What is Decentraland?
Decentraland is a groundbreaking virtual reality platform or “metaverse” built on the Ethereum blockchain, allowing users to create, explore, and monetize content within a fully immersive 3D world. Unlike traditional video games or social platforms, Decentraland offers a decentralized, user-controlled environment where participants own the digital assets they create or purchase. The platform's native cryptocurrency, MANA, plays a central role in this virtual ecosystem, enabling users to purchase land, pay for goods and services, and participate in the governance of the Decentraland universe.
Decentraland consistently made mainstream headlines from late 2021 to early 2022 as global brands bought ‘properties’, opened ‘shop fronts’ and held ‘events’ in it. This included brands like Samsung, Adidas, Atari, Dolce & Gabbana and many others. Now, let’s explore how Decentraland functions.
How Decentraland Works
Decentraland is structured around a unique system where users can buy parcels of virtual land, known as LAND, using MANA. Each parcel is an NFT (non-fungible token) that represents a 16x16 meter plot within the Decentraland metaverse. These parcels can be developed by their owners into any form of digital experience, such as virtual shops, art galleries, games, or meeting spaces.
The platform operates on three core layers:
Consensus Layer: This layer maintains a ledger that tracks the ownership of the LAND parcels, ensuring that all transactions and ownership records are secure and transparent.
Land Content Layer: This controls what happens within each parcel of LAND, including all static audio, visuals, and scripting files that determine the behavior of in-world objects.
Real-Time Layer: This facilitates peer-to-peer interactions, allowing users to engage in real-time through avatars, voice chat, and messaging.
The Role of MANA in Decentraland
MANA is an ERC-20 token that serves multiple functions within the Decentraland ecosystem. It is primarily used as the in-world currency, enabling users to buy LAND, virtual goods, and services. The process of buying LAND also involves "burning" MANA, permanently removing it from circulation, which introduces a deflationary mechanism that can potentially increase the token's value over time.
In addition to its utility in transactions, MANA also plays a crucial role in the governance of Decentraland through a decentralized autonomous organization (DAO). MANA holders can vote on key issues, such as policy updates, LAND auctions, and the allocation of funds for development projects. This democratic approach ensures that the future of Decentraland is shaped by its community.
Interesting Facts About Decentraland and MANA
Historical Sales: When Decentraland first launched, parcels of LAND were sold for as little as $20, and MANA was priced at just $0.02. In April 2021, during the NFT boom, some parcels were sold for as much as $100,000. Then in November 2021, a plot of LAND sold for a record-breaking $2.4M in cryptocurrency.
Virtual Real Estate Boom: Decentraland has seen significant interest from real estate speculators in the virtual world. For instance, the "Genesis City" in Decentraland is made up of 90,000 parcels, and in late 2023, a single parcel had an asking price of one million MANA, equivalent to over $500,000 at the time .
Celebrity Endorsements and Events: Decentraland has hosted numerous events featuring well-known artists and celebrities, including a “metaverse music festival” headlined by electronic music artist Deadmau5, which drew significant attention to the platform.
DAO Governance: The Decentraland DAO is one of the most active and engaged decentralized governance structures in the blockchain space, with regular votes on a wide range of topics, from technical upgrades to community initiatives .
Metaverse Pioneer: Decentraland is considered a pioneer in the broader metaverse movement. It was one of the first platforms to combine virtual reality, blockchain technology, and a decentralized governance model, laying the groundwork for many other metaverse projects that followed.
The Future of MANA and Decentraland
The future of Decentraland and MANA is closely tied to the broader adoption of the metaverse and the continued development of blockchain technology. NFTevening reported in April 2024 that Decentraland’s active users are at an all time low. If more users join the platform and as virtual reality becomes more mainstream, the demand for virtual land and the utility of MANA are likely to increase. However, like all cryptocurrencies and digital assets, the value of MANA can be volatile, influenced by market trends, technological advancements, and changes in user engagement.
How to Buy MANA
If you've been eyeing Decentraland (MANA), getting your hands on it is easier than you might think. Here's a breakdown of how to buy MANA on Wirex with your bank card. Or learn more here.
Launch the Wirex App
Tap on the "Accounts" tab on and select Decentraland (MANA)
Tap on ‘Buy” and choose your payment method. Decide whether you want to purchase using a credit/debit card or one of the available fiat-to-crypto onramps.
Specify the Amount: Enter the amount of MANA you wish to purchase in your chosen currency.
Review: Double-check all the provided details, including the amount, chosen payment method, any fees will be transparent.
Complete the Purchase: After confirming your purchase, your new balance will show in a few moments.
Conclusion
Decentraland and its native token MANA offer a glimpse into the future of the internet, where virtual worlds and real economies collide and co-exist. If you’re interested in the metaverse, Decentraland provides a unique opportunity to participate early on and shape the development of this new frontier. Whether you're a gamer, developer, investor, or simply a curious observer, understanding Decentraland and MANA is essential to grasping the potential of a decentralized future.
Disclaimer
The information contained herein has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for financial, legal, or investment advice. Wirex and any of its respective employees and affiliates do not provide financial, legal, or investment advice.
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