More on Society & Culture
Julie Plavnik
3 years ago
Why the Creator Economy needs a Web3 upgrade
Looking back into the past can help you understand what's happening today and why.
"Creator economy" conjures up images of originality, sincerity, and passion. Where do Michelangelos and da Vincis push advancement with their gifts without battling for bread and proving themselves posthumously?
Creativity has been as long as humanity, but it's just recently become a new economic paradigm. We even talk about Web3 now.
Let's examine the creative economy's history to better comprehend it. What brought us here? Looking back can help you understand what's happening now.
No yawning, I promise 😉.
Creator Economy's history
Long, uneven transition to creator economy. Let's examine the economic and societal changes that led us there.
1. Agriculture to industry
Mid-18th-century Industrial Revolution led to shift from agriculture to manufacturing. The industrial economy lasted until World War II.
The industrial economy's principal goal was to provide more affordable, accessible commodities.
Unlike today, products were scarce and inaccessible.
To fulfill its goals, industrialization triggered enormous economic changes, moving power from agrarians to manufacturers. Industrialization brought hard work, rivalry, and new ideas connected to production and automation. Creative thinkers focused on that then.
It doesn't mean music, poetry, or painting had no place back then. They weren't top priority. Artists were independent. The creative field wasn't considered a different economic subdivision.
2. The consumer economy
Manufacturers produced more things than consumers desired after World War II. Stuff was no longer scarce.
The economy must make customers want to buy what the market offers.
The consumer economic paradigm supplanted the industrial one. Customers (or consumers) replaced producers as the new economic center.
Salesmen, marketing, and journalists also played key roles (TV, radio, newspapers, etc.). Mass media greatly boosted demand for goods, defined trends, and changed views regarding nearly everything.
Mass media also gave rise to pop culture, which focuses on mass-market creative products. Design, printing, publishing, multi-media, audio-visual, cinematographic productions, etc. supported pop culture.
The consumer paradigm generated creative occupations and activities, unlike the industrial economy. Creativity was limited by the need for wide appeal.
Most creators were corporate employees.
Creating a following and making a living from it were difficult.
Paul Saffo said that only journalists and TV workers were known. Creators who wished to be known relied on producers, publishers, and other gatekeepers. To win their favor was crucial. Luck was the best tactic.
3. The creative economy
Consumer economy was digitized in the 1990s. IT solutions transformed several economic segments. This new digital economy demanded innovative, digital creativity.
Later, states declared innovation a "valuable asset that creates money and jobs." They also introduced the "creative industries" and the "creative economy" (not creator!) and tasked themselves with supporting them. Australia and the UK were early adopters.
Individual skill, innovation, and intellectual property fueled the creative economy. Its span covered design, writing, audio, video material, etc. The creative economy required IT-powered activity.
The new challenge was to introduce innovations to most economic segments and meet demand for digital products and services.
Despite what the title "creative economy" may imply, it was primarily oriented at meeting consumer needs. It didn't provide inventors any new options to become entrepreneurs. Instead of encouraging innovators to flourish on their own, the creative economy emphasized "employment-based creativity."
4. The creator economy
Next, huge IT platforms like Google, Facebook, YouTube, and others competed with traditional mainstream media.
During the 2008 global financial crisis, these mediums surpassed traditional media. People relied on them for information, knowledge, and networking. That was a digital media revolution. The creator economy started there.
The new economic paradigm aimed to engage and convert clients. The creator economy allowed customers to engage, interact, and provide value, unlike the consumer economy. It gave them instruments to promote themselves as "products" and make money.
Writers, singers, painters, and other creators have a great way to reach fans. Instead of appeasing old-fashioned gatekeepers (producers, casting managers, publishers, etc.), they can use the platforms to express their talent and gain admirers. Barriers fell.
It's not only for pros. Everyone with a laptop and internet can now create.
2022 creator economy:
Since there is no academic description for the current creator economy, we can freestyle.
The current (or Web2) creator economy is fueled by interactive digital platforms, marketplaces, and tools that allow users to access, produce, and monetize content.
No entry hurdles or casting in the creative economy. Sign up and follow platforms' rules. Trick: A platform's algorithm aggregates your data and tracks you. This is the payment for participation.
The platforms offer content creation, design, and ad distribution options. This is platforms' main revenue source.
