We have discussed the metaverse platform in several of our articles, therefore, if you want to know more about how the metaverse works, check our posts on metaverse on this blog site where we treated all about accessing the metaverse
Decentraland is a virtual world owned by its users where the real estate and gaming business are already thriving with people paying thousands of dollars in crypto for a chance to create a virtual land online and make profits. The native currency or token spent in the decentraland metaverse is called $MANA.
Some believe it to be a risky investment while others are eager to invest more funds into the industry, expecting it to be the next gold mine with amazing potential. In Decentraland, users can build whatever they can imagine on virtual plots of land. Like houses, parks, city centers, or shopping malls.
What is Decentraland?
Decentraland is a virtual world platform owned and governed by its users. With Decentraland, users can create, explore, and earn rewards by participating in the community. The world is built on top of a blockchain, meaning all the records on it is completely secure and unchangeable.
Why it is important to know about Decentraland?
Why should you be interested in Virtual land? What is in the virtual land that makes it so special and unique?
Decentraland is a virtual world powered by the Ethereum blockchain and is known as a Decentralized Autonomous Organization (DAO) platform.
This platform has many benefits for users like creating grounds where users can explore, play games, engage in commerce, and create social experiences.
So, in this section, we’ll be talking about five important reasons to know about virtual land ownership.
- Increased Social Connection: Virtual worlds provide a sense of connection and community that can be lacking in traditional online interactions. Unlike other online platforms, virtual worlds allow for far greater interaction and deeper interpersonal relationships.
- Unrestricted Expression: Without the social pressure of face-to-face interaction, users can express themselves more freely and openly. A virtual world provides a safe space for exploration and creativity.
- Educational Opportunities: Virtual worlds offer a wealth of educational opportunities for both students and adults alike. From exploring historical sites to role-playing as historical characters, virtual worlds can be a great way to understand the past while preparing for the future.
- Career Building: By engaging with virtual worlds, users can gain valuable skills such as game design, coding, programming, and graphic design. These skills can benefit users in the job market by providing a competitive edge.
- Stress Relief: The ability to temporarily escape reality through a virtual world can be a great way to de-stress and unwind after a long day or week. Being able to forget about daily responsibilities can be a great form of self-care.
Technical Elements of Decentraland
A Look at its platform features
Decentraland is designed to allow users to create, explore, and most importantly, monetize content and applications. It is a world managed by its users, where everyone can own property, access a range of goods and services, and interact with other users all in a virtual setting.
The platform also offers a range of features that are designed to give users more control over their virtual world. These include the ability to create and develop land plots, engage in digital commerce, create and manage digital assets, interact with other users via avatars, create events and experiences, host gaming tournaments, and much more.
Decentraland also features a native currency called $MANA that can be used to purchase goods, services, merchandise, or land. It also has built-in governance mechanisms that allow users to vote on proposed changes to the platform.
In addition, Decentraland allows developers to build decentralized applications that run on the platform. These dApps can range from games to educational materials. It also includes built-in support for blockchain-based collectibles that are tradable on the Ethereum blockchain.
Overall, Decentraland provides users with different tools and features that allow them to shape their own experiences in their own virtual environment giving them more control over how they use their time and resources in the virtual world.
How does it work?
The platform uses the Ethereum blockchain to create a digital asset called “LAND”.
Each piece of land is represented as a non-fungible token (NFT) that is stored in an Ethereum wallet. This land can then be used to create virtual experiences, such as art galleries, games, stores, and events.
Users can create, customize and monetize their content with an in-game cryptocurrency called $MANA. This can then be exchanged for other cryptocurrencies or fiat money outside of the platform.
The Decentraland platform also allows transactions such as trading or exchanging of assets between users and renting spaces out on land portions. Every concluded transaction is visible to every land owner on Decentraland.
Benefits of using Decentraland
- Security: It utilizes blockchain technology to provide a secure ledger that cannot be tampered with or corrupted. All user activity and data are stored on the blockchain, which enables transparency and immutability.
- Privacy: Decentraland also provides users with autonomy over their data, which means allowing them to control who has access to it. All data is encrypted and users must use their private keys to make any changes or transactions. This makes it difficult for third parties to access user data without permission.
- Ownership: Users can own their digital assets within Decentraland, including land parcels and in-game items. This allows them to store, trade, and monetize their digital assets without having to rely on third-party services or platforms.
- Censorship Resistance: Decentraland is free from manipulation by third parties, which makes it to be a place for free speech and creativity without fear of being shut down by those in power or government.
- Open Source Protocols: All of Decentralands’ protocols are open source, meaning that the platform is not controlled by one central authority or company. This decentralized approach ensures greater autonomy and control over the platform by its users.
Economic Applications of Decentraland
A. Gaming and entertainment
Decentraland gives users the ability to create their own custom game worlds, allowing for immersive gaming experiences that are limited only by the user’s imagination.
Players can purchase virtual items from virtual shops, participate in tournaments, or even create their own games and invite others to join them.
Decentraland also allows users to create their own entertainment hubs. Like hosting virtual concerts in the virtual world, hosting virtual movie theaters, building virtual amusement parks, and more.
Real estate & property ownership
The real estate business is known to be one of the most lucrative businesses in the real world, well this is not so different in the Virtual world also. As real estate and land ownership is said to be one of the most lucrative business opportunity in the metaverse today.
The virtual world was set up by Argentines and its first city is made up of 90,000 parcels of land per 10 square meters according to the BBC. At an auction, it was recorded that people paid more than $28,000,000 for a plot making it the largest-ever sale of a plot of virtual land.
And the record price for a plot of land is $180,000 paid for a plot near the city center. Purchases are made in the native cryptocurrency of the metaverse called $MANA. There are upcoming plans to build themed places to attract visitors such as virtual casinos. These themed places on Decentraland are currently being built by artists and developers.
Unlike other virtual worlds, when you’ve built it, no one can knock it down. No one can take control of your property or hack into your systems, this is because it is a decentralized Virtual world, with no centralized controller.
Other virtual worlds are being controlled by a central governing authority that directs how every inch or square meter of land is being utilized. and that’s a big win for Decentraland.
To purchase land parcels, users must use the $MANA cryptocurrency. This currency is used to pay for all transactions within Decentraland and is necessary to buy land parcels. The price of land can vary depending on the activity surrounding a given parcel, plus its location and position within Decentraland.
Lands can be sold or transferred between users. Once a parcel is owned by a user, they have total control over what is built on it and they can build whatever they wish and invite others to experience it. Property owners also have access to the Decentraland Marketplace, where they can list their parcels for sale to other users in exchange for $MANA.
Owners also gain more income when other players visit and use their parcels; they also receive a portion of the $MANA that was used to access their parcel.
Creation of virtual communities and businesses
The Decentraland SDK (Software development kit) gives users the tools for building 3D scenes, with Typescript and writing crypto-economic protocols for running online businesses.
Additionally, there are opportunities to raise funds from investors and participate in the Decentraland economy through the LAND token. All of these features make Decentraland an attractive platform for entrepreneurs to create and monetize their own virtual communities and businesses.
In conclusion, Decentraland is a platform that offers users a unique virtual world experience where they can experience and interact with services that go beyond the traditional game or social media network.
With the introduction of their cryptocurrency $MANA, the team has created a virtual world with a wide range of potential applications, and the overall potential of this platform is immense.
Here, users can create their own virtual reality experiences and use the $MANA tokens to buy and trade content in this virtual world.