Accordingly, different developers are jostling for market share. When imitation is the norm, projects are introducing exceptional features that’ll set them apart. One such project is Decentraland. It seeks to provide gamers with the experiences they desire while providing earning opportunities to them.
So, what is Decentraland? What are its features and offerings that made it attract the hype it currently does? Again, what does this project mean for the enterprise world? Stick around as we immerse ourselves into this exciting project that’s the rave of the crypto world.
Founded in 2017, Decentraland is a decentralized crypto project. It uses open source blockchain technology to present the world online and in 3D Virtual Reality (VR). The project runs on the Ethereum blockchain and supports transactions of virtual properties.
Besides owning and developing virtual property, you may use Decentraland to build online businesses. You have a wide selection of buildings and attractions that you can build on virtual Real Estate. After that, you can either monetize or sell them off.
The project has the backing of a $25.5 million “war chest.” It also lacks a real-world address but operates from the Genesis Building within the platform’s Metaverse. The latter is a VR real estate that the project and its users have collaborated in building.
The Decentraland platform works by allowing players to trade LAND, which are parcels of VR Land. There’s a total of 90,000 LAND, and they’re non-fungible. You may use them to create anything you’d want to. For instance, they could be containers for developing Apps, games, VR Casinos, sites, and 3D scenes.
Decentraland’s Metaverse has a native token called the MANA. It is an ERC-20 token and powers the platform’s every aspect. Apart from being the governance token, you can buy LAND, digital assets, and services with it. Several LANDs create a district that’s a community pursuing similar interests. For example, they could be interested in gambling, pirates, amusement parks, fighting dragons etc.
Besides MANA, Decentraland has two other ERC-721 tokens. These are the LAND and Estate tokens. Both are non-fungible (NFTs) and help create avatars, unique Real Estate, and wearables. The Estate token stands for two or more merged LAND.
Three smart contracts govern the usage of the three tokens; they include the LANDregistry contract, EstateRegistry contract and the MANAtoken contract. The founding team destroyed the MANAtoken contract making it unchangeable.
What are Decentraland’s Key Features?
We’ve already explained that Decentraland aims at recreating an open market economy through BC and VR technologies. It has a couple of key features that define it. Here’s a sample of its salient features.
On signing up, Decentraland will give you a customizable avatar. This avatar is your virtual representation. You could think of it as your digital twin. Again, the platform supplies you with an extensive selection of free outfits and accessories to personalize it.
Should you choose to, you can spend MANA to customize your avatar further. The MANA will buy you commercial skins to further personalize your appearance. Also, your avatar enables you to trade with other users. And you’ll have a decentralized passport that links to an ETH compatible wallet. It’s this wallet that stores your MANA and other digital assets.
Decentraland allows you to build entire scenes and environments. This platform hosts an already made Scene Pool that’s a product of the collective efforts of Decentraland’s users. Thanks to the project’s open-source nature, they can contribute to its development.
The Builder Platform affords you a rich selection of scenes to pick from. You have a choice of very basic drafts to elaborate forests, buildings, and other physical spaces. Additionally, it supports no-code technology simplifying its usage regardless of your coding background. You’ll only need to own LAND to start building.
The marketplace is your virtual world’s go-to place for the best of digital assets. Besides property blocks, you can buy anything from outfits for your avatar, sunglasses and even a name. So, if you can’t develop on your own or don’t want to use the freebies available, you can buy complete kits.
Decentraland operates a Decentralized Autonomous Organization (DAO)
The DAO strengthens the platform’s open market structure. It introduces a governance system that, in addition to community funding, enables grant proposals. Moreover, it provides for community voting.
The DAO owns Decentraland’s assets and smart contracts, including the LAND and Estate contracts. Its assets, on the other hand, are the marketplace, wearables, and Content Servers. Again, it owns significant amounts of MANA that makes it wholly autonomous and enables it to subsidize different Ventures on the platform.
MANA, LAND, and Estate holders can use the governance interface to vote on proposals. You have one unit of voting power per MANA held. Additionally, for every LAND and Estate token, you’ll have a voting power of 2,000 units. Your voting strength increases with increased token ownership.
You can buy MANA from many cryptocurrency exchanges. For LAND, however, you’ll have to use Decentraland’s Marketplace. And you acquire Estate tokens by buying adjacent LAND.
For voting, you’ll need to wrap your MANA. The process creates wMANA and locks the tokens preventing their exchange. You can reverse the process anytime you want, allowing the transfer of the tokens. To use LAND and Estate tokens for voting, you need only register them with the DAO. You needn’t wrap or lock them.
You’ll find Decentraland’s onboarding process straightforward. You won’t need tokens to start exploring the Metaverse. As the platform is web-based, you can access it from your browser and by pressing the Play button.
The platform will then ask you to link your wallet. Make sure that you’ve installed your MetaMask or Formatic browser extensions. You may opt to express it without linking a wallet. However, this will store your activity locally on your device. Note also that the platform doesn’t have mobile support yet.
After connecting your wallet and entering Decentraland’s World, you’ll need to create your avatar. Agree to the platform’s terms and conditions. This action will take you to the Gemini Plaza. There’s a robot to help you navigate the platform.
Decentraland’s Foundation and DAO lead the platform’s governance and development. The Foundation acts for the community’s benefit and holds property rights over the platform’s assets. It doesn’t own Decentraland, however, as the community does so.
Besides the DAO, the platform has a Security Advisory Board (SAB). This organ manages the security of the platform’s smart contracts. Moreover, it oversees the governance proposals to reducefraud risk to the minimum levels possible.
Five individuals make up the SAB and the community votes for them. Part of Its mandate allows it to either delay or reject proposals it deems potentially disadvantageous to Decentraland.
What are the Pros and Cons of Decentraland?
Decentraland presents the immense possibilities of an entire VR universe. It enables creation, ownership and earning from VR assets and services. In doing so, it’s allowing the realization of collections of new virtual worlds run by users.
Though they feature the ownership of value in the VR world, users can transfer that to the real world.
The platform allows users to participate in and profit from a host of activities. These include battling dragons, car racing, trading merchandise or letting property. That said, you have to get MANA to take full advantage of its offering. Currently, acquiring this token is costly. Ethereum’s high gas fees compound this situation further.
Enterprise Use Cases
You can scale Decentraland using multiple servers and P2P connections. This way, it becomes ideal for enterprise applications. Among the areas where Decentraland’s technology can find usage are In-game advertising, in-word events, and property allocation and monetization. Virtually every company seeking to use VR to simulate real-world events will find it helpful.
Already several blockchain firms have bought LAND and created virtual offices and galaxies on it.They include MakerDAO, Rarible and SuperRare. Other entities have used the world to host virtual conferences.
Gaming needn’t be a bore anymore. That’s Decentraland’s guiding philosophy. So instead of the usual that you’ll find in crypto gaming platform’s, it has infused incoming generating opportunities in its product. Its VR platform enables you to create, own and earn from virtual assets on its platform. As the community holds it, users have more say over its governance.
Additionally, businesses with an online presence will find it an essential tool in meeting their ends. That said, it has several downsides. Firstly, its MANA token is expensive. Secondly, since it runs on ETH, users will incur high gas fees. That said, it’s an exciting project that is setting the standards for VR gaming.