Decentraland is a pivotal project for the metaverse. It’s an Ethereum-based blockchain platform that seeks to change the way people purchase, build, and monetize virtual reality applications. The platform is transforming how people own virtual pieces of land, artwork, and other non-fungible tokens.
The brainchild of Ari Meilich and Esteban Ordano, Decentraland was launched in 2015 as a grid that allocated users’ pixels through a proof-of-work algorithm. The blockchain project is based on Decentralized Autonomous Organization (DAO) principles, meaning the larger community is allowed to participate in the project’s governance.
The blockchain platform is divided into a limited number of parcels commonly referred to as LAND.
MANA Token
MANA, an ERC20 token, is the native currency that powers the Decentraland platform. People can use the virtual currency to make transactions in the virtual world, i.e., buy virtual LAND or other collectibles on offer. In addition, it can be used to verify ownership inside the Decentraland world.
To be part of the DAO’s governance, community members must first convert their MANA tokens into wrapped MANA (eMANA) and lock them on the DAO. Each eMANA amounts to one voting right during governance proposals.
Anyone looking to own some MANA tokens can do so by purchasing them on exchanges. Selling some collectibles on the Decentraland Marketplace also presents an opportunity to accrue some MANA tokens as it is the mode of payment.
While LAND presents the plots of lands that people own on the platform, it also provides voting power as part of the governance protocol.
Tokenomics
The Ethereum-based blockchain project has created an online space by combining virtual reality and blockchain technology. Unlike other projects or online games, community members are accorded direct control over all rules.
In the platform, non-fungible tokens represent all in-game collectibles such as clothes and virtual real estate. Users can store these tokens in the crypto wallets or sell them to other users on the Decentraland marketplace. To buy some items on the platform, one must have some MANA, the network currency.
In addition to being able to buy items on the Decentraland platform, MANA holders can still fill their personal spaces with games, activities, and other artwork that people can interact with. In addition, one can monetize their virtual LAND.
Decentraland use cases
In addition to providing a platform for selling items, Decentraland also offers a platform through which people can create apps and 3D scenes. The platform comes with a scripting language that enables rich interactions.
Through the platform, one can also curate content to attract like-minded fans. One can also engage in advertising campaigns by attracting like-minded people as the platform is already attracting brands.
Summary
Decentraland is a unique blockchain project for anyone looking to get involved in the virtual reality world. The project is changing the way people create applications, exchange items non-fungible tokens, and develop and own plots of land.
