The “virtual worlds” war: a look at the Metaverse economy

Metaverse or so-called “virtual worlds” are one of the most ambitious categories in the crypto-ecosystem, as they combine two emerging technologies — virtual reality and cryptography. The three largest Metaverse games in terms of trading volume — and most other indicators — are Decentraland, Somnium Space, and Cryptovoxels. While this is not the most important indicator, the trading volume highlights these games’ speculative nature, while the games are still in the early stages of building their virtual communities and economy. If virtual worlds follow the “winner gets the most” principle of value calculation, then the leading platform’s digital land can be valuable in the future. So, is there enough virtual space for several such platforms to coexist?

A brief introduction to Decentraland Metaverse

Projects such as Decentraland, Cryptovoxels, and Somnium Space combine virtual reality (VR) and several cryptographic primitives such as smart contracts and NFT to create virtual worlds with scarcity in mind. All the land in Decentraland’s virtual reality is tokenized and has a corresponding non-fungible token called LAND, which acts as ownership rights. Several parts — or parcels — of LAND can be combined to create real estate (EST), thereby increasing a particular digital property size. Any user is allowed to develop and monetize their digital property, regardless of whether they plan to create a casino or a digital art gallery.

Decentraland’s Growing Economy

Other worlds

While Decentraland remains a leader, two other virtual ecosystems have been gaining momentum over the past year.

Somnium Space

Cryptovoxels

Future of Metaverses’ framework

Metaverses can create enormous economic value through a combination of social interaction and codified property rights. The early nature of these virtual worlds and economies makes them inherently speculative. Nobody wants to own land in a world that nobody visits. It would be easier to buy a site on the third or fourth Google page if they did.

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