BLOCKCHAIN Archives -

Virtual Real Assets : Investing in Unleashing the Future

minvisk — Sat, 23 Dec 2023 06:36:35 +0000

In an era characterized by swift digitization, the conventional landscape of investments is undergoing a revolutionary transformation. As our world immerses itself in the digital realm, traditional investment paradigms are giving way to a new order. Amidst this dynamic shift, unconventional and innovative investment opportunities are arising, propelling virtual assets into the forefront of wealth creation. Far from being mere novelties, investments in the virtual sphere are now firmly establishing themselves as a mainstream path to financial prosperity. This article delves into unexplored realms such as virtual real estate, cryptocurrencies, and digital collectibles, inviting readers on an exhilarating journey through the boundless potential of the digital frontier.

What are Virtual Real Assets?

Virtual real estate means owning and investing in digital spaces online. Platforms like Decentraland and Cryptovoxels let people buy, sell, and build in these virtual worlds. Using blockchain and special tokens called NFTs makes transactions secure and clear. Just like owning property in the real world, virtual real estate lets you own, develop, and make money from digital spaces. Artists and creators use these virtual places to show their work and people can gather for events. As technology gets better, virtual real estate keeps growing, giving new ways for investment and creativity in the digital world.

Virtual Worlds and Metaverses

Virtual worlds and metaverses are digital environments where users can interact with each other and the computer-generated environment in real-time. These spaces often simulate aspects of the real world, allowing users to engage in various activities such as socializing, gaming, creating content, and even buying and selling virtual assets, including virtual real estate. These environments can be 2D or 3D and may offer a range of experiences, from simple chat rooms to complex, immersive simulations like virtual reality glasses. Virtual real estate refers to digital parcels of land or property within virtual worlds or metaverses. Users can buy, sell, and trade these virtual properties, and ownership is often recorded on a blockchain for transparency and security.

Blockchain: Technology of Tomorrow

Blockchain technology and Non-Fungible Tokens (NFTs) play a crucial role in facilitating virtual real estate transactions in metaverses like Metabox or Sandbox. In metaverses like Metabox or Sandbox, virtual real estate can be tokenized as NFTs. Each piece of virtual land or property is represented by a unique NFT, which contains information about ownership, metadata, and possibly development details. Smart contract is game changer without it NFTs would not be possible. Smart contracts, self-executing programs with predefined rules, can be employed in blockchain-based platforms to automate various aspects of virtual real estate transactions. For example, a smart contract could automatically transfer ownership of an NFT once payment is received.

Extension of community and social boundaries

On such platforms, everyone uses Avatars. Avatars serve as the digital representation of users in virtual spaces. Customizing avatars and personal spaces contributes to a sense of identity and belonging within the community. Many metaverses have central hubs or gathering spaces where users can come together. These hubs serve as virtual town centers or meeting points, allowing users to interact and socialize. Virtual real estate owners and the metaverse operators frequently organize community events. These events may include concerts, parties, art exhibitions, and more. Attendees can participate in these events, fostering a sense of community and shared experiences. Twitter (now X) is the hub of such community.

Customization and Personalization

Users frequently enjoy the option to personalize their virtual spaces, providing a canvas for self-expression and creativity. This customization empowers individuals to imbue their virtual homes with unique elements, fostering a sense of identity and creativity. These personalized spaces are open for exploration by others, promoting social interaction and shared experiences. Certain virtual real estate platforms facilitate joint ownership and collaborative development of expansive projects. This shared ownership not only instills a sense of community pride but also encourages a collective sense of accomplishment as users contribute collaboratively to these larger endeavors.

Various platforms which provide opportunity to invest in Virtual real assets such as –

Decentraland: Decentraland stands as a pioneering decentralized virtual world, firmly rooted in the Ethereum blockchain. Its innovative ecosystem empowers users with the ability to acquire, vend, and cultivate virtual parcels of land, all facilitated through the native cryptocurrency, MANA.

The Sandbox: The Sandbox is a multifaceted virtual world and gaming platform that enables users to craft, possess, and monetize their gaming endeavors. Virtual land acquisition is made possible through the platform’s utility token, SAND, fostering a thriving ecosystem of creativity and economic exchange.

Cryptovoxels: Operating on the Ethereum blockchain, Cryptovoxels is a captivating virtual realm and art gallery where users can invest in and construct virtual landscapes. Voxels (VOX), the platform’s native token, serves as the medium for transactions within this dynamic virtual space.

Somnium Space: Stepping into the realm of virtual reality, Somnium Space offers a metaverse where users can transact in virtual land using the platform’s native cryptocurrency, Cubes (CUBE). This immersive environment provides opportunities for buying, selling, and constructing virtual properties in a three-dimensional space.

Axie Infinity: Renowned primarily as a blockchain-based game, Axie Infinity extends its offerings to include ownership and trading of virtual land in Lunacia. The representation of virtual land as non-fungible tokens (NFTs) adds a layer of uniqueness and scarcity to the virtual real estate market within the game.

Upland: Upland differentiates itself by mirroring the real world in a blockchain-based metaverse. Users can participate in the dynamic virtual real estate market by buying, selling, and trading virtual properties tied to real-world addresses. The native cryptocurrency, UPX, serves as the medium for transactions within this innovative and geographically inspired virtual ecosystem.

