$2.43 million for a single residence. $500 million in land sales. It might sound like the real estate market in a swanky city, but what if we told you it was the virtual real estate market? According to information firm MetaMetrics Solutions, that is in fact the case. This brings us to the important—and very lucrative—question: What is Decentraland 🤔?
A lot of people are asking this question right now 🗣. After all, Decentraland is booming, and people are starting to notice. Not only is a supply of MANA now economically promising; it is being praised by content creators for a unique user experience in the cryptocurrency space. Some crypto firms have even developed virtual workplaces and art galleries 🎨 in Decentraland and held conferences there. That’s why we will be examining the inner workings of Decentraland in this article along with some of the pros and cons of owning digital assets on the blockchain-based platform.
What Is Decentraland?
Decentraland is a user-owned virtual world based on the cryptocurrency Ethereum. Think of it as a newer, cooler version of The Sims (one where you can actually make money) 😱. It started in January 2020 and has since become an important virtual reality platform. The platform is regulated by its users through the Decentraland DAO, a decentralized self-governing company.
On Decentraland, you can play games 🎮 and tasks as well as acquire parcels of land 😎. Once you conduct an exchange for LAND parcels, you can use these plots of land to construct your very own environments, markets, and applications within Decentraland.
Tasks like studying at Decentraland University buying digital art at the Crypto Valley Art Gallery, and trading with fellow metaverse regulars in Bartertown make Decentraland fun, but they all rely on Decentraland’s in-world tokens with digital symbols. We will discuss those below 🧐.
What Is Decentraland Made of? MANA, LAND, and Estate Tokens
Unlike the gold coins 🥇 found in Mario or World of Warcraft, Decentraland’s tokens are actually valuable in real life. Decentraland has three native tokens:
- LAND, an ERC-721 token for an electronic piece of land
- Estate, an ERC-721 token for joined parcels of electronic land
- MANA, an ERC-20 token that serves as Decentraland’s money.
(Want to know what the heck ERC-721 and ERC-20 mean 🤗? These are simply standards for representing ownership of fungible and non-fungible tokens. If you’re new to this, here’s a good article about it from the Blockchain Council.)
ERC-721 symbols like LAND and Estate are both NFTs or non-fungible tokens. That means they are not fungible, or interchangeable. A dollar 💵 is a fungible token in that you can exchange a dollar for another dollar; a piece of artwork, on the other hand, is not fungible even in an online space because each piece of art is unique.
Buying, Building, and Selling in Decentraland
As NFTs, LAND and Estate can’t act as money, but they’re great for creating unique in-world products like characters, wearables, and unique virtual lands 🏡. Just like in the real world, you can buy LAND and estates using money 💸. In Decentraland, money is MANA tokens (a fungible token like the dollar).
Like other digital currencies, MANA can be traded 🔁 for more standard currencies on a crypto exchange. However, while MANA can be purchased on cryptocurrency exchanges like Gemini and Coinbase, LAND and Estate need to be bought in the Decentraland Market.
All digital space in Decentraland is composed of individual parcels of LAND. You can check out upcoming land auctions to explore land ownership and land tokens in Decentraland’s Marketplace. When you buy a plot of LAND, the deal is videotaped on the Ethereum blockchain, where it is recorded it using blockchain technology. All the digital residential property you obtain in Decentraland is listed in this registry.
Unlike various other virtual worlds, Decentraland is not controlled by a centralized entity. Rather, this online game 👩💻 universe is (you guessed it) decentralized. It’s governed by MANA, LAND, and Estate token holders via the Decentraland DAO, which was developed making use of innovation from a DAO company called Aragon.
In addition to the DAO, Decentraland has a five-person elected 🧍♂️👭🧑🤝🧑 Safety Advisory Board (SAB) that looks after the gaming environment. This board supervises the level of security, examines governance propositions, and handles any bugs. The board has the capacity to delay or deny governance proposals that may adversely affect Decentraland.
What Is Decentraland Now and in the Future?
With its decentralized style, Decentraland is a brand-new style of the digital universe 🌌. It’s much more than simply a video game. You can own the value that you produce in the online worlds you live in, whether that’s through ownership of land parcels or a spike in MANA price. You can then transfer that value via a cryptocurrency token directly to the tangible world 🌎.
Plenty of people are already jumping aboard and turning a parcel of LAND into cold hard cash 💵. In early 2022, Tokens.com struck a bargain in Decentraland’s style district, for example, for around $2.5 million in game assets. The business, which claims the digital land purchase was the largest in the metaverse thus far, plans to establish the adjacent plots as a sort of designer mall in the virtual reality space.
Between June and also December 2021, online land doubled from $6,000 to $12,000 throughout the four main Internet 3.0 metaverses (Decentraland, The Sandbox, Somnium Area, and also Cryptovoxels), according to JPMorgan records 🤑. While crypto exchange and interactive games still can’t be considered a stable investment, big players like Mark Zuckerberg are getting in line to invest. Do you want a piece of that digital platform pie? Join my email list here to grow your digital wallet using game currency!