A complete guide to Decentraland (MANA), a new investment destination in the metaverse era
Hello! Are you curious about Decentraland (MANA), which has been gaining attention along with the recent metaverse craze? Many people are interested in the new concept of virtual real estate.
Today, we will explain everything about Decentraland in detail so that everyone from blockchain beginners to experienced investors can understand it. I'll explain it step by step so that even those who are new to the metaverse and virtual real estate can easily follow along!
Introducing Decentraland (MANA)
Decentraland is not just a game, it's a completely new type of digital economic ecosystem. Built on the Ethereum blockchain, this virtual reality platform allows users to have true 'ownership'.
In existing games, if you purchased an item, it was owned by the game company, but in Decentraland, you can guarantee complete ownership of digital assets through blockchain technology. This is the core feature of the Web3 era.
MANA is the core currency of this ecosystem, and it's not just an in-game currency, it's a cryptocurrency with real economic value. Everything from virtual land, LAND, various wearable items, and even virtual buildings can be traded with MANA. What's more interesting is that the assets purchased in this way are issued in the form of NFTs and can be traded on other platforms.
Decentraland's birth and development history
Decentraland's beginnings date back to 2015. The founders wanted to overcome the limitations of existing centralized platforms. They dreamed of a decentralized metaverse directly owned and operated by users, not a virtual world controlled by Facebook (now Meta) or other large corporations.
They began full-scale development in 2017 by raising about $24 million through an ICO (Initial Coin Offering). At the time, the concept of the metaverse was not as popular as it is now, but their vision was innovative.
Major development stages:
• 2018: First LAND auction held
• 2019: Beta version released
• 2020: Official service launched
• 2021: Rapid growth with the metaverse boom
• 2022~present: Expansion of large corporate partnerships and ecosystem development
In particular, as interest in the metaverse skyrocketed following the COVID-19 pandemic in 2021, Decentraland also began to receive attention. Global companies such as Samsung, Adidas, and Coca-Cola have opened virtual stores in Decentraland, further increasing the value of the platform.
Decentraland's core technology and operating principles
Decentraland's technical foundation is the Ethereum blockchain. However, it does not simply use blockchain; it combines various innovative technologies.
First, all virtual lands and items are issued as NFTs that follow the ERC-721 standard. This means that each digital asset has unique characteristics and cannot be forged or duplicated. In addition, the MANA token, which follows the ERC-20 standard, serves as the base currency for all economic activities within the ecosystem.
Utilization of smart contracts: All transactions and ownership transfers are automatically executed through smart contracts, enabling safe transactions without intermediaries. This allows you to kill two birds with one stone: reducing fees and ensuring transparency compared to existing centralized platforms.
In particular, Decentraland operates in the form of a DAO (Decentralized Autonomous Organization), allowing users to directly determine the future of the platform. MANA holders have voting rights and can express their opinions on new policies or updates.
Various activities you can do in Decentraland
Decentraland is not simply a place to buy and sell real estate. A comprehensive entertainment platform that provides a true metaverse experience.
Creative Activities: If you dream of becoming an architect, Decentraland is the place to make your dreams come true. You can design and build unique buildings using 3D modeling tools. In fact, famous architects are creating structures that are impossible in reality in the virtual space.
Business Opportunities: Many companies are using Decentraland as a new marketing channel. They are communicating with customers in various ways such as virtual fashion shows, product launch events, and brand experience centers.
Monetization Methods:
• Virtual Land Rental and Resale
• Game and Application Development
• Planning and operating virtual events
• Operating an NFT art gallery
• Attracting advertising and sponsorship
Social activities: You can meet and communicate with people from all over the world in real time. You can have real-life social experiences such as watching virtual concerts, attending educational seminars, and participating in networking events.
Platform and exchange guide for MANA trading
If you want to trade MANA, it is most important to choose a reliable exchange. Each exchange has different fees, security levels, and ease of use.
