Published by Porch.com | June 8, 2023
When it comes to securing virtual investments, you have a choice of several insurance products, including cybersecurity insurance and digital property insurance.
Although the Metaverse is a virtual world, many people have already purchased profitable real estate in this space. When it comes to protecting your real estate in the Metaverse, having the proper type of insurance coverage is key. This rapidly developing and changing domain is rife with opportunities, and many investors are taking advantage of the new space to make money.
When it comes to securing virtual investments, you have a choice of several insurance products, including cybersecurity insurance and digital property insurance. While traditional homeowner’s insurance doesn’t cover virtual property, there are other ways to protect yourself. This guide offers insight and information to help you navigate this new virtual, digital world.
Understanding digital property
Digital property or digital real estate is anything you can buy that exists online, such as a URL (web address), an NFT, cryptocurrency, or even real estate within the Metaverse. Whatever type of digital property you invest in, securing the appropriate type of protection is vital to prevent theft or access via hacking and other nefarious means. While your physical home is a place you actually live in, digital real estate is virtual and therefore needs a different type of coverage than a traditional home. Aside from a website and intellectual property, many digital properties also include personal money accounts like a bank account that’s linked to the property, which should also be protected.
What is the Metaverse?
The Metaverse was created by Facebook CEO Mark Zuckerberg and merges the physical and digital worlds together. It blends augmented reality (AR) with virtual reality (VR) to create a world filled with activities like socialization, work meetings, and virtual neighborhoods and communities. Using a headset, you’re able to enter this new three-dimensional world and take part in everything that’s happening within the Metaverse. Digital property and the Metaverse go hand in hand and consist of things like blockchain technology that keeps track of your virtual assets.
Types of digital property
Here are some examples of digital property that may exist within the Metaverse:
- Photos, videos, eBooks, and other intellectual property that creates revenue (like an NFT)
- Websites and blogs that may bring revenue to the original owner
- In-game tools and in-game currencies
- Virtual objects and real estate that lives within the Metaverse
Most transactions are tracked via blockchain using a digital wallet. People can invest in real estate and then rent it, sell it, or flip it for a profit. Other ways to make money include creating your own characters and properties, hosting events, and even selling merchandise in the Metaverse. If you sell something, buyers purchase it with cryptocurrency, usually in a form that you request. Once the purchase is made, the cryptocurrency is transferred to your virtual wallet. The new owner can now keep the property and use it as they wish or sell it again for a profit later if they choose to do so.
