How to Buy Land in the Metaverse?
This article will focus on NFT technologies (non-fungible token, non-fungible token), the market capitalization of which in 2021, according to CEX.io, amounted to $ 8 billion, which is 56 times higher than in 2019. In this guide, we We will tell you why buying land in the Metaverses is a profitable investment, and we will give detailed instructions on how to buy it.
About the Metaverse
The idea of the Metaverse is not new. Back in 1992, Neil Stevenson talked about it in his science fiction book Avalanche. So what is it?
What is the Metaverse?
Metaverse is a virtual world, a 3D space where you can buy land, build your house, hold events and even trade. People interact with each other with the help of digital avatars and lead a full life in the Metaverse.
Today, the Metaverse consists of several unified platforms on which blockchain technology and cryptocurrencies work.
Key Features of Crypto Metaverses
Blockchain technology and cryptocurrency are the two main features of the crypto metaverse. It is they who make the ordinary virtual world a profitable investment, especially when it comes to NFT (non-fungible token). This digital token is a type of cryptocurrency whose system, which supports and registers transactions using cryptography, is decentralized. Only, unlike conventional cryptocurrencies, it can serve as an identifier for a unique virtual product, which makes its non-fungibility financially attractive to investors.
Any NFT is registered in a public blockchain registry. Blockchain is a chain of blocks of information that becomes invalid if the information is edited or deleted, because each block contains a link to the previous one, some combination of transaction information, timestamps and other metadata to confirm its authenticity.
It is the NFT technology that makes it possible to prove ownership of a virtual object. However, not all NFT-land blockchains can support the wallet in use. This must be checked before purchase.
What is land in the Metaverse for?
There are several options here.
- Investments. You can buy land at a lower price and sell it for a higher price a few years later. There is also an option to rent out the land.
- Advertising. If a lot of people pass through the site, then its owner can sell the place for advertising.
- Events. On the virtual earth, you can hold exhibitions, concerts, conferences, and even community meetings. This is a great space for both work and leisure. In some NFT games, the use of NFT land provides a number of advantages, for example, Axie Infinity in such cases provides additional resources for creating items or allows you to access unique events in the game.
- Work. On the purchased plots, you can open shops or digital art galleries. And PwC Hong Kong, for example, purchased land on The Sandbox platform to build a Web 3.0 consultation center.
Proving land ownership with NFTs is simple: lands are attached to specific NFTs. But this land can also be sold, for example, through an auction or through the Metaverse project. Land is paid for with cryptocurrency or fiat.
Where to buy land in the metaverse?
There is no single Metaverse yet, but there are projects that, with proper development, can become one in a fairly short time.
The Sandbox (SAND)
Another one of the multiplayer online games using blockchain technology and NFT. Users create their own games and worlds and trade on the gaming marketplace. SAND has three tokens: directly SAND, which serves as the main currency of the game; ASSETS, that is, goods that users themselves create in the game (and who have ownership rights to them) and LAND, that is, lands that can be bought, sold or rented out.
A virtual world built on the Ethereum blockchain and using NFT. The project has its own token: MANA, which can be purchased for cryptocurrency or fiat. MANA allows you to buy playable lands and collectibles. Unlike other similar games, it allows users with tokens to vote on the rules of this virtual world.
The most accessible Metaverse for beginners. Built on the basis of the Ethereum blockchain. It is the smallest in area, but is constantly developing. It does not require installing additional software or buying special hardware. You can log in using social networks.
Video game using NFT and built on the Ethereum blockchain. It has its own currency: ERC-20 tokens called Axie Infinity Shard (AXS) and Smooth Love Potion (SLP).
Star Atlas DAO
Multiplayer video game and decentralized financial technologies at the same time. For the construction of the spacecraft and its equipment, NFT is used, there is a Polis token.
A multiplayer game that allows players to exchange game items thanks to blockchain technology. Her token is called Enjin. One of the co-founders of the project, Witek Radomski, was the creator of one of the first NFTs. The platform allows you to create not only games, but also applications, as well as websites. For NFT trading and exchange, they provide the Jumpnet network.
The Sandbox and Decentraland are the most popular Metaverses today, so buying land there is the most profitable. Next, we’ll look at how to do this.
How to buy land in the Metaverse?
Instructions for The Sandbox
Land (LAND) The Sandbox are ERC-721 tokens of the Ethereum blockchain. To create your own property (ESTATE) in the game, you need to combine several lands. Before that, you need to buy them. Lands can be purchased with SAND (the in-game currency, as mentioned above) and Ether (ETH) through LAND public sales. It is also possible to purchase through the Sandbox Marketplace and NFT platforms, such as OpenSea. Consider the option with OpenSea.
