What is Decentraland and how it works?

Living in a dream world where you can move from one place to another and socialize with other people is the virtual world. Decentraland is a 3D virtual world built by blockchain technology mainly powered by Ethereum where the users can buy virtual land, experience, and monetize with their content and applications.

Decentraland origin

It was first founded in the year 2017 by Esten Ordano and Ariel Meilich having an official Decentralized website. Here the users can purchase LAND, a non-fungible token that represents a portion of the virtual land with the map that is hosted on the Ethereum network. The Decentraland’s ERC-20 token, MANA allows the users to buy LAND parcels, monetize avatars, and use them to pay for their virtual goods and services.

LAND can be brought by burning MANA while making a new registry to purchase land. Decentraland is controlled by the Decentralized autonomous organization (DAO) to vote on metaverse policies with the network of blockchain-based smart contacts and changes to the Decentraland software are made with it. Participants who own MANA can vote on policy updates, land auctions, and subsidies for new construction.

Decentraland structure

Ethereum smart contracts were used to build the multiple layered components of Decentraland. The consensus layer keeps track of information about who owns which land part in a ledger. Each LAND parcel has a specific virtual world coordinate, and an owner and they link to a description file that describes the contents of each parcel. The content layer has whole control over each parcel with content files linking to audio and visuals, script files referring to the placement of referred files, and giving the interaction definition of voice chat with gesturing. The user’s avatars, voice chat, and messaging of the real-time layer enable social interaction within the Decentraland.

It is the first virtual world owned by the users with the allocation of the ownership of digital real estate to users on a blockchain.

How does it work?

Decentraland offers a platform for shared virtual worlds. It consists of peer-to-peer network connections for user interactions, a decentralized ledger for tracking land ownership, and a protocol for describing the contents of each LAND parcel. Users can do policy revisions and vote for their LAND auctions through the DAO.

A blockchain-based record of encoded parcels allows users to claim ownership of their virtual lands where each piece of LAND is found by a unique set of cartesian coordinates. From interactive systems like games to static 3D environments, the content can take many different formats. The users can rent out their areas like buildings, parks, hotels, and casinos to other players like how they sell their works. Decentraland’s Metaverse is split into 90,601 distinct 16×16 LAND pieces and each of which is located at specific Metaverse coordinates.

Decentraland is a vibrant market where users may produce and sell goods using a novel in-world economy. The web 3.0 Metaverse worlds are a part of an interconnected crypto cloud economy where these decentralized protocols work together and offer the necessary technical foundation for Metaverse virtual economies.

MANA is a fungible token with a fixed supply that stands in for the price associated while getting a new parcel. The content required to depict the virtual world is distributed through a decentralized storage system, and smart contracts are utilized to access files containing descriptions of the contents of each parcel.

Summary

The decentralized platform may soon develop as a multifunctional Metaverse where companies may market and get profit from digital content. The rising popularity of non-fungible tokens (NFT) can increase the value of MANA and becomes the most well-known platform which has a larger community.

The concept is still new as it is introduced only 5 years ago and has scalable issues same to the blockchain network. Worldwide only 205 businesses accept MANA as payment, which may be a drawback for the cryptocurrency, and it also lacks real-world utility.

Sapizon Technologies is strongly inclined to deliver best in class Metaverse solutions worldwide.

Visit us to know about our Metaverse & XR solutions.