what is decentraland?

decentraland
what is decentraland?

Decentraland defines itself as a virtual reality platform that uses the Ethereum blockchain to enable users to monetize content and applications. The Decentraland virtual reality platform raised $24 million in 2017 with an initial public offering (ICO).

The virtual world launched its private beta in 2019. In February 2020 it was released to the public; Since then, it has offered users a wide range of experiences, including interactive games, wide 3D scenes, and more.

The developers of Decetraland, Estaban Ordano, and Ari Meilich have created a virtual space including items, digital real estate packages, and other customizable assets. We can purchase these items through the ERC-20 Decentraland-based Mana token.

Most importantly, Decentraland users can purchase mana tokens at various Fiat currencies or cryptocurrencies. Non-exchangeable tokens based on the ERC-721 standard represent unique assets of the Decentraland platform, including LAND assets and other collectibles.

On the other hand, the platform also has two Mana and Land tokens. In the following, we will give a full review of the Decentraland platform and how it works. If you want to have information about the tokens of this platform, then stay tuned.

decentraland

What is decentraland?

Decentraland is software that runs on Ethereum and seeks to motivate a global network of users to launch a shared virtual world. To put it simply, Decentraland is very similar to virtual reality video games. However, it is more pervasive and “real” because it owns assets.

From digital skyscrapers and fast transportation systems to movie theaters and hotels, you can find everything in the physical world here.

Decentraland became very popular after Facebook changed its company name to Meta. Facebook’s decision sparked a significant wave in the sense of what is commonly referred to as “metaverse.”

Decentraland users can buy and sell digital real estate while exploring, interacting, and playing in this virtual world. Over time, the platform has evolved to implement interactive applications, in-world payments, and peer-to-peer communications for users.

A set of Blockchain-based smart contacts implement modification in Decentraland software. In addition, this modification allows MANA-owned participants to vote on policy updates, land auctions, and subsidies for new developments.

How does it work?

Decentraland is known for providing the infrastructure to support the shared virtual world. That is to say, the platform includes a decentralized general ledger for land ownership, a protocol for describing the contents of each plot, and a peer-to-peer network for user interactions. Through the DAO, users can bid for policy updates and vote on future LAND auctions.

The Decentraland protocol consists of three layers:

A layer of consensus that tracks land ownership and content through smart contracts.

A LAND content layer uses a decentralized distribution system to deliver content in the virtual world.

A real-time layer provides peer-to-peer communication for users to interact with each other.

Users claim ownership of virtual lands through the General Directorate of Blockchain-based encrypted packages. A distinct set of Cartesian coordinates characterizes each piece of LAND. Content can range from static 3D scenes to interactive systems such as games.

In addition to selling their works, users can rent lands such as buildings, parks, hotels, and casinos to other players. There are, 90601 separate plots of land in the Decentraland metaverse. These lands are exactly 16×16 in size, and they have specific coordinates in the metaverse.

decentraland

What is the purpose of Decentraland?

If you’re wondering what Decentraland’s s main idea is, look no further than its thriving marketplace. It is where users can create and sell items through a unique economy. Web 3.0 meta-worlds are generally part of an increasingly larger crypto cloud economy. It means that these decentralized protocols work together to provide the technical infrastructure to support Meta-virtualized economies.

Metaverse Web 3.0 economies can use their digital currency or the currency of the cryptographic cloud platform. They are on – in the case of Decentraland; this is the MANA token. MANA is a replaceable token of fixed supply that represents the cost of requesting a new package. In other words, a decentralized storage system distributes the content needed to provide the virtual world. At the same time, Smart Contracts can retrieve files containing descriptions of the contents of each package.

LAND and MANA tokens

Two different types of tokens govern operations in Decentraland. These are MANA and LAND.

MANA

As mentioned, the Mana digital currency token is native to the Decentraland platform. On the other hand, the cryptocurrency acts as a digital currency and gives the holder of the Mana Token the power to vote in DAO Decentraland.

Decentraland, users must convert their Mana tokens to wrapped MANA tokens with the acronym wMANA and lock them in the decentralized independent organization (DAO) of the Decentraland platform.

Each wrapped MANA token represents one vote in the governing ballot. As a result, you can buy Mana tokens at various exchanges or in the central market by selling different collectibles (Mana) tokens. The independent decentralized organization (DAO) Decentraland also has its token treasury to fund its decisions and operations.

LAND

The Land Token is an irreplaceable token representing pieces of land that belong to different players in the Decentraland community. Like the Mana Token, the Tokenland also provides users with voting power as part of the Decentraland Governance Protocol.

However, Tokenland does not need to be locked in Daewoo Decentraland, and each Tokenland gives the user 2,000 governance votes. Moreover, players with multiple stories and schemes can include them all in one Estate token with the same power as all schemes.

What is DAO Decentraland?

The decentralized organization Decentraland, or DAO, controls some of the platform’s core assets and smart contracts. The organization includes content servers, LAND contracts, and large MANA token bags.

These items give DAO the funding and independence it needs to subsidize selected projects. However, this should not be surprising. Consequently, this protocol has always retained decentralized values, ​​such as delegating control to its users. Therefore, players and developers can determine how this virtual world will work in the future.

The DAO decision covers everything related to the platform. For instance, adding more features, allocating sales costs, modifying content, and LAND auctions. Like other DAOs, society can shape the development of its virtual world by proposing policy changes and then voting on them.

Use Cases for Decentraland

The developers of the Decentraland platform have explored the potential of the network to create blockchain-based communities. As a result, they listed five critical platform applications in the White Paper Decentraland:

Decentralized applications

Users can create 3D applications and scenes with richer interactions with the Decentraland programming language.

Content Selection

there are places in the Decentraland that attract like-minded supporters and grow more homogenous communities.

Advertising

The traffic of players in different places on this platform has caused brands to buy spaces to advertise their products and install advertising billboards.

Digital Collectibles

In the Decentraland markets, non-exchangeable tokens are collected, created, and traded, giving users proprietary rights.

Social interactions

Communities on social media platforms or offline groups can experience a better interactive way to socialize with their friends.

Decentraland platform security

Ethereum smart contracts register all changes to the state of LAND parcels, like a change in the contents of the LAND or a transfer of ownership. These changes are recorded and verified by the Ethereum blockchain, which provides some level of security. However, you should always conduct your due diligence before investing. And never invest or trade money you cannot afford to lose.

Conclusion

Decentraland is a virtual reality platform where you can buy land. Using the imagination of gamers and entrepreneurs everywhere, you can do whatever you want with the land you buy.

This is a unique project in a highly untested market. The popularity of “Alternative Life” games is a good sign. However, it is difficult to say whether this game will be transferred to 3D and blockchain space or not.

However, suppose its fans accept Decentraland. In that case, we may see a whole new ecosystem of businesses and experiences flourishing before our eyes.

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