Entertainment is becoming an exciting sector for crypto investors that want to be early in creating a new world of gaming and property.
Decentraland is one of the most established metaverse players in the ecosystem.
It's a virtual environment with its own economy - managed entirely by its users in a decentralized way - built on the Ethereum blockchain.
Users can buy plots of land, build on them, organize events and create complete virtual experiences and games.
Decentraland is looking to completely disrupt the way people play, shop and experience the Internet.
Metaverses and cryptos
The metaverse - an acronym for the words "meta," which means beyond, and "universe" - is a concept that describes an immersive and multisensory experience with the use of various devices and technological developments on the Internet.
It's composed of multiple shared three-dimensional virtual spaces linked to a virtual universe.
Contrary to what many people believe, metaverse it's not only virtual worlds but also multidimensional user experiences that combine augmented reality, 3D technology, and virtual reality.
In other words, with the metaverse, we have greater interactivity, greater corporeality, and a greater digital existence.
We interact socially and economically as avatars in these environments and create a living and interactive space similar to the real world.
Decentraland is not the only player in the space. There are others like The Sandbox and Somnium, each with a unique proposition.
For example, Decentraland looks to help users build property on the metaverse, while The Sandbox seems to cater to artists and creators or virtual experiences.
Understanding more about Decentraland
Decentraland is a decentralized virtual reality universe powered by the Ethereum blockchain. Within the platform, users can create, experience, and monetize their content and the apps they make.
Members are also part of the Decentralized Autonomous Organization (DAO) that's Decentraland. This means the community can vote and participate in the governance of the virtual reality world.
Decentraland has no central authority. Users operate and govern the entire virtual reality ecosystem.
The world functions as an alternative VR ecosystem where users can buy and sell virtual properties and real estate, play games, and use their land for whatever they want and the network's functionality allows.
Users can communicate, control, monetize and develop Decentraland's metaverse to mimic reality within a digital environment.
All players create an avatar, a digital persona they can use to explore and interact with the virtual world. Avatars can be customized and personalized to fit each user's unique taste and style.
To power the economy, Decentraland has three different assets.
The tokens: LAND, MANA, and Estate
Three different tokens are used in the operations and governance of the Decentraland metaverse: LAND, MANA, and Estate.
Mana is the native token of the system and can be used to purchase real estate or virtual assets that are developed and sold by Decentraland users.
This token is also used to participate in the governance of the ecosystem. MANA token coders can vote on new proposals and help shape the platform's future.
You can think of MANA as the digital currency you can use to purchase in-metaverse products and services.
With MANA, you can purchase clothes for your avatar, LAND tokens, and participate in private events.
MANA is an ERC-20 token, a fungible token that's interchangeable with other fungible tokens. Two MANA tokens are the same.
The project was initially launched with a total supply of 2.8 billion MANA but was reduced through token burns during LAND auctions.
Of the 2.19 billion MANA tokens, about 70% of the coins are already in circulation.
Contrary to MANA, LAND is an ERC-721 token or a non-fungible token, also known as an NFT.
Since no two ERC-721 tokens are the same, they aren't interchangeable, which means they can't act as a currency.
LAND represents ownership of a metaverse real estate space in the Decentraland ecosystem.
Like in the real world, LAND owners can use their plot of virtual land to build digital environments and applications like malls, cafes, or even offices.
Estates are also ERC-721 tokens, so they are one-of-a-kind crypto assets. Users with LAND parcels next to another can convert them to an Estate.
All three types of assets are defined by their smart contract. All purchases and transactions are registered on the blockchain.
Decentraland is looking to create a whole new virtual world that's open and decentralized where users can interact with each other and the spaces and activities designed for it.
There's a lot of space in the digital property crypto industry, and it's definitely in its early stages. Still, with more users than ever having the Internet at the core of their lives, it's undoubtedly a space worth checking out.