Decentaland is a decentralised 3D virtual reality platform in which its network of users can join and operate a shared virtual world.

It runs on Ethereum and users can both buy and sell digital real estate, explore, interact with other users and even play games inside the virtual world. It also features interactive applications, peer-to-peer communication between users and in-world payment capabilities.

Decentraland Explained

Decentraland has two different tokens which govern operations:

1. LAND: which is a non-fungible token (NFT) that attests the ownership of land parcels which, in turn, represent digital real estate. Each piece of LAND has its own unique coordinates, owners and reference to a description file which represents whatever that LAND contains

2. MANA: which is a cryptocurrency that allows users to purchase LAND, as well as other virtual goods and virtual services that one can use in the virtual world

MANA owners are allowed to vote on whichever policy updates are proposed, enter land auctions and subsidize new developments.

Blockchain-based smart contracts are the method from which changes are made to Decentraland.

Decentraland’s Architecture

Decentraland features 3 layers which work together as to maintain the virtual world:

1. The consensus layer: which is where the ledger that tracks virtual land ownership is kept.

2. The content layer: which is where controls over what happens inside each parcel of land and the files required to render those are. The content layer, in turn has:

a. Content Files: which refers to static audio and visuals

b. Script Files: which define the content’s behavior and placement within the world

c. Interaction Definition: which are peer-to-peer interactions

3. The real-time layer: which manages social interactions through avatars, voice chat and messages.

The Marketplace

Decentraland also features a marketplace which allows for usrs to manage and exchange their LAND tokens, transfer parcels and other types of virtual items. LAND tokens are priced in MANA.

There are also builder tools which empower users to create their own unique virtual experience.

The History Behind Decentraland

The Decentraland Foundation was founded in 2015 by Ariel Meilich and Estaban Ordano,

Its initial coin offering (ICO) happened 2 years later in 2017 and raised an estimate $25 million USD at the time.

In parallel to its platform’s launch, the Decentraland Foundation also created a decentralized autonomous organization (or DAO) which gave project management powers to Decentraland’s users.