Decentraland: A Starter’s Guide

If you want to experience the metaverse, Decentraland is a great place to start. With simpler graphics, Decentraland is similar to Roblox in presentation. This isn’t the place to come for realistic 3D models in a virtual reality (VR) setting. When we say the metaverse is a more visual version of our Web2 internet, this is exactly what we mean. It’s a place of interconnected suburbs which dedicate space to weird and wonderful things. But at first glance, it can feel a little confusing, so we’re here to smooth the process.

Wallet Vs Guest

To start, you’ll see a screen asking if you want to sign in as a guest or with a wallet. Playing Decentraland as a guest will remove much of the interactivity and personalisation you would expect. So, we’ll focus on signing in with a wallet.

You can use three different wallets to connect to the servers, but the most popular would be Metamask as it’s generally seen as the most popular and secure wallet available. If you don’t already have a Metamask wallet, head to their website and create one for free. This will install a browser extension, allowing you to connect.

Once everything is connected and you’re logged in, you’ll be able to begin customising your character using the base models available. If you want to express yourself with a more personal style, you’ll need to utilise the Decentraland marketplace, which we’ll come to soon.

Genesis Plaza

As you enter the world of Decentraland, you’ll find yourself standing in Genesis Plaza – a kind of central lobby where many people hang out. Here you’ll find boards surrounding the area which advertise special events, popular areas, NFT drops and games.

Genesis plaza tends to hold large groups of people chatting or discussing topics. There can be a lot of self-promotion and it becomes a quick way to discover new places to visit.

The Map

Genesis plaza is just the start. By hitting ‘M’ or heading into the ‘TAB’ menu, you’ll find the map of all of Decentraland. You’ll see here that Decentraland is broken down into plots of land called parcels. They vary in size, depending on what the landlord has purchased. Smaller plots can be just as interesting to explore as the larger ones, but you’ll find a huge variety of content, from art galleries to poker halls.

From this screen, you can pretty much visit anywhere, but you’ll need to select a parcel of land with a clickable home icon. These act as quick travel points, much like Role-Playing Games. Once you’re back in the world, after a short teleport, you can then walk everywhere, or in some cases, catch public transport.

You may notice that some parcels of land have translucent green barriers around them barring entry. These areas are private, meaning that either owners haven’t opened them up to everyone, or you would need an NFT equipped to enter.

Marketplace

The Decentraland marketplace is the backbone for personalisation and expression for the metaverse. It’s here you’ll find everything from wearables for your avatar, to parcels of land. On the left, you’ll find a breakdown of categories to browse and different ways to view content on sale.

It’s important to mention that Decentraland uses its own ERC20 token for many purchases, called MANA. This can be transferred not only on the marketplace for items but also to other players for goods and services. On top of this, users can trade in Ethereum and Polygon throughout Decentraland, so ensure you know exactly what you’re spending by checking each item carefully.

Items within the marketplace use the popularised RPG loot colour system to indicate the rarity of the piece, as seen below:

  • Grey – common – 100,000 items issued
  • Orange – uncommon – 10,000 items issued
  • Green – rare – 5,000 items issued
  • Blue – epic – 1,000 items issued
  • Purple – legendary – 100 items issued
  • Pink – mythic – 10 items issued
  • Gold – unique – 1 item issued 

DAO

The Decentraland DAO (Decentralised Autonomous Organisation) allows users to vote on important changes; from new LAND sales to what items can be wearable. This is means that holders of the MANA token have an opportunity to vote on any possible upcoming changes.

This rule of digital democracy is one of the more enticing aspects of metaverse platforms as it allows users to feel they have a modicum of control of their experience. As Decentraland is fully decentralised, it constantly relies on the users to craft each aspect of the metaverse.

Voting tends to revolve around several key features, but is not limited to:

  • Upgrading LAND and adding features to Estates
  • Specifics of future LAND sales
  • Size of marketplace fees
  • Additions of community-run servers
  • Allocation of MANA towards development efforts
  • Addition of new wearables to the marketplace
  • Choosing members of the security council

Ease of Use

Decentraland is not only relatively easy to use, as well as explore, but it’s also fully available for anyone to play. Whereas some metaverse platforms are tied into a one-off price or are still in alpha stages, you can jump in right away and all of Decentraland is there for you. Anyone even vaguely familiar with videogame online worlds will feel immediately comfortable here, knowing their way around the map and chatbox.

One thing to keep in mind if you decide to take time to explore; while the metaverse is becoming more and more popular, the LAND is remarkably large, which tends to make for a quiet experience. You won’t find distant areas buzzing with other people, but if you head to one of the advertised districts, you’re more likely to find others exploring.

Decentraland has established a great base for future builds and communities. Being able to use a low spec laptop for entry opens it up for plenty of people, though if you’re looking for a more tech-heavy experience, you may want to look elsewhere. Decentraland offers a great starter experience for those interested in dipping their toes into the metaverse waters.

The Rising Costs of the Metaverse

In Neal Stephenson’s seminal sci-fi work, Snow Crash (1992), we are shown a snapshot of a future where corporations rule all, currencies across the world are worthless (there’s even a crypto-style currency called kongbucks) and everyone is seemingly ‘goggled’ into virtual reality to exist within the metaverse. In Stephenson’s future we see that the class divide still exists, even within the metaverse, a digital space which should, in theory, level the playing field.

In several sections of the book, Stephenson shows us how stark that line still is. We see Hiro Protagonist, the novel’s central character, entering the metaverse, his avatar replicated in the highest fidelity; while those with little to no money live in storage units, using public terminals to enter the metaverse as fuzzy, black and white images, like an old photocopy.

