The concept of digital real estate could intuitively refer to domain names, websites and URLs. It’s correct. But the digital reality has expanded and now before discussing digital real estate, it is necessary to talk about the Metaverse. This is where digital real estate exists.
The metaverse is a series of 3D virtual worlds built to allow users to interact as they would in a video game, but better. In fact, it is possible to participate in events of all kinds, meet people, make purchases and hold the title of virtual properties.
And to do this, a simple desktop or even a smartphone is enough.
What is digital real estate?
Just as real estate exists in the real world, digital real estate exists in the Metaverse. Clearly Earth rules do not apply.
Like buying land on another planet, there is still a limited number of packages per platform, which creates scarcity and helps establish a more stable value.
Depending on the platform where buy virtual real estate, the land can have various functionalities. On more realistic platforms, this is typically limited to lot size and a unique location, which can be found on the world map. In more structured platforms like a game, it might also include additional attributes such as natural resources that can be mined and sold.
How can digital properties be used?
Right now, new ways are being tested to see how far digital real estate can go. But there are many methods of use, that have already been tested.
For example, it is possible to create passive income by purchasing large buildings, such as shopping centers whose sections are rented out. The surprising thing is that it is also possible to create copy versions of your company, to expand your branding.
Or sell advertising space on a virtual property aimed at companies interested in testing the waters.
Not only. Many fashion and retail brands in general are using their virtual real estate to sell avatar-only items, using non-fungible tokens (NFTs) and opening up a whole new revenue stream.
Why is digital real estate valuable?
There are many reasons for buying digital real estate. Just as it seemed foolish years ago to buy a website or URL, now we underestimate the valuable contribution this digital industry can have for companies looking to reach their customers. Although it is not possible to use the five senses as in the real world. Exactly as it was and it is on websites.
Everyone has a good reason to shop in the Metaverse with a purpose in mind.
Digital real estate is valuable because people want it and there are several reasons that help explain its value. First of all, the uniqueness of the virtual plot of land. Hence the explanation of why they are bought and sold using NFT. The property is completely unique and therefore non-fungible, and cannot be exchanged for the same like for anything else. The uniqueness of a property can be due solely to its position on the map with respect to other properties, or to the unique resources it possesses.
When someone buys digital real estate, gets some kind of deed. Information proving that you own the property is stored on the blockchain as an NFT. The token is your deed and what you will give to the buyer if you sell the property.
As long as the world persists, your property will be protected with the NFT you hold. You can literally do anything you want with it.
How long do digital worlds last?
The biggest doubt that assails when talking about this kind of worlds is that if they were to disappear, we would end up with invalid NFTs.
Certainly a digital reality can persist, provided it has an invested community. As was the case of Second Life created in 2003 which continues to have good public feedback despite occupying a fraction of a limited size.
But it is possible to protect the metaverse worlds also through the involvement by vote of the community in case this should be “ceased”.
Due to the decentralized nature of these platforms, no single person or entity can choose to close the doors; it must be a global decision.
In summary, the digital asset class is booming and has made many people multimillionaires in recent years.
The NFT “Everyday’s – The First 5000 Days” was sold at Christie’s auction for $ 69 million.
Not only that, but a 500-square-foot parcel of land from Decentraland sold for $ 2.43 million, making it one of the largest sales on record.
So yes, it’s possible to make a huge profit from digital asset trading.
Where can you buy digital properties?
We just established that investing in digital assets like real estate is profitable, but where do you get it from?
First, it’s necessary to have a wallet where hold every NFT land and purchase the resources.
Once the crypto wallet is set up, it’s necessary to bid for the land. This can be done directly from the metaverse project itself, like Sandbox or Decentraland, or with a third party platform like OpenSea or MagicEden.
Will the digital earth continue to grow in popularity?
The digital real estate sector is growing in popularity. But another thing to remember is that it’s not just a video games. It is a real investment. As the world moves further into the digital age, we will see more people buying digital land, to invest and spend more on items in the world. Not only will it be packed with gamers, but tech giants and other organizations will also start buying more land to advertise to millions of users.
It’s only the beginning.