What is Decentraland? The Metaverse Built on Ethereum?

What’s happening in Decentraland?

The concept of the Metaverse refers to the combination of virtual reality and augmented reality, where users live in a digital universe that extends beyond our physical universe. Decentraland is the first blockchain-powered place in the metaverse, which was released in February 2020. Users can log in with a crypto wallet if they want to trade inside.

Decentraland received a huge boost after Facebook announced it would be rebranding to Meta, with its native token MANA rising 80% in 24 hours to a market capitalization of over $2 billion.

Subsequently, the company shifted its long-term focus from social media to 3D virtual environments in 2021. This year, JPMorgan Chase became the first bank to enter the metaverse with its ‘Onyx Lounge’ at the Metajuku mall in Decentraland. Visitors are greeted by a digital portrait of JPMorgan CEO Jamie Dimon and a stray tiger. At the top is an executive presentation about the crypto economy.  In November, Barbados signed an agreement with Decentraland to establish its virtual embassy on the platform in January 2022, becoming the first country to do so.

Decentraland appears to be a pioneering center for recreational activities and economic boom in the metaverse. There are Sotheby’s London art gallery, museums, virtual events such as the Paris Hilton concert on New Year’s Eve, and token-based gambling.

Tokens used on Decentraland

Two different types of tokens are used in Decentraland’s operations.

MANA is a cryptocurrency used to buy and sell land, virtual goods, and services in Decentraland. When a piece of land is purchased, it burns the MANA from which it was purchased. In total, there are approximately 2.19 billion MANA tokens. Mana’s current price is around $2,387, after experiencing an all-time high of $5.80 recorded on November 25, 2021.

LAND, on the other hand, is an immutable digital asset held in the Ethereum smart contract. The unique x is divided into parcels referenced using y cartesian coordinates. After the purchase of a land plot, the owner is free to do everything he chooses.

Virtual land explosion

In the digital world, land is needed to start a business, game, art gallery, fashion store, build a house, organize an event or create anything. Buying, selling, and mortgaging this land is a popular financial activity that takes place in the digital world.

Decentraland, for example, is divided into 90,000 parcels of land, each about 50 feet by 50 feet and each in the form of an NFT known as LAND. People use mortgages to buy these plots.

To apply for a virtual land mortgage, the buyer must fill out an application and make a down payment of 10% of the market value of the property.