Decentraland is a virtual world created on a blockchain platform where users can own and develop land and properties, trade their creations and possessions, and explore and discover content created by other members in the community. The Decentraland Map, while extremely popular among gamers, has been something of a curiosity among the general public. With the ever-growing interest in Decentraland, one of the questions that have come up lately is whether it is possible to get a mortgage for land within its virtual universe.
The answer is both yes and no. The Decentraland Map allows users to obtain virtual land on a piece-by-piece basis from a virtual land auction hosted on its affiliated Blockchain. This type of market allows users to bid on land parcels to form contiguous plots of land usable for gaming, exploration, or development. The downside to this purchasing method is that the funds used to purchase the parcels are not backed by a bank and can come with a large amount of risk for purchasers, as the land is completely virtual and does not have any real-world assets to support it.
That said, it is possible to obtain a mortgage for land within the Decentraland Map, though not in the traditional sense. Most loans taken out in Decentraland are unsecured loans between two users, and repayment plans are established between them to ensure that the loan is paid back in a timely manner. That said, lenders do have the option to use their Decentraland properties as collateral. This collateral may be in the form of Decentraland’s native cryptocurrency (MANA) or in the form of land parcels themselves.
Overall, getting a mortgage for land within the Decentraland Map is possible, though it is not a standardized process and carries a fairly high level of risk for lenders and borrowers alike. With the rise in popularity of Decentraland, it is likely that more lenders will begin to offer mortgage services within Decentraland as the virtual world continues to mature. In the meantime, users can take out unsecured loans between themselves using MANA or land parcels as collateral.