The reason why the Metaverse has been gaining momentum especially in the last two years is definitely related to the explosion of the NFT market and the recent bull run in the crypto sector.
This has given the metaverse the ability to expand rapidly and create a real economy around itself.
What is the Metaverse and how does it relate to crypto?
The Metaverse is still something that many disagree about meaning and definitionbut the first signs are emerging.
They are three-dimensional spaces where users with avatars can roam freely to play, create, work, and even make deals.
Virtual rooms can be created by users themselves, who make them available to other users.
cryptoand sometimes fiat currencies, can be used.
Underlying virtual spaces are compatible technical standards, protocols, interoperability, digital property, blockchain technology and laws governing their use.
Virtual Real Estate: Can You Invest in the Metaverse?
The answer is yes: Land in the Metaverse is the new way to invest in the digital world, especially with crypto.
The research company specializing in blockchain chain analysisreported that virtual property prices increased by 879% between September 2019 and March 2022. This was the period when Bitcoin less than half, namely 362% (it fell to +98% after the last collapse on July 1, 2022).
According to the Chainalysis report, buying a virtual space in the metaverse via crypto or cryptocurrency offers some immediate benefits and others visible in the future.
Purchasing land in the Metaverse allows you to benefit from video content, images, single-player or multiplayer in-game activities, and events.
What the metaverse will have to offer is also partly conceivable in future scenarios: the areas purchased in the metaverse can certainly be rented and supplemented with augmented reality tools such as VR viewers.
However, nowadays most projects are in virtual reality with few connections to the real world.
As far as the real estate sector metaverse In terms of pricing, we’re starting to see differences. According to Chainalysis, everything comes from the platform that binds to the metaverse: real estate on the Ethereum blockchain expects much higher prices than other cryptos like Solana.
The reason lies in the fact that most of the Ethereum-based metaverses have recently been integrated into Polygon, Ethereum’s sidechain competitor to Solana, both in terms of cost and speed performance.
A report stated:
“Because the metaverse is such an emerging space, the long-term value of blockchain-based virtual real estate depends on a number of external factors.”
“While most of these factors are difficult to predict, we believe some of them,” the report states, “could be the possibility for AR/VR systems to be more interoperable or more proprietary, and the pace of adoption of new information technologies.” ”
Microsoft, Meta, Google, and other tech companies are implementing frameworks to form experiences in the Metaverse, but it is unknown if the Metaverse realities will be unique systems or integrated with each other.
Is it possible to buy NFTs and/or crypto related to the Metaverse?
Most existing metaverses, like Decentraland and The Sandbox, have their own tokens that power the virtual world’s economy.
These tokens can be purchased on the major centralized exchanges (CEX) where they are supported, or traded against other cryptocurrencies through decentralized exchanges (DEX).
In addition, each asset within the metaverse is represented by an NFT. Each digital asset can be purchased on the Metaverse’s dedicated marketplace, if it exists, or on the secondary market by referencing platforms such as OpenSea, Magic Eden, etc. where they are listed.
How to buy NFTs for the Metaverse with crypto?
In order to proceed with one or more transactions, the wallet must be synchronized: this allows the platform to verify the presence of the amount of crypto required for the purchase.
The most popular wallets are those of Coinbase, MetaMask, Phantom and Trust Wallet.
NFTs in the Metaverse
Being blockchain-based realities, it is inevitable that NFTs will find various applications within the metaverse. In fact, here each value is represented by a token and users have the option to buy, trade, use and/or present their NFTs and share them with the community.
What is a wallet
A wallet is a virtual wallet that can be used to deposit, send, and receive digital currencies like Bitcoin, Dash, Ethereum, etc.
There are several types. The most popular are hardware that enjoy extreme security, like ledgers; Browser extensions that are very easy and intuitive to use, like MetaMask. And finally desktop formats like Exodus or in-app formats for smartphones.
How to open a wallet on MetaMask to buy NFTs
MetaMask is the most popular free wallet for buying NFTs: it is multi-chain as it supports different blockchains like Ethereum, Polygon, Fantom and BNB Chain. It also allows interaction with almost all dApps. Its popularity is mainly due to its ease of use as it is a browser extension.
To open ityou need to open the MetaMask site and follow a few steps: just add the extension to Chrome and then create a password and a seed phrase, a backup secret phrase.
When the wallet is set up, one can deposit a sufficient amount of crypto, usually Ether (ETH), to then buy NFTs.
It also supports on-ramp for automatic fiat-crypto currency conversion using third-party services offered by Coinbase Pay, Wyre, Transak, and MoonPay.
Only after authorizing the connection between the wallet and the marketplace is it possible to buy NFTs through MetaMask, based on the prices set by the seller or by bidding at auction.
After you have decided to purchase the NFT, you must click “Make Offer” or “Buy Now” to proceed to checkout.
MetaMask then requests a transaction signature to complete the exchange.
At this point, ownership of the token is uniquely linked to the address that completed the transaction. All assets held are publicly viewable by accessing the “scans” of the relevant blockchain.
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