Understanding Decentraland
Decentraland is an innovative virtual reality platform built on the Ethereum blockchain, enabling users to create, explore, and monetize a variety of content and applications. The platform’s native cryptocurrency, MANA, is an ERC20 token utilized for transactions involving virtual real estate and various goods and services within its metaverse. As a fungible token, MANA can be exchanged for other ERC20 tokens. The structure of Decentraland includes layers for consensus, land content, and real-time interaction, seamlessly linking smart contracts to an immersive visual and gaming experience for its users.
A Brief Overview of Decentraland’s Origins
Founded by Ariel Meilich and Esteban Ordano, Decentraland officially launched in August 2017. The founders partnered with prominent companies, including Binance and Samsung, to develop their metaverse vision. Although they have since departed from their day-to-day management roles, they continue to provide advisory support. At its inception, digital land parcels were priced around $20, and MANA tokens were valued at $0.02. The initial map, known as Genesis City, comprised 90,601 individual land parcels. During its initial coin offering (ICO), Decentraland successfully raised $26 million. Users can acquire and trade LAND, Estates, avatar wearables, and unique names through the Decentraland Marketplace, which features a variety of digital assets supported by the Ethereum blockchain. The platform utilizes two tokens, LAND and MANA, to facilitate user engagement. LAND tokens are non-fungible and represent specific coordinates on the virtual grid, detailing ownership information for each parcel. To obtain LAND, users must exchange ERC20 MANA tokens, which can also be used for in-game purchases and services.
How Decentraland Operates
Decentraland is composed of several interconnected layers, all governed by Ethereum smart contracts. The consensus layer maintains a ledger that records ownership details for each land parcel. Each LAND parcel is uniquely identified in the virtual environment, associated with an owner, and linked to a description file that outlines its specific content. The content layer dictates the activities that can occur on each parcel, consisting of three essential file types: Content Files, which contain static audio and visual elements; Script Files, which determine the positioning and behavior of the content; and Interaction Definitions, which manage peer-to-peer interactions, such as gestures, voice chats, and messaging. The real-time layer enhances social engagement within Decentraland, allowing users to interact through avatars, voice chats, and messaging features. The Decentraland design application tracks the real estate parcels identified by LAND tokens, leveraging the Ethereum blockchain to verify ownership. Users can engage with the ecosystem using their MANA tokens stored in an Ethereum wallet, and developers can innovate on the platform by creating animations and interactions for users to experience in their virtual properties.
Current Applications of Decentraland
At present, Decentraland primarily functions as a gaming platform. While it offers various applications, including opportunities for virtual business development, gaming remains its foremost use case. Consequently, MANA serves mainly as in-game currency, allowing users to buy and sell items within the game environment. Many foresee a promising future for the metaverse, envisioning it as a space for events like video conferences and concerts. Decentraland aims to expand its technologies to a broader audience and integrate its offerings into everyday life.