The metaverse, in our reality, is loaded with potential and possibility. It is harnessed through revolutionary technologies, guided by pioneers in their fields. However, what many seem to forget, when holding up our current metaverse ideals, is that the metaverse as seen in fictions like Snow Crash and Neuromancer, is a dystopia where capitalism, greed and exclusion run rife. It’s a place where money and power are everything, and those without either are left behind.

On the Verge

At the moment, it feels like every mention of the metaverse comes with a price; NFTs are either exorbitantly pricey or the gas fees accompanying them are; blockchain games require expensive buy-in purchases before we can even try the gameplay; and owning digital land within a metaverse platform rivals most people’s yearly rent. Then there’s the possibility of needing to buy high end equipment, like VR headsets.

Where we stand currently, is on a precipice, where brands, publishers and advertisers want as many people as possible to embrace this advent of the internet, and yet it currently feels as if working class consumers are thought of last, shrinking the next digital population greatly.

There’s nothing to say that these more expensive entry points are inherently wrong, after all, people are welcome to use their money however they choose, and creators can charge what they feel is just for their work. This predates Web3 by hundreds of years, but where money pools together, so do classes. 

Rising prices in the cost of living added to the poor job markets means that many are living on a shoestring budget already and will struggle to move on seamlessly. In the UK, inflation is currently at 5.5% and an article from BBC highlights that the cost of living is rising at the fastest rate for thirty years. And, according to a recent article on The Drum, the number of those with careers within creative industries from working class backgrounds is falling rapidly, decreasing from 30% in 2017, to only 12% today.

For most, our hobbies and past-times are our escape. We can open Netflix to watch a film or boot up a console to play a game – even doom-scrolling Twitter can get us out of our own lives – it gives us the chance to forget, for a while at least, the chaos of life. The metaverse, as it is currently marketed, is the definition of escapism; it’s an adjacent reality where we can feel free to express ourselves, or live a totally different life. But, will it be a future open to all?

Standing on this edge gives us a unique viewpoint; we must do all we can to ensure that the metaverse, and to some extent the whole Web3 ecosystem, is open to everyone. Not only the working classes, but those in developing countries and younger users through education programs. To see large adoption rates, we need businesses to support their staff with technology upgrades and make the metaverse feel welcoming to all.

Technology, the Barrier

While technology defines our lives, it can often be seen as a barrier for many; families of children who can’t afford a laptop for education; those who so badly want to be like their peers but who cannot afford the latest phone, tablet or console; centres of learning without the budget to expand their computer suites.

Given the metaverse will be built on emerging technologies, it’s imperative that the technology is accessible to all. This can be achieved by manufacturers and technology leaders reducing the prices of equipment faster than in previous tech cycles.

XTAL 3

We’ve seen it time and again throughout technology commerce, but particularly with items like televisions, computers, phones and VR headsets – all items needed for the possible metaverse. Upon launch, all of these items were expensive. They carried a premium for being new; LCD, Hi-Def, 4K, 3G through to 5G networks, faster processing power and optical video screens. Over time the prices drop, more people adopt the technology.

But the metaverse requires people. It needs bodies. Unlike the market for TVs, it didn’t matter as much if a couple of people in your friendship circle didn’t own an HD TV but what if your friends can’t join you in the metaverse for that must-see concert? What use is it if advertisers all speed into the future of the internet if many are left behind? Who will see the adverts or attend the experiences?

The Class Divide

A lack of capital is a hindrance in the metaverse currently. I recently loaded up Decentraland to explore; I’ve found some great experiences across their vast map of the metaverse. I thought I’d spend some time playing a little poker to see how well it works, possibly for a future article. 

I loaded my avatar into one of the poker areas and was informed I needed to buy an item of clothing, which acts like a membership card to play. A quick click of the mouse took me to OpenSea where I found a pair of glasses to fit the bill. The current price for these glasses, as I’m writing, is 1.948ETH. This currently equates to $5,588.19. Not an affordable requirement for a seat at the table of Play-to-Earn poker.

This has to be seen as a roadblock to new users. To stick with gaming; it’s clear that blockchain games need funding just as every other type of game does, which is often why they use their own tokens or ask you to ‘buy-in’ to play. It’s their way of paying the developers, covering costs of servers and purchasing advertising space. However, it shrinks the possible audience, unless the game can offer a level of service for all via a free-to-play option or a lower one-off purchase, like Blankos Block Party or Splinterlands.

Away from games, the price points of NFTs are currently a steep hill to climb. Because of the 2021 NFT hype train, many collections now are opening with high level floor prices (A floor price is set by  the lowest price in the collection) because they’re more seen as an investment, rather than art you enjoy, an item of cool clothing or a music track by an artist you love.

Sure, we can load into these metaverse platforms and wander around for free. We can explore as our basic avatars, while others stroll the digital avenues with the latest RTFKT sneakers or NFT designs, and it just feels like reality all over again. Those with low capital aren’t able to mint new NFTs on launch as they tend to see floor prices that are simply out of reach. Those with larger sums of capital will lead the way, while others will feel forever as if they’re missing out and being left behind. 

Our Digital Future

The metaverse is already here. There’s no denying that, there are plenty of platforms which offer a metaverse experience. The metaverse, as a picture painted by tech companies, is a place where we can define our experience and take control of everything from our outward appearance, to personal online presence. Until now, our web presence has been defined by Web2 preference, through social media: Twitter, Facebook, YouTube, TikTok. 

Now, metaverse platforms such as Decentraland or Somnium Space are the new social networks and we can own LAND to represent ourselves to anyone and everyone. According to Fortune, the metaverse platforms Sandbox and Decentraland, are selling the smallest chunks of land for 3.7 ether and 3.46 eth, respectively, which roughly translates to $11,717 and $10,957.

