What is the Future of Decentraland? (MANA)

What is the Future of Decentraland in this guide? We will answer questions such as who created it, what is its features and project.

Decentraland is a virtual world and community based on blockchain technology. Users develop and own plots, artworks and Unique Tokens (NFTs). Members also become participants in the platform’s Decentralized Autonomous Organization (DAO). Being a DAO, Decentraland empowers its community to participate in the governance of the project. Decentraland’s native currency is MANA and all in-game assets are on the Ethereum blockchain.

What is the Future of Decentraland? (MANA)
What is the Future of Decentraland? (MANA)

What is Decentraland (MANA) Coin?

Decentraland users can buy and sell digital real estate while exploring, interacting and playing games in this virtual world. Over time, the platform has evolved to implement interactive apps, intra-world payments, and peer-to-peer communication for users.

Two different types of tokens manage operations in Decentraland.

These:

LAND: An unalterable token (NFT) used to identify ownership of parcels of land representing digital real estate.
MANA: A cryptocurrency that facilitates LAND purchases as well as virtual goods and services used in Decentraland.

Changes to Decentraland software take effect through a series of blockchain-based smart links that allow participants with MANA to vote on policy updates, land auctions, and subsidies for new developments.

Who Created Decentraland?

The Decentraland Foundation, the organization behind the development of Decentraland software, was founded in 2015 by Esteban Ordano and Ariel Meilich.

The Decentraland team held an Initial Coin Offering (ICO) in 2017, raising 86,206 ether (about $26 million at the time) to fund its future operations. Holding 20% of the initial token offering, the Foundation retains the intellectual property rights and maintains the Decentraland website.

Before launching its platform, Decentraland launched a decentralized autonomous organization (DAO) to delegate the management of the project to its users. Also, the founding team claims that the private key controlling Decentraland’s smart contract has been destroyed.

How Decentraland Works

Decentraland app was created to track real estate parcels identified by LAND tokens.

The software leverages the Ethereum blockchain to track ownership of this digital land and requires users to hold their MANA token in an Ethereum wallet to interact with its ecosystem.

In addition, developers are free to innovate on the Decentraland platform by designing animations and interactions experienced in their virtual real estate.

Architectural

Decentraland has many layered components built using Ethereum smart contracts.

The consensus layer maintains a ledger that tracks ownership of land parcels. Each parcel of LAND has a unique coordinate in the virtual world, an owner, and a reference to a description file that represents the content within the parcel.

The content layer controls what is in each package and contains the various files needed to process them:

  • Content Files: Refers to all static audio and visuals
  • Scripts: Define placement and behavior of referenced content
  • Interaction Definition: Peer-to-peer interactions such as hand gestures, voice chat, and messaging.

Finally, the real-time layer facilitates social interactions within Decentraland through user avatars, including voice chat and messaging.

Marketplace and Builder

Outside of the gaming environment, the Decentraland team has released a marketplace with a drag and drop editor that users can access to build scenes.

The marketplace allows participants to manage and exchange LAND tokens priced in MANA. Owners can use the market to craft or transfer packs and other in-game items such as wearables and unique names.

All transactions are handled between Ethereum wallets and are therefore authenticated by the Ethereum network and logged into the blockchain.

Decentraland’s construction tools empower their owners to create a unique experience on their LAND plots. Interactive scenes are designed through the editing tool where developers can access customization libraries and payment apps.

Why is MANA Valuable?

MANA plays a vital role in the virtual world of Decentraland and can be used to participate in the management of its software and processes within the ecosystem.

For example, having MANA also allows users to interact with the platform by customizing their avatars, interacting with other users, and exploring the metadata store.

Also, owning MANA gives users the ability to vote on policy updates, LAND auctions and subsidies to improve the platform.

When the LAND is put up for auction, the MANA tokens used to purchase the parcels are burned or removed from circulation, making the supply of MANA deflationary. This can put pressure on the token value as the platform grows with new users.

What is the Future of Decentraland? (MANA)
What is the Future of Decentraland? (MANA)

Why Should You Use MANA?

Users may find Decentraland attractive as a customizable and shared virtual reality space.

The Decentraland ecosystem may also be of interest to players looking to earn in-game currency with monetary value that can be exchanged for real-life goods and services.

Investors can try to add MANA to their portfolios if they believe in the future of virtual reality and its ability to connect users from all over the world.

Pros of Decentraland

Unique digital property rights
Decentraland offers users a unique, scarce and gamified experience without the constraints of a central authority. Users are in control of creating their experience and benefit from the value created. To ensure decentralization, smart contracts are managed by a decentralized autonomous organization where users can vote on changes. Users actually own their collections in the metadatabase.

Strong momentum in 2021
The volatility of MANA also offers opportunities to profit by trading on its sharp rises and falls.

The biggest virtual land sale
Republic Realm, a division of online investment platform Republic, has purchased 259 parcels of virtual land in Decentraland for $913,228.28. This single transaction is the largest LAND purchase in Decentraland history. Removed 1,295,000 coins from the total MANA supply.

With more LAND purchases in the future, more MANA will be withdrawn from the market. This will reduce the circulating supply of MANA while also reducing the number of tokens available for purchase. The shortage could push the MANA price to all-time highs.

Leading institutional investors
On Wednesday, March 17, 2021, Grayscale Investments, the largest digital currency asset manager, launched the Grayscale Decentraland Trust, along with four new digital currency investment trusts. Grayscale currently has $14.8 million in MANA assets under management. Even more impressive, its return on investment (ROI) is 218.73%.

These numbers are in the public domain and may encourage other institutional investors to opt for the token. Large investments by well-established companies are often effective drivers of asset price and can support MANA in the long run.

Digital Coin Price estimates that MANA could trade at $1.22 by the end of the year and $3.54 by 2028.

Valuation with room for growth
Due to the large number of tools, software engineers and developers are developing an increasing number of interactive 3D games and applications. Decentraland (MANA) ranks third in the market valuation of NFT crypto trading assets after Chiliz (CHZ) and Enjin Coin (ENJ).

MANA is traded by many traders for less than its true value. This makes the MANA token a good investment for value investors who can take advantage of the gap between market cap and real value.

While there are many good reasons to buy MANA, it’s important to keep in mind the risks of doing so.

Cons of Decentraland

Regulatory Risks
As with the rest of the cryptocurrency space, regulation can negatively impact pricing. Cryptocurrencies have attracted increasing attention from regulators, which in the future may turn into bureaucratic requirements or a limit on the trading of cryptocurrencies.

Tough competition in NFT and virtual world spaces
Decentraland is growing rapidly as it is also an NFT market. However, it is not the only player in the NFT space. Marketplaces like Axie Infinity (AXS), Crypterium (CRPT), and Algorand (ALGO) give Decentraland a run for their money. For example, in market valuation, Decentraland still trails AXS and ENJ.

The virtual reality space is also growing, with other virtual worlds like NEOLAND and High Fidelity competing for a slice of the crypto market pie.

How Many Decentraland (MANA) Coins Are There in Circulation?

  • Market Cap: $1,989,847,235 (June 1, 2022)
  • Circulating Supply: 1.844.078.905 MANA
  • Total Supply: 2.193.657.427 MANA
  • Max Supply: No Data
  • All Time High: (Nov 25, 2021) $5.90
  • All Time Low: (Oct 13, 2017) $0.007883

What is the Future of Decentraland in this guide? We answered the questions of who created it and how it works. Keep following us.

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