Summary
Decentraland (MANA) is a decentralized virtual world built on Ethereum where users can buy virtual land, create digital experiences, trade NFTs, and participate in a blockchain-powered economy. MANA is the platform's native cryptocurrency and is used to purchase LAND, buy virtual goods, and vote on governance proposals. Investors who want exposure to MANA can buy and sell it through an iTrustCapital Crypto IRA to potentially benefit from tax-advantaged investing or through a Premium Custody Account (PCA) for everyday investing with institutional-grade custody and 24/7 account access.
Understanding Decentraland (MANA)
Decentraland is a decentralized virtual reality platform built on the Ethereum blockchain where users can create, buy, sell, and monetize virtual land and assets using the MANA cryptocurrency. Decentraland opened up a new world for gamers and those who love virtual reality, NFT's and the emerging metaverse.
Since its launch in January 2020, gamers, crypto investors and NFT aficionados have had big dreams for this project. So what is Decentraland, how does it work, and what future does it hold for the metaverse and non-fungible token (NFT) users? This article will answer all those questions.
Decentraland Key Facts
|
Attribute |
Details |
|
Launch Date |
January 2020 |
|
Blockchain |
Ethereum |
|
Native Tokens |
MANA, LAND, Estate |
|
Token Standards |
ERC-20 (MANA), ERC-721 (LAND, Estate) |
|
Founders |
Ari Meilich and Esteban Ordano |
|
Governance Model |
Decentralized Autonomous Organization (DAO) |
|
2017 ICO Funds Raised |
$24 million |
|
Total LAND Parcels |
90,601(Genesis City) |
What is Decentraland?
Decentraland is an online virtual reality world that is decentralized. Decentraland is powered on the Ethereum blockchain which allows users to create, develop, host, and sell virtual properties.
Two blockchain experts, Ari Meilich and Esteban Ordano developed the smart contracts that run Decentraland. Both developers launched the project in 2020 and allowed a decentralized autonomous organization (DAO) to govern it.
The platform has three native tokens which include Estate, an ERC-721 token that represents merged parcels of digital land, LAND, ERC-721 non-fungible tokens that represents parcels of digital land, and MANA, an ERC-20 token that is the official currency of Decentraland.
Decentraland Protocol Layers
The Decentraland protocol operates through three distinct layers:
- Consensus Layer – Contains the Ethereum smart contract which governs and tracks LAND ownership.
- Land Content Layer – Renders the content users see on Decentraland, including buildings, artwork, and interactive experiences.
- Real-Time Layer – Allows users to interact with each other through voice chat, messaging, and avatar movements.
How Decentraland Works: Exploring the Virtual World, LAND Ownership, and DAO Governance
Decentraland is like any other virtual world. You can explore the map of Decentraland and join one of the many community events happening. Communities across the entire crypto space throw everything from concerts, to gambling nights and even movies where participants meet at the same location and have fun.
In addition, you can interact with the in-game economy by buying digital art and/or trading with others on the platform. Players can interact with the platform and track real estate parcels known as LAND. Users can purchase and sell these tokens. However, unlike other virtual reality games, players have some direct control over the rules in Decentraland. The decentralized autonomous organization (DAO) allows users to vote directly on the game and the organization's policies.
On the Decentraland map, each small square is a parcel of LAND. A collection or plots of LAND form a district. A district is a community of LANDs with the same interests, style or community. There is a Vegas City, District X (former Redlight District), Fashion Street, Dragon City and much more. It doesn't matter if a person wants to talk about startups, play casino games, look at minecraft streaming, view virtual real estate or even discuss the latest Sotheby's NFT drop - Decentraland has it all.
The Emerging Metaverse
The metaverse is a virtual shared space that is created by the confluence of augmented reality, enhanced physical reality, virtual reality and the internet. This new reality is where people will flaunt their digital items (NFT's) such as avatars and wearables in order to display social status. It has become a sort of second life, where people spend a significant amount of their time in this virtual reality platform instead of the normal analogue world.
There have been many movies that envision a virtual world where almost anything can be done. In the metaverse, traveling around different places while keeping the same avatar and purchased goods should be easy. Many people picture the metaverse as the world shown in the sci-fi movie, Ready Player One. However, the metaverse is not only an online game or virtual space. The metaverse is like an alternative world with features that cannot be achieved in the real world.
The Future of the Metaverse
The metaverse has evolved significantly since the concept first gained mainstream attention. While early expectations envisioned immersive virtual worlds becoming the next version of the internet almost overnight, adoption has been more gradual. Today, the metaverse is better understood as an evolving ecosystem of virtual experiences, digital ownership, gaming, social interaction, and creator-driven economies powered by blockchain technology.
Major technology companies continue investing in virtual reality (VR), augmented reality (AR), artificial intelligence (AI), and spatial computing, while blockchain projects like Decentraland focus on giving users true ownership of digital assets through NFTs and decentralized governance. Rather than relying on a single company or platform, many believe the long-term vision of the metaverse will consist of interconnected virtual experiences built by a variety of developers and communities.
Whether the metaverse ultimately becomes a mainstream destination or remains a collection of specialized digital worlds, the underlying technologies, including blockchain, NFTs, and decentralized identity, continue to influence how people think about digital ownership and online experiences. Platforms like Decentraland remain an important example of how these technologies can be combined to create user-owned virtual economies, even as the broader metaverse continues to evolve.
