The concept for Ryan Reynolds’ movie ‘Free Guy’ had to do with Guy, a bank teller and his self-realization that he is an AI and his development to live as human beings in the virtual world. What if you could also live like Guy? According to the Decentraland White Paper, the virtual world, also known as the Metaverse, is a virtual space created for humans to interact collectively through high-end technologies such as virtual reality, augmented reality, and the Internet.
Etymologically, the term first appeared in a science fiction novel published in 1992 by author Neal Stephenson, which can be further dissected into Meta, which means beyond, and Verse, which means world.
It’s like the Keanu Reeves Matrix. Replace Matrix with Decentraland; the only difference is that humans are actually aware of both the concrete and the virtual world.
What is Decentraland?
A creation of the Web 3.0 movement, it is a virtual space designed in 3D on Ethereum. It was released in 2015 by a duo of Argentine cryptographers, that is, Ari Meilich and Esteban Ordano. The underlying philosophy behind its creation is to have a social space free from the control of any centralized agency such as the government, social media giants such as Facebook, Instagram, YouTube and many more as stated by Cataline Goanta in her book Disruptive Technology, Legal Innovation and the future of real estate.
What does Decentraland do?
Our world is made of elementary things like cells and atoms. We occupy space here, we live in a house and we are aware of our surroundings. But what are the basic components of Decentraland?
It started as a virtual space realized on a 2D grid in which pixels were assigned to users through Proof of Concept. These pixels contained metadata to identify Decentraland’s Stone Age owners.
The 3D world as we know it today began with its Bronze Age in 2016. Here, the land was divided into parcels that could be mapped via a Hash file. It can be accessed through Distributed Hash Table and BitTorrent.
The Iron Age of Decentraland has opened it up for all users. Michael Dowling in his research Fertile Land: Non-Fungible Tokens reveals that in order to become a member of Decentraland, one must purchase land or parcels.
Decentraland is made of NFT
Lands or parcels are coded pieces of NFT or non-expendable tokens. Non-fungible tokens are virtual certificates that record proof of digital ownership of a part of a digitized information package that could be a photo, file, song, a virtual cloth for your virtual avatar, or a video.
NFT is a packet of information or data stored on the blockchain. Unlike Bitcoin, which is a currency, NFT is a virtual asset or property that could be sold, traded, or traded. NFT has no value of its own, but its value is defined by the price of the information or data it has. For example, the Doge NFT is a photo of a Shiba Inu dog, which appeared as a meme that sold for 1696 ETH. Many NFTs similar to this, such as Rick and Morty NFT, Run Dino Run, Everydays, Grimes NFT, all tokenize the art so that the owner of the NFT has a certificate of ownership confirming that the NFT asset they own is original.
In Decentraland, a parcel contains 16X16 pieces of land with coordinates of a Cartesian plane (x, y) that identifies the location of the land in the virtual world. In Decentraland there are a total of 90,601 plots of land, of which 43,689 have been earmarked for private use.
Who runs Decentraland?
Whoever owns a piece of land or MANA can give suggestions or participate in the vote to implement administrative decisions. The goal is to decentralize the platform. Members can vote on: –
NFT smart contract whitelist Land auction management Create a marketplace Enhance Land features to improve interaction Common market size Assign MANA for collective development of virtual space Add options on collective items such as wearables, artwork, songs , etc. Replace or install members of the Security Advisory Council
Voting takes place in a Decentralized Autonomous Organization that is independent from the control of any central agency. It is powered by Aragon.
The virtual world works like a decentralized economy. The value of the land depends on the rarity of NFT, its location, and the value of an adjacent property. Like the brick and mortar world, it has a capital called Genesis City. Land can be brought in and sold through: –
MANA- It is a cryptocurrency used exclusively in trading in the metaverse. It is an ERC-20 token that is burned to buy collective items and land. The person who owns a MANA is like a Decentraland citizen who has the power to vote and participate in administration and governance. Land- It is a coded piece of NFT that has a virtual space in Decentraland. Owners can create anything on their land to experience the metaverse, and other MANA holders can interact with items created on other parcels. You can create art exhibitions, songs, casinos, build hotels, games, etc. and everything you earn from them goes into your pocket.
Land and Mana, both can be retained by the owner. They can sell them at a higher price later in an in-app marketplace.
The boom of the virtual economy
In the Bronze Age, the cost of parcels of land in Decentraland was as low as $ 20 a piece, as reported by CNBC News. Now the average cost of land per piece ranges from $ 6,000 to over $ 100,000.
Real Estate in Decentraland
. reported the sale of the most expensive virtual parcel of land for $ 900,000 in June 2021. The parcel sold consists of 259 units or parcels spread over 16 virtual acres or 66,304 virtual square meters. The cost of the package was 1,295,000 MANA. The value of this size virtual currency was around $ 913,228.2 when the sale was made.
The purchase was made in favor of Republic Realm, a Republic-owned investment platform sponsored by Binance and Prosus.
Art in Decentraland
Statista claimed that artworks sold on NFT accounted for sales of $ 12.9 million in 2020 alone. Every Day: The First 5000 Days is an NFT-encoded digital artwork created by American artist Mike Winelmann, also known as Beeple, which was auctioned for a whopping $ 70 million at Christie’s in March 2021, he reported.
In June 2021, Sotheby’s, a London-based art auction house, created a digital avatar of its New Bond Street headquarters in Decentraland. The auction house sold CryptoPunk, an artwork made with 10,000 NFT-encoded pixels for $ 11.8 million.
The NFT market exploded in 2021 and generated a record $ 2.5 billion in sales compared to 2020, generating just $ 13.5 million. NFT will renew virtual reality. In this sense, the increasing traction of virtual worlds is no surprise and will shape how things work in the near future.
Author: Gaby Alexander
Gaby Alexander – Client Success Manager at SERPninja. She is a Certified Google Campaign Manager, HubSpot Inbound Marketing Expert, and SEMrush Expert; it’s safe to say that you know exactly what you’re talking about.… See full profile ›