What is Decentraland and how does it work?

What is Decentraland and how does it work?

Imagine living in an alternate reality where you can move seamlessly from place to place and socialise in real-time with thousands of other people, all within the same digital universe.

This is the metaverse, a term first coined in Neal Stephenson’s science fiction novel Snow Crash, which refers to a combination of virtual reality, augmented reality and the internet.

Decentraland is a three-dimensional (3D) virtual reality platform that stands at the forefront of this growing metaverse trend which has seen meta-related coins proliferate by up to 37,000% this year according to data from Macro Hive.

Founded in 2015 by Ari Meilich and Esteban Ordano, and launched in 2017, Decentraland is powered by Ethereum and its native ERC-20 token known as MANA allows users to purchase plots of LAND, monetise LAND parcels and avatars and pay for in-world goods and services.

More specifically, LAND can be bought by burning MANA, which destroys the token in order to create a new entry in the registry. Decentraland is also governed by a decentralised autonomous organisation (DAO) that enables token holders to vote on policies within the metaverse.

Although the company claims that it is the first ever virtual world owned by its users, Decentraland began simply as a proof of concept for allocating ownership of digital real estate to users on a blockchain. This digital real estate was initially implemented as a pixel on an infinite 2D grid where each pixel contained metadata identifying the owner. Decentraland has since evolved into a 3D virtual world which is divided according to different districts.

The platform has been growing at an accelerated rate and currently has a market capitalisation of $6.8bn (as of 6 December 2021). The company’s thirty-day non-fungible token (NFT) sales volume is up 417% at $41.5m, while its seven-day total sales volume is $15.7m, with 467 NFTs sold during that time, at an average price of $33,700.

How does Decentraland work?

Decentraland is most well-known for providing an infrastructure to support shared virtual worlds. The platform consists of a decentralised ledger for land ownership, a protocol for describing the contents of each LAND parcel and a peer-to-peer network for user interactions. Through the DAO, users can propose policy updates and vote on upcoming LAND auctions.

Decentraland’s protocol consists of three layers:

  • A consensus layer which tracks LAND ownership and content through smart contracts,
  • A LAND content layer which uses a decentralised distribution system to render content in the virtual world, and
  • A real-time layer which provides peer-to-peer connections for users to interact with each other.

Users claim ownership of virtual lands through a blockchain-based ledger of encoded parcels and each piece of LAND is marked by a distinct set of cartesian coordinates. Content can range from static 3D scenes to interactive systems such as games.

In addition to selling their creations, users can rent out plots such as buildings, parks, hotels and casinos to other players. Decentraland’s metaverse is divided into 90,601 individual LAND parcels which are exactly 16×16 in size and can be found at specific coordinates in the metaverse.

If you’re wondering what the main idea of Decentraland is, look no further than its thriving marketplace where users can create and sell items through a unique in-world economy. More generally, web 3.0 metaverse worlds are part of a larger interconnected crypto cloud economy in the sense that these decentralised protocols interoperate with and provide the technical infrastructure to support metaverse virtual economies.

Web 3.0 metaverse economies can use their own digital currency or the currency of the crypto cloud economy platform they’re built on – in Decentraland’s case, this is the MANA token.

Overall, this decentralised distribution system enables the platform to work without the need of a centralised server infrastructure.

In terms of identity verification, Decentraland uses a decentralised identity system which allows users to easily track and verify consent through cryptographic signatures.

An all-immersive digital world: Pros of the MANA coin

The pros of the MANA coin lie in the fact that it enables users to create games, applications, gambling services and even dynamic 3D scenes which can be monetised or rented out to other players. This in turn drives the expansion of digital goods and services within the Decentraland metaverse.

Through the LAND Estates function, users can easily manage their lands by associating adjacent plots – a feature which serves as a boost for the coin since users were unable to connect two or more parcels of LAND directly through the marketplace before Estates was introduced. Much to their dismay, users could only create, edit, transfer and dissolve Estates during the first release of Decentraland.