Throughout Web2, we never needed to pay for our online persona, unless we wanted to set up a website through a third party company and pay hosting fees. Few people will have enough capital to pay for LAND within a metaverse if this trend continues. This is where companies such as Nifty Islands can benefit all, by offering no LAND scarcity and giving every user their own island to build on.

If a plot of digital land costs us more than our yearly rent, are we not heading in a similar direction to Web2? Where the rich get richer and where several wealthy companies ended up with a monopoly of projects? Surely if we can’t all own a patch of LAND, these platforms will essentially be advertisers and celebrities talking to themselves? Of course, some companies can offer free entry, or give away some NFTs, but this would likely only be limited to the tech giants we already have, removing any ideas of decentralisation. 

Questions Without Answers

At this point, I look back over what I’ve written and wonder what the solution is. Nobody wants the metaverse to become a niche side project of the internet because the potential is too great, and it’s quite obvious from the news that many believe it is the future of communication and personalisation. Personally, I believe in the future of the metaverse, just not how it is currently playing out, as there are too many roadblocks. 

As with all advancement, as I explored above, it will take time for costing to even out. However, I believe that someone has to act soon, or else we lose the point of mass inception. Tech leaders need to examine free entry into more programs, pilot hardware upgrades for those who need it and embrace variety in blockchain technology which opens up lower pricing of NFTs and gas fees, and look at new options for owning LAND.

Photo by © Mundissima – Shutterstock.com

Some companies are now emerging where they facilitate the lending of NFTs and LAND, also offering building services so that LAND can be personalised to your needs and tastes. Others offer consortium purchasing giving options to buy with friends and family. Ultimately, eventuality dictates that the hype dies down, crypto prices stabilise and these reduce prices of entry, so is metaverse accessibility a waiting game?

FOMO (Fear Of Missing Out) is real for many, plenty of people want to embrace new things early and be on the ground floor. Will we miss out on marking out our boundaries, or even grabbing our usernames? Can those from lower classes, poorer backgrounds and developing areas find their entry point? The final question I’m posing is, while we can’t afford to join, can we afford to wait?

MultiNFT launches NFT presale and opens nightclub in Decentraland

(Image courtesy Rage club MultiNFT.)

This year, metaverses and NFTs are all the rage, and one company’s doing both.

MultiNFT, a company that provides live shows and festival experiences to fans, launched a presale for its native token, $MNFT, and set up a club called Rage at Decentraland’s festival district.

The club will host in-world virtual music events featuring renowned artists. $MNFT holders can spend tokens at MultiNFT arcades and events and will gain early access to special content, rare NFT drops, and earn cashback in affiliated marketplaces.

“$MNFT token is spendable at our events and affiliate shops across the metaverse in Decentraland where you can buy wearables and other merchandise and attend VIP meet and greets and other private activities,” Guy Goldenberg, CEO of MultiNFT, told Hypergrid Business. “And soon you will be able to access areas and drops only with the token.”

Decentraland is a blockchain-based web platform that lets users create, explore, and trade virtual land using digital currencies like Ethereum.

Phillip’s return unlikely to turn Second Life around

Phillip Rosedale is returning as a strategic investor and advisor to Second Life, a company he founded 19 years ago, but it is unlikely that Second Life is going to change much given the tough company culture, closed nature of the platform, and the fact that High Fidelity is itself more of a failed project.As part of the agreement, High Fidelity’s team will join Linden Lab, which will also gain access to High Fidelity’s patent portfolio.

Bob Bilbruck

Rosedale’s return could also mean a rejuvenation to Second Life’s vision for better in-world e-commerce and virtual shopping once held by Rosedale’s team, and this could accelerate the development of their metaverse, said CEO of Captjur Bob Bilbruck.

“Today’s Metaverse and the plans that groups like Facebook have for it are like Second Life on steroids,” he told Hypergrid Business. “We need as many bright minds and visionaries as possible developing in the Metaverse, so I welcome back Philip to the party.

(Image courtesy Second Life.)

But many experts have doubts about whether Rosedale’s return will make much of a difference.

Second Life has already stamped its role in originating the metaverse. It has a strong economy based on digital shopping and virtual land selling, and a working platform with millions of users and transactions.

Phillip Rosedale

Rosedale said in an interview with Wired that although he is only back as a strategic advisor, Second Life will likely concentrate on making expressive avatars, getting more people in one place, and improving mobile performance.

He said that Second Life got digital currency pretty right. People can make money in-world, the currency doesn’t have an ecological load, and it strikes a balance between being centralized and decentralized, he said.

However, to compete with metaverses developed by big tech platforms like Meta, Second Life will need to change its company mindset, culture, and strategy to open the platform to other players, said Jonathan Teplitsky, CEO of Pipeline Marketing.

Jonathan Teplitsky

“Second Life will have an uphill battle joining the metaverse because of entrenched company culture,” he told Hypergrid Business. “They currently employ 165 people who are accustomed to decades of running a closed system run rather than an open one like Decentraland or Sandbox. In interviews with Phillip, he never mentions opening the platform and granting access to outside brands or developers.”

Second Life is fundamentally different from modern-day metaverses like Sandbox and Decentraland, he said. The latter are built on blockchain and are decentralized to facilitate faster and less costly peer-to-peer transactions such as buying and selling land and to improve on content monetization for instance through non-fungible tokens and other forms of creativity, Teplitsky said.

But that’s not necessarily a disadvantage.

