Although Decentraland is new to the news, the virtual world has been around since the beginning. In June 2015, Decentraland’s first milestone was achieved by publishing a 2D grid. Read amazing facts about Decentraland!
This grid allocated pixels using a proof of work algorithm known as the Stone Age. The project was upgraded twice more over the next two years: the Bronze and Iron Ages. It officially launched in 2017.
It was left in relative obscurity until January 2021, when interest in NFTs (nonfungible tokens) spiked. Now everyone is left to wonder if virtual real estate can be a good investment or if Decentraland or similar platforms could disrupt the world’s economies.
How does Decentraland work?
Decentraland can be explained by comparing it to sandbox gaming. The Elder Scrolls and GTA are two of the most popular titles in this category. Minecraft is a good example since it uses low-poly 3D graphics. Users can explore a large map and interact with others. Users can also create content that they can later monetize.
Decentraland is based on Ethereum, the most widely used cryptocurrency Ether. This blockchain is used to store and maintain ownership records. Decentraland smart contracts validate every transaction. The protocol has three layers. In the first layer (consensus), ownership is tracked through said contracts. The second layer is the land content layer that renders the world. The third is where peer-to-peer connections are established.
The 3D models are created using popular software such as SketchUp and Blender. The development team is using A-Frame to create a VR platform.
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The Potential of Decentraland’s Economic Economy
The scripting language in Decentraland allows the creation of dynamic 3D scenes, apps, and games. This is especially interesting as Atari, a game developer, just announced that it has signed a 2-year lease for parcels of land in Decentraland to build the first virtual gaming facility. Live dealer games are currently the closest thing internet users have to a real casino experience. Atari’s new venue will allow users to explore a 3D establishment, interact with other players, and play games. This is undoubtedly a game-changer for live dealer casinos. It will raise the level of the game.
This platform has unlimited advertising potential due to its ever-growing user base. This platform allows companies to promote their products and services in ways that are impossible in real life. You could also make certain neighborhoods with high foot traffic virtual equivalents of Downtown Los Angeles or Time Square.
The rise of digital collectibles is a hot trend. Blockchain technology will soon make it possible to trade assets. Decentraland allows users to create content that they can trade or make available for sale, so its potential financial mirrors that of the real world. Others may argue that they are stronger.
MANA Drives Decentraland’s Digital Economy
MANA is Decentraland’s native ERC-20 token. It has a limited supply. The platform will burn a portion of its MANA supply every time someone purchases an NFT token (non-fungible token). Non-fungible means something that is unique. An example of this is an artwork that is not fungible and currency like Ether or MANA.
MANA traded at $0.08 per share in January. It reached $1.6 in mid-April, thanks to recent press. It is not used outside of Decentraland. It is used to facilitate the purchase and transfer of LAND parcels.
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Decentraland is igniting a virtual
The platform was launched in 2017, and its developers sold LAND at a price of around $20 per piece. A 33×33 foot parcel is considered a parcel. The initial auction saw users spend over 161 million MANA to purchase 34,356 parcels of LAND, which amounts to approximately $30 million. LAND is sold on the Decentraland Marketplace as well as secondary auctions. It is an NFT token and has seen a surge in popularity.
Vignesh Sundaresan, a Singapore entrepreneur, paid $69.3 million for a digital art entitled Everyday: The First 5k Days. Celebrities like Lindsay Lohan and Mark Cuban are investing in NFT. Republic Real Estate, a crowdfunding platform, is also advising people on how to purchase virtual land. They also have a digital investment fund.
Future Outlook
Thanks to Generation Z’s appeal, virtual metaverses will be around for the foreseeable future. The MANA price skyrocketed in 2021. What was once an empty wasteland is now slowly filled with content as the Decentraland’s userbase grows every day.
Many metaverse competitors are also gaining popularity. The SandBox and Somnium Space are the most prominent. Nine plots of virtual ground were sold by the latter for $1.5million.
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