Another benefit of the MANA coin is that there are theoretically no limitations on how it can be used to facilitate the creation of LAND parcels within the metaverse. For those who want to earn MANA through Decentraland, there are no technical specifications in terms of what can be built in Decentraland which means that users are free to explore a range of different virtual structures.

“Decentraland has pioneered a type of virtual social space (or metaverse) that is operated entirely by its users,” Ari Meilich, Decentraland’s founder, told Capital.com.
“They serve the content that players publish on their virtual lands, streamline the communications between avatars, and vote with their MANA tokens to decide on the economic policies of the virtual world – all while distributing the DAO’s $1bn endowment among content creators,” he added.
“Decentraland’s success resided in its ability to accelerate growth even when the original development company was dissolved,” Meilich concluded.

An emerging DeFi space: Cons of the MANA coin

Decentraland is still a relatively new project that was only launched five years ago and it operates within a nascent decentralised finance (DeFi) space. Its coin is also hindered by scalability issues that are inherent to the blockchain network.

During times of high network congestion, blockchain transaction times are known to increase. In addition to processing delays, high transaction fees are also common on the blockchain network. For example, the average fee on Ethereum is currently $33.43, according to data from BitInfoCharts.

Also, MANA lacks real-world utility since only 205 merchants worldwide are accepting it as a payment, according to Cryptwerk – a scarcity which could serve as a con for the crypto.

Anndy Lian, chairman of BigONE Exchange and chief digital advisor for Mongolia’s national productivity agenda, believes that the Decentraland concept provides limitless opportunities for users.

“Decentraland has become a fertile breeding ground for businesses, artists, content creators and application developers,” Lian told Capital.com.

“For me, I don’t see many cons, however if you are going to go full steam ahead with Decentraland, I would suggest getting a suitable graphics card for an enhanced experience,” Lian added.

“Also, Grayscale launched its Decentraland Trust in February this year which proves the heightened demand for metaverse-related products. Investors who believe in the virtual world economy would surely see this as a potent sign of further growth to come,” Lian concluded.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Hackernoon Meet the Writer Anndy Lian: “Let’s work together to make crypto better”

Hackernoon Meet the Writer Anndy Lian: “Let’s work together to make crypto better”

This story is a part of Hacker Noon’s Meet the Writer series of interviews. The series is intended for tech professionals contributing the most insightful Hacker Noon stories to share more about their writing habits, ideas, and professional background (and maybe a hobby or two).

If you too would like to start contributing to Hacker Noon, you can do so here.

 

So let’s start! Tell us a bit about yourself. For example, name, profession, and personal interests.

My name is Anndy. I’m a business strategist and experienced serial entrepreneur with over 15 years of experience in Asia. I’ve worked in various industries for local, international, and publicly traded companies. I am currently Chairman of BigONE Exchange and Chief Digital Advisor at the Mongolian Productivity Organisation.

I’ve also written a best-selling book titled “Blockchain Revolution 2030”. With my co-authors, we share insights on how blockchain technology plays an important foundation for the Fourth Industrial Revolution.

I recently joined the EG Association, a social impact-driven organization that aims to use cryptocurrency to do good. To date, we have deployed more than $3 million supporting social impact initiatives on the ground.

 

Interesting! What was your latest Hackernoon Top story about?

My recent article focused on the rise of so-called reflective tokens, which are starting to be used more and more by crypto startups, such as SafeMoon. The tokenomics model differs significantly from that of other DeFi tokens. In simple terms it works by automatically charging a tax, which is usually 10% on each transaction.

The reflection mechanism is a relatively new concept in cryptocurrency circles, and it still requires a lot of fine-tuning before it can be widely adopted by other projects. However, in principle, it reduces panic selling to a bare minimum, which could be significant for the DeFi industry.

 

Do you usually write on similar topics? If not, what do you usually write about?

I think it’s important to write about the diversity of subjects in the blockchain and crypto industry, as it’s a sector that growing so quickly and with a lot of opportunities. I’m fascinated about ‘connecting the dots’ between business and technology, a great example being the use of DeFi and NFTs in developing an open metaverse.

