With regard to capital appreciation, real estate has traditionally been considered to be one of the more popular investment options. Remember, it is a limited resource whose value is intrinsically related to its status as a scarce resource. What happens, though, when real estate begins to lose its sense of reality?
Please allow me to introduce you to the world of virtual real estate. A booming real-world housing market can be found in this area of the country. The entire spectrum of options is available, from real estate agents and leasing agreements to land owners. Except for the fact that it’s all taking place in virtual space, which was a far-fetched notion just a few decades ago but is now becoming a reality.
Decentraland is a virtual reality platform that is built on the blockchain. A user’s content and applications have the ability to be created, consumed, and monetized by other users. The land in Decentraland is owned by the community in perpetuity, allowing them to have ultimate control over their initiatives. Users can claim ownership of virtual land by registering their claims on a blockchain-based parcel registry. Landowners have complete control over the material that is published on their parcel of land, which is defined by a set of cartesian coordinates (as opposed to GPS coordinates). Static three-dimensional scenes and interactive systems such as games are examples of content that can be created. An Ethereum smart contract is used to store land, which is a non-fungible, transferable, limited-edition digital asset with a finite supply. It can be obtained through the usage of an ERC20 token known as MANA. MANA can also be used to purchase digital products and services in the real world, according to the developers.
As a society, we can all agree that many of us are increasingly spending our time in virtual worlds (have a look at your children right now…), both for enjoyment and for work.
This is particularly widespread in two-dimensional interfaces, such as the web and mobile phones. But a traversable 3D world adds an immersive element while also offering proximity to other materials, allowing physical clusters of communities to be formed and developed.
Consider combining it with the addition of real-world “data,” such as actual blueprints, Matterport 3D representations, and so on, as well as the use of oracles to extend its applications into the metaverse.
Alejandro E. Jordan, Esq. is the Chair of the ESQ.title | Real Estate Law’s Residential and Commercial Real Estate Closing/Title Insurance Group, with nearly two decades of experience in the business of real estate closings, finance, and development. His broad base of knowledge allows him to stay ahead of the game and keep abreast of the latest market trends. If you have any questions on whether or not a particular real estate investment is right for you or your buyers or sellers, need assistance in drafting offers, contracts, LOIs, or in analyzing due diligence on a particular opportunity, or just have a question on your next real estate closing or potential transaction, contact us at 305-501-2836 or visit us at www.esqtitle.law for immediate assistance.