This category is for all the new cryptocurrency- and blockchain-based social VR spaces and virtual worlds (Decentraland, The Deep, Ethernia, Mark Space, Somnium Space, Staramba Spaces, Terra Virtua, VIBEHub, Virtual Universe, etc.)
On 20.02.2020, our dream of creating a unique, fully decentralized shared virtual world becomes a reality.
Decentraland, the first ever blockchain-based virtual world, is going live to the public.
The launch includes the establishment of the Decentraland DAO, full decentralization of the world’s infrastructure (communications between users and the serving of content), and, most importantly, public access to the very best the Metaverse has to offer. From now on, no single agent will have the power to modify the rules of the software, curate LAND content, modify the economics of MANA, upgrade the LAND smart contract unilaterally, or prevent others from accessing the world, among other decentralization features.
You should be aware that if you want a custom avatar name, that you will have to pay for it, which means setting up a crypto wallet and buying some cryptocurrency (ETH or MANA) on an exchange. The cost is 100 MANA, which works out to about US$3.50 at the current exchange rate.
It remains to be seen just how popular Decentraland will be among the non-crypto, average consumer, but it looks like we will find out this year! I wish the company good luck on their public launch.
I have been observing the goings-on of what I consider to be the top three blockchain-based virtual worlds (Cryptovoxels, Decentraland, and Somnium Space) for quite some time now. I find it endlessly fascinating.
You might not be aware that all three worlds have assets for sale via OpenSea, which is the world’s largest marketplace for digital goods, including collectibles, gaming items, digital art, and other digital assets that are backed by a blockchain like Ethereum (ETH for short). According to their FAQ, there are over four million items on the OpenSea market, but according to one of my sources, it’s closer to 10 million now.
When discussing these worlds, you will hear the term Non-Fungible Token (NFT) thrown around a lot. An NFT is a unique, distinguishable, indivisible blockchain-based asset which has some sort of monetary value, usually denoted in a cryptocurrency like ETH.
The classic example of an NFT is Cryptokitties, a passionate phenomenon which utterly baffles me. (Then again, I have never understood why breedables became a thing in Second Life, which is the closest non-crypto analogy I can give for NFTs.) The information contained within a non-fungible token is unique to that token, like the colour and design of the stripes on a Cryptokitty, or the location coordinates for a parcel of LAND in Decentraland. This means that one non-fungible token can never be simply swapped, or exchanged, for any other token. Each is unique.
All three of Cryptovoxels, Decentraland, and Somnium Space have both virtual land and virtual items as non-fungible tokens. And you might be as surprised as I was today when, out of idle curiosity, I investigated and discovered just how much money is trading hands per week in these virtual worlds!
Here is a screen capture of the trading volume of the past seven days for both Cryptovoxels and Decentraland, two virtual worlds which have consistently appeared in the OpenSea top 5 list by trading volume:
US$54,000 trading hands in a week is nothing to sniff at (although I suspect significantly more money is still being exchanged in Second Life on a weekly basis). I can now begin to understand how Cryptovoxels’ lead developer, Ben Nolan, can work full-time and be supported financially by his platform! There’s some money to be had here.
In fact, the distributed nature of blockchain ledger-keeping allows anyone to see at a glance how well (or poorly) sales are doing on any blockchain-based platform. Unlike Second Life sales volumes, which are considered confidential, proprietary corporate information by Linden Lab (aside from the occasional statistic tossed out on anniversaries), you can’t hide the information; it is available to anybody who wants to look at it!
(You might be interested to know that the 7-day trading volume in the third blockchain-based platform I mentioned up top, Somnium Space, is about 7.9 ETH, which works out to US$1,134. I am willing to predict that investment in Somnium Space will increase during 2020 to a level comparable with Cryptovoxels and Decentraland. They simply have too much potential to be overlooked, given their planned feature set.)
So do not be tempted to dismiss the blockchain-based social VR platforms and virtual worlds so lightly. People are already avidly buying and selling virtual land, and virtual items such as avatar wearables!
Am I tempted to participate in these markets? Absolutely not. Blockchain/crypto still seems like voodoo medicine to me. My major achievement last month was to successfully transfer a minuscule amount of ETH from one crypto wallet to another, to cover the transaction fee (or “gas”) in order to set up a custom username on Cryptovoxels! (Yes, like Decentraland, you gotta pay. But not as much.)
But it is fascinating to watch all this from the sidelines, nonetheless.
There is also a bar chart in this section of the report that shows you the top non-fungible tokens by trading volume over the past six months:
The market for non-fungible tokens is still quite small, and somewhat harder to measure than the cryptocurrency market given the lack of spot prices for assets. For the purpose of this analysis, we focus on secondary trading volume (i.e., peer to peer sales of non-fungible tokens) as an indicator of market size. Using this metric, we estimate the current secondary market to be roughly $2 – $3 million USD in volume per month. In the last six months, the following projects led the charge:
In this “top ten”, the red arrows point out the trading volume for:
Decentraland (roughly US$1.5 million in trading volume)
On December 30th, 2019, blockchain-based social VR platform Somnium Space held a farewell party, both for both the year 2019 and for the first version of their client software. They are planning to launch version 2.0 of their software sometime early this year, which will feature full-body avatars, as opposed to the head-and-shoulders avatars currently available. (I had reported in October 2019 that they had already released version 2.0, but that would appear to be referring only to the virtual land, not the client software itself. I find it rather confusing!)
If you missed the party, there is video of the proceedings. Vivian Chazen (of The Hive VR) was the host of the event, which featured a live performance by the talented singer Luke Reynolds, and a speech by Somnium Space CEO Artur Sychov.
You can see me merrily throwing virtual snowballs at the start of this video!
Also, Artur says that Somnium Space will be releasing an Oculus Quest version of their client to landowners sometime in January 2020. I assume that this will eventually be rolled out to all users of the platform over the course of the year. Artur also tweeted:
Native MetaMask wallet integration [is] coming into [the] Somnium 2.0 PC client. Connect your wallet to Somnium account and browse your NFTs [Non-Fungible Tokens] including [the] latest contract and price details from OpenSea, and insert them directly into the Builder.
Decentraland has announced all the winners of its Creator Contest. You do not need an account on the platform to visit the prize-winning entries. Clicking on any of the links in the above document will load the scene in the Decentraland Builder, where if you click on the eye icon, you can wander around and explore to your heart’s content as if you were an avatar in-world (see the red arrow in the image below):
The first prize-winning entry is the challenging maze After the Flood: Two Towers, where you must navigate through a flooded landscape:
Second prize goes to the surprisingly realistic-looking dark fairy-tale puzzle Dreach-Fhoula—Tainted Blood, which proves that not all Decentraland scenes need to be blocky- or cartoon-looking!
Congratulations to all the winners of the contest!