What is cryptocurrency Decentraland (MANA) and how does it work?

What Is Decentraland (MANA)?

Decentraland (MANA) was founded in 2017 by Esteban Ordano and Ariel Meilich when the official website for Decentraland also launched.  Decentraland is hosted on the Ethereum network and represents a virtual reality ecosystem where people can buy LAND, which is a non-fungible token that represents a piece of the virtual map.

Decentraland’s users are incentivized to operate a virtual reality that the entire community shares. While LAND represents the ownership over a piece of the Decentraland virtual world, MANA is the native currency of the system and community members can use it to buy LAND on the marketplace. The Decentraland software offers a unique experience to users who can communicate with other users and make the best of features such as in-world payments, playing games, and enjoying virtual content.

With its decentralized governance structure in which the power lies in the hands of users and MANA holders, Decentraland is the first virtual platform of its kind where users are in complete control over the ecosystem.

How Does Decentraland Work?

Decentraland has no central authority and the entire virtual reality ecosystem is operated and governed by Decentraland users. The world functions as an alternative VR ecosystem where users can buy and sell the virtual property and real estate, play games and use their land for anything they like as long as the network’s features allow it. Users can communicate, control, monetize and develop the Decentraland metaverse to mimic reality in a digital environment.

Two different tokens are used in the operation and governance of the Decentraland metaverse: LAND and MANA. MANA is the native token of the system and can be used to buy real estate and virtual assets that are developed and sold by Decentraland users. It is also used in system governance. LAND represents ownership of a metaverse parcel in the Decentraland ecosystem. The Decentraland application is built on top of the Ethereum network to track the ownership of LAND. Users need to hold their MANA tokens in an Ethereum-based wallet to keep the process functional. The functionalities are leveraged through the Ethereum blockchain.

Decentraland has a multi-layered architecture to support the operations and functions of the VR ecosystem where users can create and host applications, games, and interactive content.

Who Are the Founders of Decentraland? (History of Decentraland)

Decentraland was created by Esteban Ordano and Ariel Meilich and the project launched in its current form in 2017. Decentraland is conceptualized much like human evolution in the sense of social development and advancement, so the first version of Decentraland’s metaverse was dubbed Stone Age. The first stage was released in 2015 and it consisted of pixels that signified ownership over the digital world in an infinite 2D grid.

The next stage was developed at the end of 2016 and was named the Bronze Age. The team added a 3D world with divided plots of Decentraland. To develop a fast-paced environment where users can create apps, interactive content and communicate with other users, the team created a P2P network and named the next stage Iron age. The final stage is supported by Ethereum which acts as a supercomputer to support the metaverse ecosystem we know as Decentraland.

What Makes Decentraland Unique?

Decentraland is the first decentralized virtual reality system that enables interaction and communication between users and grants ownership over the virtual land in the Decentraland metaverse. Decentraland creates a dynamic fast-paced environment where users can develop their LAND parcels bought with MANA, operating the system and using its functions without a central authority.

Users can prove their ownership over LAND at any time as the system records every action and interaction, and use the digital parcel to interact with other Decentraland community members. They can also upload numerous apps and games, or add static displays to their parcels.

What Gives Decentraland Value?

Decentraland draws its intrinsic value from its technical capability and potential. The uniqueness of the project also provides more value for Decentraland and its two tokens, LAND and MANA. The number of users and the overall demand for MANA that people can use to buy a parcel in the digital VR world also gives value to Decentraland and the community is growing as a result.

The price of MANA tokens in the market is dependent on the demand and its max supply, which is fixed and limited.

How Many Decentraland (MANA) Coins Are in Circulation?

The total supply of MANA tokens is currently 2.19 billion MANA. The project initially launched with a total supply of 2.8 billion MANA but this was reduced through token burns during the LAND auctions. The token was originally designed to have a gradually decreasing inflation rate but this is currently disabled and the circulating supply is set to reduce further through burn mechanisms applied to network operations such as transactions in the Decentraland marketplace.

Out of 2.19 billion MANA tokens, about 70% of MANA coins are already in circulation. The number of MANA tokens in circulation multiplied by the price of MANA tokens in the market equals the market capitalization. The market cap ranks MANA compared with other crypto assets in the market and defines the market dominance of Decentraland (MANA).

Other Technical Data

The Decentraland system records ownership data through smart contracts operating on the Ethereum blockchain. The system consists of three different layers. The first layer records and tracks the ownership through smart contracts.

