Decentraland — it sounds like an amusement park or part of the Matrix when you say the name out loud. But what is Decentraland exactly?
I wasn’t too far off the mark when I mentioned the Matrix a moment ago. There is more to it than that.
Let’s look at what Decentraland is and how it works.
Blurring virtual and physical reality
People are coming up with more places to use crypto and getting more creative with its application as it becomes more popular. They want to make money with NFTs in new and interesting ways.
As a result, a virtual real estate platform called Decentraland was born.
The Ethereum-based 3D virtual world opened to the public in January 2020. It is very similar to a virtual reality video game. You move through a network of digital destinations with your personalized avatar and can take part in various activities.
The difference is that the tokens you use to participate are NFTs with real-world value. Also, those tokens are tied to real assets here in the physical marketplace.
When it comes to explaining what Decentraland is you have to talk about the elements of its economy that runs entirely on cryptocurrency. The three native tokens — or tradable NFTs — of Decentraland are MANA, land, and estate.
- MANA is the currency used to buy land or estate in Decentraland’s marketplace where all transactions happen.
- Land refers to plots of virtual real estate on the platform. People can build anything and everything you could think of there.
- And finally, Estate refers to things like NFT art available for purchase as well there.
What do I think about Decentraland?
In the end, Decentraland isn’t hard to understand. It’s a digital marketplace with real-world ties.
Big companies like JPMorgan and Disney are taking serious interest too. There are certainly opportunities to make money, but critics of crypto are advising investors to move forward with caution.
I’m going to keep my eye on it for now.
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