Overview of Decentraland
Decentraland is an immersive virtual reality (VR) platform that operates on the Ethereum blockchain. It empowers users to create, engage with, and monetize their own content and applications. The platform’s native token, MANA, is an ERC20 token utilized for purchasing virtual land parcels within its metaverse, as well as for acquiring various goods and services. MANA is fungible, meaning it can be exchanged for other ERC20 tokens. The infrastructure of Decentraland consists of three main layers: consensus, land content, and real-time interaction, which seamlessly connect smart contracts with visual elements and gaming experiences for users.
A Brief History of Decentraland
Founded by Ariel Meilich and Esteban Ordano, Decentraland made its debut in August 2017. The founders forged partnerships with notable companies, including Binance and Samsung, to enhance their metaverse project. Although they have since relinquished their managerial roles, they continue to serve as advisors. When Decentraland was first launched, the cost for digital land parcels was approximately $20, and MANA tokens were priced at $0.02. The initial map of the game, known as Genesis City, comprised 90,601 distinct land parcels. In its initial coin offering (ICO), the project successfully raised $26 million. Within the Decentraland Marketplace, users can buy and sell LAND, Estates, avatar accessories, and names, all of which are backed by the Ethereum blockchain. The platform utilizes both LAND and MANA tokens, with non-fungible LAND tokens representing unique parcels and their ownership, while MANA is used to acquire in-game items and services.
How Decentraland Functions
Decentraland is built on several interconnected layers, all governed by Ethereum smart contracts. The consensus layer maintains a detailed ledger that tracks ownership of land parcels. Each LAND parcel is uniquely located in the virtual environment, has designated ownership, and is linked to a description file that outlines the parcel’s specific content. This content layer dictates the activities occurring within each parcel and includes three essential files: Content Files for static audiovisual elements, Script Files that determine the layout and behavior of the content, and Interaction Definitions for peer-to-peer engagements like gestures, voice chats, and messaging. The real-time layer facilitates social interactions within Decentraland, allowing users to utilize avatars for communication. The Decentraland design application monitors the real estate associated with LAND tokens and employs the Ethereum blockchain to verify digital land ownership. Users can engage with the ecosystem using MANA tokens stored in an Ethereum wallet, while developers can unleash their creativity within Decentraland by programming animations and interactions for users on their virtual properties.
Applications of Decentraland
Currently, Decentraland serves primarily as a gaming platform. Although it offers various applications, such as opportunities for virtual business ventures, the gaming aspect is at the forefront. MANA is predominantly used as in-game currency, enabling players to trade and purchase items within the game. Many believe that the metaverse will evolve to provide even greater functionalities in the future, with potential events like video conferences and concerts taking place. Decentraland aims to broaden its technology reach and assimilate into everyday life, attracting a larger user base as it develops.