The second layer hosts LAND content and every type of data uploaded to Decentraland virtual parcels. The third layer is the P2P network where the entire world is rendered in real-time. The scripting language that Decentraland uses allows a wide variety of 3D models and dynamic scenes, so people can create games, apps, interactive experiences, and different software.

MANA, which is the native token of the network and the main currency in the Decentraland marketplace, has a limited supply and every time someone buys LAND with MANA, a percentage of MANA tokens is burned. MANA tokens have no use outside the Decentraland ecosystem other than being traded in the crypto market for a profit.

How Is the Decentraland Network Secured?

Decentraland uses TypeScript coding for creating scenes in the ledger known as metaverse2. The protocol secures the system where the VR ecosystem is hosted and created to support a growing number of members. Additional security is facilitated through the support of Ethereum.

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Users’ ownership over LAND is secured through the first layer of the system as the system tracks and records LAND purchases and ownership of VR parcels on the Decentraland VR platform.

Users and community members can test the network for bugs and critical risk points and report any suspicious malfunctions to the team in return for a bounty.

How To Use Decentraland

Decentraland is the first decentralized VR platform and metaverse for interaction and communication between users. Decentraland has the virtual property that users can buy with MANA. The virtual property is created in the form of non-fungible tokens – LAND. Users can create and enjoy interactive experiences as the metaverse further develops as a marketplace for personal and business purposes. Users can buy and sell products like collectible assets and services, creating a dynamic environment.

MANA has no use case outside of the Decentraland universe other than being traded on the live cryptocurrency market. In the Decentraland VR metaverse, MANA is the main currency and enables users to buy LAND, services, avatars, and other in-game items.

How To Choose a Decentraland Wallet

MANA is an ERC-20 token, which means that you can keep your MANA in virtually any wallet that supports Ethereum-based tokens. The type of MANA wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option with offline storage and backup. Hardware wallets can involve a bit more of a learning curve and are a more expensive option, however. As such, they may be better suited to storing larger amounts of MANA for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of MANA or more novice users.

Online wallets or web wallets are also free and easy to use while being accessible from multiple devices using a web browser. They are considered hot wallets and can be less secure than hardware or software alternatives, however. As you are likely trusting the platform to manage your MANA, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts or for more experienced frequent traders.

Kriptomat offers a secure storage solution, allowing you to both store and trade your MANA tokens without hassle. Storing your MANA with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling MANA, or exchanging it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Decentraland Mining

The system was initially created based on a Proof-of-Concept, which facilitates the tracking system for ownership of LAND in the Decentraland universe. Decentraland allows the mining of wearables, which are non-fungible assets that people can buy and sell on the NFT market.

Decentraland was built on Ethereum which is currently a Proof-of-Work blockchain, though it is in the process of transitioning to Proof-of-Stake. In 2021, Decentraland introduced the first step toward a layer 2 solution for payments and transactions by enabling users to move their MANA tokens from the Ethereum blockchain to Polygon, which is secured by a network of Proof-of-Stake validators.

Conclusion

Decentraland is the first decentralized virtual reality platform powered by Ethereum that allows users to buy and own virtual property. The Decentraland ecosystem could soon become a multipurpose metaverse, where businesses can advertise and monetize digital content. The operation of Decentraland also follows the rising popularity of NFTs (non-fungible tokens), which may bring more value to MANA with the rising popularity of Decentraland and a growing number of community members.

Decentraland FAQ

What can be bought with MANA?

In addition to LAND, users can also purchase services, avatars, wearables, collectibles, names, and other items on the Decentraland marketplace.

How to Buy Decentraland

If you’ve been wondering how to buy Decentraland, getting your first MANA coins is rather easy with the right cryptocurrency exchange. It’s quick and simple to buy MANA securely at Kriptomat with a range of payment methods.

How to Sell Decentraland

If you already own MANA and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Decentraland Price

Decentraland price is subject to frequent changes as MANA is volatile as the rest of the crypto market. MANA price is influenced by a lot of the traditional factors such as project news and developments, market sentiment, the flow of cryptocurrency on exchanges, and the economy in general. The price of MANA is also affected by burning mechanisms and the number of Decentraland users.

The current Decentraland price is EUR.

The 24-hour trading volume of MANA is EUR. MANA is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of MANA.

Register now to begin your journey into the world of Decentraland and cryptocurrencies with Kriptomat!

If you’re experiencing any issues or have any questions at all, please don’t hesitate to reach our Customer Support Team. We’re always here to help!