{"id":472533,"date":"2022-07-10T11:11:00","date_gmt":"2022-07-10T08:11:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/believe-it-or-not-metaverse-land-can-be-scarce-after-all\/"},"modified":"2022-07-10T11:11:00","modified_gmt":"2022-07-10T08:11:00","slug":"believe-it-or-not-metaverse-land-can-be-scarce-after-all","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/believe-it-or-not-metaverse-land-can-be-scarce-after-all\/","title":{"rendered":"# Believe it or not, metaverse land can be scarce after all"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a22c2a6f0ef3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a22c2a6f0ef3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/believe-it-or-not-metaverse-land-can-be-scarce-after-all\/#%E2%80%9D_Believe_it_or_not_metaverse_land_can_be_scarce_after_all_%E2%80%9C\" >&#8221; Believe it or not, metaverse land can be scarce after all &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/believe-it-or-not-metaverse-land-can-be-scarce-after-all\/#The_laws_of_the_land\" >The laws of the land<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/believe-it-or-not-metaverse-land-can-be-scarce-after-all\/#The_great_wide_world_out_there\" >The great wide world out there<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Believe_it_or_not_metaverse_land_can_be_scarce_after_all_%E2%80%9C\"><\/span>&#8221; Believe it or not, metaverse land can be scarce after all &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Just recently, Yuga Labs, the team behind the world-famous bored nonfungible token (NFT) primates, nabbed some $300 million with its sale of Otherdeed NFTs, a collection of land plots in a soon-to-be metaverse. Indeed, NFTs, the blockchain industry\u2019s primary method of creating digital asset scarcity, have emerged as the preferred way to handle virtual land ownership for most metaverse projects, including Decentraland and The Sandbox. All of this has prompted an interesting question in the community: <em>In the metaverse, a vast, near-endless digital space, how can digital land ever be scarce?<\/em> Well, let\u2019s dig in.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/2b86a334-1e5f-478d-9a9b-ab99284d85e4.png\"><\/figure>\n<p>First and foremost, let\u2019s address the elephant in the room: The metaverse isn\u2019t real. I mean, the <em>Ready Player One<\/em>-style metaverse, a seamless virtual reality-based rendition of the internet as we know it. So, while you may don your VR helmet for a rave in Decentraland, the device will hardly stay on for your daily dose of Instagram or a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> feed surf.<\/p>\n<p>In other words, what we have right now is a growing number of relatively siloed metaverse projects, which offer users an array of project-specific experiences and functions as opposed to the browse-whatever of the larger web. This in itself hints that scarcity is a valid concept to consider in as much as their lands go, even if we consider their value through the same prism as real-world land. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Sci-fi or blockchain reality? The \u2018Ready Player One\u2019 Oasis can be built<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_laws_of_the_land\"><\/span>The laws of the land<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the real world, the value of a plot of land is a product of a few quite clear-cut variables \u2014 i.e., natural resources, from oil or mineral deposits to forestry and renewables, access to infrastructure, urban and logistical centers, and fertile soil. All of this can come into play depending on what you are planning to do with this land. Purpose defines value, but the value is still quantifiable.<\/p>\n<p>Value, for its part, often goes hand in hand with scarcity, and land is no exception. The planet\u2019s total surface area is 510.1 million square km, but more than half of that is under water, which works for oil and gas pipelines and submarine cable lines, but little else. So far, we have modified about 15% of the available land area, and yet, at the end of the day, land is finite. Factor in the value and financial feasibility considerations (an investment has to be worth it), and the pool of land that actually makes sense to acquire goes even slimmer. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/c736b128-1949-48e1-b956-5e92e576144e.png\"><\/figure>\n<p>Let\u2019s take The Sandbox as an example. What\u2019s the value of getting there? Again, value comes from purpose. If you are a fashion brand, for example, you would probably benefit from being in a similar digital space as Gucci. What\u2019s more, if you are looking to compete with this brand, you would want your plot located as close to its own as possible to try and cut into its footfall with the stunning exterior of your own outlet.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The metaverse is booming, bringing revolution to real estate<\/em><\/strong><\/p>\n<p>This is where scarcity comes back into play. There are only so many NFT plots that you can buy next to the Gucci store. In a digital realm, distance as such may seem arbitrary, but it\u2019s not entirely correct. Distance comes down to how this specific metaverse handles space, objects and movement \u2014 the crucial, foundational components of its design. After all, you probably want your own metaverse store to be an actual 3D store a buyer can explore, which demands a 3D spatial grid and at least a basic physics engine. Sure, it\u2019s probably possible to play with non-Euclidian geometry and other smart design features to make the space bigger on the inside than on the outside, but this would amp the workload on the backend and affect the user experience.