What is Decentraland (MANA)? All you need to know

What is Decentraland (MANA)?

Decentraland is often described as a virtual, augmented, or extended reality social experience or game. As of its state in late 2023, it functions as a three-dimensional online platform where users can engage in shared digital experiences, play games, socialize, and create, buy, or sell digital items. Users can purchase plots of virtual land and develop them according to their preferences. Decentraland can be experienced using virtual or augmented reality goggles or by running the program on a device screen like a traditional game.

How Decentraland works?

Users can utilize Decentraland's native token, MANA, to create unique environments, marketplaces, and applications. MANA, an ERC-20 fungible token, functions as Decentraland's digital currency and is spent (burned) when used for purchases within the platform. It is also used to develop centralized games, apps, and services. The blockchain infrastructure enables creators to monetize their creations by allowing them to digitally construct and charge for access, use, or interaction with their creations.

Additionally, the blockchain features two non-fungible tokens (NFTs): LAND and Estate. LAND represents a 52-foot x 52-foot (16-meter x 16-meter) plot of digital real estate (scaled to the digital environment), while an Estate comprises two or more adjacent plots. Creators and users can organize and host various community events, such as concerts, movie screenings, casino nights, and avatar dances.

Furthermore, users can buy or sell digital art and land parcels, with different clusters of land parcels having distinct characteristics. Notable areas within Decentraland include Vegas City, District X (the red-light district), Fashion Street, Dragon City, and other themed regions.

How to participate in Decentraland and begin your journey?

To enter Decentraland, simply visit the website and click on "Jump In." From there, you can log in either as a guest or by connecting your Ethereum-compatible wallet. Connecting your wallet provides access to the complete Decentraland experience, whereas guests are restricted to viewing and interacting with non-monetized events or items.

Upon selecting an avatar, users receive a "passport," which serves as an identification card and all-access pass within Decentraland's metaverse (though it may involve a cost). Passports are expected to include content filtering capabilities.

Once your account is set up, you're free to explore and interact within the limits of your account's access to the virtual land.

History of Decentraland

In 2017, Argentine blockchain experts Ari Meilich and Esteban Ordano introduced the beta version of Decentraland, creating the game's smart contracts. Initially, it served as a proof of concept, experimenting with assigning ownership of digital real estate plots to users on the blockchain. The platform began as a two-dimensional (2D) project but gradually evolved into a 3D world.

Initially, digital land parcels were sold for approximately $20, and MANA tokens were priced at $0.02. The first map of the environment, Genesis City, comprised 90,000 land parcels. In 2017, Decentraland conducted an initial coin offering (ICO) that raised over $24 million.

In April 2021, amidst a surge in popularity for non-fungible tokens (NFTs), Decentraland parcels were sold for prices ranging from $6,000 to over $100,000. Some plots continue to fetch high prices, such as parcel 133,-22, which was listed for one million MANA ($525,644) as of December 31, 2023.

Due to its limited supply of MANA and its market valuation, the currency is subject to volatility. One significant surge in value happened after Facebook rebranded to Meta, signaling the social media giant's confidence in the future of the metaverse. The most significant spike occurred shortly after the rebrand, with Tokens.com making the "largest metaverse land acquisition in history," driving MANA's value to a peak of $5.90 in late November 2021.

As of December 2023, MANA, Decentraland's token, had a market capitalization of $981 million

Is investing in Decentraland cryptocurrency a wise choice?

Decentraland's token, MANA, serves as the currency for transactions within its virtual world and can be bought and held for speculative purposes due to its market value. The non-profit organization behind Decentraland continues to develop its blockchain and improve its platform. Whether investing in MANA is a good choice depends on your perspective and the results of your research, as well as your investment strategy.

Are Decentraland and the Metaverse identical?

Decentraland is a three-dimensional social platform that falls under the broader concept of the Metaverse. In the Metaverse, all activities such as shopping, social interactions, work, daily life, and entertainment are conducted in a digital and online environment, blurring the lines between virtual and physical realities.

Does Meta own Decentraland?

Decentraland operates independently as the Decentraland Foundation, functioning as a non-profit organization structured as a decentralized autonomous organization (DAO). The platform is controlled by its users.

In summary, Decentraland is a 3D virtual world that resembles a digital game and social environment. It operates on Ethereum and is owned by its users, offering shared digital experiences. Users can engage in various activities within Decentraland, including playing games, trading collectibles, buying and selling digital real estate and wearables, socializing, and interacting with others.