The Metaverse: A New Frontier of Virtual Life Driven by Blockchain Technology

The concept of the metaverse represents a whole new future for the internet, an immersive and persistent online virtual world where the lines between reality and digital life seamlessly blend. This space encompasses diverse aspects such as work, social interactions, and leisure activities. In 2021, global tech giants like Meta (formerly Facebook), Microsoft, and Epic Games jumped into building and exploring the metaverse, signaling that this three-dimensional digital platform is set to transform human lifestyles significantly.


Crucially, blockchain technology plays a foundational role in the metaverse by ensuring the validity and security of users' digital assets ownership, identity verification, and economic activities through its decentralized nature. Every inch of metaverse land, every virtual item, could be uniquely identified and have its ownership recorded immutably with non-fungible token (NFT) technology. For a deeper understanding of the metaverse's fundamental architecture and core values, please refer to our dedicated article on the topic.

NFT Virtual Land: Digital Property Rights in the Metaverse

In this vast digital world known as the metaverse, NFT virtual land represents a unique and non-fungible digital asset. Users acquire exclusive ownership of a particular plot by purchasing a non-fungible token (NFT) tied to that specific piece of land. This ownership is based on blockchain technology, ensuring transparency, verifiability, and immutability.


Take projects like SecondLive, for example, which provide users with a space to participate in events such as concerts and conferences using 3D avatars, but do not allow them to directly own permanent virtual spaces. However, in many other metaverse projects, developers divide the entire virtual environment into multiple small plots of land and sell them publicly.


Users can acquire NFT land not only during the project's initial public sale but also through free trade with other players in the secondary market. The specific uses of NFT land vary depending on the rules and design of the respective metaverse project and may include constructing virtual stores , hosting events, displaying art, or even holding it as an investment with the expectation of increasing value over time.

Diverse Applications of Virtual Land in the Metaverse

As owners of NFT virtual land in the metaverse, they not only view it as an investment but also creatively develop various practical uses:


1. Digital Advertising Platform: Like prime locations in the real world, plots located in popular areas of the metaverse can attract a large amount of traffic. Owners can rent out their space for displaying ads and thus earn advertising revenue.


2. Venue for Social Events: Owning virtual land means being able to organize concerts, seminars, community gatherings, and other social events within it. For example, users can build a virtual stage on their plot to invite artists to perform or host online meetings.


3. In-game Assets and Resources: In some NFT games, such as Axie Infinity, land serves as an in-game asset that provides additional game resources, in-game token rewards, and may become a base for producing in-game raw materials.


4. Virtual Workspace: As remote work trends continue to develop, virtual land in the metaverse can also be transformed into 3D virtual office spaces, providing services for companies or individuals. For instance, PwC Hong Kong plans to offer Web 3.0 consulting services on its purchased The Sandbox land, creating a brand new digital workspace.

Multinational Corporations and Renowned Brands Enter the Metaverse Real Estate Market

As the concept of the metaverse matures and the value of NFT virtual land becomes increasingly prominent, more and more international corporations, brands, and even celebrities are entering this field. For example, in The Sandbox, a popular metaverse platform, Snoopy, a globally recognized IP, is working on creating an exclusive Snoopy metaverse experience area, while sports brand giant Adidas has also purchased a plot there to build the AdiVerse metaverse space, providing users with innovative and unique interactive experiences.


No longer limited to individual investors or small teams, large institutions have also begun to focus on NFT land investments within the metaverse. For instance, Metaverse Group, a group specializing in digital real estate, has attracted widespread industry attention for purchasing a large amount of virtual land in Decentraland, almost setting up its "headquarters" in the Crypto Valley area within Decentraland. Additionally, PwC, one of the Big Four accounting firms worldwide, purchased a plot in Decentraland in December 2021, aiming to strengthen its Web 3.0 consulting services and lay the groundwork for new scenarios in future digital services.

Key Factors Influencing the Price of NFT Virtual Land

The pricing formation of non-fungible tokens (NFTs) virtual land in the metaverse is influenced by a combination of various factors. Here are the main considerations determining the value of NFT land:


1. Utility and Potential: The value of virtual land is closely tied to its utility. Landowners on different metaverse platforms can leverage platform-specific features for personalized creation and applications, such as opening virtual stores, hosting events, or displaying advertisements on platforms like Decentraland. Prime locations with high traffic can generate revenue through advertisement fees and may produce income through interactions in blockchain games, such as enhancing gameplay experiences and resource acquisition in Axie Infinity.


