Real estate is a universal resource, yet it also represents a scarce commodity that is in high demand.
The difference between landed properties at different locations at any given time is the function of the quality of the social and infrastructural community that centres around them. The available natural or artificial resources also explain what value is attached to a piece of land. This is why the same perimetre of land at different locations will attract different prices in value at the same time.
Real Estate in cyberspace
Applying this concept unto the virtual world has proven to be an exceptional innovation as just a few months ago, the Initial Coin Offering (ICO) of internet-based decentralized real estate, Decentraland, sold out in record time, raising $24 million in 35 seconds.
Decentraland is a virtual reality platform powered by the Ethereum blockchain where users can create, experience, and monetize content and applications. The idea behind Decentraland is to build a virtual ecosystem that is community-owned.
With decentraland, a virtual world is being created where blockchain acts as a registry for digital plots of land. A ledger of land ownership is maintained using smart contracts thereby offering full transparency of ownership of this virtual real estate.
The infrastructure that Decentraland provides supports a shared virtual world, also known as a metaverse . The metaverse consists of a decentralized ledger for land ownership, a protocol for describing the content of each land parcel, and a peer-to-peer network for user interactions. Each parcel has unique (x,y) coordinates, an owner, and a reference to the content description file.
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Source: Tech Worm