What Is Decentraland and How Does It Work?

Metaverse is the future of real estate and investments, and Decentraland might be the platform you are looking for if you want to explore the fantastic world of NFTs and crypto.

But with so many projects on the market and different VR projects popping up you might be wondering what makes Decentraland so unique and is this the best investment you can make?

If you want to know all the details about this alternative reality and the earning opportunities of the NFT universe, keep on reading and stay tuned until the end for all the tips, tricks, and future projects Decentraland offers.
decentralland banner

Decentraland (MANA) Overview

Before we dive into the details about the Decentraland platform and the native token they have called MANA you might be interested in the brief overview of the OpenSea marketplace.

Just like any other NFT, if you plan on purchasing it’s safer to make educated decisions. Do your research and use high-quality rarity tools to make the best investments.

Here are the stats for Decentraland (MANA) on OpenSea:

  • Current Floor: 2.318
  • Total Count: 97.6K items
  • Owners: 7.4 K
  • Total Volume: 240.4 K
    decentraland twitter account

What Is Decentraland?

Decentraland is a 3D virtual reality platform based on blockchain technology where users can create, experience, and even earn money by participating. While the concept of virtual reality worlds is not new, Decentraland offers users a completely decentralized experience and a unique way of socializing and having fun, while making actual money.

Decentraland operates on its own blockchain called Ethereum Aland and thus allows users to make custom transactions on the blockchain and truly own everything they have in this virtual world.

You need to be familiar with two main terms involved in Decentraland:

  • MANA – The native ERC-20 token that users can use to purchase LAND and pay for in-world goods and services;
  • LAND – Virtual plots users can build their worlds in the form of NFTs.

The concept of Metaverse might be too complex to grasp in one go. So we are gonna share all the details that will make it easier to understand. So, while it might look like this is a fun platform to explore virtual reality and socialize, the project behind it is very complex and promises amazing investment opportunities.
explore lands

Who Created Decentraland?

Decentraland was created by Ari Meilich and Esteban Ordano, and developed since 2015.

The official launch of the platform happened in 2017, but the real popularity was obvious in April 2021 when the NFTs overflooded the crypto market.

Since then major brands from all industries competed to purchase LAND and organize an event on the platform. Some of the famous names that can be found on Decentraland include Samsung, Atari, Adidas, Dolce & Gabbana, Elie Saab, as well as music artists such as Deadmau5 and Grimes.

All the famous names behind the project as well as early supporters mentioned above contribute to the value and popularity of the Decentraland world, and in addition, prove that the NFTs are here to stay.

What Is the Cryptocurrency of Decentraland?

MANA is the native cryptocurrency on the Decentraland platform. 

These tokens are very well made and can be used in various ways including for purchasing the LAND, in-world exchanges, and participation in voting (DAO).

Keep in mind that MANA tokens used to purchase the parcels of LAND are burned, or destroyed making the supply of MANA reduced with every new user. This on the other hand can increase the value of the token and the price is gonna go pretty high in the future.

MANA owners will be able to participate in decision-making on the platform considering it’s completely decentralized and all decisions are made by users and voting on Decentraland DAO’s governance interface, powered by Aragon.

Here are a few things users will vote on:

  • Adding more features to LANDs
  • Specifics and dates of LAND auctions
  • Marketplace fees
  • MANA burning
  • Allocation of MANA

How to Buy MANA Tokens?

MANA is available on many popular crypto-trading platforms including Binance, Coinbase, eToro, and Gemini. Depending on your preferences and accounts you can choose from over 15 different platforms to purchase MANA but keep in mind that fees are usually reasonable on Binance.

Here are the steps for buying a MANA token on the exchange of your choice

  1. Log into your account or create a new one if you don’t have it;
  2. Find the BTC / MANA or MANA / USD pair on the Market
  3. Buy the available MANA depending on your budget.

How Does Decentraland work?

Decentraland is essentially a VR world where its users have complete control over. Unlike all other platforms, Decentraland is a shared place where you own your digital content and truly control all the events.

Three basic layers make up the Decentraland protocol:

  • Consensus layer
    Using the Ethereum smart contract for ledger and ownership over LAND. Through this layer, each owner can describe the service on the platform and the exact location of the land.
  • Content layer
    The content layer uses the decentralized distribution system to render the content in the virtual reality created on the platform. This is one of the main reasons why Decentraland doesn’t need centralized governance and everything is distributed among users.
  • Real-time layer
    This layer allows users to communicate via peer-to-peer connections. Users have an opportunity to have an avatar, use messaging, voice chat, and interact with the platform VR.
    Dec-nft-characters

Decentraland Platform Overview

The Decentraland platform came a long way since the 2D version that appeared a few years ago. Now, users are able to enjoy a fully functional and inhabited 3D world, explore virtual reality, trade NFTs and join the marketplace, or get creative with the builder feature.

Here is everything you can find on the Decentraland platform:

Explore

Users are able to explore the fantastic world of NFTs through unique virtual reality on the Decentraland platform. You are able to join the fun with an official account and your MetaMask wallet, or as a guest.

So, check the Decentraland world and decide if this investing in. It’s one of the most fun aspects of the platform. And it’s one of the main reasons why millions of users decide to join.
two options play guest or wallet

Create

With the builder option users are able to create and build different aspects on their LAND parcels, making it into an interactive environment everyone can enjoy.

In addition, this creation process doesn’t involve any coding considering everything can be created by simple drag and drop action. For more experienced users there are amazing SDK developing tools for games and applications.

So, the sky’s the limit when it comes to virtual reality on the Decentraland platform. And it all depends on the skills and willingness of the users.
creating game banner

Trade

On the native Decentraland marketplace users are able to trade LAND, Estates, Avatar wearables, and names as NFTs. This makes the virtual reality platform an amazing place to earn crypto and invest in some future projects, real estate, and other assets.

Keep in mind that you are also able to find all the tokens related to Decentraland on secondhand marketplaces such as OpenSea.
trading in market place for NFT

How to Make Money on Decentaland?

While the exploration of the virtual reality created by other users might be enough for some people, others might want to seize the opportunity to make a profit.

Luckily there are a couple of ways you can earn on Decentraland, including:

  • Resell the LAND parcels you own;
  • Leasing out the LAND you have;
  • Place banners and advertisements for revenue;
  • Open an NFT store on the platform
  • Create and sell assets, wearables, emotes, and names

If you are one of the lucky LAND owners you can make an incredible profit from this property either by selling it or simply by holding on to the LAND NFT as the prices will surely go up. In addition, you can make different NFTs that other users can use and sell.

The Future of Decentraland

Decentraland is on the way to becoming the number one metaverse in the Web 3.0 world, and it’s just a matter of time before it’s considered a mainstream event.

Considering the constant efforts the team is putting in, the future looks bright for this unique NFT project.

With the comeback of the famous Game Jam in 2022, thousands of users believethe platform is here to stay.

The team behind this NFT project is always active on social media, and new updates are released on their official Twitter account.

Final Thoughts

The term Metaverse is frequently used these days to describe many platforms, but what makes Decentraland so unique is the blockchain-based and user-organized world where everyone can have a vote.

Even though the idea of such virtual reality was unimaginable a few years ago, with the amazing success of many NFT projects this platform made it possible for newbies and crypto-veterans to have fun and earn a substantial amount of money by participating.

Just like any other investment in the volatile crypto market it’s always a good idea to do your research and use only the best tools to make the NFT purchases valuable investments.

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