 

Great! What is your usual writing routine like (if you have one?)

Before starting to write I believe it’s important to have a routine for reading each day. I try to find time to catch up with the main news headlines, as well as the main crypto news sites like Cointelegraph. Then when I come to writing I find that reading helps make my articles both accessible and valuable. I also get my inspiration from the governments that I am advising, their problems and questions become part of my writing content too.

 

Being a writer in tech can be a challenge. It’s not often our main role, but an addition to another one. What is the biggest challenge you have when it comes to writing?

The challenge is often one of translation, explaining technical details around say a new form of tokenomics to an interested but non-technical audience such as crypto investors.

 

What is the next thing you hope to achieve in your career?

I want to share the right kind of crypto knowledge with people. Right now many of the people I see in various communities are not being real. Some of them want their government to be decentralized, others want to be rich overnight by doing nothing, then some others are just here to create FUDs. If proper information is being shared and the users are aware of what is really happening, such ‘behaviours’ would be minimised.

Maybe this is not a career goal, it is more like an industry-wide goal that I set for myself.

 

Wow, that’s admirable. Now, something more casual: What is your guilty pleasure of choice?

Since getting grounded and not being able to travel, I have been very involved in donations and charitable works. In fact, those who know me, know that I am donating more than I spend. My guilty pleasure, for now, is walking into Hermes, buying a few pairs of shoes instead of donating. Then again, Zoom meetings did not need me to travel much, maybe a comfortable Uniqlo t-shirt would do just fine.

 

Do you have a non-tech-related hobby? If yes, what is it?

I enjoy travelling, meeting new people from all walks of life, and sharing ideas.

 

What can the Hacker Noon community expect to read from you next?

I’m always on the lookout for new topics in crypto and blockchain that illuminate and inspire my readers! I might be talking more about metaverse and gameFI. Let’s see.

 

#Thanks for taking the time to join our “Meet the writer” series. It was a pleasure. Do you have any closing words?

“The time is always right to do the right things.” I hope to gather more like-minded people to do that together for the crypto industry. Let’s work together to make crypto better!

Lastly, it’s great to join the Hacker Noon community and to share my writing on crypto and blockchain.

 

Original Source: https://hackernoon.com/meet-the-writer-anndy-lian-lets-work-together-to-make-crypto-better

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Mid-Day Mumbai News: How reflective tokens and real-world use cases can work together

Mid-Day Mumbai News: How reflective tokens and real-world use cases can work together

Mumbai`s homegrown newspaper – Mid-Day is a 41-year-old brand. Thank you for listening to my inputs.

The media outlet has quoted my points on how reflective tokens and real-world use cases can work together. Taking Dogecola as an example. The Cola sold will be used as a form of funds to support its crypto pricing. The added-on elements such as GameFI and NFT would create a better bond and interaction between the brand and the consumers.

The combination may not be rocket science but they are certainly making traditional companies think about how tokenization would work for their business.

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Why DogeCola Is the Reflective Token To Watch

Following news that the ‘king’ of meme coins Dogecoin has relaunched its foundation with plans to become a serious global cryptocurrency, is DogeCola ‘on trend’ as a  meme coin worth taking seriously? Meme coins are tokens backed by crypto influencers and investors have rapidly increased in popularity. CoinMarketCap estimated there were more than 5,000 meme coins available to investors by late June. Created as a joke meme back in 2013 Dogecoin started the trend, rising to prominence after Tesla CEO Elon Musk tweeted about the novel token in April 2019, replying to a tweet saying “Dogecoin might be my fav cryptocurrency. It’s pretty cool.”

While meme coins are a type of cryptocurrency, a key difference between the likes of Dogecoin and currencies like Bitcoin, comes down to utility. Namely that most meme coins, serve no real-world purpose. Even more reason why DogeCola, which is both a reflective token and a soft drink brand, has such potential to grow the meme coin market more sustainably in the future. In just the past week the cola-branded meme token, has delivered on its promise of distributing 1,000 sample cans of the fizzy drink to its token holders. And as its doubling-down on its listing on BigONE exchange with a staking activity, it’s certainly appears worth a closer look.

