Decentraland is a virtual world built on the Ethereum blockchain where users can buy, sell, and develop virtual land, represented as non-fungible tokens (NFTs).
It’s a 3D, browser-based platform that allows users to interact with each other, play games, and experience a wide range of activities
What is Decentraland?
Decentraland is a unique metaverse platform because it is decentralized and owned by its users. This means that the network is run by everyone, unlike other metaverse projects that are owned and operated by a specific company.
What started off in 2015 as a simple grid that allocated pixels to users through a proof-of-work algorithm has since evolved into a full-fledged virtual project that allows users to purchase, build, and monetize virtual reality applications in a shared online ecosystem.
In Decentraland, users can now play games, explore, and interact with others in a 3D virtual world.
It’s also a platform where users can create and monetize content and applications. The platform is built on the Ethereum blockchain, which ensures secure and transparent ownership of virtual assets.
Decentraland was opened to the public in February 2020. It is a 3D virtual world that is browser-based and written in C#, GLSL, and HTML.
Users can buy virtual plots of land in the platform as NFTs via the MANA cryptocurrency, which uses the Ethereum blockchain.
Designers can create and sell clothes and accessories for the avatars to be used in the virtual world. Vegas City and District X are two examples of themed areas in Decentraland.
What are the LAND and MANA tokens?
Decentraland has three native tokens:
- LAND
- MANA
- Estate
LAND is represented as NFT tokens certifying land ownership such as virtual real estate property in Decentraland’s virtual world, Genesis City.
The amount of LAND is capped, and each plot is 16m x 16m in size. Owning adjacent plots lets you bond them together into an Estate.
LAND holders have full control over the environments and applications created in the plot, which could range from static 3D scenes to interactive games.
What is the MANA token?
MANA is the native cryptocurrency of Decentraland. It’s an ERC-20 token that fuels the platform’s economy.
Decentraland’s tokens (MANA, LAND, and Estate) have real-world value and transferability, unlike in-game currencies in traditional games. Here are some of its key uses:
- Purchasing LAND and Estates: You need MANA to buy virtual land in Decentraland.
- Buying and selling in-game items: MANA is used to trade avatars, wearables, names, and other digital assets in the Decentraland marketplace.
- Customization: You can use MANA to customize your avatar and personalize your experience in Decentraland.
- Invest in real estate: Users can buy parcels of virtual real estate with MANA.
- Trading: MANA can be used to purchase and sell assets.
Parcels of LAND are bought using MANA, which is Decentraland’s cryptocurrency token.
Each plot of LAND was originally worth 1,000 MANA, but thanks to the emergence of a secondary market and LAND’s finite nature, some plots of LAND have reached astronomical values (recently reaching upwards of a few million U.S. dollars).
In addition, only those who own MANA tokens can participate in blockchain governance.
What is the Estate token?
In Decentraland, an Estate is a virtual property formed by merging two or more adjacent LAND parcels under single ownership.
This consolidation simplifies the management of larger virtual holdings, allowing owners to develop expansive scenes or projects that span multiple parcels.
To create an Estate, the parcels must be directly adjacent and not separated by roads, plazas, or other parcels.
Once merged, the individual parcels are represented by a single Estate token, streamlining ownership and development processes.
The Estate token is an ERC-721 non-fungible token (NFT), similar to the LAND token, ensuring each Estate is unique and verifiable on the Ethereum blockchain.
This structure enhances the flexibility and scalability of virtual real estate development within Decentraland, enabling users to create more complex and interactive environments.
In addition to simplifying property management, owning an Estate provides governance benefits within the Decentraland ecosystem.
Each Estate grants its owner voting power in the Decentraland DAO, allowing them to participate in platform governance and influence future developments.
How does Decentraland work?
The entire Decentraland virtual world is divided into more than 90,000 parcels.
Just as in the real world, each parcel purchased in Decentraland entitles the owner to a certificate that defines ownership in the form of an NFT (called LAND).
Decentraland users can buy LAND and other digital goods and services on the platform using its in-house token called MANA.
Users can do virtually anything they want with LAND they own, be it building a house or a theme park, and enable interaction among other members of Decentraland. LAND can also be sold or auctioned to other users in the platform’s marketplace.