Second Life does not use a blockchain because it uses a database that has a time and ownership stamp on created content, Rosedale told Wired. It keeps track of who created and owns the content, whether it’s for sale, the cost, and what’ll you’ll be able to do with it once you buy it.

A lot of the things that supposedly need a blockchain just need a database, said Rosedale.

Eric Chen

“I think his return will have ripple effects across the AR and VR industries as concepts such as blockchain and non-fungible tokens or non-fungible tokens are adopted to fit into this overarching metaverse theme,” Eric Chen, CEO and co-founder of Injective Labs told Hypergrid Business. “So overall it serves as a strong positive signal for the industry as a whole.”

However, Second Life’s market share — like that of other smaller entities coming to metaverse — will remain small while big tech like Meta enjoys an outsized market share given their sheer size and manpower, said Chen.

Second Life will not be changing its business model to monetize user behavior and interests to increase revenue the way YouTube or Facebook operates, said Rosedale.

He said Second Life — whose basic access is free — still has higher revenues per user than YouTube or Facebook and it generates this revenue from selling virtual land and transactions, as well as small fees on transactions, such as when somebody sells digital goods to somebody else.

“Platforms in which users pay for access instead of treating the users as the product have fewer user privacy violations,” said Ilan Tochner, CEO of Kitely. “A company that pursues this strategy will not be compelled to monetize its users’ behavior and interests or limit their ability to decide what they can see or do in exchange for free access.”

Ilan Tochner

“Billions of people around the world pay for mobile phone plans,” he told Hypergrid Business. “Hundreds of millions of people pay for various streaming services. The concept of paying for access to a network is not foreign to people.” 

That said, pay-for-access to the metaverse platform can come in many forms including the sale of virtual goods, subscription to services, and sale of tickets for in-world events.

Companies developing metaverses can also explore freemium business models. They can make services free to leverage ad revenues and increase user base while still charging for other services, Tochner said.

Kitely is also working on a new system that leverages their experience from running Kitely Market to provide a crucial component for a non-dystopian metaverse.

Tochner did not give details on their plans for this new offering but said that they guarantee a privacy-respecting offering for the foreseeable future. Although he said Meta can still succeed in building their augmented and virtual reality platforms on the same centralized ad-driven business model that made Facebook financially successful, he is rooting for a more privacy-respecting open metaverse.

“The way to create an open metaverse is to have standards and multiple separate companies providing the various components that connect individuals and organizations so that they have a choice and won’t have to accept terms of use that encroach on their privacy,” he said.

Should the Metaverse be Gamified?

When discussing the metaverse it’s clear big brands and tech giants have a conundrum on their hands – exactly how do they get the public to engage with something which seems so fantastical? Some of the aspects of the metaverse being discussed currently are pulled directly from sci-fi novels and movies. 

How do the big corporations help the public visualise a decentralised digital space? Where ownership is everything and our physical lives merge with our online selves seamlessly? A place where we can replicate our homes in cyberspace, or live an entirely new life built around blockchain.

These ideas almost feel unbelievable in the same way that our smartphones once did when mobile phones could only log on to the internet using WAP and charged by the minute. Even the idea of paying for a coffee by tapping a watch on a card device seemed far-fetched until a few years ago.

The answer may lay within the industry which has been embracing metaverse concepts for years – videogames. Gaming already allows for virtual selves, digital currency, utilises both virtual and augmented reality, forms cooperation and instant messaging between individuals or within a large group. So, if gaming is leading the way to the metaverse, does the metaverse need to be initially gamified?

It’s clear that most instances of what we would call the metaverse are stemming from videogames. Not only do so many games feature aspects of an active metaverse, but they also steer the technologies, such as processing power and graphical interfacing. It’s no wonder that younger generations, the ones who dive headlong into games such as Fortnite, Minecraft and Roblox, are embracing new experiences like Somnium Space, The Sandbox and Decentraland after seeing many familiarities.

VR Headset
Image credit: Shutterstock

Internal or External

Perhaps we need to veer away from the metaverse for a moment and look at intrinsic and extrinsic ideals. To put it simply, to act intrinsically can be reading a book for pleasure, whereas extrinsically would be reading a book in order to study for a test. It can be seen as internal and external goals or drives.

If the big tech players were to gamify the metaverse, they would be extrinsically affecting the audience, giving them a reason to be there. It’s an outside influence, similar to adding a ‘like’ system to social media. Users then seek out likes, or in this example, points, achievements or challenges overcome. Rather than interacting with the ‘product’ in a more organic way through discovery because discovery can be scary for some users.

An example of this is Roblox. Do users venture onto the Roblox platform to interact with other users within an experience, or do they come for the gaming aspects? One could argue that it works in stages; the player comes for the games, then interacts with various experiences and possibly makes friends, or discovers creativity, turning them into a user who splits their time differently.

This is a tactic used often within gaming; implementing goals to drive interaction. The launch of the Xbox 360 in 2005 introduced an Achievement system, which used points to reward players for exploring or meeting targets. This was then implemented for PlayStation 3, then on Steam for PC users. Players began chasing achievements and trophies, which urged them to explore areas or take on tougher challenges. It was partly pavlovian, realising serotonin when the message of a new trophy was displayed, but it also fed into our natural human need to explore and be rewarded.

Social Farming

To see how tech companies have incentivised users, let’s examine Farmville, a game that swept across Facebook for several years. A game that required little more effort than signing into the social website to grow some crops. Facebook didn’t program the game, nor did they design any aspect of it – that goes to Zynga – but they allowed its placement on their platform. They allowed it knowing that it would bring more people to their social space. There’s no way of knowing how impactful the game was on growing Facebook’s user base, but at the time seemingly everyone knew about Farmville.

