moving from a “closed-loop” to an “open-loop”. His message also emphasized the amazing opportunities NFT would continue to offer even in the future.
He added that Currently, trading assets is what was trending in the metaverse and that there was still a lot to be discovered and developed.
Amazingly, users want a stable and secure platform. Yet NFTs open some possibilities of a disabled identity that in turn provides great opportunities for fun.
To what extent is the fun? Can the identities be rented? Can we trade aspects of our identity? Can we mint multiple identities? I am positive those are the questions running into your mind. With NFT, all these scenarios are possible.
NFT: How is NFT Promoting Growth in the Metaverse Community?
We have already established that there are great opportunities in the metaverse. Currently, NFT is inspiring communities around the metaverse. Communities that come together to generate projects like PFP avatar and strange text files.
These communities have grown in numbers to even reach tens of thousands of users with other members who are collectors trading or selling their items.
A scheme by the name Loot Project that converts gaming material or rather treasures such as “short swords” and “divine slippers” into collectible and later ranked by rarity, traded a collectible for US $800,000.
According to Anziani, such communities are strong and they are transforming small opportunities into large profit-making businesses.
He also added that such communities were important now that social networking platforms were investing in the metaverse and they intended on transforming the “open-loop philosophy” to a “closed-loop philosophy”.
Also, he explained that User-created metaverses enabled by NFT would be the beginning of a new era of freedom in cyberspace.
He went ahead to note that NFT would open up a kind of social network web 3.0 that would give the user more freedom and less centralized oversight.
His conclusion was, eventually people would shift their focus that was in the “close-loop” and go for the “open-loop” metaverses which were logical and allowed its players to use their identities however they liked in different environments and for various activities all through NFT.