Decentraland

Decentraland. It is a decentralized virtual reality platform built on the Ethereum blockchain where users can create, experience, and monetize content and applications. Launched to the public in 2020, the platform is governed by a Decentralized Autonomous Organization (DAO) that allows users to vote on policy updates, land auctions, and subsidies for the Metaverse. The virtual world is composed of non-fungible parcels of LAND, which users purchase as NFTs to build upon and control.

Overview

The project was conceived by Ari Meilich and Esteban Ordano, with its initial concept and ICO occurring in 2017. The vision was to create a user-owned digital space, contrasting with centralized virtual worlds operated by corporations like Linden Lab's Second Life or Meta Platforms's efforts. The platform's development is overseen by the Decentraland Foundation, a non-profit based in Singapore. Key milestones include the launch of its Decentraland DAO and the publication of its Metaverse roadmap, which outlines the development of its 3D world, social features, and marketplace.

Technology and platform

The platform's architecture consists of three distinct layers: the consensus layer, which tracks land ownership via the Ethereum blockchain; the land content layer, which uses a distributed storage system to serve content; and the real-time layer, which facilitates user interactions through P2P connections. Scenes and assets are built using the platform's proprietary SDK, which supports creation with Blender and Unity. The world is accessed primarily through a Web browser-based client, with support for VR headsets and integrations with wallets like MetaMask.

Economy and governance

The in-world economy is powered by two primary tokens: MANA, an ERC-20 token used for purchases and governance, and LAND, an ERC-721 non-fungible token representing digital parcels. The Decentraland DAO holds substantial MANA and controls a treasury smart contract, allowing token holders to vote on proposals ranging from content policy to grants for developers. Major transactions, such as the record-breaking LAND sale near the Genesis Plaza, are facilitated through the platform's official Marketplace. The economic model has attracted investment from firms like Digital Currency Group and CoinFund.

Use cases and events

Parcels of LAND host a wide variety of experiences, including virtual art galleries featuring works by Sotheby's and Christie's, interactive games, and social hubs. Major brands such as Samsung, Atari, and Miller Lite have established virtual presences, while events like the Metaverse Fashion Week, featuring Dolce & Gabbana and Selfridges, have drawn significant attendance. The platform has also been used for conferences, such as the CryptoVoxels community meetup, and live concerts by artists including Deadmau5 and Björk.

Criticism and challenges

Critics have pointed to the platform's relatively low daily active user counts compared to traditional MMOs and challenges with user retention. Technical issues, such as graphical limitations, latency, and a steep learning curve for content creation, have been noted by reviewers from CoinDesk and The Verge. Broader concerns about the Metaverse include market volatility of assets like MANA, potential for speculative bubbles in virtual land, and unresolved questions about effective Content moderation and Jurisdiction within a decentralized framework. Environmental criticisms related to the proof-of-work consensus mechanism initially used by Ethereum have also been levied, though the network's transition to Proof-of-stake may address some concerns.

Category:2020 software Category:Blockchain-based software Category:Decentralized autonomous organizations Category:Ethereum Category:Metaverse Category:Virtual reality