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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

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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Bitcoin crash
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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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coins
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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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crypto credit cards
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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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