Decentraland MANA Explaind
Real estate investments are always considered
as a lucrative investment, and real estate has been the go-to choice
for most investors who are looking to earn a lot of money in a
short time span. However, with the rise of NFTs, we need a way to
integrate Real estate and blockchain technology to make even more
money. So what if you could buy and sell virtual properties
as NFTs? Well, let's discuss that today.
Let talk about decentraland and the MANA tokens.notifications
to stay updated!
With all that done, let's get started 2020 and 2021 won't be our favorite years
due to the ongoing pandemic, but even when the stock market crashed,
cryptocurrencies and non fungible tokens base on blockchain technology
continued to rise in popularity this year. Cryptocurrencies are no
longer a strange topic for people to discuss, all thanks to the attention these
currencies received from the media and certain influential Twitter
accounts. NFT sales are rising as well compared to previous years. For those of you who don't know, NFTs are
short for Non Fungible tokens, and these are different from cryptocurrencies because they are
unique and rare assets, and you cannot trade one NFT for another one. This
made NFT a very lucrative asset for people to make money by selling their
work or
assets as NFTs.
NFTs also solve the problem with ownership that digital collectibles
always face.
Digital painting,
for example, can have its copies made in seconds, and there is no
way
you can own a
digital collectible before NFTs. NFTs fix this issue by recording
ownership data
in the blockchain.
Now let's discuss a totally unrelated investment that is real
estate. Real estate investments are often considered as a passive way
to make money from rental income, and people who flip properties actually
make a really good income from it. But what if you are not a fan of
visiting places to find properties and you want to do it in the comfort of
your home.
It gets even
better when you think about buying virtual real estate using
cryptocurrency and then selling them as NFTs. Yes, you heard it right because
today, that is possible with Decentraland.
Alright, we know
you are excited about this,
so let's start talking about decentraland. As the name
suggests, Decentraland is an entirely
decentralized virtual world that is based on the Ethereum
network where you can play, explore and
also interact with others in the network by buying and
selling virtual land. If you are a fan of
the Tron movies and also ready player one movie, then
what we are about to tell you will be highly
relatable. But even if you didn't watch those movies,
no worries because we got you covered. The
reason why we are talking about decentraland is because
of the rise in popularity of NFTs. We know
that NFT transactions are primarily done on the ethereum
network, and even the decentraland and
its token are based on the same ethereum network. With
decentraland, we have got three tokens, and
they are called the LAND, ESTATE, and MANA tokens.
The LAND tokens
are based on the ERC 721 protocol, and the same protocol is used for NFTs.
The ESTATE token also uses the same protocol, and the estate is a
group of digital land, and then we have MANA tokens which are based on
the ERC 20 protocol, and these are fungible
tokens which means
you can exchange a MANA token with another one of the same value. So why
does the decentraland network require three different tokens? Well,
in this virtual world, just like our
real world, the
land is a scarce asset, and every land has got different properties
depending on the
location of the
land and the developments that are done to it. So MANA is the token that
is running
the entire network
because this is the currency of this virtual world that decentraland
created.
Users can buy land
using this MANA currency, so the entire virtual world is simulating
the real world with assets to buy and currency to use. There are so many
other games similar to decentraland, but
what makes this one special
is that it is based on blockchain technology, and
also the entire economy of this digital
world is run using a cryptocurrency. The value of the
real estate is determined by the land's location and the scarcity of the
land. The other factor would be the
degree
of development done to the property. This is how
real estate in the real world works, and what's exciting to know is
that in this virtual world of decentraland, the prices are determined
the same way, which is an incentive for the users of this network to
develop the land
and sell them as NFTs. Due to the fact that these LAND tokens are NFTs, the ownership is
recorded
on the Ethereum blockchain making the transfer of
assets a much easier task. The total number of
LAND units is capped at 90,000, with each of them being
33 feet by 33 feet in dimensions. So yes,
the width and length of these LANDs are limited, but
the height is not limited, which means
the token owner could build much higher. Each land tokens
have a different set of cartesian coordinates, just like how we have it
in the real world. Owners of the land can do anything with their land, and
these can be used as a place to engage, socialize, explore and build,
just like
how it's done in real life. That being said, the functionality of this network also lies in this interaction between the users of the virtual world, where the virtual world also facilitates payments between users for the virtual land.
The total supply of the MANA coin is 2.6 billion tokens, and on June 18th the price of the coin is at 0.67 dollars with a market cap of 1.49 billion dollars,
Now the entire project was created in 2017 and attracted more than 20 million dollars for the initial coin offering. The project was formally launched and opened to the public on February 20, 2020. The future of this network will depend on the number of people actively engaging in this virtual world because where there will be people, there will be an economy surrounding the population, and the same is the case with this virtual world too.
The network is still in its infancy, and analysts are optimistic about the future of
decentraland, considering the fact that everything we do today is leaving some sort of digital footprint. Look at bitcoin, for example. Bitcoin had humble beginnings and look where it is now and how it has grown over time. The same could happen with decentraland, too but none of this success guaranteed as anything with cryptocurrency is not so easy to predict. Nevertheless, this is a cool concept, and there is no doubt about it. So to sum things up, virtual worlds are
nothing new. Social media platforms like Facebook and TikTok are examples of
he virtual world that we have today.But there is nothing out there that can
mimic decentraland today because of how close it is with the real world in
terms of the economy inside the virtual world. With how cryptocurrencies are
performing today and the popularity of NFTs among blockchain enthusiasts,
integrating something like real estate could be the next big step
for
real estates, cryptocurrencies, and also NFTs. This is considering the fact that
the best performing asset of the last decade was not apple, google, or amazon,
but it was bitcoin. Today more people are aware of cryptocurrencies than ever
before and with so many exchange platforms, buying cryptocurrency is a much
easier task.
Today the primary utility of the MANA token is to buy and sell virtual land in decentraland
and apart from that, there is no other utility, and the project
is still growing. In a digital age like ours, decentraland will be able
to position itself the way it deserves because of how this concept is neatly
integrated with blockchain technology. And if you want to check it out, it's
also free to explore, so you can try it out by checking out their website.
Human interaction and socialization are moving
away from face-to-face interaction to video calls and text messages
which means we are already accepting a completely virtual world. Businesses are
done virtually, and the global pandemic acted as a catalyst to push our
dependence on the digital world even more. These habits will stick with us
whether it be in our workplace, school, or even home. This
is why the entire decentraland project is exciting and why we are optimistic about it. Early movers, especially in real estate, can benefit from getting into decentraland by buying and holding it, but every risk that is present with NFTs and cryptocurrencies is also present with MANA tokens and the decentraland ecosystem. If you are looking to invest today, invest the money that you are willing to lose and invest in assets that you clearly understand and also, do not forget to diversify your portfolio with other investments too.
Please note that the content in this Article
is for entertainment purposes only
and hence should not be considered financial advice. All the financial decisions should be
made after doing your research. With that, we have come to an end with our
video. What do you think about Cryptocurrencies and their future? Are you excited to be a part of a
virtual world like decentraland? Does virtual real estate
make any sense to you? We would love
to hear it from you, so Do let us know in the comment
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