Decentraland Review—Ease of Use, Fees, Profitability, and More
Published June 6, 2022.
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As the name suggests, Decentraland is a fully decentralized virtual reality platform where its users can create assets, trade coins, and explore the virtual world while using cryptos and NFTs. This virtual reality platform is in the form of a browser-based game where the main goal is working with virtual real estate and earning money.
Once a user joins the Decentraland platform, they can start buying virtual real estate in the form of parcels with cryptocurrencies. If you have a parcel, you can use it to construct buildings like museums, art galleries, theaters, and much more. Since the platform is built on the Ethereum blockchain, anyone can join it as long as they have an ETH wallet.
To learn more about Decentraland, continue reading.
- One of the biggest platforms in the VR world
- One of the largest collections of NFT art
- MANA has risen over 3,000% in value since its inception
- A lot of potential for an industry that's still undervalued
- The platform is still in its early stages of development
- There is massive competition in the VR space
- Decentraland charges a fee for every transaction
How Decentraland Works
Unlike other virtual reality games and worlds, Decentraland is entirely decentralized and runs on the blockchain. With the governance of a DAO (decentralized autonomous organization), Decentraland has preset policies and rules that it runs on.
Since Decentraland is—you guessed it—fully decentralized, it must be on a blockchain. In this case, the software is on the Ethereum blockchain, and it requires the user to have MANA (Decentraland's coin) and an Ethereum wallet to start playing in their virtual world.
Decentraland can run on the ETH blockchain and build its own components on top of it with the help of smart contracts. Smart contracts regulate every transaction that happens on Decentraland, with all parcels of land having real coordinates written on the blockchain.
So, what is the purpose of Decentraland, and how does it work?
Once a user joins, they can start buying and exchanging LAND tokens (representing parcels) with MANA. Users can buy parcels of land, construct buildings on them (like a museum with a collection of great NFTs), and then sell them for more MANA than they were originally bought.
Decentraland is on the low end when it comes to fees, though the platform charges a fee for every transaction. Each time there is a transaction with a land parcel on the Decentraland marketplace, the platform burns 2.5% of the transaction’s value. This is because Decentraland runs on the Ethereum blockchain, and just like Ethereum, it must pay gas fees for all transactions that happen on their blockchain.
Still, you can expect this number to drastically lower in the near future, as Ethereum has announced its shift from PoW to PoS by the end of 2022. This will lower the gas fees by approximately 90%.
Could Decentraland Be Profitable for the User?
Absolutely! Decentraland can be incredibly profitable for the user, as it’s not just a simple virtual reality game with land parcels. The platform offers an entire virtual universe where you can do everything that happens in your day-to-day life. This includes working a job, buying clothes from a mall, going out with friends, learning new skills, or even working on real projects in the VR world.
So, can you make money on Decentraland? Yes, there are many ways you can earn money in Decentraland. Let’s go over them:
Buying and Selling Land
Since Decentraland’s VR world was primarily based on working with virtual real estate, it is no surprise that you can do that for a profit. In the Decentraland universe, every land parcel comes as a unique 16m x 16m NFT, and there is proof on the blockchain that you’re the owner.
Once you’ve purchased the land parcel, you can build something on it to increase its value. Keep in mind that Decentraland has a massive virtual universe where many real-life cities are featured. For example, you can buy a plot of land in virtual New York City and then sell it for a profit.
Work in the Virtual Universe
Many aspects of our day-to-day lives are featured in Decentraland. For example, you can work at a company and have a part-time job in the virtual universe where you will be paid in MANA tokens. Some of the most popular jobs in the Decentraland universe are designing clothes, creating NFTs, offering freelance services like making videos, marketing, and more.
Decentraland’s virtual universe offers users the opportunity to play games and win rewards. Of course, these rewards don’t come in the form of classic fiat money. Instead, you’ll get paid in cryptocurrency and NFTs. Some of the most popular play-to-earn games in Decentraland are poker, blackjack, and roulette.
Should You Invest in Decentraland?
If you believe that the virtual reality industry has potential, you should invest in Decentraland. The overall market size of the VR industry was estimated to be around $20-30 billion in 2021, but many experts believe it will exceed $80 billion by 2028.
If you’d like to invest in Decentraland, all you have to do is buy MANA. As of June 2022, the MANA token has jumped in price by over 3,000%, and we believe it still has big potential. To buy the Decentraland coin, you'll need an ETH wallet and an account at an online exchange. You can then search for MANA and buy as much as you want.