KnowYourCrypto #42: Decentraland (MANA)

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If you are interested to the previous posts of this series, check it out here:

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What is it?

Decentraland (MANA) is a virtual reality platform powered by the Ethereum blockchain that allows users to create, experiment and monetize content and applications. In this virtual world, users purchase plots of land which they can explore, build on and sell. Decentraland was launched following an initial $ 24 million coin offering (ICO) conducted in 2017. The virtual world launched its closed beta in 2019 and opened to the public in February 2020. Since then, users have created extensive LAND packages, including interactive games, expansive 3D scenes, and a variety of other interactive experiences. Decentraland uses two tokens: MANA and LAND. MANA is an ERC-20 token that must be burned to acquire non-fungible ERC-721 LAND tokens. MANA tokens can also be used to pay for a variety of avatars, wearables, names, and more on the Decentraland marketplace.

How does it work?

Decentraland is an online space that combines virtual reality with blockchain technology. Unlike most online games, players have direct control over the rules of the online world. The DAO allows MANA token holders to vote directly on internal and organizational policies. This mechanism affects everything from the types of objects allowed to the investments in the treasury of the DAO. Non-fungible tokens represent collectible items in the game, including clothing, items, and real estate units (LAND). Users store these tokens in their crypto wallets and sell them to other users on Decentraland Marketplace. To buy yourself a new mask, for example, you will need MANA, the native crypto of Decentraland. In addition to trading items and properties, players can fill their personal space with games, activities, and artwork that other people can interact with. There is also the option to monetize your LAND. The decision is up to the individual player as to what to do with their land. Decentraland has many use cases, among them are the use of advertisements and the creation of content. But for new players looking to get closer to the NFT world, the barriers to entry are high. Gas spending on Ethereum brings the purchase price, even of simple cosmetic items to almost double. Land prices can run into the thousands of dollars, making ownership too expensive for some players.

Where to store it?

The best hot wallet for MANA are MyEtherWallet or MetaMask. If you want more security, a cold storage like Ledger or Trezor is the right choice.

Pros&Cons

*DISCLAIMER* These lists are subjective, it depends from person to person

Pros

Gaming NFTs have a lot of potential Partnership with the Largest Digital Asset Management Firm (Grayscale Investments) Built on a well know blockchain (Ethereum)

Cons

High gas fees Many competitors in the gaming NFTs space

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