The creator economy opens many avenues for creators to monetize their work. Artists can now earn money through advertising, tipping, brand sponsorship, affiliate links, streaming, and other digital marketing activities.
Even if your content isn't digital, you can utilize platforms to promote it, interact and convert your audience, and more. No limits. However, some of your income always goes to a platform (well, a huge one).
The creator economy aims to empower online entrepreneurship by offering digital marketing tools and reducing impediments.
Barriers remain. They are just different. Next articles will examine these.
Why update the creator economy for Web3?
I could address this question by listing the present creator economy's difficulties that led us to contemplate a Web3 upgrade.
I don't think these difficulties are the main cause. The mentality shift made us see these challenges and understand there was a better reality without them.
Crypto drove this thinking shift. It promoted disintermediation, independence from third-party service providers, 100% data ownership, and self-sovereignty. Crypto has changed the way we view everyday things.
Crypto's disruptive mission has migrated to other economic segments. It's now called Web3. Web3's creator economy is unique.
Here's the essence of the Web3 economy:
Eliminating middlemen between creators and fans.
100% of creators' data, brand, and effort.
Business and money-making transparency.
Authentic originality above ad-driven content.
In the next several articles, I'll explain. We'll also discuss the creator economy and Web3's remedies.
Final thoughts
The creator economy is the organic developmental stage we've reached after all these social and economic transformations.
The Web3 paradigm of the creator economy intends to allow creators to construct their own independent "open economy" and directly monetize it without a third party.
If this approach succeeds, we may enter a new era of wealth creation where producers aren't only the products. New economies will emerge.
This article is a summary. To read the full post, click here.
Charlie Brown
2 years ago
What Happens When You Sell Your House, Never Buying It Again, Reverse the American Dream
Homeownership isn't the only life pattern.
Want to irritate people?
My party trick is to say I used to own a house but no longer do.
I no longer wish to own a home, not because I lost it or because I'm moving.
It was a long-term plan. It was more deliberate than buying a home. Many people are committed for this reason.
Poppycock.
Anyone who told me that owning a house (or striving to do so) is a must is wrong.
Because, URGH.
One pattern for life is to own a home, but there are millions of others.
You can afford to buy a home? Go, buddy.
You think you need 1,000 square feet (or more)? You think it's non-negotiable in life?
Nope.
It's insane that society forces everyone to own real estate, regardless of income, wants, requirements, or situation. As if this trade brings happiness, stability, and contentment.
Take it from someone who thought this for years: drywall isn't happy. Living your way brings contentment.
That's in real estate. It may also be renting a small apartment in a city that makes your soul sing, but you can't afford the downpayment or mortgage payments.
Living or traveling abroad is difficult when your life savings are connected to something that eats your money the moment you sign.
#vanlife, which seems like torment to me, makes some people feel alive.
I've seen co-living, vacation rental after holiday rental, living with family, and more work.
Insisting that home ownership is the only path in life is foolish and reduces alternative options.
How little we question homeownership is a disgrace.
No one challenges a homebuyer's motives. We congratulate them, then that's it.
When you offload one, you must answer every question, even if you have a loose screw.
Why do you want to sell?
Do you have any concerns about leaving the market?
Why would you want to renounce what everyone strives for?
Why would you want to abandon a beautiful place like that?
Why would you mismanage your cash in such a way?
But surely it's only temporary? RIGHT??
Incorrect questions. Buying a property requires several inquiries.
The typical American has $4500 saved up. When something goes wrong with the house (not if, it’s never if), can you actually afford the repairs?
Are you certain that you can examine a home in less than 15 minutes before committing to buying it outright and promising to pay more than twice the asking price on a 30-year 7% mortgage?
Are you certain you're ready to leave behind friends, family, and the services you depend on in order to acquire something?
Have you thought about the connotation that moving to a suburb, which more than half of Americans do, means you will be dependent on a car for the rest of your life?
Plus:
Are you sure you want to prioritize home ownership over debt, employment, travel, raising kids, and daily routines?
Homeownership entails that. This ex-homeowner says it will rule your life from the time you put the key in the door.
This isn't questioned. We don't question enough. The holy home-ownership grail was set long ago, and we don't challenge it.
Many people question after signing the deeds. 70% of homeowners had at least one regret about buying a property, including the expense.
