Today, Decentraland launches its second land auction, allowing users to purchase digital “parcels” of land on the blockchain.
If you’re getting visions of the virtual-reality world in Ready Player One, you’re not far off. Decentraland aims to build a VR world, complete with avatars, games and virtual real estate.
Today’s auction will sell off 9,331 parcels of land, each 10m x 10m in size, in the virtual metropolis of Genesis City.
What is Decentraland?
Decentraland is a 3D, virtual-reality space where users can explore, purchase, and build upon blockchain land. It’s built on the Ethereum blockchain and utilizes a native cryptocurrency called MANA.
The virtual world is broken up into “districts,” and each district contains “parcels” of land. The world is finite, meaning land will ultimately be scarce, powering a true real estate market within the platform.
Decentraland hopes to encourage developers to build games and applications into the platform, increasing the value of land and creating a true community.
Of course, this being blockchain, it’s decentralized: “Decentraland is not controlled by a centralized organization. There is no single agent with the power to modify the rules of the software, contents of land, economics of the currency, or prevent others from accessing the world.”
Big Money Behind Decentraland
Decentraland is partly funded by one of the cryptoverse’s largest investment funds, Digital Currency Group (DCG). DCG has investments in Coinbase, CoinDesk, Ledger, and blockchain.com among others.
Despite backing many of the world’s largest blockchain companies, it only owns five cryptocurrencies – one of them is Decentraland’s MANA. As DCG explains “We own MANA and LAND, and have been actively exploring other initiatives to accelerate the development of the decentralized metaverse.”
As part of that acceleration, DCG recently launched Metaverse Ventures to back projects building on Decentraland. Metaverse Ventures is “a wholly owned subsidiary of DCG that will invest exclusively in companies building products and services for Decentraland.”
Among the ventures backed so far include Vegas City, a region of land with 7,000 parcels complete with Vegas-style entertainment in virtual reality. They have also invested in Artie, which is building VR and Augmented Reality (AR) avatars for the virtual world.
Decentraland Land Auction, December 2018
The Decentraland auction begins today using a Dutch auction system. The price starts high and gradually lowers until someone purchases the land.
Decentraland will auction 9,331 parcels in this round, each starting at 200,000 MANA (about $12,000). The price will drop each day until the parcels reach 1,000 MANA (about $60), assuming they’re not snapped up beforehand.
Thanks to recent partnerships, users can also purchase land with ZIL, SNT, BNB, Dai, and MKR. To learn more about purchasing LAND, see the video below.
The Decentraland auction starts today.