An Analysis of Decentraland Containing All Necessary Information

Introduction

In recent years, the number of use cases for blockchain technology has been steadily climbing, which has led to the development of an increasing number of decentralized applications. The gaming industry is one of the best and most effective use cases of blockchain technology. In older games, in-game accomplishments and materials were only accessible within the context of that game. With the implementation of blockchain technology into games, players can now legally own their in-game purchases, land pieces, and characters.

The play-to-earn model gives gamers the opportunity to monetize their digital assets and abilities in order to earn fiat or cryptocurrency. We are looking at a market in which gamers and aficionados of cryptocurrencies are paying millions of dollars to purchase digital real estate that does not exist in the physical world. One of the first games to pioneer the use of blockchain technology in the gaming industry was Decentraland. But what does it mean for Decentraland to be decentralized? How does it work? How do you go about purchasing LAND in Decentraland as well as tokens? Continue reading down below as we cover everything there is to know about Decentraland.

Summary in a Nutshell

Where does Decentraland get its name?

Decentraland is an open-source virtual reality (VR) platform that runs entirely within a web browser. It was built using the Ethereum blockchain and is powered by it. Users are able to produce, exchange, explore, and monetise in-game content with NFTs and cryptocurrencies within the context of the game’s 3D virtual environment. They have full ownership over their inventions because the 3D lands in Decentraland are permanently held by the community members as well as the investors. Getting started is quite simple; all you need to do is login and make an avatar for yourself. After that, you’ll be able to begin exploring the environment and constructing various kinds of experiences, such as playgrounds, galleries, or even virtual movie theaters.

On the other hand, you could be wondering, “How is Decentraland any different from other well-known blockchain-based games?” Because it is not governed by a single organization, Decentraland stands out from the rest of the crowd. A Decentralized Autonomous Organization is in charge of formulating the guidelines that will be used to direct the future development of Decentraland (DAO). In its simplest terms, what is the Decentraland DAO, and how does it operate? Continue reading to find out!

This is the DAO for Decentraland.

The abbreviation for “Decentralized Autonomous Organization” (DAO) is “DAO.” The Decentraland Distributed Autonomous Organization (DAO) is the owner of the most significant smart contracts and assets in Decentraland, which together form the ecosystem of the virtual world. These contracts and assets include agreements pertaining to LAND and Estates, as well as those pertaining to wearables, the Marketplace, and Content Servers. The Decentraland DAO is in possession of a sizeable amount of MANA, which it uses to independently fund a variety of development activities and initiatives.

The creators of the game have always had the goal of making Decentraland completely decentralized by giving the power to rule the virtual environment over to the users who contribute to and take part in it. Members of the community have the opportunity, through the Decentraland Decentralized Autonomous Organization (DAO), to have a say in the operation of several aspects of Decentraland, including as the regulation of user-generated material, the Land Policy, and auctions. Voting takes place via a governance interface powered by Aragon that is provided by the Decentraland DAO. The results of these votes determine everything.

Members of the Decentraland DAO are given the opportunity to cast their votes on a variety of subjects, including the following:

• Feature additions and changes to the protocol for Estates and LANDs.

• Future LAND Auction Dates.

• The total cost of fees in MANA for the marketplace.

• The addition of new content servers as well as the replacement of old ones.

• Dedicating financial resources to the development process.

• The introduction of new assets into the realm of Decentraland.

• Voting for new members of Decentraland’s Security Council and removing outgoing ones.

The Group That Is Responsible for Decentraland

The whitepaper for Decentraland was produced by Esteban Ordano, Ariel Meilich, Manuel Araoz, and Yemel Jardi. It was in this document that the vision for Decentraland was first conceived of and documented. Several professionals in the field, including as Michael Bossworth from Google, Jon Choi from Dropbox, Jesse Walden from Spotify, CoinFund founder Jake Brukhman, and many more, provided assistance by reading and contributing to the document. When Decentraland was first introduced to the world on February 20th, 2020, the extraordinary idea became a reality. It began with the creation of the Decentraland DAO and continued with the complete decentralization of the infrastructure of the virtual world that is Decentraland.