Exactly. Tragic.
Homes are different from houses
We've been fooled into thinking home ownership will make us happy.
Some may agree. No one.
Bricks and brick hindered me from living the version of my life that made me most comfortable, happy, and steady.
I'm spending the next month in a modest apartment in southern Spain. Even though it's late November, today will be 68 degrees. My spouse and I will soon meet his visiting parents. We'll visit a Sherry store. We'll eat, nap, walk, and drink Sherry. Writing. Jerez means flamenco.
That's my home. This is such a privilege. Living a fulfilling life brings me the contentment that buying a home never did.
I'm happy and comfortable knowing I can make almost all of my days good. Rejecting home ownership is partly to blame.
I'm broke like most folks. I had to choose between home ownership and comfort. I said, I didn't find them together.
Feeling at home trumps owning brick-and-mortar every day.
The following is the reality of what it's like to turn the American Dream around.
Leaving the housing market.
Sometimes I wish I owned a home.
I miss having my own yard and bed. My kitchen, cookbooks, and pizza oven are missed.
But I rarely do.
Someone else's life plan pushed home ownership on me. I'm grateful I figured it out at 35. Many take much longer, and some never understand homeownership stinks (for them).
It's confusing. People will think you're dumb or suicidal.
If you read what I write, you'll know. You'll realize that all you've done is choose to live intentionally. Find a home beyond four walls and a picket fence.
Miss? As I said, they're not home. If it were, a pizza oven, a good mattress, and a well-stocked kitchen would bring happiness.
No.
If you can afford a house and desire one, more power to you.
There are other ways to discover home. Find calm and happiness. For fun.
For it, look deeper than your home's foundation.
Will Leitch
2 years ago
Don't treat Elon Musk like Trump.
He’s not the President. Stop treating him like one.
Elon Musk tweeted from Qatar, where he was watching the World Cup Final with Jared Kushner.
Musk's subsequent Tweets were as normal, basic, and bland as anyone's from a World Cup Final: It's depressing to see the world's richest man looking at his phone during a grand ceremony. Rich guy goes to rich guy event didn't seem important.
Before Musk posted his should-I-step-down-at-Twitter poll, CNN ran a long segment asking if it was hypocritical for him to reveal his real-time location after defending his (very dumb) suspension of several journalists for (supposedly) revealing his assassination coordinates by linking to a site that tracks Musks private jet. It was hard to ignore CNN's hypocrisy: It covered Musk as Twitter CEO like President Trump. EVERY TRUMP STORY WAS BASED ON HIM SAYING X, THEN DOING Y. Trump would do something horrific, lie about it, then pretend it was fine, then condemn a political rival who did the same thing, be called hypocritical, and so on. It lasted four years. Exhausting.
It made sense because Trump was the President of the United States. The press's main purpose is to relentlessly cover and question the president.
It's strange to say this out. Twitter isn't America. Elon Musk isn't a president. He maintains a money-losing social media service to harass and mock people he doesn't like. Treating Musk like Trump, as if he should be held accountable like Trump, shows a startling lack of perspective. Some journalists treat Twitter like a country.
The compulsive, desperate way many journalists utilize the site suggests as much. Twitter isn't the town square, despite popular belief. It's a place for obsessives to meet and converse. Journalists say they're breaking news. Their careers depend on it. They can argue it's a public service. Nope. It's a place lonely people go to speak all day. Twitter. So do journalists, Trump, and Musk. Acting as if it has a greater purpose, as if it's impossible to break news without it, or as if the republic is in peril is ludicrous. Only 23% of Americans are on Twitter, while 25% account for 97% of Tweets. I'd think a large portion of that 25% are journalists (or attention addicts) chatting to other journalists. Their loudness makes Twitter seem more important than it is. Nope. It's another stupid website. They were there before Twitter; they will be there after Twitter. It’s just a website. We can all get off it if we want. Most of us aren’t even on it in the first place.
Musk is a website-owner. No world leader. He's not as accountable as Trump was. Musk is cable news's primary character now that Trump isn't (at least for now). Becoming a TV news anchor isn't as significant as being president. Elon Musk isn't as important as we all pretend, and Twitter isn't even close. Twitter is a dumb website, Elon Musk is a rich guy going through a midlife crisis, and cable news is lazy because its leaders thought the entire world was on Twitter and are now freaking out that their playground is being disturbed.
