Facebook’s recent acceleration into the world of the nebulous “metaverse” sent shockwaves through several industries – not least of which is the cryptocurrency space. Users fundamentally understand the advantages that blockchain offers concerning virtual worlds and emerging technology. As to whether Facebook’s aim is altruistic, time will tell, but the sudden boost for metaverse adjacent tokens started a deep conversation. Much as their “Libra” project divided the community, so too does Facebook’s involvement taint the victory for some investors.
Yet, projects like Decentraland (MANA) stand to gain considerable ground with a tech industry heavyweight at their back. Decentraland launched in 2015, in a much simpler fashion, before expanding into the current 3D iteration. Embodying the concept of the ‘metaverse’, Decentraland allows users to own parcels of virtual land and construct ornate buildings and locations within them – all built on the Ethereum blockchain using their native MANA token. London’s Sotheby’s famously recreated their headquarters within Decentraland. Originally fetching prices in the double-digit range, plots now sell for nearly $1 million.
The Genesis of Online Worlds
Since the invention of the internet, developers have strived for the concept of a virtual world. Technological advances – graphical and infrastructure – have reached the point where it is a distinct possibility. Long before cryptocurrency, the Second Life platform offered a virtual, fully customizable world that attracted the more tech-savvy netizens. Although quickly outdated, Second Life made mainstream news on more than one occasion for real-world/virtual crossover events and paved the way for today’s metaverse boom.
The addition of virtual reality headsets and haptic wearables could drastically accelerate the immersion factor of these virtual worlds – explaining Facebook’s continued efforts to expand its virtual reality dominance. Decentraland, now riding renewed vigor through their MANA token, must refocus towards these technologies as well to succeed in the long term.
Decentraland as a Proof of Concept
Decentraland exists as a virtual world or ‘metaverse’ in its current state. Users can purchase virtual land, visit virtual locations and interact with other users throughout. Of course, the graphics technology needs work – but that should not necessarily be a mark against them. Tesla is a household name for their electric vehicles, but they originally offered only the Roadster. While the Roadster cost a fortune and performed at an average level – at best – it served as a proof of concept that allowed further technology to develop.
In the same way, Decentraland can leverage their first-mover status and the current value of MANA to leapfrog forward and establish their virtual world as the preeminent metaverse. Facebook’s deep coffers and global reach present a problem – but as Libra demonstrated, they do not always succeed. Decentraland is in a perfect position; they simply need to take advantage of the situation.
