I bought 486sqm of digital land in a virtual metaverse on the Ethereum blockchain called Cryptovoxels. It’s a pixelated world filled with eclectic artists, architects, collectors, and fortune seekers. I paid $2500 for land that is completely virtual. Am I crazy?
In this video, I’m going to talk about why I think digital land will not only go mainstream, but also become highly desired, which is why I’m getting in early now.
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0:45 How is digital scarcity possible?
4:09 How can virtual items have value?
6:55 My digital land purchase
Decentralized blockchain technology enables people to keep track of digital transactions and ownership and therefore provides assurance that digital items are not duplicated. Blockchain technology has been applied to keeping track of unique digital assets, like domain names, redeemable tokens, and game items. Unique digital assets on the blockchain are called non-fungible tokens or NFTs.
This technology has enabled the creation of virtual worlds similar to online games, but in these virtual worlds ownership of all digital assets or NFTs in the world are tracked on a blockchain. This allows people to exclusively own items like digital art, wearables for your virtual avatar, and even virtual land that you can build on.
The ability to exclusively own digital items means that private property rights are now protected in the virtual world. An economy that respects private property rights incentivizes creativity and ownership as we see in any capitalist society, and we’re now seeing a blossoming of economic activity where people are creating, buying and selling digital items.
But how do virtual items have any value?
The first characteristic is scarcity. Jewelry, limited edition watches, or historical artifacts are valuable because they are rare. Non-fungible tokens NFTs are rare because blockchain technology makes sure that items have clear traces ownership and haven’t been duplicated.
A second common characteristic is craftsmanship or effort. A plastic watch can do the same job of telling the time as a boutique watch, but it’s not the utility that makes the boutique watch valuable, it’s the craftsmanship that was put into it. It can also take an artist weeks to create a piece of digital art, and people would buy this piece of digital art, not because they can touch it – they can’t, but because they appreciate the craftsmanship and the finished product.
The Zoomer generation gets it, even before I did. They are natives to the digital world and have owned more digital items than they probably ever will own real items. In fact, some may even prefer digital items to physical items! Why? Well let’s go down the list:
Physical items take up space and require storage
They’re cumbersome and hard to move around
They collect dust and need to be cleaned
You can’t take all your physical items on vacation with you. With digital items, you can sign into your account and access them from anywhere
And maybe the most underappreciated reason: physical items can be seized. Non-fungible tokens NFTs are secured by a unique 12 word phrase that only you know. Don’t know the 12 word phrase? Can’t get to your items.
With my newly purchased land, I can access it from anywhere and don’t have to worry about squatters or a government nationalizing my property.
Let’s finally get to my land purchase.
Here are a few reasons why I decided on Cryptovoxels over other competing blockchain worlds:
It’s fully web-based and runs extremely fast
The builder tool is very easy to use – no need for sophisticated code or 3d modeling software
The project is completely self funded, no VCs or investors to answer to
It has a lean developer team that pushes updates very quickly
The Cryptovoxels world is the smallest compared to its competitors yet land prices are still cheaper
The community is organic and tight-knit
I bought my land on OpenSea.io , currently the most popular items for buying and selling all types of NFTs.
I simply logged in with my Ethereum wallet, found a parcel that I liked, and once I hit the buy button, the parcel is transferred to my account and the Ethereum blockchain recognizes my ownership.
With blockchain enabling private property rights in the digital space, and with more and more people warming up to the idea of owning and trading digital items, I believe it’s only a matter of time until virtual worlds become a popular place for people to get together, and therefore land in these worlds will be highly valuable. But meanwhile, I’m gonna have some good old nerdy fun with it.
*Not investment advice. Just me documenting my own research*
#digitalland #nft #blockchain #cryptovoxels
#Paid #Land #Metaverse #Crazy