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Why is Decentraland (MANA) so Appealing

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Decentraland
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The latest popularity of cryptocurrencies is still not wearing off, but instead, it seems to be getting stronger by the day. This has seen a massive increase in investors as well, with all of them chasing the same goal. A new project called Decentraland (DCL) is one that is getting especially popular.

DCL’s team and background

There are those who would characterize the new project, Decentraland (DCL) as a combination of VR, Second Life, and blockchain. It will have its native crypto by the name of MANA, a decentralized governance which will be using Aragon project’s tools, and the ownership of land (LAND) will be distributed.

It was first founded by two entrepreneurs from Argentina, called Esteban Ordano, and Ari Meilich, back in 2017. Supposedly, these two individuals visualized the concept for this project in a blockchain developers’ hacker house. Esteban Ordano has been known for years as a co-founder of Zeppelin, a DCG portfolio company. Even before that, he was known as BitPay’s early employee as well.

As a developer, he is said to be brilliant, which is by itself something that attracts attention to this new project. His involvement also brought attention to Ari, who turned out to be very innovative, insightful, as well as very mission-driven. His background includes entrepreneurship, neuroscience, and even venture capital.

A year ago, they published a whitepaper which explains their view on the project. In August 2017, the $25mm token sale was finally completed, and the foundation which these two ran got the proceeds in MANA, which will help bring Decentraland to life.

The LAND

The formation of the land for the project finally started in November 2017. The land was initially supposed to be shared into individual districts. The members of the community would be able to write different plans for the specific use of the land, and then ask for other community members’ donations. One parcel of LAND would be handed out to them for every 1000 MANA that they receive. After that, if the certain milestones are hit, they would receive the actual land.

Back in December 2017, there was a public auction of the land, and it included 45,000 individual parcels. Each of them was priced at 1000 MANA, which was at around $100. Up to 35,000 parcels were bought with an average price of $300, or 3000 MANA. About 161,483,050 MANA was spent in total, which rounds at about $28mm.

Instead of sending the MANA to the founder, it was destroyed, or “burned”. This was done in an effort to reinforce the decentralized nature of Decentraland. The auction attracted over 3000 unique addresses and the most expensive part of the land was paid $60,000, or 600,000 MANA.

Right now, the project includes around 90,601 parcels. They are non-fungible tokens (NFT’s), and their ownership is safely recorded on the blockchain belonging to Ethereum, through the ERC-721 standards. The parcels all have a different set of coordinates and can be seen on this map. They are all 10×10 meters, and together they make a Washington DC-sized city called Genesis City.

The land is divided into four different categories:

  1. Private land – purchased on the auction, with an additional 12,000 parcels that will be sold on the second auction in 2018.
  2. Districts – these were given to different projects before the auction even began. The district called University will offer educational courses, while Vegas City will be used for entertainment and casinos.
  3. Community land – this land is supposed to be used for parks and similar projects.
  4. Roads – will allow traveling, content discovery, different experiences and alike.

The world size is large at this point, but it will still need a lot of expanding since it is expected to attract quite a crowd. The process of making new LAND, as well as the growth rate, are still to be determined. However, the most likely scenario will simply repeat the event of the auction. All gathered MANA will, once again, be burned, which will reduce its supply. This is crucial in order to properly understand DCL’s economics.

The DCL is still early, and because of that, largely under the radar. Its community is still establishing itself, and its project is nothing if not inspiring, fun, as well as multidisciplinary.

This might be the app that will completely redefinition the use of blockchain. Using this technology for recording land title was talking about in the past, but it never actually got close to doing it. The fault for that lies with the legacy system, as well as the fact that the ownership of the land is getting recorded on the blockchain, which wouldn’t mean much when the potential oppressive regime decides to take that land from the owner.

LAND will change that, and nobody (besides a really, really skilled hacker) will be able to take control of one’s land.

Because of all these things, DCL might be the first ever decentralized autonomous organization that is fully-functional. The smart contracts that will be the part of owning LAND will allow construction of new organizations, and this may lead to giving token holders voting rights and making various decisions as a collective. The government will be decentralized, and the decisions will be made according to the community’s feedback. Eventually, the power and the project itself will be handed down to the users themselves.

Conclusion

So far, the project sounds amazing, but there are still many questions that need answering. Is it ahead of its time at this point? When can we expect the VR to be ready for mass market? Is the value going to be measured by the amount of possessed LAND, or will MANA be used as a medium of exchange?

These and many more questions are in need of answers. Some believe that this kind of project appeared too early. However, whenever something looks to be too early, it is usually right on time by the time it actually launches. The DCL ecosystem is growing and stabilizing, and it constantly attracts new users and investors. The potential is unlimited, and everyone involved in any way is eager to see where it will all lead to, and how will it all look like in the end.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of salat fresser via Flickr

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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