The metaverse, an idea that a few years ago it was only the delight of fans of science fiction, is now a reality in training and the possibilities that this new space gives to those who are willing to jump on the ship of progress are endless. For those who grew up in the era of the nineties to understand the metaverse is very simple as this-world immersive virtual recalls the well-known video game of roll massive set in a world full of magic, where each user is using an avatar. For the digital natives Roblox or Minecraft are its nearest reference of an RPG (for its acronym in English: role-playing game). And for those who may not have had the opportunity to play such games, the simplest explanation is the following: the metaverse is a virtual world immersive where people use an avatar to be able to move through this world.
In the metaverse, people can buy virtual objects or physical to the real world, the entertainment such as concerts virtual, movies, immersive, travelling without moving away from home, and remote work reach a new level. But as all the world, will always be required spaces for each type of activity. Shops, offices, homes, streets, schools, universities and places of entertainment are some of the spaces that must begin to be built in the metaverse. And when we talk about building in this virtual space, the idea of a metaverse real estate is something that we have to keep in mind for those entrepreneurs eager for new opportunities.
Metaverse Real Estate
The new world, the metaverse is a site that comes from being part of the imagination of humanity since already several years ago. But who gives this name is a so-called writer Neal Stephenson in his book Snow Crash, published in 1992. In linguistic terms metaverse is composed by the prefix meta which can be understood as “beyond” or “after” and the word universe, the meaning of which refers to everything that has a physical existence within and outside of the planet Earth; from the union of these two words we can understand the metaverse as “beyond the universe”. And when we talk about metaverse we must understand that this virtual world is not only speaks of a world parallel to and disconnected from the real world, as the metaverse also offers to make their appearance in the real world through augmented reality. Thanks to this possibility of being able to live between two worlds, and the metaverse is a great opportunity for those companies that want to use spaces in the physical world to promote themselves through the virtual world. The juxtaposition of these two worlds is a great advertising tool that currently has been used in an incipient manner, but in a few years will replace the large neon signs. The virtual stores such as Amazon or Alibaba can create spaces and immersive, where they can sell their products to the physical world or to the same virtual world. These small advances in the way of living are also an opportunity for the real estate sector. This world is being created from scratch, and the plots are already selling, the projects are running, and the metaverse real estate takes its first steps.
What is it and How does it work?
The metaverse real estate is the new economic activity that has emerged with the creation of the metaverse, and refers to the creation, development and promotion of real estate projects within the metaverse or real estate projects in the physical world promoted within the metaverse. As well it has already been explained above, the conquest of the metaverse does not imply absolute decoupling of the physical world, on the contrary, should be understood as an extension of the real world. A parallel world which in some points can be seen in the physical world thanks to augmented reality and in other cases, to be the showcase immersive real estate projects to the physical world that are still under construction. Many times we pass by terrain “brandeado” where we see a big sign that indicates that a residential, office or institution will be built, but thanks to augmented reality, we might be able to see the building finished and have a visit to a place that's still in the plans.
In order to understand the functioning of the metaverse, we must understand or know a few terms:
Blockchain: The technology of the Blockchain is a digital tool that allows you to give security, accessibility and transparency to the transactions virtual, criptomonedas, tokens and NFT'S. The foundation of the Blockchain is based on the chain of blocks. This implies that the validation of any activity is given by all users on the system. An example is the sale of a virtual property, when sold, how much is sold, and those who partake of the sale is registered within a “great book”, but the thing that makes this book is incorruptible is that all users are given a certified copy of the said book, not only the participants of the transaction, but all users on the system. So that, if someone wants to manipulating the registry, all copies stored in each user launch the incompatibility alert, and this makes it impossible for a record to be manipulated by a single user. In simple terms Blockchain is a great record whose validation is community-based. In the metaverse, this technology is that it will give the support for the legitimacy of their activities.
Criptomoneda: This is a currency of digital that makes use of Blockchain to ensure the integrity of transactions. In addition, this type of coin has a encryption cryptographic and this avoids the creation of copies or additional units on the part of any user. This currency has no physical form, only virtual.
Token: A Token is an asset or object that has a value in a given context or for a particular community, despite the fact that its own material value doesn't contain an actual value. A clear example are the tokens of a casino, within the casino represent amounts of money and can be exchanged for money.
NFT: Non-Fungible Token. It is a good digital only unique and indivisible. This active type digital validates its authenticity thanks to the technology Blockchain, which allows to certify its authenticity, value, property, and thanks to a contract virtual can be marketed.
