Decentraland Metaverse Review and future
The concept of virtual reality has caught on, and as cryptocurrencies mature, developers are using blockchain technology to create decentralized realities. Over the years, we have heard of many meta-versions built on blockchain technology, which not only offers complete digital ownership of virtual real estate but also opens up avenues for revenue generation through decentralized smart contracts.
The center of gravity of the world is shifting to work from home through the adaptation of virtual spaces and beta versions. One such virtual world, Decentraland, is an example of a virtual world whose users have taken advantage of the opportunity for their personal gain. From using digital real estate to create a virtual workspace to building entertainment centers to secure land as an investment opportunity, Decentraland has truly revolutionized the concept of virtual reality.
Decentraland, which has already launched its beta mode, is giving users a glimpse of the virtual reality experience. At the same time, other blockchain-based meta-versions are still in their infancy and years away from becoming a reality. The Decentraland virtual world has been a wild success with enthusiasts investing in the initial game content and grabbing limited Decentraland LAND packs to immerse themselves in the virtual world.
Today's roundup will include a detailed review of Decentraland, where we will discuss all the distinctive features of the metaverse that distinguish it from other virtual worlds built on the blockchain.
What is Decentraland?
Decentraland is a virtual world that is powered by the Ethereum blockchain. It is an immersive metaversion with a dual tokenomics concept that users can use to acquire digital real estate to develop and monetize as they see fit. Decentraland offers its players a decentralized infrastructure that allows them to develop land and control game assets, policies and development using Decentralized Autonomous Organizations (DAOs).
The concept of a decentralized metaversion transfers the executive role to its player instead of a centralized company that benefits from the affairs going on in the system. Using fungible and non-fungible tokens, Decentraland offers its users complete digital ownership, allowing them to use their creative imaginations to harness evolving technology to build everything from innovative buildings to engaging mini-games within the metaverse.
Founded in 2015, Decentraland offers a 3D grid with a limited number of plots. Packs are in-game NFTs that can be customized, converted, and used for monetary gains. Each plot in the metaverse has its own unique coordinates for easy navigation through the gigantic metaverse.
Decentraland Tokenomics Decentraland is a fully virtual world with several business features. To fully take use of this 3D virtual environment, either as a participant or investor, you need to have a thorough understanding of tokenomics. Let's take a closer look at MANA and LAND, two of Decentraland's key tokens.
The MANA Token Explained
The in-game economy of Decentraland depends heavily on MANA. You can burn and spend it in exchange for LAND tokens (1 LAND = 1000 MANA), an ERC-20 fungible token. MANA may be used to purchase a variety of different digital resources that are useful in the Decentraland universe. The process of purchasing MANA is relatively straightforward and is available on several popular cryptocurrency exchanges, including Binance, Kucoin, FTX, and many others.
The LANDToken Explained
LAND NFTs that can track ownership on the Ethereum blockchain serve as a representation for the virtual property inside the Decentraland metaverse. The universal protocol for Ethereum-based NFTs, ERC-721, is the foundation upon which the LAND tokens are built. LAND is traded on the blockchain like any other NFT thanks to the ERC-721 standard. On their LAND tokens, users in Decentraland may create 3D applications and experiences and earn money from them. The whole Decentraland universe consists of 90,601 16 × 16 metre LAND pieces. Decentraland has also auctioned the most expensive virtual property to far, with a single piece of LAND going for more over $2.4 million on November 24, 2021.
In the Decentraland metaverse, there are two ways to obtain virtual properties. Participating in LAND auctions that are periodically held is one option, and buying land from other users who are selling is another. The simplest and most common option is to go to the Decentraland Marketplace and purchase the items listed by other users.
When you first enter the marketplace, a wallet prompt will appear, requiring you to link your cryptocurrency wallet. The MetaMask wallet is the most widely used, dependable, and user-friendly cryptocurrency wallet, hence we advise using it. When you link your wallet and select the "Land" button in the upper left corner, a map of all the LAND in Decentraland will appear. The majority of the land is already registered to someone; by clicking on the LAND units, you may put a successful wager for purchasing the LAND.
Beware of phishing schemes while purchasing any token or linking your wallet to any website. Nowadays, phishing and other frauds are widespread in the cryptocurrency and NFT sphere, and numerous people lose their digital assets every day.
Decentraland Technology Architecture
There are three layers to the protocol of Decentraland:
Consensus Layer: This layer employs an Ethereum smart contract for tracking the ownership and content of the LAND parcels.
Land Content Layer: This layer plays the role of rendering the virtual world content through a decentralized distribution system.
Real-time Layer: This layer uses a peer-to-peer (P2P) network for enabling users to interact with one another in real-time. What Can You Do In Decentraland
future of decentraland:
We wouldn't call Decentraland just a gaming platform or something people do for fun. But it is actually a full-fledged economy. People invest not only their time but also their currency. It is said that "it is the riskiest investment in the world". Nevertheless, it is an investment that many are interested in.
His first city consisted of 90,000 10x10 meter plots, and in his auction, people paid more than $28 million for the plots, the largest sale of virtual plots to date.
Roughly 40% of the land available in Decentraland has already been purchased, and there are many reasons why people spend thousands of dollars in cryptocurrency for "virtual" land.
In a way, for some it is investment and for others building infrastructure as a chance for profit.
The reason for their investment may be that the buyers expect to sell their land at a very inflated price in the future.
This is a statement made a few years ago by Esteban Ordano, the founder of Decentraland: "Right now we have an economy of around a few tens of millions of dollars and we hope to expand it to at least billions". This is guaranteed by many investors, including him.
Do you also think about how these people make money from the infrastructure they build there? (I had the same question! And now I have an answer.)
What a lot of people do is buy a piece of land virtually and advertise their real businesses there through hoarding for promotion. How savvy, isn't it!
Just as anyone can build anything there, people have also built casinos where others play on the Mana (cryptocurrency) exchange. In this way, both the casino builder/owner make a profit.
You must know that a dealer is required in a casino, but do you know who the dealer is in Decentraland casinos? A real avatar! He does the work and gets paid like normal people in the real world.
Yes, you heard that right!! There are real jobs available in Decentraland.
And we are more likely to find jobs in research, planning, development (software and hardware), managers, and so on within a few years.
The scientists of The Metaverse would actually develop basic digital models and something where the entire world would be visible.
Metaverse planners create business models and plans.
Likewise, Metaverse developers will build an entire ecosystem.