As the world engages more with the virtual world, gamers, cryptography developers, and real estate enthusiasts have a platform that connects them all in Decentraland. The land auction, scheduled to take place in late 2017, sold out in 35 seconds raising 24 Million dollars and locking out about 40,000 investors who would have liked to own a piece of the 90,000 parcels of land offered. This made the cryptocurrency world take a keen interest in this virtual reality Blockchain.
Decentraland is an open-source initiative run on the Ethereum Blockchain which aims to build a shared virtual reality world. This virtual world will transact in the Decentraland token MANA. In Decentraland, users can create, experience, and monetize virtual content and applications by buying each piece of land at a price determined by the owner. You can become a landlord either by having someone transfer you some of their land parcels in exchange for the MANA token or by mining new land. Land, in this case, refers to any transferrable, scarce digital asset that is stored in a smart contract. The system is based on Ethereum smart contract.
History of Decentraland
The tokens were offered in August 2017 with the ICO raising a record $24 million in just under a minute. A total of 2,805,886,393 MANA tokens are in circulation. The creators of Decentraland have had previous careers working in the cryptocurrency world; Ari Meilich, the project lead, and Estaban Ordano, the technical lead.
What is MANA?
MANA is an ERC20 token that can be used to purchase LAND, a transferrable asset in the virtual world. In the virtual reality world, LAND represents ownership of a 100 sq. Meter parcel of land. The token was distributed amongst the development team, the Development Foundation and the rest of the tokens were put up for sale at its ICO. With MANA, one can buy unsettled land in the VR world with the aim of developing the land or that others will develop the land.
Owning the MANA token
You can own the coin by having someone transfer some parcels of land to your account, or you can mine new land in the Blockchain. The mining process is simple in that it is derived from the Ethereum Blockchain. New blocks are mined using the Proof-of-Work, but instead of creating fungible coins, the system has a land-based transaction that creates a non-fungible asset. This is the land parcel that is unique to every landowner and cannot be modified due to Blockchain technology.
The token can also be bought directly from a person owning the token just like any other cryptocurrency.
Purpose of Decentraland
MANA is the token that powers the protocol that supports Decentraland. In the decentralized virtual reality world, MANA owners can buy virtual land and develop them through peer-to-peer applications or 3D animations. Since the owners of the parcels have full rights over the land, they have the right to extract revenue from their virtual property.
Price of MANA
The token was first offered at a price of $0.03022 during the initial coin offering in August 2017. The price of the token soared towards the end of the year. The price of MANA is affected by the rapid number of exchanges that are willing to accept the token trading.