The operation of the metaverse real estate is not very different of the real estate sector conventional, as there are projects, lots, or parcels, a place where you are located and a team of work that must build this project. If there is a change of cement by units of information block stored in servers, the idea of the sector is very similar. The changes that are most noticeable are probably the methods of payment as the use of criptomonedas, or the possibility of a greater dynamism of the reality in that world. While the use of criptomonedas it is not something that is given as the only form of payment, without a doubt, this new world will move the digital currencies to another level. On the other hand, when we speak of dynamism in this world, we must understand that we could enter a building virtual with an AI that manages the operation and safety of the same. THE use of criptomonedas also implies the use of Blockchain other digital tools that will be of vital use to be able to sustain the new reality. While the Blockhain is not a new concept that was born with the metaverse, the creation of this world will make this type of technology to be used by all users. In summary, in the Metaverse real Estate properties to be sold as NTFS, or Tokens will be paid with criptomonedas, and will be validated thanks to the Blockchain.
Know if really the Metaverse real Estate is a Boom
Yes, the Metaverse real Estate can be considered as a Boom. And to sustain this response we can make eco of figures given by reports such as the Brand Essence Market Research, which indicate that the metaverse will grow annually by 31% between the years 2022 and 2028. This estimate is based on the sale of real estate of the metaverse amounted to 501 billion in 2021, according to numbers given by Goal-Metric Solutions. These figures are covered in the data given by the four main platforms of the sector: Somium Space, Cryptovoxels, Sndbox, and Decentraland.
But what makes the metaverse real estate is really a boom is the fact that the value of the plots have a significant increase in recent years and that all kinds of companies worldwide are betting to have a space in this new world. Companies such as Gucci have had a space inside of Roblox to celebrate its 100 years, something similar comes by Nike with its Nikeland, a space for lovers of the brand, can visit you within this virtual world. Amazon, Sony, Target, and Microsoft by your side come investing 177 billion dollars in the development of virtual environments according to Mckinsey.
In addition, there are virtual worlds such as Decentraland, where a plot began costing 20 euros and currently come along 12 thousand euros. Although there are virtual worlds that are being created, we have to understand that the metaverse as such, this compound of different worlds or small metaversos that in the future will be able to join and interact. This way it will be possible to sell assets of a metaverse into another and vice versa. Advances in AI and augmented reality are two great allies to the creation of the metaverse, and the interaction of the users, since they help to ensure that people can cope with this virtual space without major complications.
Discover here the Advantages and Disadvantages.
Like all great technological advancement that comes into our lives, we can always clearly see the advantages, but we must also take into account the disadvantages that it can bring. Below is a short list of the advantages and disadvantages more important that we can see in the metaverse real estate:
Advantages:
- A display case virtual: You can serve for real estate companies to expose their new projects before the start of construction in the physical world. In addition, can be used to evaluate possible concepts and see the possible acceptance. In the case of users or potential buyers allows them to see the possibility of the project without moving from physical form, which allows you to save money and time.
- Diversification of investment portfolio: Beyond the cement, the metaverse allows you to have new products couple to invest and be able to offer in the market rise. A market where today you can still find land at low cost”
- May require a lower investment: Many times the costs in a real estate development virtual will be much less than one in the physical world. This allows the investment is less, as it requires less personnel, materials, and machinery.
- Telework: Telecommuting came with the pandemic of Covid-19 and it came to stay. The metaverse real estate is a possibility to meet the need of virtual spaces such as schools, universities and offices.
Disadvantages:
- Fear of the new: The fear on the part of investors and buyers to this new world can be a barrier in the initial years of the metaverse real estate. This will be reduced with the passage of time and the reliability that this environment starts to win.
- Difficult adaptation: All great change requires an adaptation in which many times takes a while. The new world requires a new change in the currency, new research departments, devices such as lenses to be able to navigate this world.
- The problem of price: Being a new world, the determination of the price will be a complex problem. Set the price of a property within the metaverse will be a task that will be achieved by moving the famous invisible hand of the virtual world.
- The price of the equipment to enter the metaverse: In the beginning the metaverse will be limited due to the cost of the devices needed to be able to have the immersive experience. However, the augmented reality and immersion through computers classics will be the beginning of this change.
Now that you know the advantages and disadvantages of the metaverse real estate, do not wait any longer and soak up all the information possible to be able to enter in this universe that opens up a number of opportunities for pioneers begin to build this new world.
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