A regular day in the metaverse – a collaborative immersive virtual reality – may soon resemble the world we know and love.
Thanks to significant developments in VR technology and 5G communications, we will visit retail malls, travel across town, meet friends in cafés, and exchange connections in ways that feel eerily real.
The metaverse has existed in the form of interactive internet games for decades. However, we may soon enter a period of immersive experiences that are almost indistinguishable from reality, spawning new kinds of interaction for both gamers and non-gamers.
People settling on lands, socializing socially, transferring goods, and asserting ownership rights are already visible in prototype succeeding metaverses like Decentraland and Somnium Space. A functioning economy is required in any society (physical or digital).
In the metaverse, the economy is based on web properties including one’s metaverse home, automobile, farm, books, clothing, and furniture being authenticated. It also requires the capacity to freely travel and trade between realms with varying laws and rules in order to thrive.
Non-fungible tokens — blockchain-based records of digital ownership – will form the backbone of the metaverse economy, allowing for the authentication of belongings, property, and even identity.
Because each NFT is protected by an encryption key that cannot be erased, copied, or destroyed, it allows for the reliable, decentralized verification – of one’s digital identity and virtual possessions – that is required for metaverse communities to succeed and communicate with one another.
Beyond the hoopla of multi-million dollar visual arts sales, the relevance of NFTs may lay in its ability to foster the emergence of something like genuine human society in the metaverse, based on free markets (for products, services, and ideas), autonomous ownership, and social contracts.
People conversing by fountains, joggers on beach promenades, shoppers in fashion boutiques and casinos luring guests to elevated stokes in poker can all be found strolling through Decentraland.
These encounters are the consequence of virtual real estate development by persons who have bought a property and created habitats that have piqued the interest of other Decentraland residents.
The adjacency of land is a fundamental economic notion in Decentraland and other metaverses. Within finite geography, all metaverse parcels are continued to one another at a fixed point.
Owing to the restricted availability of property causes scarcity. And scarcity allows property values to increase and decrease in accordance with worldwide supply and demand laws.
According to the Decentraland agenda, a foundation is therefore constructed for “a communal experience with an economy dominated by the existing layers of property ownership and content management.”
“The property trades that power the metaverse are made possible by NFTs. These tokens offer irrefutable ownership proof that is more reliable than any property deed.”
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