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What is Decentraland?
Decentraland is an Ethereum-based program that aims to encourage a global network of users to govern a shared virtual environment.
Users of Decentraland can explore, engage, and play games in this virtual environment while buying and selling digital real estate. Users can now use interactive apps, in-world payments, and peer-to-peer communication thanks to the platform's evolution.
Decentraland is a platform that allows people to participate in a shared virtual world. To that end, it has built a virtual environment on its platform where users may buy and sell digital property, play games, trade collectibles, mingle, interact, and explore.
Ari Meilich and Esteban Ordano founded Decentraland in 2015, and it was released in 2017. Decentraland originated as a proof of concept for allocating ownership of a digital real estate plot on the blockchain to its users. The platform began as a two-dimensional project that gradually evolved into a three-dimensional environment.
The marketplace in the 3-D virtual environment sells virtual assets such as land plots and other customizable items, which may be purchased with MANA, the native token. On the Ethereum blockchain, MANA is an ERC-20 token. On numerous markets, Decentraland users can purchase MANA and LAND.
When users purchase LAND, the MANA token is burned to create a new record. In Decentraland, operations are governed by MANA and LAND. MANA is a virtual currency that may be used to buy LAND and other virtual goods on the Decentraland marketplace. At the same time, LAND is utilized as a non-fungible token (NFT) to prove a user's ownership of a virtual asset.
Changes to the Decentraland software are made possible by a network of blockchain-based smart contacts that allow MANA owners to vote on policy modifications, land auctions, and new development subsidies.
Bookmark Decentraland's blog to stay up to speed on new releases and regular updates.
How does It Work?
The Decentraland application is designed to track LAND token-defined real estate properties.
The software uses the Ethereum blockchain to monitor ownership of this digital land, and users must keep their MANA token in an Ethereum wallet in order to interact with its ecosystem.
Developers are also free to experiment with Decentraland's platform by customizing the animation and interactivity that users see on their virtual properties.
The protocol for the platform is made up of three levels. Decentraland keeps a ledger of its users' land ownership and tracks it through smart contracts. It serves as documentation of ownership for the land that its users have purchased. It also provides a peer-to-peer (P2P) connection allowing Decentralanders to mingle and interact.
Users of Decentraland can earn not only from purchasing and selling land but also from renting their assets to other players on the network. There is currently 90,601 unique LAND that can be exchanged on the site.
Many layered components of Decentraland are constructed using Ethereum smart contracts.
The consensus layer keeps track of land parcel ownership through a ledger. Each parcel of LAND has its own virtual coordinates, an owner, and a link to a description file that describes the contents of the parcel. It can be traded.
The Decentralized Marketplace is a standout feature of the network, where members can purchase and sell their assets. The crypto network's interoperability allows users to value their assets outside of the platform. Decentraland's decentralized identification system allows anyone on the blockchain to rapidly verify the user's consent using cryptographic signatures.
Outside of the gaming environment, the Decentraland team has launched a marketplace as well as a drag-and-drop editor for users to create scenes.
Participants can use the marketplace to manage and exchange LAND tokens, which are priced in MANA. Owners can use the marketplace to buy, sell, and trade parcels as well as other in-game products like wearables and unique names.
It's worth noting that all transactions are resolved between Ethereum wallets, and thus are validated by Ethereum's network and recorded on its blockchain.
Owners can use Decentraland's building tools to create a one-of-a-kind experience within their LAND plots. Developers can access customisation libraries and payment implementations using its editing tool, which allows them to create interactive scenes.
MANA allows users to monetise their creations on Decentraland by assisting them in the production of decentralised games, apps, and other services. Users can create whatever they like and explore the virtual world at their leisure.
In one of his recent interviews, Ari Meilich revealed some real-time statistics on Decentraland and its users. Decentraland has roughly 3,00,000 monthly active users, 18,000 daily active users, and a concurrency of 2,500, according to the research. Isn't it fascinating?
The numbers are evident, thanks to extensive media hoopla and subsequent expansion. However, only time will tell whether the digital real estate boom will live up to the promise!
Written By - Kritika Sharma
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