Written by Elif Naz Yilmaz
What Is Metaverse?
The metaverse is a simulated digital environment that uses augmented reality, virtual reality, and blockchain technology, as well as the concept of social interactions, to best mirror the real world. VR headsets, AR glasses, and smartphone apps will all be used to access this environment. We have noticed an upsurge in cryptocurrency and virtual land transactions as a result of the metaverse's announcement, which has led us to doubt the metaverse's reliability.
How does virtual land trade happen in the Metaverse?
According to reports, investors spent $5 billion on virtual land trading in 2021. The digital realms --as property transactions are soaring-- are led by the same concept that governs the physical world: location. With virtual land trade, one can potentially become the owner of cultural icons or infamous persons. Examining how the transaction occurs will broaden our viewpoint and help us gain a deeper knowledge of the subject.
STEP 1
Unlike in the actual world, virtual land commerce allows us to use real-world funds, necessitating the use of cryptocurrency. As cryptocurrencies are not interchangeable, it is necessary to create a digital wallet with the desired or required cryptocurrency. Most well-known Metaverse platforms have their own unique currencies.
STEP 2
The most crucial stage could be deciding on a platform to purchase your digital estate. It is possible to purchase directly from a Metaverse platform, such as Decentraland or the Sandbox, or a third-party platform, such as OpenSea.
STEP 3
Make an offer and close on your virtual property. The rise in popularity of the virtual land market has resulted in the most volatile digital real estate market to date. Making an offer is similar to making one in the real world, except that there is greater competition in the real estate market.
Blockchain technologies, which we are familiar with from cryptocurrencies, are used to build metaverses. Blockchain may be the most secure system ever devised by humanity. We may have reservations about blockchain's reliability and security because most individuals invest their life savings into an unknown technology. Understanding how blockchain works will help to alleviate any fears.
What is blockchain?
A blockchain is a decentralized database that is shared among computer network nodes. The purpose of blockchain as a database is to store information in a digital manner. The role of blockchains in cryptocurrency systems is well-known. Blockchain is implemented by cryptocurrencies, which keep a secure and decentralized record of transactions. The basic purpose of blockchain is to provide a safe environment for data storage that does not require the involvement of a third party.
The structure of the data on a blockchain differs from that of a traditional database. Blockchain stores data in groups called blocks, each of which can carry "n" bytes of data. Because blocks have a limited capacity, when they are filled, they are closed and linked to the previous filled block, forming a data chain known as the blockchain.
Databases typically organize data into tables, whereas a blockchain (as the name suggests) organizes data into blocks (chunks) that are strung together, making blockchain even more secure in some ways. How does the transaction process happen?
1. A new transaction is entered.
2. The transaction is transmitted to a network of peer to peer computers
3. This network of computers then solves the cryptology to confirm the validity.
4. Once confirmed, they are clustered together into blocks
5. These blocks are then chained together creating a long history of all permanent transactions.
6. The transaction is complete with success.
A blockchain is distributed across multiple network nodes in different regions to prevent malfunctions caused by unpredictability. As a result, it not only aids in storage but also ensures that the data recorded is accurate. In contrast to typical data systems, if an attack occurs near a database, the other nodes will not be affected, and this approach will prevent any conceivable hacking. With this feature, no one node has the ability to change the information stored on the network. Despite the fact that blockchain may be one of the most secure data collection platforms, it is not without flaws.
The biggest issue with blockchain is the amount of energy it consumes on a daily basis owing to computing power, which in turn necessitates an endless supply of electricity and cooling power. The existing blockchain design will never be helpful with any potential remedies we may provide for environmental issues. It has been estimated that Bitcoin alone will consume as much energy as Denmark by 2020.
How Does Virtual Land Trade Implements Blockchain?
When it comes to transaction data collecting, virtual land trade operates similarly to a cryptocurrency system due to
High demand (the market value of the land can grow once purchased,)
The region's popularity, and
Current trends.
Following the increase in price and preference for the selling component, any transaction will be held within the blockchain system.
References:
1. Singhal B., Dhameja G., Panda P.S. (2018) How Blockchain Works. In: Beginning Blockchain. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4842-3444-0_2.
2. ACM Computing SurveysVolume 45 Issue 3June 2013 Article No.: 34pp 1–38 https://doi.org/10.1145/2480741.2480751.
3. Binance Academy. (2022, January 31). Blockchain. Retrieved from https://academy.binance.com/en/glossary/blockchain?utm_campaign=googleadsxacademy&utm_source=googleadwords_int&utm_medium=cpc&gclid=Cj0KCQiA3-yQBhD3ARIsAHuHT65GI0Ozkp-gljnim-4EZpP2KtdL5apZZX7T75IGafyQmb8r6A0MEU0aApW0EALw_wcB.
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