How NFTs Work in Decentraland
NFTs have changed the world of blockchain and digital ownership. Many people have invested millions of dollars into NFTs as the entertainment industry and even the sports industry create in-game tokens and fan tokens as NFTs.
NFTs are unique digital tokens. An NFT is information that is recorded on a blockchain about an asset. NFTs contain secured information about an asset that proves identity, ownership, and even the history of the asset. With the new metaverses, NFT will be the norm for ownership in a world of content creators and entertainers.
In Decentraland specifically, NFTs serve several key functions:
- LAND Parcels – Each 16m x 16m plot is a unique ERC-721 NFT that owners can develop, rent, or sell
- Wearables – Clothing and accessories for avatars are tradeable NFTs
- Names – Unique usernames are NFTs that can be bought and sold
- Estates – Collections of adjacent LAND parcels combined into single NFTs
Although NFTs are used in the digital space, the real estate sector, and the gaming industry, they are also part of a bigger opportunity: the metaverse. One concept that is common to the metaverse is the concept of ownership. The metaverse will be home to any asset one can think of and the need to recognize ownership will be greater.
There has always been an issue with ownership in the digital space and that is why NFTs have become a big boon in the blockchain industry today.
It isn't yet clear if the metaverse will be one merged element (like the web) or many separate joined ones (like online media organizations), yet how it will be created will decide its effect on the future. In case there are different elements, for instance, each will have its principles and may not follow existing models.
To imagine the importance of NFT resources in the metaverse, envision a virtual existence where each possible resource can be purchased, sold, or exchanged. This includes the real exchange of assets between two universes, the real and the virtual. Enter Web3, or the decentralized Internet, which is the key that can connect NFTs with the metaverse. That seamless process can only be possible with the help of NFTs.
MANA Token Overview
MANA is the official currency of Decentraland. It is built on the Ethereum blockchain and used to pay for goods and services in Decentraland. One can also exchange MANA for fiat currency or other digital currencies. Those who hold MANA can interact with the platform through their avatars and have the ability to vote on policies that can improve the platform. If Decentraland continues to scale and become adopted as a crucial piece of the emerging metaverse, it's likely that MANA will appreciate in price as a result.
Key MANA Token Details
- Token Type: ERC-20 (Ethereum-based)
- Primary Use Cases: Purchasing LAND, buying goods and services, governance voting, avatar customization
- How It's Earned: Trading on exchanges, selling in-game assets, participating in events
- How It's Spent: Buying LAND, purchasing wearables, paying for in-world services
- Relationship to LAND: MANA is burned when purchasing LAND, reducing total supply
- Relationship to Estate: Estates are purchased using MANA and represent combined LAND parcels
Frequently Asked Questions
What is Decentraland (MANA)?
Decentraland is a decentralized virtual world built on the Ethereum blockchain where users can buy, build, and monetize digital land and experiences. Unlike traditional online games, users own their virtual assets as blockchain-based NFTs, giving them true digital ownership. MANA is the native cryptocurrency that powers transactions and governance throughout the ecosystem.
What is MANA used for?
MANA is the primary currency used throughout Decentraland. It can be used to purchase LAND NFTs, avatar wearables, event tickets, virtual services, and other digital assets within the platform. MANA holders can also participate in governance by voting on proposals through the Decentraland DAO, helping shape the platform's future development.
How do you buy LAND in Decentraland?
LAND parcels are purchased using MANA through the official Decentraland Marketplace or supported NFT marketplaces. Every parcel is represented as an ERC-721 NFT on Ethereum, giving owners verifiable ownership that can be transferred or sold. Because the number of LAND parcels is fixed, each parcel represents a scarce digital asset within the platform.
How do NFTs work in Decentraland?
NFTs serve as proof of ownership for many digital assets inside Decentraland, including LAND parcels, Estates, avatar wearables, and usernames. These NFTs are stored on the Ethereum blockchain, allowing users to buy, sell, and trade them independently of the platform. This blockchain-based ownership gives users greater control over their digital property compared to traditional online games.
What is the Decentraland DAO?
The Decentraland DAO is the decentralized governance system that allows members of the community to help guide the platform's future. MANA token holders can vote on proposals involving marketplace policies, platform updates, grants, and other ecosystem decisions. This community-driven governance model helps ensure Decentraland evolves based on user participation rather than a centralized company.
How many LAND parcels are there in Decentraland?
Decentraland has a fixed supply of 90,601 LAND parcels, and no additional parcels can be created. This limited supply creates digital scarcity, making LAND one of the platform's core assets. As demand for virtual real estate changes over time, the fixed number of parcels remains an important characteristic of the Decentraland ecosystem.
Can you invest in MANA through iTrustCapital?
Yes. Investors can buy and sell MANA through an iTrustCapital Crypto IRA or a Premium Custody Account (PCA). A Crypto IRA allows eligible investors to hold MANA within a tax-advantaged retirement account,* while the Premium Custody Account offers a taxable way to invest in cryptocurrency with institutional-grade custody, U.S.-based client support, and secure asset storage without requiring investors to manage their own private keys.
*Some taxes may apply.
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