- Step 1. Open OpenSea.io
- Step 2. Select The Sandbox in the search engine. We select the result, next to which there is a blue check mark “Verified”.
- Step 3. Install additional filters with which we will search for the ground.
- Step 4. Choose a suitable land.
- Step 5. Check if we have a crypto wallet. If not, then create it.
- Step 6. Choose a purchase method: via auction, direct purchase, or placing an offer to buy.
To participate in the auction, just click the Place Bid button. A window will appear asking you to confirm the action.
Direct purchase – from a person who sells land through OpenSea. To buy these lands, simply press the blue Buy Now button. Pay attention to the currency in which the seller indicated the cost. After that, you will need to confirm the action by clicking Checkout.
If the land has already been bought, but the owner has not put it up for sale or auction, then you can bid yourself. On the right side of the OpenSea page, select Offers and then Make Offer. After that, we select the currency in which we want to make an offer, the amount, the validity period of the offer. After specifying all this, click Make Offer. We are waiting for the consent of the owner.
Instructions for Decentraland
Plots of land in Decentraland are called Parcels. Each Parcel is an ERC-721 Land token. Several Parcels can be combined, as in The Sandbox, into one section, which is called the Estate. The cost is highly dependent on proximity to the Plazas (Plazas, which are located, for example, public parks or reference areas; the area around the Central Plaza is the most expensive), roads and thematic areas (Districts). Large Estates are also much more expensive than individual Parcels.
Now all the land available for purchase is the secondary market, since the land was bought from the developers before the public release.
You can own a piece of land in Decentaland if you have Land tokens. If not, then it is most profitable to buy them in the official Decentraland marketplace.
- Step 1. Install a cryptocurrency wallet compatible with Decentaland (for example, MetaMask, Mist or Ledger).
- Step 2. We register on any platform where ETH and MANA are sold, for example, on the Binance cryptocurrency exchange. To do this, register on the platform by e-mail address, pass verification by passport.
- Step 3. We buy ETH cryptocurrency (to pay the commission) and ERC-20 MANA tokens (to buy land), indicate the number of tokens we want to buy, click the Continue button and select payment by bank card.
- Step 4. Sign up for Decentraland Marketplace.
- Step 5. Go to the “Plots and estates” section. Select “View All”.
- Step 6. Select a site, click “Buy”.
- Step 7. Verify the land in your wallet.
How to sell land?
There are two ways to sell land: through the Metaverse project marketplace or on the secondary market, for example, through an auction on OpenSea. In this case, you need to go to the profile and click Sell. Only third-party marketplaces can be used to sell on The Sandbox.
Investing in the Metaverse
Earth in the Metaverse allows you to live on income from advertising, rent, your own store or art gallery, use it for work or leisure.
Is buying land a good investment
The growth of interest in the Metaverse is now at its peak: PwC researchers have predicted the growth of the Metaverse market from $100 billion in 2021 to $1.5 trillion in 2030. The more people, the higher the demand for land, because the price for it is a year grows from year to year, and the possibilities of using this site, as already mentioned, are almost limitless.
Is it safe to buy land in the Metaverse?
NFT creates unique tokens that cannot be counterfeited. In addition, NFT guarantees the transparency of transactions on the blockchain. This is relevant when it comes to registering ownership of an object, whether it be clothing, a work of art, or land.
In Decentraland, thanks to the DCL Renting service, it is impossible to steal a plot. For rent, a smart contract is concluded. The tenant can be sure that he will not be put up before the end of the transaction, and has the right to use the land at his own discretion, and the landlord will not worry that the rights to his plot will be transferred without his knowledge to another person. Both parties pay a commission for the transaction – “gas”.
Prospects for investment in the Metaverse
NFT attracts people with its ability to retain copyright on the virtual objects they create. With each new sale, a local copy of the item put up for auction is created, allowing you to trace the original. But the value of the original remains largely unchanged, which is important for collectors. However, resale can be disabled by setting the copyright_transfer parameter to false. Then the unique object will remain unique and unique.
Demand for virtual land is on the rise, reportedly $6,000 for a plot in mid-2021 versus $12,000 for a plot at the end of the same year. Trader Nicholas Merten called the Metaverse sector the most promising area of the crypto market in 2022. In April 2022, Citigroup published a report and estimated the possible value of the Metaverse at $13 trillion by the end of the decade. In a word, now this is one of the most promising areas for investment.
What is Facebook’s Metaverse?
What is the role of VR and AR in the metaverse?
Land is always a profitable investment, even if it is virtual. On April 20, 2022, the Coinbase NFT market opened. One day after he announced the launch of this market in October, there were already 1 million people on the waiting list.
The most famous and safest Metaverses in terms of real estate purchases are The Sandbox and Decentraland. But before buying on any platforms, you need to check if the wallet you use supports blockchain data.