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Exploring Decentraland: The Future of Virtual Worlds on the Blockchain

Decentraland: A Decentralized Virtual World Fuelled by Native Tokens

In recent years, the world has seen the emergence of a revolutionary technology known as blockchain. This new technology, powered by decentralized networks, has a vast potential to transform various industries, including the gaming industry.

Decentraland is a prime example of how blockchain can be employed to create a decentralized virtual world, where users can interact in a decentralized environment. In this article, we will explore the features of Decentraland, its native tokens, and how it operates as a decentralized autonomous organization (DAO) governed by its participants.

Decentraland: A decentralized virtual world

Decentraland is a decentralized virtual world that creates a community-driven atmosphere where users can create, experience, and monetize content and applications. It creates a virtual world where users can buy, sell, and trade virtual lands, build 3D applications, games, and objects.

Decentaland allows users to interact in a peer-to-peer environment, with no central authority or censorship. It is a fully open-source platform, which means anyone can contribute to the development of the platform.

Decentraland’s Native Tokens: Estate, MANA, and LAND

Decentraland has three native tokens: Estate, MANA, and LAND. 1.

Estate

Estate is a non-fungible token (NFT) that represents a collection of individual LAND (virtual land). It enables users to group up to 10 LANDs together explicitly for security or convenience purposes.

A user can use Estate to support a project or a community effort or earn from its appreciation over time like any other asset. 2.

MANA

MANA is an ERC-20 token used in Decentraland’s virtual economy. It is the currency used for buying, selling, and trading goods and services within the Decentraland marketplace.

Users can use MANA to purchase virtual lands, digital assets or objects, and services on Decentraland’s platform. MANA is also used to pay transaction fees within the decentralized virtual world.

3. LAND

LAND is Decentraland’s basic unit of the virtual world.

Users can purchase LAND as an NFT and develop apps, games, and 3D objects. It is a piece of virtual real estate that represents a unique location on the Decentraland map.

A LANDowner can build and monetize whatever they want on their LAND without any interference from a central authority.

Decentraland Features

1. Avatar creation and customization

Decentraland allows users to create a customized avatar representation of themselves.

Users can choose different features like outfit, hairstyle, skin tone, and accessories to create their virtual personality. It makes interactions within the Decentraland community more fun and personalized.

2. Use of MANA for various activities

MANA is essential for participating in Decentraland’s virtual economy, as it enables users to buy and sell LAND, goods, and services.

It’s also essential for paying transaction fees when transferring GOODS or services within the community. 3.

The use of Estate and LAND to create unique in-world items. Estate and LAND ownership grants users complete control over the virtual space.

It enables the creation of unique items and is a canvas for users to create and monetize applications. Besides, users with LAND can monetize their LAND for holding events, organizing and selling virtual goods on their LAND.

4. Decentralized Autonomous Organization (DAO) governance

Decentraland governance operates on a DAO system, where users can make proposals and vote on them.

The DAO model allows for decentralized decision-making, where all participants have an equal say. DAO rules are encoded in software that executes proposals, changes in the platform’s software, and distributes newly created assets.

Conclusion

Decentraland embodies the full benefits of decentralized technology. It enables users to interact and transact within a peer-to-peer environment.

Decentraland offers immense opportunities for developers, gamers, and investors to earn and monetize their content. As the world moves towards decentralization, Decentraland remains a prime example of how traditional businesses and economies can benefit from blockchain technology.

With the project still in development, we can only imagine what the limitless future holds. Decentraland Company History: From Whitepaper to Decentralized Virtual World

Decentraland was founded in 2015 by four Argentinian friends, Esteban Ordano, Manuel Araoz, Ari Meilich, and Yemel Jardi.

Their goal was to create a decentralized virtual world where users could interact, create, and own their virtual reality experiences. In this section, we will explore the history of Decentraland, from its founding to its current status as a leading decentralized virtual world.