Domestic exchanges: You can trade MANA directly in Korean Won on Upbit, Bithumb, Coinone, etc. In particular, Upbit has a lot of trading volume, so it is liquid and has perfect Korean language support, making it suitable for beginners.
Overseas exchanges: It is also actively traded on global exchanges such as Binance, Coinbase, and Kraken. The advantage of overseas exchanges is that they offer a wider range of trading pairs and advanced features such as futures trading.
Checkpoints when choosing an exchange:
• Security level (2-step authentication, cold wallet storage, etc.)
• Trading fees (check maker/taker fees)
• Deposit/withdrawal fees and processing times
• Customer support service quality
• Trading Volume and Liquidity
Decentraland Community and Ecosystem
Understanding community trends is essential for successful metaverse investment. Decentraland has a very active global community.
Official Community Channel: Tens of thousands of users are sharing information in real time on the Discord server. You can get various information such as development updates, event news, and investment tips.
Korean Community: Korean investors share information in KakaoTalk open chat rooms, Naver Cafe, and Telegram groups. It is especially helpful for beginners because they can communicate without language barriers.
The benefits of participating in the community are not limited to simply obtaining information. You can learn how to use the actual platform, investment strategies, market analysis, etc. directly from experienced people, and sometimes you can find valuable business partnership opportunities.
Guide to Choosing a Wallet for Safe MANA Storage
One of the most important things in cryptocurrency investment is safe storage. Don't forget the principle of ""I protect my coins.""
MetaMask: The most widely used Ethereum wallet, it is fully compatible with Decentraland. It is convenient as it comes with both a browser extension and a mobile app.
Hardware Wallets: Hardware wallets such as Ledger and Trezor offer the highest level of security. You can minimize the risk of hacking by storing your private key in an environment separated from the Internet.
Wallet security essentials:
• Back up your seed phrase (recovery phrase) to a safe place
• Set up 2-step authentication
• Regularly update your wallet software
• Beware of phishing sites (check the official site)
• Never share your private key or seed phrase with anyone else
Risk factors you must know before investing in Decentraland
All investments involve risk, and the cryptocurrency and metaverse sectors are particularly volatile markets. In order to make a successful investment, you must accurately identify and prepare for risk factors.
Market volatility: MANA's price is greatly affected by the overall cryptocurrency market. It is often linked to the price fluctuations of Bitcoin or Ethereum. It also reacts sensitively to metaverse-related news and regulatory announcements.
Technical risks: Blockchain technology itself is safe, but there is always a possibility that smart contract bugs or security vulnerabilities will be discovered. Refer to past hacking cases that occurred in other DeFi projects.
Things to note when investing:
• Comply with the principle of diversification (invest only a certain percentage of total assets)
• Avoid emotional trading (do not be swayed by FOMO or FUD)
• Investment decisions after sufficient market research
• Approach with a long-term perspective rather than short-term profits
• Always keep in mind the possibility of losing the investment principal
Regulatory risk: Changes in government regulations related to cryptocurrencies and metaverses are also major variables. In particular, tax policies and exchange regulations can have a significant impact in the short term.
Future outlook and investment conclusion
Decentraland is not just a speculative target, but has the potential to become the infrastructure of the future digital economy. Considering the growth potential of the metaverse market, it can have a positive outlook in the long term.
However, it must be acknowledged that it is still an early stage technology. There is still a lot of room for improvement in terms of user experience, technological completeness, and level of popularization. However, this also means growth potential.
If you are considering investing in Decentraland, please believe in the future of the metaverse and blockchain technology and approach it from a long-term perspective. Rather than being overjoyed or depressed by sudden ups and downs, it would be a wise investment strategy to focus on the development of the ecosystem and increased actual usability.
Lastly, I would like to emphasize once again that investments should be made under individual judgment and responsibility. I hope you make wise investment decisions through sufficient learning and preparation, and create your own success story in the new digital world presented by Decentraland!