According to the Decentraland Whitepaper, Decentraland is “a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications”.
Of course this gaming experience is part of the buzz word we are all hearing right now, Metaverse! So, what is the Metaverse? “The metaverse is a digital reality that combines aspects of social media, online gaming, augmented reality (AR), virtual reality (VR), and cryptocurrencies to allow users to interact virtually”, according to Investopedia.com.
That is a great definition! There may need to be more clarity to internal definitions for those who may not know what the other terms are, but once you grasp the basic idea of virtual reality (VR) and augmented reality (AR), it begins to make sense.
Virtual reality is a completely fictional reality that seems real, whether on a computer screen, mobile device or via a headset (which becomes SUPER real in a panoramic headset!). Augmented reality on the other hand is an enhanced version of reality. Check out our recent article regarding the coming metaverse crypto boom and The Best Crypto for 2022.
Augmented reality (AR) uses VR but is a little more. Imagine a headset where you can see clearly through the lenses to what is in front of you, like a tree, a neighbor, a car going by, a mountain, a mountain lion perhaps, or whatever is really there. Nothing real exciting about that (besides the mountain lion!), but AR then facilitates the ability to overlay virtual aspects on top of what you really see. You could have bats falling out of the tree onto your neighbor. or a virtual game where you and your neighbor are in battle against one another and then you have a virtual battle of some sort that “augments” or enhances the reality that you see.
More About Decentraland
Decentraland (Mana) was built for entertainment and for business opportunities. Also, one would be remiss to not see the creative aspect of Decentraland. It allows creators medium to enjoy what they do best, create.
With this project you’ll hear about two tokens that play different roles within this ecosystem: LAND and MANA.
As the original developer (according to most reports) of the concept of selling virtual real estate, Decentraland has established itself a spot for the long haul within the burgeoning Metaverse craze. I use the term craze lightly because it is likely that within two years we will see that this was no passing fad or craze, but the biggest shift of wealth and opportunity in 100 years. It hasn’t even really cranked yet.
In the Decentraland virtual world, users can use tokens to purchase plots of land. On that land, the user can build, create scenarios to monetize (i.e. virtual concerts, etc…), and virtually anything they want.
Decentraland uses two tokens: MANA and LAND
MANA is an ERC-20 token. It must be burned to acquire LAND tokens which are non-fungible ERC-721 tokens (NFTs). So, MANA tokens can be used to pay for LAND as well as names, avatars, wearables and a host of others items within the Decentraland marketplace.
Who Are the Founders of Decentraland?
Although both have stepped down from major positions for the Decentraland project, the original co-founders are Ariel Meilich and Esteban Ordano. they both still work closely with the project as advisors and will likely continue to do so.
Between 2017 and 2020 Meilich was the main leader and developer as an entrepreneur. He has worked continually as an entrepreneur with Silicon Valley venture fund, Charles River Ventures, and has founded many other start ups. Seems his MO is get something rolling until it is taking off and then move on to another start up.
Esteban Ordano was Decentraland’s tech lead. While Milich was the business mind, Ordano was the technical brains behind the Decentraland project. He has an impressive amount of experience within the cryptocurrency world, including being a software engineer for Bitpay, and being an advisor to the Matic network. For a while he was leading his own smart contract development company, Smart Contract Solutions.
As stated above, Ariel and Estaban have now moved onto other projects while remaining advisors to Decentraland’s current leaders. The Decentraland project is still moving forward with a passion. It’s now directed by the new Decentraland Foundation.
How Does Decentraland Work?
The Decentraland Metaverse is divided into several districts which each have their own characteristics. Each district has its own theme and size. Obviously, you select which themed district suits you.
The entire Decentraland world is divided into a total of 90,601 separate parcels of land. This includes all districts. each LAND parcel is represented by an ERC-721 NFT, and each plot is associated with coordinates within the Decentraland Metaverse, similar to a GPS map. LAND parcels are all 16m x 16m (256 square meters).
Check out the Decentraland website to learn more about the districts and how they work. The themes are varied and some are larger than others, although the land sizes per plot, as stated above, are all the same regardless of the district.
MANA – A Governance Token?
MANA is also a governance token as it allows holders of the token to propose policies and to vote on policy updates. This structure is what is known as a DAO, or Decentralized Autonomous Organization.
So, governance decisions are made by the MANA token holders which places them in control of how the Decentraland Metaverse feels and operates. This is a great concept and its catching on with many other crypto and metaverse projects as well.
Is Decentraland A Good Investment?
Decentraland users are able to monetize their LAND. Some enter into projects like Decentraland with the sole purpose to be creative, and others for mere entertainment. Still others are interested in profit through business ideas developed within the platform.
LAND holders can monetize their real estate through leasing, advertising and other events that convert into MANA tokens. But if a user doesn’t own any LAND, they can still create things and sell them within the Decentraland marketplace and generate MANA tokens.
Will Decentraland Create Enough Scarcity?
The original total supply of MANA was 2.8 billion. Currently the total supply is a little over 2.1 billion. Hundreds of millions of MANA have been burned as a result of LAND auctions and there are other burn mechanisms in place at this point to further burn and thus reduce the supply of MANA.
Although MANA was supposed to inflate at 8% per year and decreasing over time, that function is currently disabled until it is “necessary” according to the Decentraland team.
MANA was originally designed to inflate at 8 percent in the first year, decreasing gradually over time to reduce the rate of inflation. But inflation is currently disabled.
More Info On Decentraland
Any project’s whitepaper is a great place to start in learning more about who and what they are and what their long-term goals are. Check out Decentraland’s whitepaper to learn more about this project.
Also, the Decentraland glossary is a great place to gather valuable information. Terms are important to understand within the context of any given project, crypto or otherwise. Sometimes terms and concepts are used in a different way between different types of industries, or even with different entities within a given industry.
Mana is based on the Ethereum blockchain as an ERC-20 token. Because the Ethereum network is a very secure network with thousands of nodes ensuring the Ethereum blockchain, Decentraland and the accompanying tokens are considered safe from attacks.
Decentraland can be an addicting game or creative opportunity depending on how you would use it. Most of these metaverse-oriented games are that way! That’s part of the reason VR and AR gaming will not go away anytime soon. They will just grow and increase over the next several years, starting NOW! Check out Axie Infinity and The Sandbox. Those are two other metaverse gaming projects that are already huge! Don’t miss out on the huge gains possible, and being on the front end of something before it reaches its height.
Thanks For Stopping By!
Thanks for taking the time to read this post. We will have more editorial posts with interesting perspectives regarding the metaverse projects such as Decentraland. They are in research and will be coming to CoinsUnveiled.com very soon. So, keep coming back every day for a dose of news updates, blog posts that are critical pieces regarding crypto projects, tradings exchanges, and other rising elements within the crypto space.
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