Six months after release, when Farmville was hitting its stride, the game had 72.9 million active players, that was 20% of Facebook’s users at the time. These numbers only grew as the popularity of social media exploded. Between April 2009 and July 2011, Facebook’s user base grew from 200 million to 750 million, and Farmville was asking each player to message their friends and ask them to come and play.

At the time, it was an extension to social interactions – something to do with your mother or sibling while online. Mark Pincus, who was chief executive of Zynga at the time, remarked to the New York Times: “we thought of it as this new dimension in your social, not just a way to get games to people.”

The Farmville example shows how a game can guide users towards a new experience or technology. Many of the players who swarmed to Facebook back then were older demographics and while they were there after they’d harvested their crops, they could check in on the family, share a photo or do some shopping. As time passed, the games faded into the background but Facebook was still a place where users checked in every day. Now they weren’t being incentivised, they were simply engaging with a new technology – social media.

Gamified
Image credit: Shutterstock

Digital connections

What could be a possible first step for consumers? Much like Farmville in our above example, users need to be given an entertaining reason to log in. In a recent interview, co-founder of The Sandbox, Sebastien Borget referred to the mega-corporations such as Google, Microsoft and Meta and their intentions for the metaverse. He said: “We don’t think those companies can build something truly fun that’s catered to the users because they’ve been so focused on their key business model and how to satisfy shareholders.”

Discovering a new technology should be fun. It’s the reason most of us downloaded a game on our first smartphone – so we could pinch, stretch, swipe, flick and really get to grips with the technology. Now those actions are used when browsing a web page or editing a photo. There needs to be a reason – something to cause excitement.

The ‘reasons’ don’t need to be games, they could be experiences like concerts, celebrity meet and greets, album listening parties or fashion shows. These events and practices are already occurring throughout metaverse aspiring videogames and as long as the activity rewards the player or features interactivity, it is likely users will attend. The question then becomes ‘how does the metaverse retain visitors?’ Through ownership.

That doesn’t necessarily mean purchasing NFTs or owning land where you build a mansion or storefront; but by guiding users through how they can own their metaverse existence and how it relates to those around them. The reason people stayed with Facebook after finishing their last game of Farmville was connection. They were connecting with family or friends, or perhaps a different game. They came for a reason and stayed because of connection. This is what the metaverse – whichever version we embrace – needs to achieve.

NFTs and blockchain key to metaverse future, crypto boosters claim

Virtual scenes from the Facebook Horizon. (Image courtesy Facebook.)

Blockchain technology, used to power cryptocurrencies and other decentralized record-keeping systems, has been struggling to find practical use cases outside ransomware and speculative projects like Bitcoin and NFTs. There have been a number of pilot projects in a variety of industries, but they’ve rarely turned into anything with significant business impact because of issues related to security, scalability, efficiency, and cost.

Now crypto proponents are looking to the metaverse as an area where the blockchain can make an impact.

NFT proponents say it is a better way of personalizing art and content in the metaverse, and say that the blockchain is a technology that can decentralize and secure metaverse content.

However, NfT’s actual use as part of the core infrastructure of the metaverse will likely be limited given those same issues of privacy, security, and inefficiency, plus the lack of legal oversight.

The most successful implementation of blockchain is cryptocurrencies, which are mainly used for speculative purposes. Like cryptocurrency, most people will be using NFTs in the metaverse for speculation, said Anndy Lian, a founding member of Influxo and Asia chairman of BigONE, a top global digital asset exchange.

And the fact that there’s a lack of legal oversight could actually be a benefit for its adoption, he said.

Anndy Lian

“Indeed, away from the hype about NFTs as high priced art work, one of their chief attractions within the crypto space is that they’re not considered securities for regulatory purposes,” he told Hypergrid Business.

There are privacy concerns regarding the blockchain. Although cryptography is involved in the sense that each transaction that’s added to the blockchain is digitally signed, the actual content of the blockchain is in plain text, unencrypted, available for anyone to read. That means that the public can, for example, trace cryptocurrency payments from wallet to wallet.

However, because of the legal limbo that crypto is currently in, there are no “know your customer” requirements such as those in place for all other types of financial activity.

For this reason, proponents of blockchain say it can prevent the kind of user privacy violations that Facebook — now rebranded as “Meta” — has been criticized for.

And since the blockchain relies on decentralized storage — every participant has their copy of the entire blockchain — there is no central control.

Through tokenization of physical assets for sale in the metaverse platforms, blockchain and NFTs can unlock commerce because this way, they facilitate exchanging of goods digitally, that could not be digitally transacted before, he said. For instance, digital passports such as those promoted by ARCx, can help with credit scoring, collateralized lending, and decentralized commerce in the metaverse, he said.

NFTs are already being used in existing metaverses such as Decentraland, but there are a lot of forgeries and duplication.

Blockchain can assure authenticity

According to proponents, the blockchain’s digital signature mechanism and distributed nature can help creators prove that they are the actual owners of particular content, and help users demonstrate that they are legitimate users.

Using blockchain could reduce NFT forgeries in the metaverse because each node verifies the status and ownership of all assets on the network, hence preventing them from being duplicated or changed, said Cynthia Cao, creator of CC is Dreaming, who is a NFT personality and a leading figure in virtual reality in entertainment.

Cynthia Cao

And it’s not just about digital goods, she added.

“In the future, when people upload their consciousness into the metaverse, we cannot ensure that their memories are not tampered with or controlled by anyone without the verification and authentication that blockchain provides,” she told Hypergrid Business. 

Storing metaverse content, data, NFTs, images and other arts on the blockchain can ensure permanent storage of that data as it becomes immutable.