I’ve said before that you need to leave Twitter, now. But even if you’re still on it, we need to stop pretending it matters more than it does. It’s a site for lonely attention addicts, from the man who runs it to the journalists who can’t let go of it. It’s not a town square. It’s not a country. It’s not even a successful website. Let’s stop pretending any of it’s real. It’s not.
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Nathan Reiff
3 years ago
Howey Test and Cryptocurrencies: 'Every ICO Is a Security'
What Is the Howey Test?
To determine whether a transaction qualifies as a "investment contract" and thus qualifies as a security, the Howey Test refers to the U.S. Supreme Court cass: the Securities Act of 1933 and the Securities Exchange Act of 1934. According to the Howey Test, an investment contract exists when "money is invested in a common enterprise with a reasonable expectation of profits from others' efforts."
The test applies to any contract, scheme, or transaction. The Howey Test helps investors and project backers understand blockchain and digital currency projects. ICOs and certain cryptocurrencies may be found to be "investment contracts" under the test.
Understanding the Howey Test
The Howey Test comes from the 1946 Supreme Court case SEC v. W.J. Howey Co. The Howey Company sold citrus groves to Florida buyers who leased them back to Howey. The company would maintain the groves and sell the fruit for the owners. Both parties benefited. Most buyers had no farming experience and were not required to farm the land.
The SEC intervened because Howey failed to register the transactions. The court ruled that the leaseback agreements were investment contracts.
This established four criteria for determining an investment contract. Investing contract:
- An investment of money
- n a common enterprise
- With the expectation of profit
- To be derived from the efforts of others
In the case of Howey, the buyers saw the transactions as valuable because others provided the labor and expertise. An income stream was obtained by only investing capital. As a result of the Howey Test, the transaction had to be registered with the SEC.
Howey Test and Cryptocurrencies
Bitcoin is notoriously difficult to categorize. Decentralized, they evade regulation in many ways. Regardless, the SEC is looking into digital assets and determining when their sale qualifies as an investment contract.
The SEC claims that selling digital assets meets the "investment of money" test because fiat money or other digital assets are being exchanged. Like the "common enterprise" test.
Whether a digital asset qualifies as an investment contract depends on whether there is a "expectation of profit from others' efforts."
For example, buyers of digital assets may be relying on others' efforts if they expect the project's backers to build and maintain the digital network, rather than a dispersed community of unaffiliated users. Also, if the project's backers create scarcity by burning tokens, the test is met. Another way the "efforts of others" test is met is if the project's backers continue to act in a managerial role.
These are just a few examples given by the SEC. If a project's success is dependent on ongoing support from backers, the buyer of the digital asset is likely relying on "others' efforts."
Special Considerations
If the SEC determines a cryptocurrency token is a security, many issues arise. It means the SEC can decide whether a token can be sold to US investors and forces the project to register.
In 2017, the SEC ruled that selling DAO tokens for Ether violated federal securities laws. Instead of enforcing securities laws, the SEC issued a warning to the cryptocurrency industry.
Due to the Howey Test, most ICOs today are likely inaccessible to US investors. After a year of ICOs, then-SEC Chair Jay Clayton declared them all securities.
SEC Chairman Gensler Agrees With Predecessor: 'Every ICO Is a Security'
Howey Test FAQs
How Do You Determine If Something Is a Security?
The Howey Test determines whether certain transactions are "investment contracts." Securities are transactions that qualify as "investment contracts" under the Securities Act of 1933 and the Securities Exchange Act of 1934.
The Howey Test looks for a "investment of money in a common enterprise with a reasonable expectation of profits from others' efforts." If so, the Securities Act of 1933 and the Securities Exchange Act of 1934 require disclosure and registration.
Why Is Bitcoin Not a Security?
Former SEC Chair Jay Clayton clarified in June 2018 that bitcoin is not a security: "Cryptocurrencies: Replace the dollar, euro, and yen with bitcoin. That type of currency is not a security," said Clayton.
Bitcoin, which has never sought public funding to develop its technology, fails the SEC's Howey Test. However, according to Clayton, ICO tokens are securities.
A Security Defined by the SEC
In the public and private markets, securities are fungible and tradeable financial instruments. The SEC regulates public securities sales.
