What is Decentraland?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
Decentraland is a browser-based virtual world where parcels of land are owned as NFTs called LAND, on which owners can build and place content. It opened to the public in 2020 and is governed by a DAO of token holders. MANA is the token used for in-world payments and to buy LAND.
Key points
- Land parcels are issued as LAND NFTs that can be owned and traded
- MANA pays for in-world purchases and LAND, and was burned when LAND was bought
- Decisions are made by DAO vote
- Wearables — avatar clothing and accessories — also circulate as NFTs
Definition
A browser-based virtual world where land is owned as NFTs, together with its in-world token and DAO-based governance.
Decentraland's premise was to put ownership of a virtual space in users' hands rather than an operator's. In conventional online worlds, land and items are records in the provider's database and disappear with a policy change or a shutdown. Decentraland issued LAND as Ethereum NFTs so ownership lives on-chain.
The world is divided into a fixed number of parcels, each tied by coordinates to an NFT. Owners can publish a 3D scene on their parcel and combine parcels into larger estates. Wearables for avatars are issued as NFTs too and trade on a marketplace.
Governance runs through the DAO. MANA and LAND holders propose and vote on fee allocation, content policy and marketplace settings, so rules change by recorded on-chain votes rather than unilateral decisions.
In practice it has hosted corporate events, live music, art exhibitions and conferences. Concurrent user numbers remain modest compared with mainstream online games, and many parcels are held without being built on.
Watch out for
- · LAND's usefulness depends on whether people visit; an unvisited parcel has limited use even when owned
- · Rendering the 3D world requires a reasonably capable device, which limits access
- · Scams using fake marketplaces for land and wearables have been reported
Frequently asked questions
Does buying LAND give rights like real-world property?
No. LAND is an NFT tied to a parcel in software, which is not a legal property right. Both its value and its usability depend on the platform continuing to run.