This can prevent illegal tampering of anything of value stored in the metaverse, said Luke Stokes managing director at Foundation for Interwallet Operability.

Luke Stokes

The FIO protocol is enabling artists to sign their work with an easily readable address that acts as a unique signature for their work, hence preventing NFT forgeries, he told Hypergrid Business.

 

But there are risks, he added.

“There is also the potential for user error, where people miscopy long complicated addresses or suffer man-in-the-middle attacks that could potentially result in millions of dollars being sent to the wrong address or stolen forever,” he said.

Many existing metaverses and virtual worlds succeed by gamifying social and business experiences.

Metaverse platforms that use blockchain have better digital-based rewarding mechanisms for such gamification, for instance through tokens and in-world digital currencies, said Dinis Guarda, who is author, founder, and non-executive chairman of LynKey, Citiesabc.com, and Openbusinesscouncil.org.

Dinis Guarda

“The metaverse will empower peer-to-peer experiences that will offer jobs, financial empowerment, lending, and trading, he said. “The metaverse and NFTs certification solutions will take on the role of a virtual business-empowered financial system.”

This gamification will lead to further growth of art, fashion, collectives, history, cities, property in the metaverse, he said.

Cryptocurrencies are also being used to trade goods and services, for gaming rewards, betting, and for value speculation in metaverses. In Decentraland, for instance, users can buy NFTs with cryptocurrencies or platform token MANA.

Other examples include Citiesabc.com, a metaverse for cities, and LynKey, a virtual and augmented reality platform using crypto for trading NFTs in property and smart tourism.

Unlike fiat currencies like the US dollar or the Euro, crypto enables very cheap transactions in digital worlds, said Daniel Logvin, CEO at LedgerByte.

“We can actually use blockchain to manage in-metaverse currency,” he told Hypergrid Business. “This provides us with security and transaction verification for our purchases and trades, thus ensuring a solid and transparent economy.”

There have even been grids that used Bitcoin in OpenSim, such as YrGrid back in 2015, though none of these projects ever took off due to the high management and overhead costs of using the volatile Bitcoin currency for in-world payments.

Although gaming and art will continue to lead in adoption of metaverse and NFTs, remote working and virtual living — which increased due to COVID, will play a role in popularizing metaverse, NFTs because even the non-tech world is getting interested.

“I think we are entering a really exciting time for the mainstream adoption of NFTs,” said Influxo’s Lian. “Certainly the rise of NFTs for football fans around the world to capture unique moments and to follow their favorite players is a testament to the maturing of the NFT marketplace.

The dark side of the blockchain

Turning an image or another digital asset into an NFT does not actually create any value, said Maria Korolov, editor and publisher at Hypergrid Business. Since it’s stored on the open blockchain, there is no security for assets. In fact, there’s already an epidemic of people simply “right-clicking” on NFTs to save their own copies, with no repercussions, since the block chain no legal weight behind it. Plus, anyone can add anything to a blockchain, whether or not they are the legal owners of that content.

Maria Korolov

NFTs are thus nothing more than virtual Beanie Babies, she said.

“NFTs by themselves don’t protect intellectual property,” she said. “Anyone can claim to own IP and put it on the blockchain. And the blockchain itself is notoriously susceptible to being hacked.”

Crypto companies are high-profile targets for attackers. Hackers go after exchanges, virtual wallets, and even the blockchain itself. For example, one approach is the “50 percent hack.” The blockchain is decentralized, and if there’s a conflict between transactions the blockchain automatically opts for the transaction that’s supported by the majority of the participants. Hackers have hijacked blockchains repeatedly by using botnets to create participating nodes and then stealing millions of dollars worth of currency. This vulnerability is built into the fundamental design of the blockchain, and there is currently no known fix.

Hackers steal money from blockchains right, left and center, she said.

Finally, blockchains are inefficient compared to centralized data storage because the data is duplicated in multiple locations, and new transactions require progressively larger amount of computing power, resulting in adverse environmental impact.

“That’s why no major organization has replaced its databases with blockchains,” she said. “Blockchains are inefficient, insecure, and basically unmanageable,” she said. “A bunch of companies have done pilot projects. They issued press releases about the pilot projects. But then when they looked at how those pilot projects actually worked out, they quietly abandoned the whole thing and never mentioned it again and wrote off the money they wasted as a learning experience.”

Kenetic And Decentraland Partner To Host Nifty Conference

Kenetic, the blockchain firm committed to expanding the development and adoption of blockchain, has partnered with Decentraland, the virtual reality (VR) platform powered by Ethereum blockchain, to host the Nifty Conference and Hackathon. The three-day long hackathon event and conference that is set to bring together over 600 developers, investors, entrepreneurs, and videogame studios together in Hong Kong to discuss non-fungible tokens (NFTs), collectibles, and blockchain gaming.

Nifty

The event, which is the first dedicated to the future of the technology, will ensure that all attendees are able to gain valuable insights into the direction of blockchain and its applications within gaming. Nifty will be hosting a number of speaker seasons and panels during the three days featuring some key individuals within the industry. This includes the likes of Phil Chen, Decentralized Chief Officer and Exodus phone lead at HTC; Tom Bollich, CTO, of MadHive and Co-founder of Zynga’s Studio; Yat Siu, Founder of Animoca; Pete Kim, Head of Engineering, Toshi, at Coinbase; Sabrina Tachdjian, Blockchain & Crypto Investments Lead, LINE; Esteban Ordano, Founder and CTO of Decentraland; Ying Yin, Co-founder of Hyper Dragons; along with many, many more.