The Supreme Court defined a security offering in SEC v. W.J. Howey Co. In its judgment, the court defines a security using four criteria:
- An investment contract's existence
- The formation of a common enterprise
- The issuer's profit promise
- Third-party promotion of the offering
Read original post.
Ray Dalio
3 years ago
The latest “bubble indicator” readings.
As you know, I like to turn my intuition into decision rules (principles) that can be back-tested and automated to create a portfolio of alpha bets. I use one for bubbles. Having seen many bubbles in my 50+ years of investing, I described what makes a bubble and how to identify them in markets—not just stocks.
A bubble market has a high degree of the following:
- High prices compared to traditional values (e.g., by taking the present value of their cash flows for the duration of the asset and comparing it with their interest rates).
- Conditons incompatible with long-term growth (e.g., extrapolating past revenue and earnings growth rates late in the cycle).
- Many new and inexperienced buyers were drawn in by the perceived hot market.
- Broad bullish sentiment.
- Debt financing a large portion of purchases.
- Lots of forward and speculative purchases to profit from price rises (e.g., inventories that are more than needed, contracted forward purchases, etc.).
I use these criteria to assess all markets for bubbles. I have periodically shown you these for stocks and the stock market.
What Was Shown in January Versus Now
I will first describe the picture in words, then show it in charts, and compare it to the last update in January.
As of January, the bubble indicator showed that a) the US equity market was in a moderate bubble, but not an extreme one (ie., 70 percent of way toward the highest bubble, which occurred in the late 1990s and late 1920s), and b) the emerging tech companies (ie. As well, the unprecedented flood of liquidity post-COVID financed other bubbly behavior (e.g. SPACs, IPO boom, big pickup in options activity), making things bubbly. I showed which stocks were in bubbles and created an index of those stocks, which I call “bubble stocks.”
Those bubble stocks have popped. They fell by a third last year, while the S&P 500 remained flat. In light of these and other market developments, it is not necessarily true that now is a good time to buy emerging tech stocks.
The fact that they aren't at a bubble extreme doesn't mean they are safe or that it's a good time to get long. Our metrics still show that US stocks are overvalued. Once popped, bubbles tend to overcorrect to the downside rather than settle at “normal” prices.
The following charts paint the picture. The first shows the US equity market bubble gauge/indicator going back to 1900, currently at the 40% percentile. The charts also zoom in on the gauge in recent years, as well as the late 1920s and late 1990s bubbles (during both of these cases the gauge reached 100 percent ).
The chart below depicts the average bubble gauge for the most bubbly companies in 2020. Those readings are down significantly.
The charts below compare the performance of a basket of emerging tech bubble stocks to the S&P 500. Prices have fallen noticeably, giving up most of their post-COVID gains.
The following charts show the price action of the bubble slice today and in the 1920s and 1990s. These charts show the same market dynamics and two key indicators. These are just two examples of how a lot of debt financing stock ownership coupled with a tightening typically leads to a bubble popping.
Everything driving the bubbles in this market segment is classic—the same drivers that drove the 1920s bubble and the 1990s bubble. For instance, in the last couple months, it was how tightening can act to prick the bubble. Review this case study of the 1920s stock bubble (starting on page 49) from my book Principles for Navigating Big Debt Crises to grasp these dynamics.
The following charts show the components of the US stock market bubble gauge. Since this is a proprietary indicator, I will only show you some of the sub-aggregate readings and some indicators.
Each of these six influences is measured using a number of stats. This is how I approach the stock market. These gauges are combined into aggregate indices by security and then for the market as a whole. The table below shows the current readings of these US equity market indicators. It compares current conditions for US equities to historical conditions. These readings suggest that we’re out of a bubble.
1. How High Are Prices Relatively?
This price gauge for US equities is currently around the 50th percentile.
2. Is price reduction unsustainable?
This measure calculates the earnings growth rate required to outperform bonds. This is calculated by adding up the readings of individual securities. This indicator is currently near the 60th percentile for the overall market, higher than some of our other readings. Profit growth discounted in stocks remains high.
Even more so in the US software sector. Analysts' earnings growth expectations for this sector have slowed, but remain high historically. P/Es have reversed COVID gains but remain high historical.
