There is no doubt that blockchain technology has been responsible for a new era in ownership of digital properties. The word non-fungible token is trending to become the term of 2021, as these assets have exploded in popularity in recent months. They are units stored on a blockchain that certifies the uniqueness and ownership of digital assets. Unlike physical authenticity certificates, it is impossible to falsify ownership of NFT assets. Thus, non-fungible tokens have become the backbone and the fuel that has given rise to virtual worlds known as metaverses.
What are metaverses? They are digital shared spaces where users can explore a vast map, interacting and transacting with others on their travels. Think of them as sandbox games like titles in the Grand Theft Auto or the Elder Scroll series. The most popular such worlds are Decentraland, the Sandbox, Somnium Space, and Axie Infinity. All of these work on the Ethereum-blockchain and feature native fungible tokens based on the ERC-20 standard. These tokens are the basis of their economies.
In short, a metaverse is an expanding matrix that features business opportunities similar to those that exist in the physical world and potential for total immersion via VR technology.
Sell & Manage Virtual Real Estate
All of the metaverses mentioned above have a fixed number of plots of land that have a specified size and are non-fungible tokens based on the ERC-721 standard. Users can purchase them via auctions or at designated marketplaces. Once they attain their plots, they can do with them as they please. Buying connected ones makes it possible to form vaster assets called estates, on which users can build massive structures, which have no height limits.
The ERC-721 standard makes the transfer of NFTs easy and fraud-free. Given that the popularity of metaverses has been sky-rocketing since the start of 2021, those who own land in these virtual worlds can flip their plots for prices far higher than their acquired ones. Many industry experts are now advising clients to get in on this booming sector as soon as possible. The online investment platform Republic recently launched a series of digital real estate funds title Republic Realm that focuses on investment opportunities in the virtual real estate sector.
Run Virtual Businesses
Those who own land and have built structures on top of their properties can use their creations as centers from which they run one or multiple businesses. For example, imagine if you make a gambling venue that produces similar revenues to online casinos. Well, no need to stretch your imagination there, as Atari already operates a virtual casino inside Decentraland, which launched on April 28th. It debuted with a virtual party headlined by electronic musician Dillon Francis.
There are also several nightclubs running in Decentraland, with Amnesia Ibiza set to open its virtual venue inside this world as well. Per a recent announcement, it will feature three rooms, one showing real-time events and another one dedicated to streams.
Entertainment-based operations aside, metaverse users can operate any business fathomable inside these worlds.
Create Custom Items & Build Up In-Game Characters
Metaverses allow users to create assets such as in-game items that they can later sell at marketplaces. These assets can range from pieces of clothing to vehicles. However, the gameplay in Axie Infinity revolves around pet-like creatures called Axies, which can get purchased or bred. These are Pokémon-inspired beings that evolve through battles and gained experience. They are also non-fungible tokens whose value rises as they grow to become more powerful.
In early November of 2020, an Axie named Angel got sold for $130,000, and it instantly got re-listed for sale with a price tag of double that amount. In the Philippines, Axie Infinity has gained massive traction during the government-issued lockdowns. Its developer (Sky Mavis) claims that over 29,000 Filipinos are playing this game due to its legitimate income-earning potential. In April of 2021, 22-year-old Filipino John Aaron Ramos stated on social media that he bought two houses in the Philippines with profits earned while playing Axie Infinity.
The price of Decentraland’s native token – MANA, hovered between $0.02 to $0.09 for the better part of 2020. However, once the NFT boom began with brand companies announcing projects set to develop in this virtual world, the price of MANA hit an all-time high of $1.5 in May of 2021. Therefore, proving that as these metaverses grow, there is real potential to profit through trading their native tokens.
To Wrap Up
No one can argue that the pandemic-induced stay-at-home measures greatly influence the expansion of virtual worlds. Most such platforms have been operational for several years, yet they only recently got discovered by a wider audience, who are now aware of their money-making possibilities. Thus, it is unlikely that their popularity will soon dwindle.
About the Author
Shelly Schiff has been working in the gambling industry since 2009, mainly on the digital side of things, employed by OnlineUnitedStatesCasinos.com. However, over her eleven-year career, Shelly has provided content for many other top interactive gaming websites. She knows all there is to know about slots and has in-depth knowledge of the most popular table games. Her golden retriever Garry occupies most of her leisure time. Though, when she can, she loves reading Jim Thompson-like crime novels.