Some of the topics that these and more speakers will cover during the event include: The opportunity for NFTs; crypto games: past, present and future; token standards; the platform problem: web, mobile, and more; NFT economies; ERC721 metadata workshop; IP on the Blockchain; building secure apps; and funding your NFT project.

“NFT’s unique assets and collectibles are the next generation of Blockchain value. From Cryptokitties to Codex, they represent an entirely new asset class and a quantum leap in how we quantify and interact with the world around us in a decentralized way. Developers, investors and professionals should be actively engaging this exciting new space.” Said Jehan Chu, Co-founder and Managing Partner at Kenetic.

Nifty

During the conference the blockchain gaming and NFTs hackathon will invite over 200 developers to come together and put their skills and knowledge to the test in new and exciting ways. Workshops focused on building blockchain-based gaming titles will be held throughout the afternoon of July 25th, with prizes worth more than $15,000 (USD) available as well. For those wishing to partake in the hackathon you can sign up here.

“As blockchain continues to revolutionize the gaming industry, we are eager to welcome hundreds of enthusiasts to discuss, debate, and celebrate what’s next for this flourishing sector. Hosting the first-ever Blockchain Games and NFTs Hackathon is something we are truly excited about, and we look forward to meeting all the talent that this event will attract.” Adds Ari Meilich, CEO of Decentraland.

The Nifty conference and hackathon will be running from July 24th until July 26th in Hong Kong, at The Grand Hyatt Hotel. For more details are available via the events website and for all the latest, keep reading VRFocus.

Blockchain-Powered VR World Decentraland Partners With OPSkins Marketplace

The world of Decentraland has been created to be appealing for aspiring virtual reality (VR) content creators. The Blockchain-based VR world has now partnered with OPSkins and WAX in order to make its assets available on the OPSkins marketplace, to make it even easier to construct VR experience within Decentraland.

Decentraland was designed to be a decentralised VR platform that let users create and monetise VR content, including videogames and applications. The mission statement was to offer a VR world that was owned by the creators.

The structure of Decentraland involves thousands of 10 square meter parcels of virtual space. These parcels are represented by a LAND token, which is identified by coordinates in the real world, which users can purchase to build and publish 3D content on the LAND. The real-world coordinated determine how much visibility and visitors each LAND parcel receives.

Once the structure is finalised, the governance and infrastructure of Decentraland will be fully free from corporate control. This is being done by using tools and platforms including Ethereum and InterPlanetary File System. The LAND tokens will be tracked on the Ethereum network, allowing them to be bought and sold like other digital assets.

“The team here at Decentraland is extremely excited to be partnering with OPSkins,” said Ari Meilich, Project Lead of Decentraland. “Listing our LAND from Decentraland on the OPSkins marketplace is a great step toward expanding the exchange of Crypto Collectibles and other unique digital assets.”

“Blockchain-based non-fungible virtual items add an exciting and lucrative new concept to the cryptosphere,” said Malcolm CasSelle, CIO of OPSkins and President of WAX. “Decentraland is helping further establish the Crypto Collectible marketplace, which OPSkins and WAX are excited to be key players in developing. The integration of Decentraland onto the OPSkins platform creates additional utility for WAX Tokens and incentivizes more players to join the ecosystem.”

Further information can be found on the Decentraland website. As always, VRFocus will keep you up to date with the latest developments in VR.

Virtual Reality ICOs: Investieren in VR Projekte für Jedermann?

Seitdem Kickstarter-Kampagnen nur noch selten VR-Ideen zum Erfolg verhalfen, mussten Entwickler neue Wege für die Finanzierung ihrer Projekte finden. Ein Funding von Oculus oder HTC kam vielen kleineren Indie-Studios zu Gute, doch der Topf ist auch bei diesen Unternehmen begrenzt und die Anzahl an willigen Entwicklern, die sofort jeden Vertrag blind unterschreiben würden, ist augenscheinlich ziemlich hoch. An diesem Punkt kommen ICOs ins Spiel, wie das Beispiel von Decentraland zeigt.

ICOs: Der neue Trend der Finanzwelt

Während Virtual Reality seit 2012 seinen erneuten Siegeszug angetreten hat, mauserte sich auch eine andere Idee zu einem lukrativen Geschäft. Neben Bitcoin etablierten sich zahlreiche Kryptowährungen, welche über sogenannte ICOs (Initial Coin Offerings) ins Leben gerufen wurden und einen anfänglichen Wert zugewiesen bekamen. Heute sind ICOs der neue Trend der Finanzwelt, da man bei einem Kauf von Token und Coins – vor dem Handel an den Börsen – satte Gewinne einfahren kann. Eine Verdopplung des Wertes lässt sich bei fast allen gehypten Projekten verzeichnen. Selbst dann, wenn das Projekt eventuell nie realisiert wird und der Wert des Tokens fällt, sobald der Hype sich legt und das wacklige Fundament sichtbar wird.

Doch ICOs bringen nicht nur den Investoren tolle Gewinne. Unternehmen können über den Verkauf der Token in Sekunden mehrere Millionen US-Dollar einsammeln, denn die bisherigen Wertsteigerungen nach erfolgreichen ICOs weckten die Gier in uns Menschen. Mittlerweile gibt es ICOs zu jeder herkömmlichen Buisness-Idee, mit dem Unterschied, dass diese von einem eigenen Token getragen wird, der an speziellen Börsen gehandelt werden kann. Natürlich war es deshalb auch nur eine Frage der Zeit, bis Kryptowährungen auch genutzt werden, um Virtual-Reality-Projekten einen Kickstart zu geben. Doch wie sinnvoll ist ein Investment in solche Projekte?

Decentraland, Looq, NEVERDIE und Co.

