With its verifiable property rights, Decentraland is the most developed and fastest-growing virtual land investment. With a vibe that feels like a combination of Second Life and SimCity, and similar to games such as Fortnite and Minecraft, Decentraland offers parcels that must be bought and sold using MANA, its crypto token.
Decentraland is an Ethereum-based blockchain platform where users can purchase, create and monetize virtual land in the platform’s world, which gives them ownership and control over the environment and applications they create within their land. To learn more about Decentraland, make sure you go through analyze No. 13.
What is Decentraland NFT game about?
It is a virtual reality (VR) platform where users can both build and monetize their content and applications.
There are two different types of tokens govern operations in Decentraland:
- LAND – A non-fungible token (NFT) used to define the ownership of land parcels representing digital real estate. Users who buy LAND own it entirely and permanently. They can control how their LAND looks by choosing the scenes they want.
- MANA – A cryptocurrency that facilitates purchases of LAND, as well as virtual goods and services used in Decentraland
Decentraland’s Avatars
Users can also create their avatar in three easy steps:
- Users claim a passport to manage their digital identity.
- Second, they personalize the avatar with a unique name.
- And finally, they customize their avatar by creating a specific appearance.
What are LAND and MANA
Foreshorten, LAND is a non-fungible digital asset that you purchase in the game, which is broken up into virtual parcels. One LAND can be bought for 1,000 MANA. MANA is simply an ERC-20 token. It is the designated digital currency for purchasing these parcels of digital land called LAND. Users can also purchase digital goods and services with MANA. Let’s find out more about the above-mentioned LAND and MANA.
The role of Decentraland’s LAND?
LAND’s utility and value depend upon its proximity to attractive attention hubs. Content developers buy LAND to create their content. The available digital land is finite.
What will happen to the price of LAND when it has all been scooped up? Built-in scarcity will lead to higher prices as long as the demand is there. We can see similarities to real-world behavior when real-estate magnates swoop in and snap up desirable plots to develop. We’re talking about digital land in this case.
So, Decentraland divides its virtual real estate into a limited number of parcels which are called LAND. And LAND is a space where users create their virtual worlds. LAND owners have been granted complete creative freedom. The income they generate from their digital land goes into their pocket.
Users can buy various different plots of digital land. Content creators will want to buy plots of digital land that best helps them reach their target audience. Each parcel of unclaimed LAND can be purchased with an exchange rate of 1000 MANA = 1 LAND.
The price of the digital land parcels depends on popularity, driving factors such as whose parcel is adjacent, and what kind of traffic it draws. LAND sitting next to a popular influencer is going to be more valuable than a low-income area with nothing interesting going on.
The role of Decentraland’s MANA Token?
MANA is an ERC-20 token. There are a lot of wallets available that can store it. The more users spend, the less there will be in circulation. That bodes well, when more people pour into Decentraland to buy LAND. That will cause the demand for MANA to increase. Increasing demand coupled with a decreasing supply typically leads to equals higher prices. And that will always be good for holders of the MANA token.
What is Decentraland’s DAO and why has it been created?
DAO stands for “Decentralized Autonomous Organization”. DAO controls some of the main assets and smart contracts on the platform. The Decentraland DAO owns the most important smart contracts and assets that make up Decentraland – the LAND Contract, the Estates Contract, Wearables, Content Servers and the Marketplace. It also owns a substantial purse of MANA which allows it to be truly autonomous as well as subsidize various operations and initiatives throughout Decentraland.
Decentraland is the first fully decentralized virtual world. It was always part of the original vision to hand over control to the people who create and play in this virtual space. In short – you, the users. Through the DAO, you are in control of the policies created to determine how the world behaves: for example, what kinds of wearable items are allowed (or disallowed) after the launch of the DAO, moderation of content, LAND policy and auctions, among others.
Conclusion
Decentraland is a great place to start a new virtual space, and it’s already chocked full of cool places which invite the users to explore them. It is a VR platform powered by Ethereum. It allows users to claim parcels of LAND in a virtual world where they can create content, build applications, and then monetize them.
Like a physical homestead in the real world, investments don’t necessarily end with the initial land purchase. There is a sense of community in Decentraland where parcel owners help develop new features. Non-land owners are also welcome and have flocked to Decentraland’s wearables market, which features helmets, goggles, vests and pants.
The opportunity for ownership is what separates Decentraland from other VR platforms. It’s what makes it different. Users, not corporate heads own the decision-making process for the platform via the DAO. And users also get to own the parcels of this digital landscape. They keep all the proceeds generated by other users on their LAND. This is a great alternative to other platforms that always take a cut. The good news is there is no central authority hovering around to impose their agenda.
A potential risk concerning Decentraland is that a superior platform might come along that renders the entirety of Decentraland obsolete. Because, after all, unlike the real world where real estate truly is finite, an infinite number of virtual worlds could be created.
Source: www.academy.ivanontech.com
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
