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Decentraland - The NFT Project

BitForex Editor
Mar 11, 2021

If you're familiar with the strides being made in the tech community, then the block chain network isn't news to you. However, the different applications of this technology continue to amaze different businesses globally. From making financial transactions easy to process without disruptions and charges from third parties to providing multiple solutions in different industries such as automobile, medical, art, etc. The block chain technology is undoubtedly one of the major ways to provide economic incentives in a safe and secure manner.

However, block chain technology doesn't stop at just financial transactions, but can be used for even more benefits. Decentralized Finance (DeFi) is another means with which many brands can offer several solutions. DeFi is built on Ethereum's network and unlike Bitcoin, it can decentralize other complex information. As a result of how effective it is, several companies began to use the ethereum network to create other tokens and decentralized apps. One of such tokens is NFT.

What is NFT?

Non-fungible tokens, also called NFT are simply digital versions or representations of different assets that can not be exchanged in the real world. Although this definition might be confusing, it's very simple to grasp. The term "fungible" means items with the same value that can be exchanged with one another in real life. For example, a hundred dollars cannot be exchanged for ten dollars in real life. However, other items like a game ticket with different details can be exchanged as a NFT.

Two game tickets might have a different viewing options and quality, which cannot be exchanged for another in real life, however it is possible as a NFT. Also, the ethereum network keeps any information exchanged safe and secure. NFTs can be used to revolutionize different industries such as gaming, virtual world's, collectibles, and art.

The Rise Of NFT Projects

Although NFTs recently began to gain traction in 2020, research shows that the financial transactions processes just in the first half of 2020 via the NFT ecosystem was at least $232 million. This number is over 52% more than the transactions in 2019. Due to such an impressive rise in revenue and the benefits of the NFT ecosystem, it is little to no wonder that several brands want to tap into this market. After all, profits, customer satisfaction and loyalty is the best outcome of any business, and what other way to do it than provide an innovative, safe, and secure platform for your customers.

There are a so many NFT-based projects that are still in the works and are yet to be released. However, there are a few that are currently leading the way across various industries. One of such NFT projects is Decentraland.

Decentraland & Its NFT Applications

Decentraland is a decentralized virtual world created in 2017 and powerred by the Ethereum blockchain. This innovative space gives users the opportunity to create avatars and partake in the world's governance process while trading collectibles and exploring other services. Often referred to as an online Utopia, you can acquire, trade, and buy art collectibles and explore digital landscapes created by users on the network.

Decentraland is the second largest NFT protocol among the others based on the trading volume. It currently has a trading volume of 49,780 ETH, which is worth approximately $22.6 million. CryptoKitties, a fun game that allows users collect and breed virtual cats became popular in 2017 before any other NFT protocol. The process of participation in Decentraland entails using both fungible and non-fungible tokens. This means that the Decentraland virtual world has its own digital currency called MANA, which can be exchanged for another. Similar to Bitcoin and other cryprocurrencies, MANA is exclusive to the Decentraland marketplace, which means it isn't available in other virtual marketplace. Nevertheless, this virtual currency is available in any crypto exchange site that lists it in a trading pair. You can use MANA to purchase parcels, estates of LAND, and other wearables.

The Decentraland marketplace also gives you the opportunity to;

1.Sell parcels and Estates of LAND.

2.Set your preferred price in MANA and an expiry date for any offer.

3.Purchase parcels and Estates, wearables, and other names that are available for sale.

4.Transfer your Estates and parcels to another user in the marketplace.

5.Name your Estates and parcels.

6.Give your parcels and Estates a public description

7.Explore the Decentraland marketplace through a map to determine what wearables exists, who owns Estates and parcels, and the names that have been claimed.

8.Grant permissions to other users in the marketplace to edit your parcels.

What is LAND In The Decentraland Marketplace?

LAND is another non-fungible digital asset powered by a Ethereum smart contract. This contract is a digital representation of virtual land in Decentraland. Hence, the marketplace uses LAND to represent the ownership of different sections of virtual Estates and parcels. The LAND tokens can equally be traded on the marketplace.

To explore the Decentraland marketplace, you need a web browser with sufficient connection to access your crypto wallet. You can then customize your avatar and access your digital passport, after which you can build neighborhoods and buy & sell different digital assets.

In September, the Decentraland DAO went live which allows users participate in the governance process of the virtual world. You can vote on governance proposals by gaining voting power via;

1.LAND parcels: One parcel gives you 2,000 voting units.

2.Wrapped MANA: This converts MANA into WMANA, which equals to one voting unit.

3.Estates: A single estate represents 2,000 voting units.

With these votes you can alter different functions such as LAND and parcel features & upgrade, addition of new wearables, marketplace fees, etc.

Decentraland is an amazing virtual marketplace that gives users the room to make changes to the virtual world, while trading and buying different digital assets. Powered by the Ethereum blockchain, this virtual world does not only provide you a fun application to earn money, but also a safe and secure network. Although there are other NFT protocols such as CryptoKitties, Rarible, SuperRare, and others, Decentraland is a lot more interactive, fun, and user friendly.

About BitForex:

BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.

BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

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