Exploring Decentraland: A Glimpse into the Metaverse's Future
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Chapter 1: The Metaverse Phenomenon
Is this the future? My Exploration of Decentraland
I’ve been spending some time in Decentraland, attempting to grasp why this platform is hailed as the future. In contrast, I’m increasingly appreciating the charm of nostalgia. The current Web is a foundation for creativity, but this so-called "metaverse" lacks a universal platform; instead, we are forced to choose among various individual platforms that struggle to interconnect.
This disconnect is precisely why Zuckerberg aims to establish a standardized metaverse, aspiring to replicate Microsoft's impact on web browsing back in '95.
Brands are notably channeling resources into one platform in particular: Decentraland. As its name implies, it seeks to empower users, contrasting sharply with Zuckerberg's centralized vision.
In March, Decentraland hosted a fashion week where Esteé Lauder distributed 10,000 complimentary NFTs. Interestingly, a single 16-square-meter parcel in its Luxury Fashion District can fetch a staggering $15,000.
Real estate investors are speculating heavily, having already invested around $500 million in virtual "land." But why?
They have adopted real-world economic principles within a virtual realm devoid of tangible substance. In the physical world, land holds value due to its geographical features and the perceived worth we assign to it. In contrast, within a virtual space, the notion of "location" loses its significance. Your Gucci store could be next to Dior or light-years away—ultimately, the difference is negligible.
As I delve into these concepts, the search for real substance feels increasingly unfruitful, akin to reflecting on Percy Shelley's words: "Lift not the painted veil which those who live / Call Life."
Consider this excerpt from Wikipedia’s Decentraland page: Users have minted NFTs with offensive names, and one name, “Jew,” was listed for $362,000. Despite community support for banning “Hitler,” there weren’t sufficient votes for the decentralized autonomous organization (DAO) to take action. It appears that "decentralization" does not necessarily equate to decency.
Decentraland has its own cryptocurrency, MANA, valued at around $4.7 billion. Its value surged after Facebook rebranded to Meta, but it seems reality is catching up; MANA has dropped from a peak of over $5 to about $2.70 today.
Furthermore, Decentraland’s monthly land sales have been on a decline following a spike in late 2021:
The reality is that very few users engage with Decentraland. Reports suggest the platform is largely underutilized, with WIRED estimating around 1,600 concurrent users in 2021—potentially including inactive ones. While Decentraland contests this estimate, even its own figures indicate only about 15,000 daily users.
Now that we have some context, let’s dive into the experience.
Section 1.1: The Avatar Experience
Introducing: The Suavatar
First, I needed an avatar, and I wasn't about to pay for extras. Thankfully, the free package included an intriguingly arched eyebrow. However, it’s telling that in Decentraland, everything has a price, including your appearance. You need to link a cryptocurrency wallet just to enter.
The experience itself is slow and cumbersome. Decentraland operates solely on desktop browsers, which hardly feels futuristic. My memories of gaming from years ago remind me that many experiences were far superior.
Imagine if Mario had to pay for his skin, hat, and even his plumbing education—those are lost revenue opportunities that Decentraland seems eager to seize.
Curiously, I was intrigued by JP Morgan's recent launch of a metaverse store, assuming they would enhance their presence in this digital realm. As a newcomer, I worried about locating their store, but I found it quite easily:
There was a tiger roaming around—perhaps an indication of budget constraints after funding everything else. Navigating Decentraland is tricky, requiring keyboard controls unless you have a controller, and numerous glitches obstruct the experience. I barely managed to capture screenshots of my journey, which consisted of wandering through shops and examining billboards, all while trying to decipher how to make purchases—though, to be clear, I had no intention of buying anything.
Regrettably, the experience would greatly benefit from social network integration. Knowing when events are occurring or how to connect with friends would be incredibly useful. As it stands, there is little incentive to spend time in Decentraland.
Nevertheless, it’s important to highlight that the vision of Decentraland is fundamentally different from Meta's. Decentraland professes that its users are also owners, empowered to vote on changes to the platform. While this sounds appealing in theory, it often clashes with reality.
I recently listened to a BBC radio show titled "The End of Invention," where a scientist discussed how, in the 18th century, the University of Basel used random selection to appoint professors in an effort to combat cronyism and stagnation. The experiment succeeded, leading to a more diverse faculty and fresh ideas. Yet, as soon as he could, Napoleon reinstated the old selection method, favoring recommendations from leaders. The status quo is often self-protective—why wouldn’t it be?
Some may argue that Decentraland is still in its infancy, suggesting that the experience will evolve significantly in a few years. Many skeptics viewed early websites as fads, yet today’s internet is markedly different. However, progress is not guaranteed; if undesirable individuals dominate the virtual landscape, it could mirror the existing world.
Currently, Decentraland is primarily a playground for financial speculators and brands eager to peddle virtual merchandise. With such a limited customer base, sustainability is in question.
Interestingly, the most popular activity within Decentraland seems to be gambling. Poker thrives there, and the casinos attract more visitors than any other area.
Analysts often refer to "business fundamentals" when evaluating a company's prospects, but identifying those fundamentals within Decentraland today is quite challenging.
In conclusion, the experience leaves much to be desired.
Chapter 2: A Tour of Decentraland
The first video provides a beginner's tour of Decentraland, showcasing its unique features and potential pitfalls.
The second video takes viewers on a massive live tour of Decentraland with SWISS, offering insights into the platform’s offerings and user experience.