Blockchain And VR

Virtual Reality and Blockchain Tech Convergence: 

Virtual reality is such an amazing concept. By now, it should be clear to everyone that it’s much more than a gimmick. It offers an alternative — a portal into a digital world where anything is possible.

While some may be tempted to use it as a way to escape the harsh realities of everyday life, VR’s real potential lies not in replacing, but in expanding, the human experience. It enables us to visit and experience an infinite number of imaginary worlds and scenarios, while never leaving the comfort of our real-world homes. We can meet our long-distance friends and interact with them in ways previously not possible.

VR + blockchain

Now, with Decentraland, you can also own a piece of virtual land and use it for whatever purpose you imagine. It’s a unique project that blends VR and blockchain — two technologies that have seen massive growth over the past couple of years. Decentraland relies on the Ethereum ETHUSD, -7.71%  blockchain, a distributed ledger running across the internet, which means it doesn’t depend on corporate servers for hosting.

Blockchain+VR

Digital objects now gain an identity through blockchain and other technologies integrating with virtual reality will allow for a deeper immersive experience. One example of a technology which will be able to integrate with VR are projects utilizing the Non-fungible Token (NFT) standard, ERC-721, which is turning out to be quite an interesting development.

Blockchain and AR/VR — A match made in virtual heaven?

These are both young industries with a lot of room to grow, and we are starting to see some convergence. Coinbase co-founder Fred Ehrsam thinks that VR could be blockchain’s killer app, but how can a decentralized ledger based on complex cryptographic algorithms merge with immersive entertainment or gaming?

A few projects are working on this very question, proposing innovative and exciting solutions that will help shape the future of both industries. Most of these projects are taking place on the Ethereum blockchain, using the ERC-20 and/or ERC-721 token protocols to incentivize users and execute smart contracts.

Decentraland — a VR platform where users can create, experience, and monetize content and applications.

This project is currently the most significant VR platform on the Ethereum blockchain, with a marketcap of $55 million (as of Dec. 2018) and around 20,500 holders.

So what’s special about Decentraland? Although its still in embryonic stages, it’s positioning itself as an immersive interactive world where people simply pop on some VR goggles and then explore a virtual world with a range of activities and sights. You can even purchase LAND and build parts of it yourself.

By purchasing LAND through the Ethereum blockchain, an immutable record of ownership is created, while smart contracts track all modifications. 

Once you own LAND, then its yours to do with as you choose — build houses and businesses, hang out with friends, listen to music, race cars or even go swimming with dolphins. The only limit is your imagination! There are some parallels with Second Life, and I can see this turning into a sandbox for real creativity and escapism.

What makes it really interesting is the monetization aspect. The buying and selling of parcels of land allows speculators to gamble on the value of the plots that make up Genesis City increasing in the future. There are already plenty of would-be virtual property tycoons buying up parcels of land in the hope of becoming a blockchain Donald Trump. A virtual real estate ecosystem is also developing, as its possible to take out crypto-backed mortgages or get in touch with investors bank-rolling promising projects.

Another exciting mechanism (for the future) is that if you build some useful service, for example a casino, concert hall, or art gallery, then people might pay for access or buy virtual goods once inside. Check out Crowdconscious’ article for more details about how this might evolve and encourage virtual entrepreneurship.

Decentraland is still in the early stages. Despite raising $24 million, successful execution of key milestones is crucial to its long term success. A lot will depend on the graphics and gameplay, and until a user-friendly scene editor that normal people can use is released, adoption beyond the tech-savvy is likely going to be limited. However, behind the scenes there are plenty of game devs working with the SDK to build out proof-of-concepts for this exciting virtual world. Watch this space!