In this article we’ll therefore review how the ‘reflective’ token mechanism works to maintain price stability, the role the DogeCola soft drink brand plays in its growth, and what this could mean for the chances of success in such a fast-moving meme-market place.

 

Taking a look ‘under the hood’ of DogeCola

Auto-boost function: The auto-boost feature helps distinguishes DogeCola from the other standard meme tokens on the market. The DogeCola project’s developers added this feature to prevent the all too common ‘pump and dump’ associated with meme tokens. It was designed to make variable repurchasing and token burns based on the transaction volume every 24 hours. The goal is to keep the price of DogeCola high by burning tokens and reducing supply every time a sale is made with the tokens.

Reflection mechanism: The reflection mechanism means the tokens are self-generating and aim to discourage selling by promoting a ‘hold and earn’ use culture. By implementing a reflective mechanism in the token’s smart contract, all transactions involving tokens are ‘taxed’, and rewards are distributed evenly among holders. The DogeCola team does this to encourage the holding their tokens, and the commission on sales is much higher to prevent whales from dumping and driving the price down

Both the auto-boost and reflection mechanism are underpinned by a buy and sell fee structure: on buying 6% is set aside for the auto-boost function, with 2% going reflection to holders and 4% of marketing. While on sales, 7% is for auto-boost function, 7% for reflection to holders and again, 4% allocated to marketing.

Branded cola drink: The DogeCola team has begun the process of bringing their soft drink brand to the market as soon as possible. In a recent interview the DogeCola project’s lead developer, Chris, confirmed that the primary goal is to have the soft drinks readily available for purchase in stores, within the next three to six months. In the meantime, DogeCola token holders this week snapped up the first 1,000 samples. As Jason McLeod of the community-based #stopelon crypto initiative, commented on Twitter: “I definitely think this is the way crypto will go in the future. For me, it’s all about that link from crypto to ‘everyday’ people in the ‘real’ world.” The DogeCola team also plans to fight plastic pollution caused by corporations like Coca Cola, using a community-led vote to determine which eco-charities to support – enhancing their ‘disruptive’ branding in the process.

 

What the crypto experts think of DogeCola?

At the launch of DogeCola in July, Chris the lead dev and founder proclaimed: “If you like Coca Cola, if you like Dogecoin, then you will love DogeCola.”  While the meme coin has risen in price by 556.1% from listing on CoinGecko to its all-time high, with the current price 500% from the listing price, its already has some push back from within its 10K strong international Telegram community. “Please know that you are in a project with a team that many times literally does not sleep in 72 hours; please do not look at x minutes candles in DogeCola; try to be patient, intelligent, trust the process and stick to your guts and vision,” said @Freejo1 in response to such jitters.

Jason Suttie, CMO of Bumper, a new protocol designed to protect the value of your crypto says: “What I find most exciting about projects like DogeCola is the visibility it’s bringing to the crypto space from the general public. Everybody knows Cola, many non-crypto people have now heard about Dogecoin. DogeCola creates a connection between a physical and virtual object which starts to make crypto less scary for the uninitiated. It’s through clever projects like this that crypto will make big steps toward mass adoption.”

Chairman of BigONE, Anndy Lian, says he believes that DogeCola being based on a reflective token mechanism and with a real-world use has a clear advantage in the crypto marketplace: “We are excited to list DogeCola on the BigONE exchange because it’s ticked all the boxes – a smart reflective token mechanism, branded cola drink, a great development team with passionate community behind it.” Certainly, this is supported by news that the team has succeeded in reaching 20k token holders just a couple of days after their CoinMarketCap airdrop on August 27th. And with a DogeCola sponsored NSCAR driver due to be announced shortly to further promote growth, this reflective token is surely one to watch out for.

Source: https://www.mid-day.com/lifestyle/infotainment/article/why-dogecola-is-the-reflective-token-to-watch-23191206

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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