The Bronze Age Version and the Unveiling of the Decentraland Whitepaper

In 2017, Decentraland unveiled its first version, the Bronze Age, as a proof-of-concept to demonstrate how their decentralized virtual world would function. With the release of the Bronze Age version, Decentraland also launched its whitepaper, outlining the concept and vision of the platform.

It was a significant milestone in the development of Decentraland as it signaled the company’s commitment to creating a fully decentralized virtual world. In addition to the development of the Bronze Age version, in August 2017, Decentraland launched its Initial Coin Offering (ICO), which raised over 24,000 ETH and $26 million.

The funds raised during the ICO were used to support the development of the Decentraland platform and its ecosystem. The Success of Decentraland’s ICO and the Release of the SDK

Decentraland’s ICO was a big success, with over 10,000 participants from all over the world purchasing their native tokens, MANA, to participate in the platform.

With the success of the ICO, Decentraland was able to accelerate the development of the platform, making it possible for the team to release the software development kit (SDK) in 2018. The SDK enabled developers to create custom content and applications within the Decentraland platform, bringing new experiences to users and opening up new revenue streams for developers.

Land Marketplace and the Shift towards the Current DAO Structure

In December 2018, Decentraland launched its Land Marketplace, enabling users to buy and sell virtual LAND. The Land Marketplace was a critical step in the development of the platform as it enabled users to own and control virtual land, paving the way for the creation of unique virtual experiences.

The Land Marketplace allowed for the monetization of virtual land, with some parcels selling for over six-figure amounts. As Decentraland continued to grow, the team shifted their model to operate under the decentralized autonomous organization (DAO) structure.

The DAO model allows for decentralized decision-making, giving all participants an equal say in the governance of the platform. The shift towards the DAO model was a significant milestone for Decentraland, enabling the platform to adopt a truly democratic structure that aligns with the principles of decentralization and community involvement.

Decentraland Growth and Partnerships

Decentraland has continued to grow since its founding, with notable partnerships and events contributing to the platform’s success. $5 Million Fund and Partnership with HTC’s Exodus Smartphone

In 2019, Decentraland launched a $5 million fund for developers building on its platform.

The fund was established to support the development of innovative content and applications on the platform, further enhancing the user experience. The following year, Decentraland announced its partnership with HTC’s Exodus smartphone.

The partnership enabled the Exodus smartphone to access the Decentraland platform and experience new virtual reality experiences using its native token, MANA.

Hosting of a Four-Day Festival and the Attraction of Notable Artists

In February 2020, Decentraland hosted a four-day festival, featuring notable artists like DJ Dillon Francis and Grammy-winning artist RAC. The festival was one of the largest virtual events hosted on the platform, attracting thousands of participants from all over the world.

The Impact of Meta’s Announcement and the Attraction of Partnerships from Stephen Curry, Samsung, and Tennis Australia

In October 2021, Meta’s announcement of its Metaverse plans sent shockwaves throughout the tech community. Decentraland was one of the companies that benefited from the announcement, with an influx of new users and investments pouring into the platform.

The announcement also led to notable partnerships with basketball star Stephen Curry, tech giant Samsung Electronics, and Tennis Australia, further enhancing Decentraland’s reputation as a leading decentralized virtual world and solidifying its position as a promising platform within the Metaverse space.

Conclusion

Since its founding in 2015, Decentraland has come a long way, evolving from a mere concept to a robust decentralized virtual world. The platform’s development has been shaped by its founders’ vision, community participation, and partnerships with notable companies and individuals.

With the platform’s shift towards the DAO model and the greater focus on decentralization, Decentraland is poised to play an essential role in the development of the future Metaverse. Decentraland Revenue Model: How MANA Tokens Generate the Platform’s Revenue

Decentraland is a decentralized virtual world that generates revenue through the creation, issuance, and use of its native token, MANA.

In this section, we will explore Decentraland’s revenue model, how MANA tokens generate revenue, and how LAND ownership and the creation of activities also contribute to the platform’s revenue.

