What is Decentraland (MANA)?

Shared virtual spaces (or metaverses) like Decentraland are gaining more and more attention because they are the next frontier for online entertainment and interaction. They allow the three branches of reality - physical, virtual and augmented - to intersect and converge. Here is a practical introduction to Decentraland.

As digitalization spreads, the opportunities for online communication with others are growing exponentially. With the additional social distancing restrictions imposed by COVID-19, more and more people are turning to the Internet to connect with others, have fun, and even look for earning opportunities.

What is Decentraland?

Decentraland (MANA), founded in 2015 by Ari Meilich and Esteban Ordano, is a XNUMXD virtual reality platform powered by the Ethereum blockchain. On it, you can buy plots of land to build on them, monetize, or just research. Users can create, experience and share content and applications. Unlike virtual worlds, which are centrally owned and operated, both the platform and the content are owned by their users.

Decentraland has three layers: consensus, ground and real-time. What started out as a pixel grid that allocated pixels to users using a proof-of-work algorithm later morphed into a three-dimensional world. Decentraland is most often compared to Second Life, a popular online game / world that launched in 2003. However, it goes beyond the typical virtual reality game, giving users more options and control to experiment.

In 2017, Decentraland conducted an Initial Coin Offering (ICO) of 26 million in just an hour. It was officially opened to the public in February 2020 and is overseen by the non-profit Decentraland Foundation.

What is MANA?

MANA is an ERC20 cryptocurrency token from Decentraland. Decentraland users use them to buy digital land and pay for goods and services of other users. The MANA used to buy LAND is burned, i.e. these tokens are destroyed. For example, let's say you paid AZN 10 for a piece of digital land. Then 000 MANA is sent to the address (write address) without private keys. After that, the tokens are lost forever and removed from the general supply of MANA.

The total original MANA offer is limited to 2 pieces. As of August 805, 886, the total amount of the offer in circulation
The circulating supply is the amount of cryptocurrencies or tokens that are publicly available and circulate in a cryptocurrency.
is 1,8 billion MANA with market capitalization USD 1.

What is LAND?

LAND is a non-fungible token (NFT) representing virtual parcels of land in Decentraland, backed by an Ethereum smart contract. NFT is a completely unique token on the blockchain that cannot be exchanged.

Each digital parcel measures 16 x 16 meters and is identified by a unique set of Cartesian coordinates (x, y). It can neither be recreated nor duplicated. You can buy and sell LAND with MANA and create apps, games, dynamic 3D scenes, casinos and more.

The number of land plots is limited to 90. You can purchase neighboring plots to create land plots. A neighborhood is a community of set-aside LANDs with a common theme that forms a community.

You can vote on issues affecting your community using Agora, the Decentraland voting DApp. Your LAND ownership in a particular area is directly related to the weight of your vote. Agora gives you control over what's happening in your area and lets you leave reviews on the platform.

How much does MANA cost?

According to Coinmarketcap, the price of one MANA as of August 17, 2021 is $ 0,8438.

How to buy MANA

While you cannot buy MANA directly on most exchanges, you can usually exchange Ethereum for MANA. You can buy MANA using a limit order or market buy. A limit order involves setting a price that you do not want to exceed, while a market order will be executed at the available prices in the order book.

Where to buy MANA

You can buy MANA on most major exchanges - Binance, OKEx, Tokocrypto, CoinTiger and Huobi Global. Of these, Binance and OKEx have the largest trading volumes. You can pay with Bitcoin or Ethereum.

However, if you are looking to buy LAMD, you may need to search, sell or rent land on the best NFT marketplaces.

How to store MANA

Decentraland MANA is an ERC20 token built on the Ethereum blockchain that allows it to be stored in a wide range of hardware or software wallets. Here are five of our top picks cryptocurrency wallets:

TrustWallet: Trust Wallet is a software wallet popular among investors and traders. It is also officially supported by Binance. A convenient and secure place to store MANA, as well as backup options for more peace of mind.

Ledger or trezor: These encrypted hardware wallets are secure ways to store MANA. They use advanced encryption technologies to protect your funds from even the most sophisticated network attacks. Hardware wallets keep your wallets offline for increased security.

Atomic Wallet: Atomic Wallet is available for Android, iOS and multiple desktop versions. In it, you can store your MANA and 300 other cryptocurrencies. Atomic Wallet also offers atomic swaps and a built-in exchange that users can use to exchange between supported digital assets, including MANA.

