Imagine a world where you can own, develop, and profit from virtual land without the constraints of physical borders or traditional limitations. Welcome to Decentraland – a blockchain-based platform that is revolutionizing the concept of virtual real estate and redefining the future of digital property ownership.
In this article, we will explore the ins and outs of Decentraland, delving into its unique features, benefits, and potential impact on both the virtual and real-world property markets.
Decentraland is a blockchain-based virtual reality platform that enables users to own, develop, and profit from virtual land.
Virtual land in Decentraland is represented by non-fungible tokens (NFTs) called LAND, which can be bought, sold, and traded using the platform's native token, MANA.
Decentraland offers endless creative possibilities for users to build and monetize their virtual properties, from designing dream homes to constructing entire amusement parks or renting their parcels as advertising spaces.
Investing in Decentraland's virtual real estate can be lucrative, but it also comes with risks, as land prices can fluctuate just like in the physical world.
What Is Decentraland?
Decentraland is a virtual reality platform built on the Ethereum blockchain. It allows users to create, experience, and monetize content in a shared digital universe. Founded in 2017 by two visionaries, Ari Meilich, and Esteban Ordano, the game offers a decentralized, user-controlled environment where participants can buy, sell, and develop virtual land parcels.
What used to be a proof-of-concept project is now a fully-fledged, 3D world complete with a vibrant economy and dedicated community. Earlier this year, Decentraland attracted famous brands like Tommy Hilfiger, Adidas, and Dolce & Gabbana to its annual Metaverse Fashion Week 2023 - an event specifically designed to showcase the future of digital fashion.
The valuation of Decentraland’s virtual land has increased significantly since its launch, now sitting at almost $1 billion.
The Ins and Outs of Virtual Land Ownership
In Decentraland, virtual land is represented by non-fungible tokens (NFTs) called LAND. Each LAND parcel measures 16m x 16m (52ft. by 52ft.), with a unique coordinate location on the platform's grid-like map.
With a total of 90 601 LAND tokens in existence, Decentraland is one of the rare virtual worlds that allows users to own a piece of the pie. Once you buy LAND, you can do with it as you please - build, rent, or sell your property to other users.
Users can purchase, sell, and trade these LAND tokens using MANA, Decentraland's native ERC-20 fungible token. Originally valued at less than $0.008 in late 2017, it has now reached an impressive $0.53.
How to Buy LAND?
Buying LAND requires you to either use Ethereum or first acquire MANA. Fortunately, the process is rather simple and can be done through a variety of exchanges, such as Binance, Coinbase, or Kraken.
Once you log in on a platform of your choice, you can simply use your credit card or bank account to buy the current - just like you would with Bitcoin or any other cryptocurrency.
The next step is to visit the Decentraland Marketplace, where you can browse and purchase LAND parcels that are up for sale. The prices of these parcels vary depending on their location, with the most expensive ones situated near popular areas like Genesis Plaza.
Clicking on a land plot on the map will get you more information about that specific parcel, including its distance from the roads or districts.
How to Efficiently Profit From Decentraland's Virtual Real Estate?
Decentraland offers a unique opportunity for business-minded individuals to profit from the growing virtual economy.
Much like in the physical world, one of the most lucrative ways to earn a lot of MANA is by investing in virtual land and renting it out to other players.
This is even more profitable if you own a number of different parcels next to each other - such areas can be linked to create a contiguous space, which can be used to build a more complex structure. Naturally, this will make your land more valuable and increase the amount of rent you can charge.
Other methods include providing services (e.g., developing building templates for other players to buy or setting up a casino) or simply opening a virtual store where players can buy and sell goods.
Another fascinating opportunity that players can take advantage of is Metaverse advertising. Users can monetize their lands by renting out space to brands that want to advertise their products or services. This is a win-win situation - brands get more visibility, while landowners get a passive income stream.
Here you can read a detailed guide on how to implement the Adshares protocol on your parcel in Decentraland.
Decentraland Offers a Nearly Unlimited Creative Potential
Decentraland offers endless creative possibilities for its users, from designing and building your dream home to constructing an entire amusement park, shopping mall, or art gallery.
The platform's unique Builder tool allows you to create structures using a wide range of pre-made templates and 3D models – no coding or design experience is required.
The SDK opens the door for developers to bring their ideas to life within Decentraland and even monetize their creations.
For example, thanks to the Adshares Smart Objects, any user may instantly connect their creation to the Web3Ads network built on the Adshares protocol - and start earning passive income. The library can be downloaded here: https://adshar.es/dclsmart
What Are the Risks of Investing in Decentraland?
Although Decentraland is one of the finest examples of virtual real estate projects, it is not without its downsides. Decentraland follows similar rules to the real world, so the land prices might aren't stable - they fluctuate constantly.
This means that there is a possibility of investing in LAND and seeing its value drop low enough to bring you a loss.
Decentraland is a groundbreaking platform that has successfully transformed the way we perceive virtual real estate.
Its innovative approach to digital property ownership, combined with the limitless creative and investment opportunities it offers, makes it an exciting venture for investors, developers, and enthusiasts alike. As the metaverse continues to gain traction and reshape our understanding of the digital world, Decentraland stands at the forefront of this revolution.
Whether you are looking to invest in virtual land, build a digital empire, or simply explore the wonders of Decentraland for yourself, one thing is certain – the future of virtual real estate is here, and it's more fascinating than ever!