The debut of Decentraland was a crucial turning point in the evolution of the virtual world, as after that point, no single entity would be able to alter any aspect of the platform’s source code. Even though we do not have any reliable method for estimating the size of Decentraland’s player base, we are unable to deny that it has emerged as one of the most successful metaverse-based virtual worlds currently available. The fantastic vision and tireless efforts of Decentraland’s founders, along with those of the entire community, have made a significant contribution to the platform’s current level of success.

Notable Partnerships of the Decentralized Authority

To demonstrate to the rest of the world that a project is legitimate, it is essential to secure the support of prominent businesses and notable individuals. One of the most compelling examples for Decentraland is the fact that Samsung has made public its efforts to utilize Decentraland as a means of performing a deep dive into the metaverse. Samsung has made available a range of Decentraland wearables with a limited supply that users may use to personalize their avatars while they are playing the game.

In addition, the Australian Open 2020, which is one of the four Grand Slam tournaments, has announced that it would be partnering with Decentraland to take part in the madness that is the Metaverse. Other major collaborators include the industry-leading Digital Currency Group, the oldest auction house in the world, Sotheby’s, as well as a number of other companies.

Tokenomics in a Decentralized Environment

Decentraland is an entirely digital environment, and it features many different business-related components. To get the most out of this 3D virtual environment, whether you’re a player or an investor, you absolutely need to have an in-depth understanding of tokenomics. MANA and LAND are two of the most important tokens in Decentraland; let’s delve a little further into each of these.

An Explanation of the MANA Token

The MANA currency plays a crucial role in the in-game economy of Decentraland. It is a fungible ERC-20 token that may be spent and burned in exchange for LAND tokens (1 LAND = 1000 MANA). LAND tokens can be obtained by exchanging MANA for them. Within the confines of the Decentraland universe, MANA can be exchanged for a wide variety of other digital assets that serve a purpose. Acquiring MANA is a pretty straightforward process that can be accomplished on a variety of the most prominent cryptocurrency exchanges, including Binance, Kucoin, FTX, and many others. You are able to interact with the Decentraland world by opening an account on one of these exchanges, purchasing MANA, and then transferring that MANA to the wallet you are using.

An Explanation of the LANDToken

LAND non-fungible tokens (NFTs) are used to represent virtual real estate within the Decentraland metaverse. These NFTs have the ability to track ownership on the Ethereum blockchain. The ERC-721 standard, which is the standard protocol for Ethereum-based NFTs, serves as the foundation for the LAND tokens. Because it adheres to the ERC-721 standard, LAND may now be traded on the blockchain just like any other NFT. On the other hand, users in Decentraland have the ability to construct and market their own 3D experiences as well as applications using their LAND tokens. The entire planet of Decentraland is divided up into 90,601 land parcels, each of which is 16 meters by 16 meters in size. Decentraland is also responsible for the sale of the most expensive piece of virtual real estate ever purchased; on November 24, 2021, a single parcel of property there was purchased for more than $2.4 million.

There are two distinct paths one might take in order to purchase virtual real estate in the Decentraland metaverse. The first option is to take part in the LAND auctions that are periodically held, and the second option is to purchase land from other users who are interested in making a sale. Visiting the Decentraland Marketplace and purchasing the items that are listed for sale by other users is the quickest and most convenient method.

When you first go to the marketplace, you will see a wallet prompt that requires you to link your cryptocurrency wallet to the platform. We strongly suggest that you use the MetaMask wallet because it is currently the most well-known, reliable, and user-friendly cryptocurrency wallet available. After successfully linking your wallet, navigate to the upper left corner of the screen and select the “Land” icon. This will bring up a map that displays all of the available LAND in Decentraland. You can place a winning wager for buying the land by clicking on the LAND units, even though the majority of the land is already owned by someone else.

Phishing scams should be avoided at all costs while purchasing any type of token or connecting your wallet to any website. Nowadays, in the crypto and NFT sphere, phishing and other types of scams are rampant, and as a result, numerous individuals lose their digital assets on a daily basis. In order to protect yourself from falling victim to such cons,

Technology Architecture Based on Decentralization

The protocol of Decentraland is composed of three layers, which are as follows:

• Consensus Layer: This layer makes use of an Ethereum smart contract in order to keep track of the ownership of the LAND parcels as well as their contents.

• The Land Content Layer: This layer is responsible for rendering the content of the virtual world using a decentralized distribution method.