MyEtherWallet: MyEtherWallet is a web wallet that allows you to store all ERC20 tokens, including MANA, on the Ethereum blockchain. You don't need to download any clients or software to use it.

Exchanges: you can store MANA on any exchange that supports it. This is the least secure way to save MANA and we do not recommend it. However, for active traders who need quick access to funds at any time, exchanges are always the option to store the MANA token. Try to select larger exchanges that are proven to be safe and reliable. Some of them include Binance, Kraken, and Kucoin.

Is Decentraland MANA a good investment?

As real estate gains popularity in the physical world, Decentraland is also garnering hype in the virtual space, receiving significant coverage in traditional news outlets. An investment in Decentraland can be very profitable. But what are the factors that trigger such an optimistic outlook? Let's take a look at some of the reasons for the optimism behind MANA.

Pros of Decentraland (MANA)

Unique digital property rights

Decentraland provides users with a unique, rare, limited gaming experience with no centralized control constraints. Users control the creation of their experience and benefit from the value created. To ensure decentralization, smart contracts are managed by a decentralized autonomous organization where users can vote on changes. Users actually own their collectibles in the metaverse.

Strong momentum in 2021

MANA started the year of trading at $ 0,08, and since the beginning of the year has brought 616,81%. On April 17, 2021, the token reached an all-time high of $ 1,63.

The volatility of MANA also provides opportunities to profit from trading its sharp ups and downs.

Biggest Virtual Land Sale

Republic Realm, a division of the online investment platform Republic, acquired 259 plots virtual land in Decentraland for $ 913. This single transaction is the largest LAND acquisition in Decentraland history. 228,28 tokens have been removed from the MANA stock.

More MANA will be taken off the market with further LAND purchases in the future. This will reduce MANA's circulating supply as well as reduce the number of tokens that can be bought. The deficit could push the price of MANA to new all-time highs.

Prominent institutional investors

On Wednesday 17 March 2021, Grayscale Investments, the largest digital currency asset manager, launched the Grayscale® Decentraland Trust alongside four new digital currency investment funds. Grayscale currently manages MANA's assets worth $ 14,8 million. Even more impressive is their return on investment (ROI) of 218,73%.

These numbers are publicly available and may encourage other institutional investors to choose the token. Significant investments from well-established companies are often powerful drivers of asset prices and can support MANA in the long term.

According to forecasts Digital Coin Price, MANA could trade at $ 1,22 by the end of the year and $ 3,54 by 2028.

Assessment with the possibility of growth

Due to the abundance of tools, software engineers and developers are coming up with an increasing number of interactive 3D games and applications. Decentraland (MANA) ranks third in market value of NFT trading assets after Chiliz (CHZ) and Enjin Coin (ENJ).

Many traders believe that MANA trades at a price lower than its intrinsic value. This makes the MANA token a good investment for value investors who can take advantage of the gap between market value and intrinsic value.

While there are many good reasons to buy MANA, it is important to keep in mind the risks involved.

Cons of Decentraland (MANA)

Regulatory risks

As with the rest of the cryptocurrency space, regulation can negatively impact pricing. Cryptocurrencies are attracting more and more attention from regulators, which in the future may lead to bureaucratic requirements or restrictions on cryptocurrency trading.

Fierce competition in NFT and virtual world spaces

Decentraland is growing rapidly because it is also an NFT market. However, this is not the only player in the NFT field. Marketplaces such as Axie Infinity (AXS), Crypterium (CRPT) and Algorand (ALGO) give Decentraland the opportunity to make their money. For example, in market pricing, Decentraland still lags behind AXS and ENJ.

The virtual reality space is also growing, and other virtual worlds like NEOLAND and High Fidelity are vying for a piece of the cryptocurrency market pie.

Final thoughts

Decentraland is a virtual reality platform where users can fully own their digital real estate: in essence, owners can buy land, build tools, play interactive games, trade, and experience virtual reality in many forms. Relying on your imagination, you can create impressions as you wish. New users will be surprised at how versatile this shared virtual world can be.

Participation in the metaverse provides a glimpse into the future. However, please note that no investment advice guarantees a return. As with any cryptocurrency, make sure to trade with proper risk management to get the best experience.