3. How many new buyers (i.e., non-existing buyers) entered the market?
Expansion of new entrants is often indicative of a bubble. According to historical accounts, this was true in the 1990s equity bubble and the 1929 bubble (though our data for this and other gauges doesn't go back that far). A flood of new retail investors into popular stocks, which by other measures appeared to be in a bubble, pushed this gauge above the 90% mark in 2020. The pace of retail activity in the markets has recently slowed to pre-COVID levels.
4. How Broadly Bullish Is Sentiment?
The more people who have invested, the less resources they have to keep investing, and the more likely they are to sell. Market sentiment is now significantly negative.
5. Are Purchases Being Financed by High Leverage?
Leveraged purchases weaken the buying foundation and expose it to forced selling in a downturn. The leverage gauge, which considers option positions as a form of leverage, is now around the 50% mark.
6. To What Extent Have Buyers Made Exceptionally Extended Forward Purchases?
Looking at future purchases can help assess whether expectations have become overly optimistic. This indicator is particularly useful in commodity and real estate markets, where forward purchases are most obvious. In the equity markets, I look at indicators like capital expenditure, or how much businesses (and governments) invest in infrastructure, factories, etc. It reflects whether businesses are projecting future demand growth. Like other gauges, this one is at the 40th percentile.
What one does with it is a tactical choice. While the reversal has been significant, future earnings discounting remains high historically. In either case, bubbles tend to overcorrect (sell off more than the fundamentals suggest) rather than simply deflate. But I wanted to share these updated readings with you in light of recent market activity.
James Howell
3 years ago
Which Metaverse Is Better, Decentraland or Sandbox?
The metaverse is the most commonly used term in current technology discussions. While the entire tech ecosystem awaits the metaverse's full arrival, defining it is difficult. Imagine the internet in the '80s! The metaverse is a three-dimensional virtual world where users can interact with digital solutions and each other as digital avatars.
The metaverse is a three-dimensional virtual world where users can interact with digital solutions and each other as digital avatars.
Among the metaverse hype, the Decentraland vs Sandbox debate has gained traction. Both are decentralized metaverse platforms with no central authority. So, what's the difference and which is better? Let us examine the distinctions between Decentraland and Sandbox.
2 Popular Metaverse Platforms Explained
The first step in comparing sandbox and Decentraland is to outline the definitions. Anyone keeping up with the metaverse news has heard of the two current leaders. Both have many similarities, but also many differences. Let us start with defining both platforms to see if there is a winner.
Decentraland
Decentraland, a fully immersive and engaging 3D metaverse, launched in 2017. It allows players to buy land while exploring the vast virtual universe. Decentraland offers a wide range of activities for its visitors, including games, casinos, galleries, and concerts. It is currently the longest-running metaverse project.
Decentraland began with a $24 million ICO and went public in 2020. The platform's virtual real estate parcels allow users to create a variety of experiences. MANA and LAND are two distinct tokens associated with Decentraland. MANA is the platform's native ERC-20 token, and users can burn MANA to get LAND, which is ERC-721 compliant. The MANA coin can be used to buy avatars, wearables, products, and names on Decentraland.
Sandbox
Sandbox, the next major player, began as a blockchain-based virtual world in 2011 and migrated to a 3D gaming platform in 2017. The virtual world allows users to create, play, own, and monetize their virtual experiences. Sandbox aims to empower artists, creators, and players in the blockchain community to customize the platform. Sandbox gives the ideal means for unleashing creativity in the development of the modern gaming ecosystem.
The project combines NFTs and DAOs to empower a growing community of gamers. A new play-to-earn model helps users grow as gamers and creators. The platform offers a utility token, SAND, which is required for all transactions.
What are the key points from both metaverse definitions to compare Decentraland vs sandbox?
It is ideal for individuals, businesses, and creators seeking new artistic, entertainment, and business opportunities. It is one of the rapidly growing Decentralized Autonomous Organization projects. Holders of MANA tokens also control the Decentraland domain.
Sandbox, on the other hand, is a blockchain-based virtual world that runs on the native token SAND. On the platform, users can create, sell, and buy digital assets and experiences, enabling blockchain-based gaming. Sandbox focuses on user-generated content and building an ecosystem of developers.
