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.
After initially struggling to achieve widespread adoption, 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's decentralized technology opens up exciting new frontiers for VR by creating fully transparent tokenized virtual economies run on cryptocurrencies.
Non fungible tokens (NFT's) otherwise known as crypto collectibles can be used to create anything from virtual land, images to games and applications.
This allows virtual reality content creators to benefit by tokenizing their creations and securing 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 states 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.
Once a piece of land is purchased users have the right to develop and monetize it in anyway they see fit. All types of businesses are beginning to pop up in the virtual sphere such as games, shops and even virtual theme parks complete with roller coasters.
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 main stream lets take a look at the best virtual land blockchain projects to keep a close eye on
Decentraland is the world's first Ethereum powered virtual world owned by it's users.
The platform consists of over 90,000 individual 10x10 meter plots of land known as parcels which 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 it's own virtual currency MANA which is used to 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 (decentralized autonomous organization) designed to insure 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 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 success land sales with each selling out in a matter of hours.
Among the buyers were the iconic gaming creator Atari who are 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, meaning 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 which has been designed to facilitate 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 with early investors set to reap the rewards.
Author: Ronan Mullaney