Futuristic or fundamental? Either way, a very interesting possible future reality.
As I write this, I’m not sure I’ll fully grasp the concept for some time, however, here’s what we have learned at Vario so far!
To understand digital real estate, first you need to understand the Metaverse. The Metaverse, in effect, is a digitalisation of our universe. Digital real estate, is the equivalent of buying land in our universe. So why on earth would anyone want to own a digital representation of something that doesn’t physically exist in the real world. After all, if you can’t touch it, feel or smell it, is it even real?
I went on to research the Metaverse, and why it might be a game changer for our future and the property industry.
As described by the Motley Fool, in simple terms;
The term “metaverse” has been around for decades and was coined by author Neal Stephenson in his 1992 sci-fi novel Snow Crash. But the metaverse has gone viral lately, helped along by Mark Zuckerberg’s decision to rebrand Facebook as Meta (NASDAQ:META). Since then, metaverse has become a buzzword, frequently invoked by the media to get article clicks, capture eyeballs, and use as a platform to discuss cool tech stocks.
Broadly speaking, the metaverse is defined as a virtual world, or an extension of the physical world using computing technology.
In Stephenson’s Snow Crash and other works of fiction, such as Ernest Cline’s Ready Player One (adapted into the 2018 Stephen Spielberg film of the same name), the metaverse is accessed using Virtual Reality (VR) headsets. Basically, they are an advanced computer that immerses a user in the experience rather than presenting it on a traditional computer, smartphone, or monitor.
In other words, rather than simply viewing something (a live broadcast, webpage, work document, etc.) on a display, the metaverse is imagined as allowing us to be a more direct participant in a virtual experience.
If you haven’t tried VR yet, a place to add to your must visit list should be The Norwich VR escape room, open 7 days a week in the centre of Norwich. Follow this link to book your visit: https://www.norwichvr.com/
”A person’s presence in virtual worlds is represented by an avatar that can interact with the virtual world and other people in it”
”So we’ll need VR headsets to experience this world moving forward?” NO!
Some examples of current Metaverse existence could be Video games such Minecraft, ‘Habbo Hotel’ and ‘The Sims’ Other examples include Digital communication platforms such as ‘Zoom’ , AND the thriving metaverse already in existence: ‘Second Life’. Although these platforms allow us to only experience immersion in 2D, no doubt technology is already being developed to immerse willing participants into a more ‘touchy feely’ 3D world. And just like this world, the proposals are endless, what colour do I paint my walls and what to wear today will all still be everyday problems!
So, What is digital real estate?
Digital real estate to the Metaverse, is akin to real estate in the real physical world. You can think of it as buying land on another planet, where the rules of Earth no longer apply. Like buying land on the moon, there are still a limited number of parcels per platform, which creates scarcity and helps establish a more stable value. Remember, supply and demand will always be a factor in how any asset appreciated or indeed depriciates in value.
Depending on the platform in which you purchase virtual real estate, the land or space you buy can have various attributes. In more realistic platforms, this is typically limited to the size of the plot and a unique location, which can be found on the world map. In platforms that are more gaming-focused, it might also include additional attributes such as natural resources that can be mined and sold.
So what could you possibly use this digital real estate space for?
At present, it’s very much early days and testing the water. Unlike the physical world, there are no limitations, no planning permissions or restrictions. Some larger companies are building digital spaces as representations of their headquarters for example, where employees come to meet face to face in virtual reality. Some are buying digital assets, and simply allowing others to advertise in their space, a digital billboard if you will. Other suggestions go as far as building digital cafes, shopping centres and meeting places… I guess.. the limitations are are endless!
To truly move forward into this world, technology to support a 3D life will need to be embedded into everyday life, just like smartphones and dashcams, until then, watch this space!
Credits to: https://www.fool.com/
Article Written by Christina Mallinder @ Vario Estate Agents