Conclusion

In summary, virtual real estate is an exciting frontier where technology and creativity converge. Platforms like Decentraland and Cryptovoxels, backed by blockchain and NFTs, offer a unique digital realm for ownership, development, and unforgettable experiences. Beyond being an emerging investment opportunity, virtual real estate stands as a dynamic community hub, fostering artistic expression and social connections. It’s not just a trend; it’s a dynamic landscape where the digital world meets economic potential, inviting exploration and innovation. The possibilities within this expanding digital frontier are as vast as the imagination, making virtual real estate a compelling space for individuals and businesses alike to thrive and shape the future.

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Navigating the Legal Landscape: An Overview of the Regulation of Cryptocurrencies and NFTs

minvisk — Wed, 13 Dec 2023 12:42:58 +0000

The world is undergoing unprecedented changes, with old technologies swiftly giving way to new ones within weeks or months. Technology is advancing at an astonishing pace, reshaping the way we function as a society. The unmatched flexibility and scalability of the internet define this era, marking the age of the Digital Revolution. In today’s digital landscape, concepts like crypto, NFTs, and AI have become integral to the internet’s fabric.

Legal Nature of Crypto Assets

Crypto assets are considered intangible assets existing in digital form, capable of ownership and transfer among various parties. Serving as a medium of exchange, their usage is neither expressly nor impliedly prohibited in India. Given the surge in demand, they have become a significant source of investment.

The legal aspect of the transfer of crypto assets finds resonance in the Supreme Court case of Vikas Sales Corporation and Others v. Commissioner of Commercial Taxes and Others (1996) 102 STC 106. The case centered around whether the transfer of an Import License, specifically the R.E.P. License/Exim scrip, constitutes a sale of goods for Sales Tax purposes. The Supreme Court ruled that REP licenses possess intrinsic value, allowing their transfer from one individual to another, creating a chain of transactions. The original licensee or the subsequent purchasers are not constrained to import the goods specified in the license. These licenses are freely transferable, possessing inherent commercial value and treated as merchandise or goods within the commercial world. A REP license is distinct from a chose-in-action or an actionable claim and is not akin to a title deed; rather, it stands as a property with its own inherent value, making it freely tradable in the market. The precedent set in this case is applicable to crypto assets due to their similar nature to R.E.P. License/Exim scrip. Both possess inherent value and are freely tradable, making the existing legal framework pertinent to understanding the legal nature of crypto assets.

Intangible assets are transferable properties that can be owned and transferred but lack a physical form, making them unable to be seen or touched. Therefore, cryptocurrencies, NFTs, and tokens fall under the category of intangible property.

According to Pollock & Mulla on the Transfer of Property Act, 1882, the term “property” within the act is used in the broadest sense, encompassing anything that can be transferred. The definition extends to include real and personal property, interests in the property, debts, things in action, and any other rights or interests, unless a contrary intention is explicitly stated. This comprehensive definition covers both tangible and intangible properties.

In the case of Bans Gopal Sheo Narain v. P.K. Banerji AIR 1949 All 433, the Hon’ble Allahabad High Court deliberated on the definition of “property.” The court expressed the opinion that “property” incorporates all rights related to things, whether tangible or intangible. Hence, we can conclude that Crypto Assets is Intangible property which can be easily transferable to other person. It is very important to lay emphasis on legal nature of crypto assets as it provides –

Clarity in Legal Framework:

Explain how defining the legal nature of blockchain provides clarity in the legal framework. A clear understanding helps regulators, businesses, and users navigate the legal landscape surrounding blockchain technology.

Smart Contracts and Automation:

Discuss the role of smart contracts in blockchain and how they automate and self-execute contractual agreements. Address the legal implications of smart contracts and how defining their nature can ensure enforceability and compliance with existing laws.

Digital Assets and Ownership:

Helps to explore the concept of digital assets within blockchain, such as cryptocurrencies and NFTs. Defining their legal nature is crucial in determining ownership rights, taxation, and regulatory compliance.

Cross-Border Transactions:

Highlight the global nature of blockchain technology and its impact on cross-border transactions. A clear legal framework ensures consistency and facilitates international cooperation in regulating blockchain-related activities.

Fraud Prevention and Security:

Well-defined legal framework contributes to fraud prevention and enhances security in blockchain transactions. Legal clarity encourages the development of secure and transparent blockchain networks.

Investor Confidence:

It helps to understand how blockchain fosters investor confidence. Investors are more likely to participate in blockchain-related ventures when the legal environment is well-defined and protective of their rights.

Innovation and Development:

Defined legal nature encourages innovation and development in the blockchain space. Entrepreneurs and businesses are more likely to invest in blockchain projects when legal uncertainties are minimized.

Conclusion

Given the dynamic nature of this technology, it enables the creation of more advanced financial tools, posing greater challenges when applied in practical scenarios. The government faces the task of finding a middle ground, recognizing that blockchain is a technology crucial for the future. Blocking its progress could hinder the country’s technological growth. To address this, the government needs to provide clearer and more detailed guidance through additional clarifications and notifications. Without such guidance, there is a risk of confusion and difficulties for taxpayers.

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