Digital Real Estate | How the Metaverse is Transforming Real Estate

From buying websites as assets and reselling them for money, to owing real houses but on the metaverse or virtually, you can own lands and houses on the Internet.

This article will tell you the differences between selling websites like real estate and buying lands and houses on the metaverse, why to invest, how to invest and how to make money from digital real estate.

What is Digital Real Estate?

The terms virtual real estate and digital real estate are interchangeable. Digital assets like domain names, social media accounts, and digital currencies can all be referenced as virtual real estate.

It’s as simple as buying a house or land to rent or sell for profit. Digital real estate works the same way.

Every domain name, every website, and every blog you see online is internet property. It’s digital real estate you can buy and sell just like those houses, apartments, and lots.

In fact, there are people making a living buying and selling domain names and websites full time. Some domain names sell for millions of dollars, and websites often get acquired for hundreds of millions of dollars.

And yes, you can make money with digital real estate too.

Metaverse Digital Real Estate

Metaverse real estate is just starting to show up on the radar of many real estate investors. The metaverse is made up of different platforms that allow people to interact with others and build their digital dreams.

Those dreams can be anything, from miniature games in haunted cemeteries to advertising billboards or commercial districts and metaverse HQs for businesses already established in the real world.

There are currently only four platforms in operation that offer significant opportunities for purchasing virtual real estate.

Decentraland, The Sandbox, CryptoVoxels, and Somnium Space (Decentraland and The Sandbox are currently soaking up most of the spotlight and the commercial interest).

How Does Metaverse Real Estate Come?

Land in each metaverse platform is limited to a set number of lots. The number varies, depending on the platform.

In that way, land in the metaverse is a limited commodity, which is why investors are currently interested in getting their foot in the door before the best spots are taken.

They secured virtual real estate on these platforms with very real deeds in the form of non-fungible tokens (NFTs).

When you buy a piece of digital real estate, your purchase is recorded on the blockchain and the NFT is transferred to your digital wallet, the same place you store your cryptocurrency.

This is similar to how real estate in the real world is held: there’s a title for each individual parcel of land, it’s recorded in a registry, and you get a copy to prove your ownership.

You can buy virtual real estate either in the platform’s marketplace where it exists or on a third-party NFT marketplace like OpenSea.

What Are The Advantages Of Digital Real Estate?

Even if you don’t see yourself as the investor type of person, there are a lot of advantages to this type of investing.

Here’s a list of reasons why investing in digital real estate is so profitable:

1. Cheap To Get Started: You can buy a domain for around $10 and $5/month for hosting. Then you can either build a website or hold onto the domain until you sell it to another buyer.
2. Higher Profit Margins: Your margins can be as high as 90% given the low start-up costs.
3. Quick Appreciation: Your asset appreciates fast. In fact, within one year you can see your website value increase by 5x.
4. High Supply: You can buy as many domains and websites as you want, regardless of what country you live in.
5. Passive Cash Flow: You can cash in on your website while you still own it by putting ads on your site, being an affiliate, or linking out to another site.

Read Also: Top Reasons to Invest in Metaverse Digital Real Estate

Digital Real Estate Transactions in the Metaverse

The top individual real estate sales have all taken place in Decentraland. Although there have been a few newsworthy purchases to the tune of millions of dollars, many of these were packages of lands, not individual lands or estates.

Digital land is exactly what it sounds like it should be: a big empty space.

The size of a digital land parcel varies by platform but measures the equivalent of 52 feet by 52 feet in Decentraland and approximately 315 feet by 315 feet in The Sandbox.

Estates, on the other hand, are properties that contain virtual land plus something extra. That extra thing could be a structure, such as a building, billboard, or additional parcels of land.

They’ve been semi-permanently joined into a single unit with a single NFT deed and a new description. They’re considered single properties.

What are NFTs?

NFTs are also known as non-fungible tokens. So what does that mean? In the simplest terms, NFTs are digital token that represents something. It is stored on a blockchain so it cannot be replicated.

For example, it’s possible to purchase an NFT for digital files like pieces of art. This gives you exclusive ownership of the file that no one else has.

Top 10 NFT Marketplaces

Here are some of the best NFT marketplaces right now.

1. OpenSea

OpenSea is the leader in NFT sales. Also, OpenSea has all sorts of digital assets available on its platform, and it’s free to sign up and browse the extensive offerings.

It also supports artists and creators and has an easy-to-use process if you want to create your own NFT (known as “minting“).

The marketplace supports more than 150 different payment tokens, so the platform’s name is appropriate. For an introduction to the NFT world, OpenSea is a great place to start.

2. Axie Marketplace

Axie Marketplace is the online shop for the video game Axie Infinity. Axies are mythical creatures that can be bought and trained and then pitted against other players’ Axies to earn rewards.

On Axie Marketplace, players can buy new Axies, as well as entire lands and other items, as NFTs for use within the game.

Axie Infinity tokens (called Axie Shards) are built on the Ethereum blockchain. As such, they can be bought and sold on a variety of other NFT marketplaces, as well as on some cryptocurrency exchanges such as Coinbase Global (NASDAQ: COIN).

3. Larva Labs/CryptoPunks

Larva Labs is best known for the viral CryptoPunks NFTproject. They were originally given away for free back in 2017, but some CryptoPunks have sold for millions of dollars since then.

Larva Labs has other digital art projects going such as Autoglyphs, as well as other Ethereum blockchain-based app development projects.

Larva Labs’ CryptoPunks NFTs are sold out, but they can be bid on and bought from various third-party marketplaces.

Nevertheless, Larva Labs’ various projects are worth keeping tabs on — including the Meebits, which can be bid on directly from the company’s built-in marketplace.

4. NBA Top Shot Marketplace

NBA Top Shot is the National Basketball Association and Women’s National Basketball Association’s foray into the NFT world.

On its marketplace, collectible moments (video clips and play highlights) and art can be purchased from the world’s premier basketball leagues.

The NBA built it as a closed marketplace (you can only buy and sell on Top Shot) using the Flow blockchain built by Dapper Labs.

It’s easy to sign up and buy directly on the Top Shot marketplace website. Collectible moments can be purchased for as little as a few dollars.

5. Rarible

Rarible is another large marketplace for all sorts of NFTs, similar to OpenSea. All kinds of art, videos, collectibles, and music can be bought, sold, or created on the platform.

However, unlike OpenSea, you’ll need to use the marketplace’s own token Rarible (CRYPTO: RARI) to buy and sell on the marketplace.

Rarible is built on the Ethereum blockchain (although artwork can be managed on OpenSea as well using Rarible tokens).

The company has partnered with some notable companies. Yum! Brands (NYSE: YUM) Taco Bell has listed art on Rarible, and cloud software giant Adobe (NASDAQ: ADBE) recently partnered with Rarible to help secure NFT artists’ and creators’ work.

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This article explains everything you should know about making money from digital real estate and I hope this was helpful. If it was, do well, please do well to share with others.

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Originally published at https://suntrustblog.com on March 30, 2022.