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/e3f98a29-d262-46d5-a6fc-0b26967bab00.png\"><\/figure>\n<p>As we see, technological constraints and business logic dictate the fundamentals of digital realms and the activities these realms can host. The digital world may be endless, but the processing capabilities and memory on its backend servers are not. There is only so much digital space you can host and process without your server stack catching fire, and there is only so much creative leeway you can have within these ramifications while still keeping the business afloat. These frameworks create a system of coordinates informing the way its users and investors interpret value \u2014 and in the process, they create scarcity, too.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_great_wide_world_out_there\"><\/span>The great wide world out there<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While a lot of the valuation and scarcity mechanisms come from the intrinsic features of a specific metaverse as defined by its code, the real-world considerations have just as much, if not more, weight in that. And the metaverse proliferation will hardly change them or water the scarcity down.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/9dd96167-c336-4e74-bb5e-a80a75e6d21c.png\"><\/figure>\n<p>Let\u2019s start with the user bases. The Sandbox reports 300,000 monthly active users, and for Decentraland, the figure is roughly the same. In terms of pure math, this is the cap for your monthly footfall at whatever metaverse outlet you are running. So, even if they are not too impressive, they will likely be hard to beat for most newer metaverse projects, which, again, takes a toll on the value of their land. By the same account, if you have one AAA metaverse and 10 projects with zero users, investors would go for the AAA one and its lands, as scarce as they may be. This also creates a value-driven meta-scarcity: Sure, there\u2019s plenty of land in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> terms, but only a limited portion of it makes a feasible investment.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>How blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> might bring <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>le-A <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>s to metaverses<\/em><\/strong><\/p>\n<p>A comparison with on-page ads will be helpful here. Advertisers prefer websites with more traffic, and the number of ad spots on a page is limited by the constraints of reasonable UX. You can always make another dozen websites, but if they don\u2019t bring in the same traffic, the ad spots there will hardly be as valuable, and the ones on the top site are scarce.<\/p>\n<p>Moving beyond the user bases, there is also the intangible wow-factor. One of the reasons why<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fool.com\/investing\/2022\/02\/11\/7-businesses-that-have-bought-land-in-the-metavers\/\"> <\/a>brands buy lands in metaverses is because they know the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> will write about it. It\u2019s true that the biggest companies will generate traction no matter what metaverse they would enter through their own sway. Still, they would rather roll with something that\u2019s built up some traction on its own, in the same way they would prefer coverage on Bloomberg to a tiny newspaper. Brands like partners who play in the same league, or punch above their weight, or at least come off like they\u2019re doing any of that. And those are usually scarce. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Basic and weird: What the metaverse is like right now<\/em><\/strong><\/p>\n<p>One day, we may indeed end up with a single coherent metaverse, but even there, the rules binding it will likely work as a natural \u2014 or artificial \u2014 foundation for conceptualizing value, which will likely factor in scarcity in some form. Now, in a world of scattered metaverses that users cannot seamlessly bounce between, competition and, by extension, scarcity are very much part of the equation. <\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Adrian Krion<\/strong> is the founder of the Berlin-based blockchain gaming startup Spielworks and has a background in computer <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">science<\/a> and mathematics. Having started programming at age seven, he has been successfully bridging businesses and tech for more than 15 years, currently working on projects that connect the emerging DeFi ecosystem to the gaming world.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/believe-it-or-not-metaverse-land-can-be-scarce-after-all\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Believe it or not, metaverse land can be scarce after all &#8220; Just recently, Yuga Labs, the team behind the world-famous bored nonfungible token (NFT) primates, nabbed some $300 million with its sale of Otherdeed NFTs, a collection of land plots in a soon-to-be metaverse. Indeed, NFTs, the blockchain industry\u2019s primary method of creating&#8230;<\/p>\n","protected":false},"author":1,"featured_media":472534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvZDk4MzY1NmItNTA4OS00YWMzLWJmNTAtZWI5YWViODFjMTJiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,91498,95118,78234,93542,74355,48,73711,4965,17813],"class_list":["post-472533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-metaverse","tag-nft","tag-virtual-property","tag-web3","tag-adoption","tag-internet","tag-investments","tag-technology","tag-virtual-reality"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/472533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=472533"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/472533\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/472534"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=472533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=472533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=472533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}