Sandbox vs. Decentraland
If you try to find what is better Sandbox or Decentraland, then you might struggle with only the basic definitions. Both are metaverse platforms offering immersive 3D experiences. Users can freely create, buy, sell, and trade digital assets. However, both have significant differences, especially in MANA vs SAND.
For starters, MANA has a market cap of $5,736,097,349 versus $4,528,715,461, giving Decentraland an advantage.
The MANA vs SAND pricing comparison is also noteworthy. A SAND is currently worth $3664, while a MANA is worth $2452.
The value of the native tokens and the market capitalization of the two metaverse platforms are not enough to make a choice. Let us compare Sandbox vs Decentraland based on the following factors.
Workstyle
The way Decentraland and Sandbox work is one of the main comparisons. From a distance, they both appear to work the same way. But there's a lot more to learn about both platforms' workings. Decentraland has 90,601 digital parcels of land.
Individual parcels of virtual real estate or estates with multiple parcels of land are assembled. It also has districts with similar themes and plazas, which are non-tradeable parcels owned by the community. It has three token types: MANA, LAND, and WEAR.
Sandbox has 166,464 plots of virtual land that can be grouped into estates. Estates are owned by one person, while districts are owned by two or more people. The Sandbox metaverse has four token types: SAND, GAMES, LAND, and ASSETS.
Age
The maturity of metaverse projects is also a factor in the debate. Decentraland is clearly the winner in terms of maturity. It was the first solution to create a 3D blockchain metaverse. Decentraland made the first working proof of concept public. However, Sandbox has only made an Alpha version available to the public.
Backing
The MANA vs SAND comparison would also include support for both platforms. Digital Currency Group, FBG Capital, and CoinFund are all supporters of Decentraland. It has also partnered with Polygon, the South Korean government, Cyberpunk, and Samsung.
SoftBank, a Japanese multinational conglomerate focused on investment management, is another major backer. Sandbox has the backing of one of the world's largest investment firms, as well as Slack and Uber.
Compatibility
Wallet compatibility is an important factor in comparing the two metaverse platforms. Decentraland currently has a competitive advantage. How? Both projects' marketplaces accept ERC-20 wallets. However, Decentraland has recently improved by bridging with Walletconnect. So it can let Polygon users join Decentraland.
Scalability
Because Sandbox and Decentraland use the Ethereum blockchain, scalability is an issue. Both platforms' scalability is constrained by volatile tokens and high gas fees. So, scalability issues can hinder large-scale adoption of both metaverse platforms.
Buying Land
Decentraland vs Sandbox comparisons often include virtual real estate. However, the ability to buy virtual land on both platforms defines the user experience and differentiates them. In this case, Sandbox offers better options for users to buy virtual land by combining OpenSea and Sandbox. In fact, Decentraland users can only buy from the MANA marketplace.
Innovation
The rate of development distinguishes Sandbox and Decentraland. Both platforms have been developing rapidly new features. However, Sandbox wins by adopting Polygon NFT layer 2 solutions, which consume almost 100 times less energy than Ethereum.
Collaborations
The platforms' collaborations are the key to determining "which is better Sandbox or Decentraland." Adoption of metaverse platforms like the two in question can be boosted by association with reputable brands. Among the partners are Atari, Cyberpunk, and Polygon. Rather, Sandbox has partnered with well-known brands like OpenSea, CryptoKitties, The Walking Dead, Snoop Dogg, and others.
Platform Adaptivity
Another key feature that distinguishes Sandbox and Decentraland is the ease of use. Sandbox clearly wins in terms of platform access. It allows easy access via social media, email, or a Metamask wallet. However, Decentraland requires a wallet connection.
Prospects
The future development plans also play a big role in defining Sandbox vs Decentraland. Sandbox's future development plans include bringing the platform to mobile devices. This includes consoles like PlayStation and Xbox. By the end of 2023, the platform expects to have around 5000 games.
Decentraland, on the other hand, has no set plan. In fact, the team defines the decisions that appear to have value. They plan to add celebrities, creators, and brands soon, along with NFT ads and drops.
Final Words
The comparison of Decentraland vs Sandbox provides a balanced view of both platforms. You can see how difficult it is to determine which decentralized metaverse is better now. Sandbox is still in Alpha, whereas Decentraland has a working proof of concept.
Sandbox, on the other hand, has better graphics and is backed by some big names. But both have a long way to go in the larger decentralized metaverse.