Revenue Model Based on Issuing and Holding MANA Tokens

Decentraland’s revenue model is primarily built on the issuing and holding of MANA tokens, which are used as currency within the platform’s virtual economy. Users can use MANA to purchase virtual lands, digital assets, and services on the Decentraland marketplace, and the platform also collects transaction fees whenever MANA tokens are used within the platform.

The company generates revenue from the issuance of MANA tokens and benefits from the increasing demand for the MANA token.

Role of LAND Ownership and the Creation of Activities by Other Users

Decentraland’s revenue model also relies on LAND ownership and the creation of activities by other users. Users can purchase virtual LAND as an NFT and develop applications, games, and objects.

LAND ownership grants users complete control over the virtual space, allowing them to monetize their LAND in various ways. LANDowners can host events, organize and sell virtual goods on their LAND, and collect rent fees from other users who use their LAND for their activities, creating a secondary market for LAND owners to generate revenue.

Decentraland’s $5 Million Fund for Companies Planning on Building Activities

To further encourage the development of activities within Decentraland, the company has established a $5 million fund for companies planning on building applications; this move attracts developers and accelerates the adoption of the platform. This fund seeks to provide a financial commitment to support companies and developers that want to build activities and experiences on the platform and spur innovation within the platform’s virtual economy.

Non-Participation of Decentraland in Transactions on its platform

Decentraland takes a hands-off approach to transactions within its platform and does not participate in transactions between users. The company allows users to create value within the platform’s virtual economy on their own, enabling the community to have full control over the economic value and direction of the platform.

This approach aligns with the principles of decentralization and opens up various opportunities for users to create unique virtual experiences and monetize their virtual goals. Decentraland’s Total Funding of $51 Million and Notable Investors

Since its inception in 2015, Decentraland has raised funds from several rounds of funding, including private sales, ICO, and venture capital.

The company’s total funding is over $51 million as of October 2021, with notable investors, including Andreessen Horowitz, Digital Currency Group, MetaKovan, Polychain Capital, and Draper Associates. These investors have placed their support and confidence in Decentraland, providing the necessary resources for the company to enhance its virtual economy and ensure its sustainability.

Non-Disclosure of Valuation or Revenue during Funding Rounds

Decentraland has maintained a policy of non-disclosure of its valuation, revenue, and user metrics during funding rounds. This policy is in line with the decentralization philosophy of the platform, which empowers the community to make decisions about the future direction of the platform, free from the influence of external factors such as company valuations.

This approach also emphasizes the paradigm shift towards a decentralized economy, focused on enabling users to own and control their virtual assets.

Conclusion

Decentraland’s revenue model is built on the use and issuance of MANA tokens, LAND ownership, and the creation of activities by other users, which create a thriving virtual economy within the platform. Additionally, the company’s $5 million fund for companies planning on building activities attracts and supports developers, further enhancing the platform’s revenue streams.

The company’s non-participation approach to transactions aligns with the principles of decentralization, providing users with full autonomy over their virtual assets, while its undisclosed valuation and revenue during funding rounds emphasize the company’s commitment to a decentralized economy. Decentraland’s revenue model is driven by the use and issuance of MANA tokens, the ownership of virtual LAND, and the creation of activities by users.

MANA tokens are the primary currency within the platform’s virtual economy, generating revenue through their purchase, use, and transaction fees. LAND ownership allows users to monetize their virtual spaces, while the creation of activities by other users fosters a secondary market and income opportunities for participants.

Decentraland’s $5 million fund further supports developers in building activities, strengthening the platform’s revenue streams. By taking a hands-off approach and allowing decentralized control, Decentraland embraces the principles of the metaverse’s future.

The company’s undisclosed valuation and revenue during funding rounds further emphasize its commitment to decentralization. As the virtual world expands, the importance of revenue models and decentralized platforms like Decentraland becomes increasingly apparent, opening up new possibilities for creators, developers, and users alike.

The immersive and dynamic world of Decentraland represents a glimpse into the future of decentralized virtual environments.

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