Decentraland is a virtual environment and community built on the Ethereum blockchain. Land plots, artwork, and Non-Fungible Tokens are developed and owned by users (NFT). Members can also join the Decentralized Autonomous Organization of the platform (DAO).
Decentraland, like a DAO, empowers its community to participate in the project’s governance. The Ethereum blockchain hosts Decentraland’s native cryptocurrency, MANA, as well as all in-game assets.
If you’ve ever played Second Life or traded bitcoin, Decentraland may be of interest to you. The platform has grown from a simple 2D experiment to a huge 3D universe since its inception in 2016.
What is Decentraland
Decentraland is an Ethereum-based decentralized virtual reality platform (ETH). Users may basically buy land using MANA, Decentraland’s native token, as well as develop apps, purchase and sell non-fungible tokens (NFTs), and auction their properties.
The goal of Decentraland is to bring blockchain technology to the game industry. Its creators believe that every asset, even a virtual one, should belong to the proper owner, and that no centralized body should be able to force its will on that owner.
Decentraland’s developers have kept fresh use cases in blockchain-based communities in mind since the platform’s inception. Key use cases are outlined in their whitepaper.
Users may use Decentraland’s scripting language to develop apps and 3D sceneries, allowing for more complex interactions.
Content Curation: In Decentraland, neighborhoods have formed, gathering like-minded followers and forming organic communities.
Advertising: As a result of increased player traffic in neighborhoods, advertising companies have purchased space and erected billboards.
How does it work?
Decentraland is a virtual reality and blockchain-based online environment. Unlike other online games, users have complete influence over the online world’s laws. Token holders may vote directly on in-game and organizational decisions through the DAO. This method has an impact on everything, from the sorts of things that may be traded to the DAO’s treasury investments.
In-game treasures, such as clothing, goods, and the game’s virtual real estate, LAND, are represented by non-fungible tokens. Users save these tokens in their crypto wallets and sell them on the Decentraland Marketplace to other users. To get your hands on some MANA, Decentraland’s native cryptocurrency, for example, you’ll need to get your hands on some.
Decentraland can be used for a variety of purposes, such as advertising and content curation. The obstacles to entry for new players wanting to get started with NFTs, however, are considerable. The cost of Ethereum gas nearly doubles the cost of some cosmetics. Land costs tens of thousands of dollars, making ownership prohibitive for some gamers.
In 2017, Decentraland was born. Ariel Meilich and Esteban Ordano were the project’s co-founders, however both developers have now stepped aside and handed management over to the community. They are still advisors to Decentraland, but the Decentraland Foundation is in charge of any protocol modifications.
Meilich is a digital entrepreneur with prior startup expertise. He established an online translation firm as well as a customer relationship management platform. He also worked for Charles River Ventures, a Silicon Valley venture capital firm, as an analyst. Between 2017 to 2020, Meilich was the project’s head at Decentraland.
Ordano, on the other hand, was the former tech lead. He has a lot of expertise in cryptography. He co-created Bitcore, one of the major Bitcoin (BTC) infrastructure libraries, as a former software developer at BitPay (BTX).
The consensus layer, the land layer, and the real-time layer are the three layers of Decentraland.
Smart contracts are used to fuel the consensus layer. It keeps track of who owns land and what’s on it. When forming a new LAND division in the registration, the LAND contract burns MANA.
Decentralized storage is provided by the land layer. Users can download assets via a decentralized mechanism that disseminates material across the metaverse. The land layer is an important part of the system since it contains all of the information that the platform need to render a piece of LAND, such as textures, 3D models, and audio files.
MANA is Decentraland’s native cryptocurrency, as previously stated. It serves as a digital currency as well as giving each MANA bearer voting power in the Decentraland DAO.
What is the MANA token used for?
Users transform their MANA into wrapped MANA (wMANA) and lock it in the DAO to participate in the DAO’s governance. In governance proposals, each wMANA symbolizes one vote. MANA may be obtained through exchanges or via the sale of collectible goods on the Decentraland Marketplace.
How to store MANA?
To properly interact with Decentraland, you’ll need a crypto wallet that connects with your browser. MetaMask is presently recommended by the development team for storing your MANA (ERC-20) and LAND (ERC-721) tokens.
- LAND and Estates are being upgraded to provide new amenities;
- Choosing the details and dates for future LAND auctions;
- Determining market fees, which are always burned in MANA;
- Identifying major sale fees, which are always included in MANA that burns
Exploitation is a possibility. Data exploitation is not unheard of in Decentraland. As the DeFi industry grows, so does the amount of cyberattacks. Financial and parcel losses are unavoidable if a hostile actor discovers a weakness in the protocol.
Regulation. This is a common danger in the DeFi space as well. Cryptocurrencies may be subject to stringent rules imposed by regulatory agencies. These rules might have a significant influence on the price of Decentraland tokens and Ethereum. These activities may restrict users’ access to the Ethereum blockchain.
When it comes to blockchain virtual-reality systems, Decentraland is rather unusual. It’s completely free to explore, so you can quickly make up your mind by logging in. Its development team has brought it from a modest project to where it is now, five years later, making it rather mature in comparison to other crypto projects.