What is Decentraland
With the huge advancement of the crypto world, NFT marketplaces are prominent by giving great many opportunities on digital platforms. It likewise offers wonderful features for buyers and collectors to use it in NFT projects. Then again, Metaverse has broadened numerous boundaries from virtual and augmented reality in the digital world. The blend of metaverse and blockchain innovation on NFT marketplace has resulted in amazing buying opportunities in the crypto world. A few examples are Golem, CryptoKitties, Augur, etc., which all are flourishing as NFTs that have been bought with cryptocurrency.
The next generation of AR games — Decentraland is one such example that has recently gained huge popularity among the gamers. They can buy LAND using DNT tokens, which they can use to develop it or sell them later at a higher price.
Decentraland (DMT) is an open-source platform where users will be able to build their own VR worlds through land purchase and creation. All these lands will be managed by its native currency called MANA token.
This article will give you an insight into how Decentraland works. We shall discuss about the various ways of earning money from your lands and what happens when someone buys your land. Let’s start with understanding what Decentraland is and how it works.
What Is Decentraland?
Decentraland is a VR environment built upon the blockchain. Users will be able to create and manage their own 3D environments within this decentralized network. The users will get access to their private worlds via web browsers and mobile devices.
It uses WebVR standard so anyone can easily install it in any device. Moreover, it provides the ability to import content created by others and allows users to interact with each other.
Users will need to pay for the usage of resources like bandwidth, computation power, and storage space. In addition, there will be a fee to create new objects, which means that users will need to pay every time they want to add something new in their world. However, unlike most games, Decentraland does not require players to spend real money. Instead, they earn rewards for playing the game and engaging with the community.
In short, Decentraland is a Virtual Reality experience that runs completely on the blockchain. The developers claim that Decentraland could become the first fully decentralized VR ecosystem.
How Does Decentraland Work?
There are three main components of Decentraland:
Mining Process — This process involves mining blocks containing information related to land ownership and transactions. Every block contains two parts: a transaction ID and some data. If you mine a block successfully, you will receive a reward based on the number of tokens held in your account. Mining takes place over the course of about six minutes and is done by computers that run algorithms. These algorithms help to check if the mined blocks are valid. The longer the algorithm runs, the more computational power needed to run it.
Land Registry — This component helps to record all land ownership details on the ledger. It also serves as the source of truth for all land purchases and sales. All transactions are recorded here. You can also view the status of all your holdings.
World Creation — Finally, this component lets users create and customize their virtual worlds.
Decentraland has its own cryptocurrency named MANA. Each user has one MANA wallet and they can transfer tokens between themselves or trade them against another cryptocurrency. They can use these tokens to purchase LAND, which is the base resource required to build a VR world.
Decentraland utilizes a unique system where users can generate their own LAND. There will be no central authority to govern the land and its prices. Instead, it will be governed by the market forces.
When you buy LAND, you will be able to choose the type of land you want to buy. You will be able to select from the following categories:
• Residential Land — For living purposes.
• Commercial Land — For commercial purposes.
• Entertainment Land — Used to provide entertainment services.
• Public Domain — Allows you to build public buildings.
You will be able to specify the size of the land you wish to buy. Moreover, you will be able to set its price and its maximum lifetime.
Once you have purchased the land, you will be able to start building it. Decentraland provides you with an intuitive interface to design and build your own VR environment. You will be able to build anything you want in the form of structures and objects.
All these objects will be connected to each other and will be able to perform tasks. To do so, you will need to purchase their necessary resources like electricity, water, and computing power.
Every object will require a certain amount of each resource to function properly. Moreover, these objects will need to connect to each other and to the internet. In addition, they will need to interact with the environment around them.
In short, you will need to purchase the required resources and then assign them to the objects in your VR environment. You can see how this works in the video below.
Decentraland uses a web browser to render the VR environment. The viewer’s web browser will communicate with the Decentraland client, which will in turn talk to the MANA network. The client is a special program that communicates directly with your VR environment. It will use a web socket connection to send commands and receive updates from the server.
How Does Decentraland Earn Money?
There are two main ways through which users can earn money in Decentraland:
Virtual Items — The first way is by selling items that can be used in the game. These include furniture, weapons, and tools.
Land — The second way is by selling yo
ur land to others. If you sell a piece of land, you will earn money based on its current value.
The more valuable the land is, the higher the price you will get for it.