• The Real-time Layer: This layer allows users to engage with one another in real time by utilizing a peer-to-peer (P2P) network to facilitate the communication.

What Kinds Of Activities Are Available In Decentraland?

There is no limit to what can be accomplished in Decentraland. You are free to travel around in the limitless virtual world, engage in competitive or cooperative gaming with other users you have created as avatars, and construct a variety of 3D settings and scenarios to present your collection of digital items. The best part is that you don’t even have to leave the house; everything can be done from the convenience of your own home. If someone wishes to sell his Bored Ape NFTs, for instance, they can showcase them in Decentaland’s in-game galleries to attract potential buyers. There are also a variety of games to play, some of which have a play-to-earn concept in which gamers have the opportunity to earn money by participating. These are the most notable activities taking place in the Decentraland metaverse at the moment; but, as more time passes, we may observe the implementation of additional use cases.

The Avatars of Decentraland

To begin exploring the Decentraland metaverse, you must first create an avatar to represent yourself. Everything a user accomplishes in Decentraland is represented through their avatar in the virtual world. Users of Decentraland have access to an in-app avatar creator that allows them to personalize their digital representations. Every player’s avatar has a one-of-a-kind name, and they can differentiate themselves from the others by acquiring distinctive characteristics. You can construct an avatar even if the name you want isn’t available by paying 100 MANA to “claim” it before someone else does. Alternatively, you can create an avatar and then claim the name at a later time. After you have finished customizing your avatar, you will be given a passport that will act as your identification throughout the entirety of the Decentraland ecosystem.

The Decentralized Market of Decentraland

The internal ecosystem of Decentraland is called the Decentraland Marketplace, and it may be used to transfer ownership of LAND parcels, wearables, and unique names. Over a P2P network, users can offer their items with their prices and then negotiate the terms of their trades with one another. Users have the opportunity to see the LANDs in the marketplace from the perspective of an atlas, which provides information about each individual LAND parcel. There is also another aspect of the marketplace that replicates the appearance of a conventional market, complete with several listings of LAND and other assets. You have the option of going to their website to access the Decentraland marketplace, or you may locate it in-game by using the “M” key.

Earning a Living in the Decentralized State

After entering the world of Decentraland, there are a number of different methods that you might earn money. Investing in LAND, which is analogous to investing in real estate in our world, is by far the most prevalent way to gain money. Due to the fact that land is a finite resource, it is simple for us to foresee that its costs would continue to rise over time as an increasing number of people move into the area. In addition to the value of land increasing over time, there are other ways to make money off of it, such as via running tournaments, casinos, or advertising. Users also have the option to rent out their LAND to content creators, advertising firms, or developers who are interested in building on it. You may also utilize LAND as a gallery to show off digital things that you’re trying to sell to potential customers.

Aside from LAND, users have the opportunity to earn money by participating in a variety of play-to-earn games or gambling games that are offered by third parties. In addition, the Decentraland metaverse offers career prospects in the actual world. For instance, the Tominoya Casino in the metaverse of Decentraland recruited twenty part-time greeters and one manager in order to fill open positions. The potential for making money through Decentraland will continue to rise as the platform continues to draw more companies and more developers. It is only a question of time at this point.

Final Say

The representation of the metaverse that we have in our heads is virtually identical to what we find in Decentraland. It is an entirely virtual alternative to the lives we lead in the real world, in which users can construct anything from start and in any way they like. In addition to this, the fact that Decentraland is run by a DAO sets it unique from the vast majority of the industry’s other prominent metaverses. When you travel to the virtual world, you will notice that it is undergoing significant in-game development at this very moment. Users and investors from all over the world have showed a significant amount of interest in the game, which can be seen by the enormous galleries, museums, parks, and other enormous structures that are currently being erected.

However, before you immerse yourself in the digital world of Decentraland, it is important to keep in mind that this game is not a triple-A title and does not include perfect visuals. Since it is still in the early stages of development and is only accessible through a web browser, you should not expect high-quality graphics or gameplay. On the other hand, it is one of the early initiatives to construct a virtual gaming environment on the blockchain in which users will have ownership over their objects and trades. Considering that they started from scratch, the developers have done an outstanding job so far of constructing the world. Decentraland is poised to become the go-to platform for replacing every physical activity with a virtual one as a result of the widespread use of blockchain technology and the growth in the technology’s capabilities.