Virtual real estate looks set to become the next blockchain gold rush with users purchasing millions of dollars of virtual land across a number of exciting blockchain-powered virtual worlds.
The combination of virtual reality and blockchain technology looks set to be the stunning breakthrough that finally revolutionizes the virtual reality sector and sends it mainstream.
How does blockchain benefit VR
Blockchain opens up exciting new frontiers for VR by creating fully transparent tokenized virtual economies run on cryptocurrencies.
Non fungible tokens (NFT’s) can be used to create anything from virtual land, images to games, and applications.
Furthermore, this allows virtual reality content creators to benefit by tokenizing their creations. As a result, creators can secure a revenue for their hard work should they wish to do so.
Virtual commerce is another exciting new development and tackles one of the biggest drawbacks of online eCommerce by allowing users to experience products in virtual online stores before they decide whether or not to purchase them.
How to make money from virtual land?
The benefits of earning virtual land are similar to those of traditional real estate.
While the virtual real estate market is highly speculative, supply and demand state that as more users enter the virtual world, the price of land will appreciate.
Three clear investment approaches to earn money from virtual real estate have emerged.
Sit and hold
This approach involves buying virtual land in the hope it will be worth more at a certain point in the future.
Flipping land revolves around the principals of buy low and sell high. Prospectors will scour the virtual property market to find undervalued properties which they will then look to sell for a profit.
Users have the right to develop and monetize their land in any way they see fit. As a result, all types of businesses are beginning to pop up in the virtual sphere such as games, shops, and even virtual theme parks.
Best virtual land blockchain projects
While blockchain and virtual reality are still in their early stages of development, a few projects are already starting to attract multi-million dollar land investments.
With virtual reality on the verge of going mainstream, let’s take a look at the best virtual land blockchain projects to keep a close eye on
The platform consists of over 90,000 individual 10×10 meter plots of land known as parcels that users can purchase and do with as they please.
Decentraland’s first land auction back in 2017 sold out with users spending a staggering $28 million USD on virtual land.
The Decentraland ecosystem runs on its own virtual currency MANA. Users can use MANA purchase items such as land on the Decentraland marketplace.
The highly anticipated project launched to the public on February 20th, 2020. And quickly followed by the creation of a DAO designed to ensure complete decentralization of the platform.
With so much money floating around Decentraland be sure to check out our article on how to make money in Decentraland.
The Sandbox games is an exciting Ethereum power virtual world from Sandbox Studios, one of the world’s leading computer game developers.
The project looks to create a decentralized virtual world in which gamers, artists, and creators can collaborate on projects.
The Sandbox has already conducted three hugely successful land sales with each selling out in a matter of hours.
Among the buyers were the iconic gaming creator Atari.
Atari is looking to use the virtual world to recreate gaming experiences inspired by their most popular games.
The highly anticipated project is expected to launch to the public later in 2020.
Somnium Space is an open-sourced virtual world designed for use with VR devices like the Oculus Rift and HTC Vive.
The project launched in 2018 and allows users to buy land and develop it within a common virtual universe
The launch of version 2.0 in February 2020 looks set to be a game-changer for the platform and allows for built-in NFT integration.
This means that users can now add NFT’s directly to their plots of land.
Another exciting development is the upcoming introduction of Somnium Spaces in-game cryptocurrency called Cubes.
The crypto facilitates micro-transactions on the network.
This will allow users to transact seamlessly within the Somnium Space virtual world.
With billions of dollars expected to flow into the virtual reality sector over the coming years, virtual real estate could very well be the next big thing. And if it does become the next big thing, early investors will reap the rewards.