Decentraland: Metaverse, Crypto, and Everything in Between

The MANA token has surged by over 4,000% in the last 12 months.

 

Key Takeaways:

  • Decentraland is a decentralized virtual world built on the Ethereum blockchain. Its software enables virtual plots of land to be developed, bought, or sold.

  • Decentraland functionalities and their ecosystem are run by LAND and MANA. LAND represents the ownership of a virtual estate, while MANA is its native cryptocurrency.

  • Decentraland has a marketplace that gives it real-world user value outside gaming.

Decentraland began in 2016 created by Estaban Ordano and Ari Meilich. The platform evolved from a simple 2D experiment into a vast 3D environment. Its native currency is an ERC-20 token MANA and runs on the Ethereum blockchain. Users can build anything from multi-level games to apps. It is aided by decentralized tools such as IPFS and Ethereum smart contracts, powered by blockchain technology.


decentraland metaverse mana crypto coin

MANA is available on several exchanges in both crypto and fiat currencies. As a DAO, Decentraland's community participates in the project's governance and decision-making. Its objective is to encourage a worldwide community of players to develop, manage, and explore a shared virtual world. There are two different types of tokens used to govern operations.

  • LAND: An NFT used to identify the ownership of digital real estate property lots.

  • MANA: The native cryptocurrency used to make purchases of real estate (LAND) and virtual goods and services on the Decentraland.

How does Decentraland Work

The Decentraland app is designed to keep track of LAND token-based real estate parcels. It uses the Ethereum blockchain to keep track of the ownership of the virtual land. It also demands that users keep the MANA token in an Ethereum wallet to operate within the ecosystem.


Decentraland is a virtual reality platform that incorporates blockchain technology. Unlike most online games, Decentraland players have complete sovereignty over the game's rules. DAO allows token holders to vote directly on in-game and organizational policies. This mechanism affects everything from permitted items to the DAO's treasury funds.


Its Architecture

Decentraland includes numerous layered components that are all powered by Ethereum smart contracts.

  1. The Consensus Layer maintains a ledger of land ownership. Each LAND parcel has its coordinate in the virtual space. It also identifies the owner and a reference to a parcel content description file.

  2. The Content Layer determines what happens within each parcel and the various files needed to display them.

  3. The final layer is the Real-Time Layer. It allows users to interact with one another using their avatar's voices and messages.


The Marketplace 🛍️

decentraland metaverse marketplace

The Decentraland team introduced a marketplace outside of the gaming environment. It includes a drag-and-drop editor that allows users to create environments. In-game collectibles, such as clothes, goods, and in-game real estate known as LAND, are represented by NFTs.


Users save these tokens in their crypto wallets and offer them on the Decentraland Marketplace. All transactions are settled between Ethereum wallets, so they are all verified by the Ethereum network and recorded on its blockchain.


Owners of LAND parcels on Decentraland use the developer tools to create their own unique experience. The editing tool is used to build unique experiences. Developers utilize this area to access libraries and payment systems for customizing. Additionally, the Ethereum gas fees used on Decentraland make items and ownership expensive.


What is Decentraland MANA

Decentraland's native currency is $MANA. It works as a virtual currency and gives every MANA holder the voting power in the Decentraland DAO. Users convert their MANA into wrapped MANA (wMANA) and lock it in the DAO to participate in the DAO's governance.


One token, or "wMANA," represents one vote in governance proposals. MANA can be bought on exchanges or sold for collectible items on the Decentraland Marketplace. The DAO also has its wMANA treasury to pay for decisions and operations. MANA is also used in gaming for purchases.

Since the name change of Meta, MANA has grown in popularity. Many prominent exchanges rushed to list the token, which is currently available on several different platforms.


What is Decentraland LAND

decentraland metaverse land real estate

LAND is the NFT token representing the ownership of virtual assets on Decentraland. It is an ERC-20 token controlling a portion of the virtual world. The LAND is a finite resource, with each property under the control of users.


The LAND token does not have to be locked on DAO and entitles the owner to have two thousand votes for each token. Players with many plots join them into a single Estate token, with the same voting power as the plots held.


The most expensive LAND was bought with 618,000 MANA worth a whopping $2.4 million in Nov 2021. Metaverse Group purchased this land in the "Fashion Street" of Decentraland, said it would be used to host digital fashion events and sell virtual clothing for avatars.


What can you do in Decentraland?

With plenty of potential for new applications in blockchain-based communities, Decentraland's developers focused their attention on the future. You can do several things in Decentraland as listed on their whitepaper.

  1. Applications: Users can develop apps and 3D scenes using Decentraland's scripting language, allowing deeper interactions.

  2. Content Curation: Decentraland is home to a bustling community of like-minded individuals who have come to love its open world. This has resulted in the development of distinct neighborhoods.

  3. Advertising: Advertising businesses have bought space and erected billboards in areas that experience a lot of traffic.

  4. Digital Collectables: Users obtain ownership rights over NFTs when they purchase, invent, and trade them in the Decentraland Marketplace.

  5. Social interaction: There is a more interactive way of socializing with friends on social media platforms or real-life communities.

One-of-a-kind

The Ethereum blockchain powers the Decentraland virtual reality platform. It allows users to design, experience, and monetize content and apps in VR. You can purchase real estate for personal or commercial usage or as an investment with a resale value later. Decentraland is one of a kind among blockchain virtual-reality platforms. It's free to explore, so you can quickly decide whether or not it's for you by signing in!