What Is NFT Land in the Metaverse? | Notum

What Is NFT Land in the Metaverse?  

The metaverse created interesting new cases of blockchain use. So, some NFT sales of land have reached prices higher than properties in the real world. Actually, there is a lot in common between NFT land and real estate. But as a digital asset, NFT land has some special features we’re going to tell you about.

What Is the Metaverse?

The metaverse is a virtual world combining various sides of our digital and real lives, including work and socializing. The first companies who went to explore the field are such giants like Meta (former Facebook), Microsoft, Epic Games, Apple, Roblox and a lot more. Blockchain technology plays a crucial role in the metaverse as digital ownership, identity, and economies are pivotal points. For a For a better understanding, read our introduction article to the metaverse.

What Is an NFT Land?

Metaverse projects are virtual worlds that people can explore having 3D avatars. There is a prominent example — SecondLive, that provides venues for concerts, conferences, and expositions within a VR. One important thing is that you can't buy those places, but there are various projects where it's possible. Developers create huge maps of land divided into small pieces to sell on the market.

To gain the unique ownership of the area, users buy NFTs linked to a particular plot of land. You can purchase these plots by a land sale directly from the project or on the secondary market. It entirely depends on a project, what you can do with your digital property. 

How to Use NFT Land?

Landowners can use their virtual space in many ways:

1. Advertisement

If your land is in a fancy area or neighborhood, like Mayfare in London, and it's popular with many visitors, you can earn advertising space. 

2. Socializing 

You can arrange events on your digital land, such as concerts, conferences, and meetups.

3. Games

Your NFT land can be pretty useful in an NFT video game. As an example, land in Axie Infinity can provide extra resources, tokens, crafting features.

4. Work 

Your land can be used as a virtual office space or to provide digital services. 

5. Collection

You can have your own private collection of NFTs and consider that as an investment.

Where to Buy NFT Land?

There are two major methods for buying Metaverse NFT land. The first option is to take part in a land sale and purchase it straight from the project. The second option is to buy land from other users using a marketplace.

Please mind that it's cheaper to buy an NFT land from the project rather than from the secondary market. Large metaverse projects with NFT land had rising prices, which means buying land in a sale tends to be better. Some projects sell all their plots right away, and others sell them in parts.

It seems that an NFT exchange is the safest and most reliable way to buy land on the secondary market. That's because both the buyer and the seller are protected by a smart contract mechanism that secures the trades for both parties. The most popular platforms where you can have your trades are Binance NFT Marketplace and OpeaSea. Binance NFT Marketplace supports Ethereum and Binance Smart Chain, and OpeanSea supports Ethereum, Polygon, and Klaytn.

Tips to Consider Before Buying NFT Land

Buying NFT land within the metaverse is the same investment as you have in real life. Don't neglect to do your own research and have a look at the following points:

1. Buy your NFT land only from a reliable source. If you purchase the land within a project's sale, make sure you have an official link. In order you buy land from someone else, never make any transfers of your money to their wallet. You should always buy your virtual property through a trusty marketplace or crypto exchange, following the same rules as with a real one.
   
2. Do you want to buy or rent your NFT land? You decide. It totally depends on your needs. For example, if you want to host a single event in a popular district. If the platform you're using supports rentals, the price depends on the plot's traffic, closeness to other important plots, and its size.
   
3. Consider the NFT land's project attentively. The project you choose will define the utility and partly the value of the NFT. If you're going to speculate and resell your land in the future, look at the project's basis, such as popularity, number of users, and its team. If you're going to sell advertising space or take part in another use case, find out which metaverse platforms are most convenient to your needs and expectations. If you get land that has no use or demand, you might hold it forever.
   

Closing Thoughts

In general, the idea doesn't differ from having a website or some virtual space. But in the case of NFT lands, your ownership is guaranteed. More famous companies are into NFT real estate because nobody can be sure if we all won't end up in the digital universe or not. In this case, it's better to have a piece of your own land within virtual reality. Almost all the tech world is getting prepared to meet and embrace a metaverse future, so there is nothing surprising when we'll see even more metaverse NFT lands sales.