What Is NFT Virtual Land in the Metaverse?
Virtual land in NFT can be considered as an ownable area of digital land that is available on a metaverse platform. Axie Infinity, Decentraland, and The Sandbox are some of the most popular NFT land projects. NFT's are an ideal method to represent land ownership since each NFT is unique and can be easily proven as a digital asset. Among the many uses of NFT land, you can advertise, socialize, engage in gaming, and do work, among others.
The owner of the land is normally able to use their plot to host online experiences, display content, or gain benefits in games hosted on their property. There is also a growing number of large brands and celebrities investing in and using NFT land such as Adidas and Snoop Dogg.
In terms of the value of a plot, it is determined by its utility, its potential project, as well as market speculation. It is possible to buy NFT land from a project in the context of a land sale or on the secondary market using an NFT exchange. It is crucial that you understand the risks and potential uses of the land and the project that will be developed on it. Sometimes, renting rather than buying NFT land might be the better course of action in some cases.
Introduction
The rapid growth of the metaverse over the last few years has created an interesting new use case for blockchain. Due to 2020 being one of the biggest years ever for the metaverse and Non-Fungible Tokens (NFTs), it is no surprise that virtual land has become a hot topic in the metaverse.
In some cases, NFT sales of land have exceeded the sale price of properties in the physical world, causing some people to have difficulty understanding the concept. NFT land actually shares a great deal of similarities with standard real estate property in terms of how it's developed. While NFT land is a digital asset on the blockchain, it has some interesting characteristics that are worth exploring.
What is the metaverse?
Metaverse refers to an online, virtual world that will bring together different aspects of our real and digital lives, including work, socializing, and recreation. By the start of 2021, many industry giants, including Facebook (previously known as Meta), Microsoft, and Epic Games, were exploring and developing the space. The blockchain technology is playing a vital role within the metaverse due to the fundamental nature of concepts such as ownership, identity, and economies.
What is NFT virtual land?
Metaverses are essentially digital worlds that users can normally explore with 3D avatars, as discussed previously. As an example, SecondLive is a venue that provides area and venues to accommodate concerts, conferences, and expositions. While SecondLive does not offer users the opportunity to purchase permanent virtual reality space, other metaverse worlds do offer this option. A developer creates large maps of land and divides it up into smaller parcels that can be sold on the market.
Users can purchase NFTs that are linked to a specific plot of land in order to represent their unique ownership of that property. In order to purchase these plots, you can either purchase them within the project or purchase them on the secondary market. The exact use you can make of NFT land depends on each individual project.
What are the use cases of metaverse land?
Landowners can use their virtual space in a variety of ways besides speculation:
1. Advertising
It is possible to charge a fee for advertising space in your plot if it is in a popular area and attracts a lot of visitors.
2. Socializing
on your digital land can include hosting community events and gatherings like concerts, conferences, and meet-ups for your community members.
3. Gaming
The NFT land you have may be useful for a video game based on the NFT. An example of this is a land in Axie Infinity that can provide additional resources, tokens, or crafting materials.
4. Work
A 3D avatar-enabled land can be used as a virtual office space or as a way for digital services to be offered. The Sandbox land will be used by PwC Hong Kong in their Web 3.0 advisory services.
Are global companies purchasing metaverse land?
There are already several prominent celebrities and brands who are purchasing properties in the metaverse. For example, on The Sandbox, Snoop Dogg has set up a Snoop Dogg Metaverse Experience which will feature his own work. In addition to purchasing space on the platform, Adidas has also built their own metaverse experience, known as AdiVerse. Apart from joining in with the hype of the metaverse and NFT, brands and companies can interact with their customers by offering them access to metaverse services, games, and products.
As a matter of fact, NFT land investment has surpassed retail investors to become an institution investors as well. The Metaverse Group is, for instance, making headlines for its purchase of large amounts of digital real estate. Even the headquarters of the group are located in Decentraland's Crypto Valley. In addition, the consulting firm PwC also bought Decentraland plots in December 2021 as part of its advisory services related to web 3.0.
What affects the price of NFT virtual land?
In the same way as other non-fungible tokens or cryptocurrencies, the price for a plot of virtual land is determined similarly. The main factors to consider are as follows:
1. Utility
It differs from many other NFTs in that virtual land can usually be utilized in a variety of ways. It depends on which platform the NFT is on whether the use cases will differ. For example, Decentraland allows its users to customize and create their own land in the virtual world.
It might be worthwhile to charge for advertising your land if it is located in a popular area or receives a lot of visitors. You can earn benefits through a blockchain video game if your land is in a popular area. Besides improved stake bonuses, you may also have experienced unique in-game events, such as in Axie Infinity.
2. The platform
It has been observed that popular platforms such as Decentraland, The Sandbox, or the upcoming My Neighbour Alice have higher prices for NFT land compared to others. The reason for this is that market demand and supply tend to be in balance. There is a much larger audience and greater interest in these platforms than smaller projects.
3. Speculation
A large number of NFT lands have been sold in the past, and this has contributed to a large amount of speculation. For example, in November 2021, the NFT real estate company Metaverse Group spent about $2.43 million purchasing 116 parcels of land in Decentraland. It is estimated that each plot will have an area of 16 square meters, giving them a total size of 1,856 square meters, all in Fashion Street.
Where to buy land in the metaverse
The methods of purchasing NFT land in Metaverse can be divided into two main categories. Land can be purchased directly from the project through a land sale, or it can be purchased from other users through a marketplace by participating in a land sale.
A NFT land sale is an excellent way to get land at a lower price than you would otherwise be able to get on the secondary market. There has been a rise in the prices of NFT land for most large metaverse projects, so buying land in a sale tends to be a better option than buying it outright. In some projects, all the plots are sold in one go, while in other projects, some or all of the plots are sold at a time.
The NFT exchange is regarded as the fastest, safest, and most reliable way of purchasing land on the secondary market. With this method, both the buyer and seller are protected by a smart contract that helps to maintain a smooth trade for the benefit of both parties.
Tips before buying your first metaverse land
In the metaverse, the process of purchasing NFT land should be treated the same as that of investing or making financial transactions. It is important to do your own research and consider the following factors:
1. Buy your NFT land from a reputable source
Make sure you have the correct official link if you are purchasing the land from a project sale. Never transfer money directly to other people's wallets when buying land from them. It is always advised to make the sale through a trusted, reputable marketplace or crypto exchange before you begin the process.
2. Decide if you want to buy or rent your NFT land
Your needs may not require you to purchase a piece of land, depending on what you need. Consider, for instance, holding a single event in a popular district. The price you pay will depend on the traffic, proximity to other important plots, and size of the plot that you are using depending on the platform you are using.
3. Consider the NFT land's project carefully
Choosing the right project will determine the NFT's utility and may also affect its cost. Consider the fundamentals of a project, such as its popularity, number of users, and team, before speculating on it and reselling it. Research which metaverse platforms are most suitable for your needs when selling advertising space or participating in another use case. NFT projects will not always succeed, so you should consider the financial risk before investing in NFT land. The land you buy may never have a use or demand, so you could end up holding on to it forever.