A recent article on Redfin reminds us that everything is becoming virtual nowadays – from artwork, to concerts, to marketing, to meetups, virtual tools have entered most people’s daily routine. However, it goes without saying that real estate, too, has entered this digital world in the form of something called the “metaverse.” Redfin attempts to unravel what this thing is all about and explain what’s behind all of the hype & mystique. Some of the concepts are, quite frankly, hard to grasp and it is clear that the metaverse isn’t for everyone. However, say what you will, it is certainly interesting. At the conclusion, Redfin says “So what will metaverse real estate eventually become? Nobody really knows.” Yes, indeed…
“Metaverse real estate isn’t about buying and selling physical real estate with online tools – people already do that every day. It’s also different from a typical family buying a house in Phoenix, AZ, or renting an apartment in Seattle, WA. Metaverse real estate is a collection of online platforms where strangers can connect with each other, businesses can release digital products, and people can buy, sell, and lease virtual property.”
“Metaverse real estate is made up of parcels of land in a virtual, interactive world – simply put, pixels on a computer. People buy and sell this land with cryptocurrency, generally as an investment. The most popular metaverse websites, like Decentraland and The Sandbox, host space for buying, selling, and leasing real estate.”
- Metaverse: a collection of virtual, interactive worlds where people can live their lives with others.
- Decentralization: Decentralization means that there is no one person in charge…decisions are made by a group as a whole.
- Blockchain: Blockchain is a way of storing and distributing data. Instead of using tables, it structures data into chronologically strung-together blocks.
- Cryptocurrency: A cryptocurrency (or crypto) is a decentralized digital form of currency that is blockchain-encrypted.
- NFT: An NFT (non-fungible token) is a unique digital asset generally traded through the Ethereum (a crypto company) blockchain.