Decentraland Introduces a Wearables Editor: Creating and Selling Avatar Fashion on the Blockchain

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If Second Life has taught us nothing else during the 18 years of its existence, it is this: that people are willing to invest considerable amounts of time and money on avatar customization. In some worlds like VRChat, the customization applies to the entire avatar; in others, like Sinespace, Second Life and Sansar, you can have dressable, human(oid) avatars, where you can mix and match clothing you purchase from content creators to make your own signature look. (In fact, at one time I had aspirations to teach myself Marvelous Designer and become an avatar fashion designer in Sansar…you can read through all the blogposts of that particular saga here.)

The Decentraland Wearables Editor

The blockchain-based virtual world Decentraland has followed the latter path of Sansar and Second Life (i.e. dressable human avatars), and early this month, they have taken another step on that journey by releasing the Decentraland Wearables Editor. Here’s a quick promotional video:

Now, unlike Sansar and Second Life, creating and selling avatar clothing is different in a blockchain-based virtual world like Decentraland. Every single copy of every single article of clothing has to be minted as a unique NFT (non-fungible token). In other words, the designer decides ahead of time how many copies he or she wants to sell. All clothing is limited edition!

The Decentraland Wearables Editor allows you to name items, model wearables on an avatar, assign categories and item rarity, and set a price for each item in your collections. After that, according to the official blogpost:

Once you’re happy with the details, you can publish your item or collection which then goes to the Curation Committee for approval.

The Curation Committee was voted in place by the DAO, and exists to prevent buggy or offensive wearables from appearing in Decentraland.

Read more about the committee and the approvals process in the documentation.

While there is no gas cost for minting wearables on Polygon, there are fees for publishing wearable items in the Editor. These fees are intended to discourage and reduce wearable “spam”, which can have a negative impact on the performance of the Decentraland Platform.

Again, this is another key difference between Second Life and Decentraland: everything you create for the latter has to go through an approvals process. Since this is a new process, it is impossible to say how much of a potential bottleneck this could create. (By the way, the Decentraland DAO is an autonomous body which owns the most important smart contracts and assets that make up Decentraland—the LAND Contract, the Estates Contract, Wearables, Content Servers and the Marketplace—and subsidizes various operations and initiatives throughout Decentraland.)

So, as you can see, blockchain throws an interesting curveball at the world of avatar fashion design! If all this intrigues you, you can learn more from the Decentraland documentation on wearables. You can follow Decentraland via Twitter and Reddit, or via their blogYou can also join their official Discord server.

Sotheby’s Sets Up Shop in Decentraland

The current boom in NFT art has led to new partnerships between bricks-and-mortar art galleries and brokers and blockchain-based platforms, such as Cryptovoxels, Decentraland, and Somnium Space, where such art can easily be displayed and admired.

Venerable art auction house Sotheby’s has just announced via Twitter that they have set up a digital replica of its London galleries in the blockchain-based virtual world of Decentraland, as part of Natively Digital, an inaugural curated sale of Non-Fungible Token (NFT) artworks (along with a discussion room on Clubhouse today):

Artnet News reports (this site is paywalled so use the incognito mode of your web browser to see this article):

Sotheby’s virtual gallery is a twin of its New Bond Street outpost, complete with five ground-level galleries—but instead of London’s tony Mayfair enclave, it is located in Decentraland’s prime art hub, known as the Voltaire Art District (map coordinates: 52,83).

A virtual version of Sotheby’s avuncular London commissionaire Hans Lomulder…welcomes visitors at the gallery entrance, top hat and all. 

The Observer website reports:

The NFTs that will be for sale include both the work of early, pioneering crypto artists in the field and more recent blockbuster stars; some of the names represented in the sale are Rhea Myers, Lethabo Huma, and Larva Labs. Recently, Christie’s scored a huge win with the $16.9 million sale of 9 Cryptopunks NFTs manufactured by Larva Labs, so that listing in particular is likely to score comparable dividends for Sotheby’s.

The rare face-masked alien CryptoPunk in Gallery 1 has a starting bid of US$480,000! Obviously, this is art that lies way, waaay outside my payscale!

If you want to visit the virtual Sotheby’s in Decentraland, read my step-by-step guide on how to get started, then type /goto 52,83 into chat (note that you should also be able to visit Decentraland as a guest, without setting up an account). Enjoy the art!

UPDATED! Cryptovoxels and Decentraland: More Money Is Being Exchanged for Blockchain-Based Assets Than You Might Suspect

You’d be surprised by the amount of cryptocurrency changing hands for blockchain-based digital assets like virtual land and avatar wearables
(image by WorldSpectrum from Pixabay)

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.

Cryptokitties for sale on the OpenSea website
(and no, I still don’t get the appeal)

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!

Cryptovoxels wearables (including a sword, a cellphone, a baseball cap, and a boombox) for sale on the OpenSea website

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.

UPDATE Jan. 11th, 2020: Jin has alerted me to a brand-new resource by OpenSea, called The NFT Bible: Everything you need to know about non-fungible tokens, which is an excellent starting place for the newbie to learn all about non-fungible tokens in much more detail than I have covered here.

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)
  • Decentraland Estates (i.e. parcels larger than a single piece of LAND; about a quarter of a million dollars in trading volume)
  • Somnium Space (approximately US$250,000)
  • Cryptovoxels (also approximately US$250,000)