Virtual reality (VR) is projected to become a $40 billion industry from 2020. Innovations in both VR hardware and software have made for applications in gaming and entertainment. Moreover, new products by companies like Oculus and Sony are currently making VR cans accessible to both customers and developers.
New platforms want to incorporate these new VR technologies with the societal element of multiplayer gaming. These allow for more immersive experiences unlike previous virtual worlds like Second Life. To its credit, Second Life popularized not only activities such as social interaction through digital avatars but also the monetization of virtual things and property. Unusual and special items in such virtual worlds and online games may reach costs in real dollars.
Today VR platforms leverage emerging technologies such as blockchain to make virtual property possession and trade more protected. Virtual reality platform Decentraland, for instance, uses blockchain to identify and designate possession of land in its virtual world.
Due to the various possible applications of VR, virtual property can now function to properties that they may be sold, rented, and used for virtual activities. Blockchain could help formalize the marketplace for all these virtual properties.
Second Life's developer Linden Labs deserves credit for its endeavor to create a virtual real estate market. Virtual property in Second Life was meant to function as spaces where consumers can set game items such as things and structure. By paying for premium subscriptions users can get spaces that are bigger. Eventually, the market evolved to allow people who have stretches of virtual land to sell or rent out these spaces through Second Life's particular market. It was not long before marketers saw potential to increase their visibility by utilizing these spaces to promote their brands on the stage.
Companies went as far as producing virtual storefronts on Second Life. Users also whined about lag problems and inadequate performance. Second Life supposedly nevertheless has 600,000 active users based on Linden Labs, but it isn't the definitive online gathering place that it once was. Brands eventually had to lose their involvement and concentrate on building their online presence on social platforms with reach such as Twitter and Facebook.
VR, Virtual Worlds, and Blockchain
However, virtual reality is merely virtual. You aren't buying a property in the Bahamas so do not go booking flight tickets. However, new VR technologies are bringing a resurgence of interest in virtual worlds. Improved headsets showcase resolution screen panels which allow for better visuals. Hardware such as tactile gloves can now also offer finer controls and haptic feedback making more immersive experiences for most consumers.
Virtual worlds seek to capitalize on these developments. Virtual reality platform Decentraland, which lately increased $24M ICO in less than 35 seconds, allows decentralized apps to be built in addition to its own technology. In addition, instead of subscribing into a virtual world service like Second Life, Decentraland is not controlled by a central authority. Developers and customers can enjoy a platform to encounter VR. The decentralized platform enables users to market virtual land beyond what is permitted by the terms of services of virtual worlds. Many online games, for instance, disallow trading of virtual properties for fiat monies or some other trading activity done outside their particular platforms.
Investment Opportunities
As an investment opportunity, virtual property offers rewards comparable to real world properties. High traffic areas within virtual worlds are locations for use and brand visibility. For instance, virtual arenas in sports games have banner ads and exhibits showcasing sports brands. Marketers pay game developers dollar to get their brands to be showcased on these spaces.
Virtual real estate owners would be able to use their possessions for purposes that are similar. Modern VR platforms can even allow for a variety of campaigns that maximize the sensory capacities of hardware. Businesses could create showrooms where clients can see products in 3D and even "feel" them.
As such, the perfect storm seems to be brewing for VR. The improvements in the VR hardware are enabling for experiences. "Environments in VR are completely malleable, down to the setting, physics, and social parameters. New decentralized VR platforms liberate users in the constraints imposed by virtual reality developers. Blockchain ensures that the trade of virtual properties becomes reasonable and secure.
Beyond gaming and virtual exploration, developers on decentralized platforms may even look into creating virtual venues for events such as concerts, shows, and sports. Very similar to events, marketers can use these to drive brands and even virtual merchandise. As with tech developments, the industry ultimately decides if these developments will live up to their potential. However, given the speed of progress in VR, exciting possibilities await as the technologies and market continue to evolve.