In diesem Jahr gab es drei interessante VR-Projekte, die die Aufmerksamkeit einiger Menschen auf sich gezogen hatten. Decentraland möchte eine Welt erschaffen, in der Menschen mit Token ihr Land und virtuelle Güter kaufen und verkaufen. NEVERDIE will den Verkauf und Kauf von virtuellen Gegenständen vereinfachen und Looq hat sich bereits selbst erledigt. Am interessantesten ist wohl die Idee von Decentraland, doch wie realistisch ist die Zukunft, die das Unternehmen aufzeichnet?

Decentraland konnte innerhalb von 35 Sekunden Ethereum im Wert von 24 Millionen US-Dollar einsammeln. Nicht ohne Grund: Decentraland verspricht eine verheißungsvolle neue Welt, quasi ein dezentralisiertes Second Live in VR. Wobei theoretisch auch ein Zugang über den Browser möglich sein soll, was aber nicht der Kern des Projektes ist. Es geht viel mehr darum, die immersiven Möglichkeiten durch VR zu nutzen, um von Menschen etwas Neues errichten zu lassen. Ohne Grenzen und Regierungen. Doch ist bei einem solchen Projekt eine Dezentralisierung der beste Weg? Oder öffnet sie Tür und Tor für weitere Scam-Attacken, die bereits vielen aktuellen Krypto-Anlegern den Spaß am traden verdorben haben? Genaue diesen Aspekt empfinde ich persönlich als extrem spannend, denn wir könnten hier vielleicht bald beobachten, wie sich eine virtuelle Gesellschaft etabliert und wie Regelungen getroffen und Probleme überwunden werden. Doch wird der User bei diesem großen Projekt außer Acht gelassen?

In der Nische für die Nische

Virtual Reality ist eine beeindruckende Technologie und auch wenn sie noch nicht in jedem Haushalt angekommen ist, so wird sie uns dennoch einige Zeit erhalten bleiben. Was aber bei vielen VR-Spielen und Anwendungen ein Problem ist, sind die fehlenden Nutzer. Bisher können sich nur Ausnahmeprojekte mit regelmäßigen Spielern auf ihrer Plattform brüsten, denn es gibt einfach unzählig viele Anwendungen und eine verhältnismäßig kleine Zielgruppe. Bei Kryptowährungen ist dies ähnlich, denn auch wenn hier mit Geld um sich geworfen wird – die wenigsten Menschen besitzen tatsächlich solche Währungen.

Somit wird die kleine Anzahl an VR-Nutzern noch weiter unterteilt und wir blicken auf eine vermutlich verschwindend kleine Zielgruppe die:

  1. Für digitale Güter „echtes Geld“ bezahlt
  2. Virtual-Reality-Systeme besitzt (wenn auch nicht zwingend erforderlich)
  3. Mit Kryptowährungen handelt, welche extrem volatil sind

Und genau an diesem Punkt sehe ich eine Gefahr für das Projekt. Werden Menschen die Welt tatsächlich nutzen, oder bleibt Decentraland ein wilder Traum der Entwickler? Virtual Reality an den Mann oder die Frau zu bringen ist kein einfaches Business und es gibt sicherlich unzählige Projekte, die vielversprechender sind.

VR + Blockchain = schlechtes Investment?

Vielleicht. Vermutlich nicht. Ich bin kein Finanzberater. Decentraland konnte einen tollen Hype aufbauen und das Projekt war in aller Munde. Da die Finanzierung in Windeseile abgeschlossen wurde, kann man davon ausgehen, dass der Kurs zunächst ansteigen wird (wenn auch nicht direkt zur Markteinführung auf Bittrex und Co.). Denn es wollen noch viele Menschen den Token kaufen, welche jedoch im ICO zu langsam waren.

Ob es sich hierbei aber um einen Token handelt, den man längerfristig halten wird, hängt nicht nur vom Erfolg der Entwickler und der Krypto-Gemeinde ab, sondern auch von dem Erfolg von VR in den Wohnzimmern und nicht in Arcades. Viele Faktoren, die man nicht außer Acht lassen sollte, wenn man sich auf das Abenteuer einlassen will. Immerhin passen VR und Krypto aktuell hervorragend zusammen, denn sie teilen sich das Leid, dass beide Technologien noch auf ihre Adaption in der gesellschaftlichen Mitte warten.

Der Beitrag Virtual Reality ICOs: Investieren in VR Projekte für Jedermann? zuerst gesehen auf VR∙Nerds. VR·Nerds am Werk!

‘Decentraland’ – Using Ethereum Blockchain ICO to Sell Virtual Real Estate

Decentraland is a virtual world that is using the Ethereum Blockchain to sell plots of virtual reality real estate. They’re selling an initial offering of the currency they call ‘MANA’, from August 8 to August 16, 2017, and they’ll have up to 2 million plots of virtual land that will be sold for 1000 MANA. They hope to create a virtual city with different thematic districts that will help with content discovery.

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The blockchain contract will contain a Bitorrent link or IPFS hash that contains the content for each virtual plot of land. They have a Unity plug-in, but are also planning on using A-Frame and other WebVR technologies to create their virtual city. They’ll be using using other blockchain technologies like district0x for secondary markets for reselling land, Aragon for distributed governance, uPort for self-sovereign identity, Ethereum Name Service for human readable names. More specific architectural details are described in their Decentraland Whitepaper.

I had a chance to catch up with co-founders Ari Meilich and Esteban Ordano in San Francisco to talk about how Decentraland is using blockchain technologies to manage their virtual world, and why it’s important to create artificial scarcity to help with the discovery of virtual worlds.


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