2. Platform Effect: The brand influence, user base, and market heat of different metaverse projects significantly affect the price of virtual land. Well-known and highly active platforms like Decentraland and The Sandbox often have higher market prices for their virtual land due to their scarcity and strong demand. In contrast, smaller or emerging projects generally have lower land prices due to their smaller user scale.


3. Speculation and Market Dynamics: Speculative activities play an essential role in influencing fluctuations in the price of NFT virtual land. Investors often make investment decisions based on market trends and expected appreciation space. For example, in November 2021, Metaverse Group, an NFT real estate company, spent approximately $2.43 million to purchase a collection of 116 plots covering an area of 1,856 square meters in a prime location within the fashion district of Decentraland. Such large-scale investments not only reflect the current market hype for virtual land but also further drive up the prices of similar assets.

A Guide to Buying Virtual Land in the Metaverse

There are generally two main ways to purchase non-fungible tokens (NFTs) for virtual land in the metaverse:


1. Participating directly in project land sales: Buyers can closely follow official announcements from various metaverse projects and participate in their organized initial land sale events. In such cases, land is usually sold at lower prices, especially for new plots that have not yet entered the secondary market. Some large metaverse projects may release all lands for auction or lottery distribution at once; others will gradually release them in batches, providing multiple entry opportunities for potential buyers.


2. Trading through NFT marketplaces on the secondary market: Once the land has been sold and enters the secondary market, buyers can use well-known NFT marketplaces like LBankNFT Market and OpenSea for buying and selling. These platforms ensure transaction security and convenience, with smart contract technology safeguarding the rights of both buyers and sellers. For example, LBankNFT Market supports NFT transactions on Ethereum and other blockchain networks, while OpenSea is compatible with Ethereum, Polygon, and Klaytn, offering users a wider range of options.


When purchasing, it's important to note that land prices on the secondary market will fluctuate based on factors such as demand, scarcity, and project development status. Therefore, thoroughly understand market dynamics and cautiously evaluate investment risks before purchasing. Additionally, familiarize yourself with the operation processes and fee standards of relevant platforms to ensure a smooth transaction.

Tips for Your First Purchase of Metaverse NFT Land

When delving into the metaverse world and preparing to buy non-fungible tokens (NFTs) for virtual land, as with any investment or financial transaction, caution should be exercised and thorough preparation should be made beforehand. Here are some key considerations:


1. Choose legitimate channels: Make sure to purchase NFT land from official and trustworthy sources. If participating in a project's land sale, proceed directly through the link provided on the official website to avoid risks such as phishing scams. When purchasing from a secondary market, opt for reputable trading platforms like LBankNFT Market and OpenSea, which use smart contracts to ensure transaction security.


2. Weigh buying versus renting needs: Consider whether to buy or rent NFT land based on your actual usage. For example, renting may be more cost-effective when hosting events for a short period. Rental prices typically depend on factors such as the location, traffic volume, size, and distance from other important landmarks within the metaverse.


3. Thoroughly research your investment projects: Carefully evaluate the potential and value of the selected metaverse project. Pay attention to its user base, community activity, background of the development team, and prospects. For speculators, consider the project's intrinsic value and market heat; while for buyers seeking practicality, learn about different platform features and market demand to determine if the platform's NFT land has long-term value. Keep in mind that not all NFT projects can sustain success, and blind investments can lead to capital lockup, making it difficult to resell or realize expected returns.

Conclusion

In conclusion, as a new paradigm of the internet that combines blockchain technology with virtual reality, the metaverse is reshaping human life, work, and entertainment spaces in unprecedented ways. Among them, NFT virtual land, with its unique form of digital property rights, has become a key bridge connecting the real world with the virtual one. As global tech giants rush to position themselves in the metaverse field, and numerous well-known brands and multinational corporations scramble to purchase NFT land, this market is rapidly rising and showing promising prospects.


In the future, we expect NFT land in the metaverse to further expand its application scenarios, extending from advertising displays and social interactions to online offices, game development, and more, potentially giving birth to entirely new business models and societal forms. In this process, investors and users need to keep pace with market developments and technological advancements, carefully assessing risks and opportunities, to maximize personal asset value and efficient use of social resources.