Beginners Guide to Decentraland
Decentraland is a software that is operating on Ethereum. The platform is based on metaverse and offers traders a virtual world to trade, play games and do several activities.
The software seeks to incentivize a global network for users to run the virtual world. Users can buy or sell digital land (real estate) in addition to exploring, interacting and playing online games.
The virtual world is next level and is growing with time. The interactive apps, in-world payments and the peer-to-peer communication are some of its advanced services.
The platform was launched in public in February 2020. It is operated by the nonprofit Decentraland foundation.
Tokens of Decentraland
Decentraland for its operations uses two types of tokens. These tokens are:
Land is a non-fungible token (NFT). It is used to define the ownership of land which represents digital real estate.
MANA is the cryptocurrency of Decentraland. It facilitates traders to purchase land and other virtual goods and services available at the platform.
Also, changes in the Decentraland software are made through collection of blockchain-based smart contracts. The participants or users with MANA can vote on the policy changes or updates, land auctions and subsidies for new developments to take place.
How Decentraland Works?
In addition, it requires users to hold the MANA token with Ethereum wallet to engage with the ecosystem. Also, developers can be innovative with the platform. They can design the animation and interactions experienced on the virtual real estate.
Decentraland has several layered components. These are built using Ethereum smart contracts. The layers of the software maintain a ledger to track the ownership of LAND parcels.
There is an owner and a reference to the description file of the parcel. The content layer of each parcel controls what happens with each parcel.
There are various files which are involved in the process of rendering. Below are the files:
- Content File is for all the static audio and videos.
- Script Files are for defining placement and behaviour of the referenced content.
- Interactions are the peer-to-peer interactions including voice chats, messaging and gestures.
The real time layers facilitate the platform with social interactions using the avatars.
Decentraland has a gaming environment but outside that it has a marketplace. The marketplace is with a drag and drop editor which users can access to build the scenes.
With the marketplace, users can participate to manage and exchange the LAND tokens. These tokens are priced in MANA. The owners use the marketplace for transactions and transfers of parcels.
Besides the parcels, users can also transfer or transact other in-game items. These items can be related to games or other activities such as names, or any wearable.
Thus, they are verified by Ethereum’s network and logged on the blockchain. Also, the Decentraland builder tools authorise the owners to create their unique experiences within the LAND parcels. Interactive scenes can be designed using the editing tools.
Users can access customisation libraries and payment implementations for the purpose of creating their own virtual world to trade.
LAND and MANA
MANA is the native cryptocurrency of Decentraland. It functions as a digital currency and also provides MANA holders with voting power within the Decentraland DAO. Users that want to take part in DAO’s governance, they convert their MANA into wrapped MANA and then lock it in DAO.
Each wrapped MANA (wMANA) represents one vote in the governance proposals. Traders can get MANA on the exchange or by selling collectible items on the Decentraland Marketplace.
Besides, the DAO has its own MANA treasury to fund its decisions and workings.
LAND is NFT of the Decentraland. It represents the plots of land which are owned by the players. It also provides voting power but does not require locking up. The LAND provides two-thousand votes per LAND token.
Decentraland is a virtual platform that traders can use for social interaction, real estate trade, collectibles and playing games. A metaverse that offers traders a virtual world to trade and earn online. It is unique and free to explore to trade.
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