The platform is governed by a decentralized autonomous organization (DAO) and runs on Aragon, which is a DAO software solution using an agent-like system to facilitate interactions with Ethereum smart contracts.
As a decentralized project focusing on the distribution of authority, Decentraland members are in charge of LAND, virtual assets, and project development.
DAOs are organizations formed for a particular purpose but are governed democratically. Participants join by purchasing a token created for that purpose. In most DAOs, the more tokens you own, the more votes you get.
A consensus layer connects multiple validation processes within the network. This enables it to track ownership of LAND and metaverse activities simultaneously.
Decentraland provides the infrastructure for a shared virtual world where users can own and control their creations.
It operates on a system of interconnected technologies that work together to create a seamless virtual experience. Here’s a breakdown of the key components:
- LAND: This represents the digital real estate in Decentraland. Each parcel of LAND is a unique NFT, guaranteeing ownership and scarcity. You can purchase LAND, develop it with games, applications, or 3D scenes, and even monetize it.
- Estates: These are collections of adjacent LAND parcels, allowing for larger-scale developments and easier management.
- Districts: Communities within Decentraland that center around a shared theme. The amount of LAND you own in a district influences your voting power on community decisions through the voting dApp, Agora.
- Avatars: Your digital representation within Decentraland. You can customize your avatar’s appearance and use it to interact with others and explore the virtual world.
- Builder: A tool within Decentraland that allows you to create scenes and experiences on your LAND. You can use pre-made assets or import your own 3D models.
- Marketplace: A platform where you can buy, sell, and trade LAND, Estates, avatars, wearables, and other in-game items using MANA.
Decentraland enables users to develop shared spaces and monetize content. The virtual reality platform was built using A-Frame, but now uses Unity as its game engine.
To create content in Decentraland, users can design models in programs like SketchUp or Blender and then import them onto the platform.
Opportunities Within Decentraland
Decentraland offers the following opportunities for users:
- Virtual Real Estate: Invest in LAND parcels to develop and monetize through various ventures, such as leasing to other users or hosting paid events.
- Content Creation: Design and sell digital assets like wearables, art, or interactive experiences, contributing to the platform’s vibrant ecosystem.
- Social Interaction: Engage with a global community by participating in events, joining themed districts, or collaborating on projects, fostering connections and shared experiences.
How to get started with Decentraland
Eager to jump into the metaverse? Here’s a step-by-step guide to getting started with Decentraland:
- Visit the Decentraland website: Go to the official Decentraland website (decentraland.org) and click on “Get Started.”
- Choose your access method: You can explore Decentraland through your web browser or by downloading the desktop application.
- Connect your wallet (optional): If you want to buy LAND, trade items, or participate in governance, you’ll need to connect an Ethereum-compatible wallet like MetaMask.
- Create your avatar: Customize your avatar’s appearance to your liking.
- Explore and interact: Once you’re in Decentraland, start exploring the virtual world, interact with other users, and participate in events.
Team Background
Decentraland was initially launched in 2015 by Ari Meilich and Esteban Ordano.
Before entering the world of tech, Decentraland Project Lead Ari Meilich worked with the National Institute of Health in conducting neuroscience research on human decision-making.
He has worked with leading Silicon Valley venture fund Charles River Ventures and as founder and CEO of big-data company Benchrise.
Prior to co-founding and being the Tech Lead of Decentraland, Esteband Ordano invented Streamium, which is the first app implementing payment channels crucial to scaling blockchain payments.
He was a software engineer at BitPay and co-creator of Bitcore, one of the leading Bitcoin infrastructure libraries.
Token Metrics:
- Holder Addresses: Approximately 295,027 unique addresses hold MANA tokens.
- Circulating Supply: There are about 1.868 billion MANA tokens in circulation.
- Max Total Supply: The maximum total supply of MANA is fixed at 2.193 billion tokens.
- Deflationary Mechanism: The MANA token incorporates a deflationary mechanism where a 2.5% fee is applied to transactions within the Decentraland marketplace. This fee is burned, effectively reducing the total supply of MANA over time