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What Does It Mean To Buy Land In The Metaverse?

What Does It Mean To Buy Land In The Metaverse?

It is no secret that the Metaverse trend is becoming increasingly popular. It has mainly been making headlines a couple of months ago, with Venture Capital investing to secure a plot of land in the Metaverse. This is a new concept that many people struggle to understand: why would someone spend so much money just to buy something virtual in a game? More importantly, what are these people buying, and why do they think that land in the Metaverse is worth so much? This article will explore what it means to buy land in the Metaverse, and why so many people are paying close attention to it.

As a disclaimer, it is important to note that the people spending millions of dollars on land in the Metaverse tend to be VCs. These people have ample funds at their disposal, and could  afford to lose. That is what a VC is all about, after all: look for extraordinary home runs, knowing that most investments might fail. However, some venture capitalists believe that the Metaverse is not over-hyped, and it could continue  growing exponentially over the next 10 years.

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Although we do not know who will be the winners in this space, VCs are willing to place large bets now, just in case their vision plays out as expected. Time will tell if the Metaverse is truly the next wave and not some over-hyped, over-invested new technology like Virtual Reality was in 2015.

So, what does it mean to buy land in the Metaverse? The answer is simple: you are buying a parcel of virtual land in a game that nobody else can own or claim. Just like physical land is scarce in reality, digital land can be as well. In real life, land in a city is finite. For example, one cannot add more land to the city of Paris. This is why prices in Paris tend to be so competitive: as more people want to live inside of the city than there is space in the city, prices go up. 

This same principle applies to virtual land. This land is limited in space, and therefore people need to compete in order to own a piece of the land. The Sandbox Metaverse, for example, only has 166,464 LANDs (parcels of land) that can be purchased, traded and built on. The Decentraland Metaverse has 90,601 LANDs that can be sold. This means that very few people will ever be able to own a parcel of land, let alone a large plot of land like these large whales are able to do.

What Does It Mean To Buy Land In The Metaverse?

The current map of the Sandbox Metaverse. Via [SandBox]

Now, the big question arises: Are there any benefits to owning a piece of land in the Metaverse?

Just like real physical land, one can customize his land in the Metaverse as he sees fit. People can create virtual concerts on their parcel of land, and charge a small fee for everyone coming to the concert. 

People can customize their land as they see fit.

People can create anything that they can imagine, as opposed to the real world where there are building regulations and actual physics limiting our imagination. Do you want to add dragons in your land? You can do that! Magicians? magic powers? floating boats? It is all possible, since the land is virtual! Instead of being limited by real life, your creations on the land are now only limited by the Metaverse’s code and rules.

How can we ensure ownership of our land?

Can’t the game company just choose to take ownership of our land whenever he sees fit? What security do we have that the land bought is truly ours?

This is where blockchain and NFTs come into play. For physical land, people must trust the deeds and the contracts that are registered with the government in order to know who owns which parcel of land.

In many ways, we are even at the mercy of the governments to ensure that our land will never get repossessed in the future. With virtual land, the ownership is guaranteed and incredibly easy to prove, thanks to blockchain technology. Each parcel of land is actually an NFT, and is owned by a certain crypto wallet.

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Since this information is stored on the blockchain and is immutable, there can be no doubt about who owns which parcel of land at any given time. That is actually the core function of blockchain technology: a 100% accurate, immutable ledger of transactions. One can easily tell who owns which parcel of land by looking through the blockchain explorer. 

What Does It Mean To Buy Land In The Metaverse?

Example of the sale of a parcel of land which is recorded on the blockchain explorer

What exactly constitutes a Metaverse, anyways?

This is an incredibly hard question to answer for now, as the Metaverse field as a whole is still being developed.

For now, a Metaverse is a virtual world where different people can gather, share, play games and participate in activities. It is an alternate virtual world.

There is no single Metaverse, but many Metaverse worlds: the Sandbox metaverse, the Decentraland Metaverse, and the MetaHero metaverse are just a few examples of the many Metaverses that exist today.

In many ways, a Metaverse for now is just an open-world online game that has some crypto integrations. Since we are in very early stages of the Metaverse, it is very unclear which Metaverse worlds are here to stay and which Metaverse worlds will eventually become extinct.

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In conclusion, buying land in the Metaverse means buying a piece of virtual land in an open-world game. There is different land to buy for different metaverses, and each Metaverse decides in advance how many plots of land are available to customize and sell.

The ownership of this land is guaranteed and secured by blockchain technology, ensuring that there is no doubt about who owns which parcel of land in the Metaverse.

There are many different Metaverses to choose from and to buy land in; nobody knows which Metaverse will still be around ten years from now. No matter what, land in the Metaverse gives you the rights to customize that land however you see fit!

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