Decentraland: What is it? Is this something that could benefit you? Before I answer those questions, let’s figure out exactly what it is because if you’re anything like me (up until a few weeks ago), chances are you’ve never heard of it. In a nutshell, Decentraland is a software that operates on Ethereum. Its primary purpose is to incentivize a global network of users, allowing them to exist in a shared virtual space. This allows users to buy and sell digital real estate while exploring, interacting, and playing games while being part of this growing virtual world. Since its inception, the platform has evolved to include interactive apps, in-world payments, and peer-to-peer communication for users.
As for its origins, Decentraland was created in 2015 by Argentinian fintech expert Ariel Meilich and his partner and blockchain expert Esteban Ordano. The premise of their idea was sparked by the fact that virtual reality was rapidly expanding, and they quickly realized the opportunity. The two of them were both concerned about the idea that one single company could dominate the virtual reality space. They thought that if that happened, that company could become very powerful in a short time. Perhaps too powerful even as that company would be able to monetize people’s data, censor and regulate the types of information available, raise de facto taxes, and control the price tags associated with everything within the virtual domain. Thus, Decentraland was born to combat those potential problems and more.
Two different types of tokens govern operations within Decentraland, and they are:
- LAND – LAND is a non-fungible token (NFT) used to define the ownership of land parcels representing the digital real estate.
- MANA – MANA is a cryptocurrency that facilitates the buying of LAND and other types of virtual goods and services used throughout Decentraland.
When it’s time to change things up with the Decentraland software, it’s done via a collection of blockchain-based intelligent contracts. This method allows users who own MANA to vote on policy updates, land auctions, and subsidies for future developments. With MANA being the cryptocurrency coin that aims to power the online world that serves as an NFT marketplace, it has recently garnered much attention over the past few months.
Is Decentraland a worthwhile investment
Maybe you’ve been looking into it for a while, or perhaps you just recently stumbled upon it and have become interested in Decentraland, NFTs, or the Metaverse. Either way, when these technological advancements happen, it’s an excellent time to take a step back, review the information, and discover something worth getting involved in. Imagine how many people passed on the opportunity to invest in companies like Google, Amazon, or Microsoft to kick themselves later. But how do we have any idea of knowing which ones to jump into? The last thing any of us want to do is invest or show support to a company that may end up falling flat shortly. Check out this list of failed opportunities to get an idea of what I mean. However, in the case of Decentraland, is it the right one? Is it right for you? Well, according to the extensive research conducted by Trading Education, Decentraland could be a pretty solid investment. Investing in this platform could potentially lead you to one of the best financial decisions you’ve ever made.
Knowing what MANA is (Decentraland’s cryptocurrency), you may be impressed to learn that it has increased substantially since the first day of 2021, returning more than 4,300% in the previous year, with the technical analysis showing the digital asset as an uptrend. Even more so, MANA shows no signs of slowing down.
One of the primary reasons it could be worth investing in Decentraland is the increased platform adoption by high-profile institutions, one of which is Sotheby’s Auction House. This auction house is the premier one-stop shop for auctions and private sales of paintings, wine, jewelry, watches, and more. They also erected a virtual gallery. Of their 172,400 followers on Twitter and more across its various social media platforms, they were able to bolster Decentraland and buy products by using MANA. Just imagine that even more auction houses, artists, and galleries establish a virtual version of their infrastructures. This would lead to a significant increase in usage in the Metaverse that can reflect positively on the overall price of its cryptocurrency. That’s just one of the reasons why investing in Decentraland can be a highly lucrative opportunity for someone.
It has games!
Of course, Decentraland has games, which makes the whole allure of the concept that much more tantalizing. Players of the browser-based game can purchase digital items and then exchange them for physical assets (and services) via the retail space. Additionally, the creation of the virtual mall also allows some of the world’s most well-known brands to sell their products within the virtual retail space. A perfect example of this can be attributed to purchasing sneakers as an NFT and trading it for a physical version of the exact product.
So, what does this mean? In the long term, many products can be bought using MANA within the Metaverse. With liquidity surging through the platform, this cryptocurrency could quickly become the grand winner, thus pulling in more returns to traders and investors alike.
Should I invest
That’s solely up to you, your finances, and your personal preferences, as I firmly believe that you should invest in things you enjoy or have a growing interest in, not just random ventures. Those with more experience than myself dealing with these kinds of investments, namely NFTs and the Metaverse, invest based on other variables such as patterns and projections. I don’t have much money to play with when it comes to investments, so I tend to choose my ventures a bit more precisely. With that said, Decentraland is one that I can see myself getting behind. Not only does it show much room for growth, but with other companies (such as Sotheby’s Auction House) getting involved, the financial backers are looking impressively established, thus making it a good bet for financial returns. I would also agree that Decentraland may be one of the more innovative technologies that can change the method we use when purchasing and owning lands, real estate, arts, and who knows what else! Even more so, Decentraland has introduced NFTs that allow buyers and sellers to negotiate the sale of lands and arts without using someone like a real estate agent working as the middleman.
Decentraland is sure to be a fruitful and fun experience for anyone interested in what Decentraland has to offer, NFTs, or the Metaverse in general. If you have some money to burn and you’re looking for a worthwhile venture to dump into, this is undoubtedly one that should be on your radar. If you’re like me and only like to invest in one or two ventures annually, I think this one should be a viable option, but I recommend a little more research to see if it suits you. I want to add the little disclaimer that I have nothing to do with Decentraland or any of the companies that operate within it. I also have no first-hand account of this being a successful venture, nor am I guaranteeing that investing in this company will make you rich beyond your wildest dreams, although it is possible. I’m simply implying that it’s a safe bet and an auspicious business opportunity. Virtually everything appears to be on the up and up. I’m not an investment professional, but Decentraland looks like a safe play to me, and many experienced people would agree.