Virtual Land Purchased In Mortgage
Users get to access amenities like casinos in the new virtual world. The virtual world is an indicator of the possibilities of blockchain technology.
Users To Access Mortgage In New Decentraland
An unidentified individual has used about $215,000 to purchase tokenized pixels on a monitor. The amount can be used to purchase a house in some parts of the world. The pixel is in measurements of 10x10 per square meter. The virtual space will enable anyone to set up different things in a virtual reality dubbed Decentraland.
Under the platform, clients can access, casinos, music and visit shops. To realize the goal, Decentraland has inked a deal with Ripio Credi Network. The platform operates on ETH that deploys contracts in the loan application procedures.
The virtual world was established by Ripio, one of the largest cryptocurrency firms in South America. The lead product for the firm is a storage facility that supports BTC and ethereum alongside the local currency. The wallet enables users to send payments digitally. Additionally, the firm is expected to extend its mortgage to Decentraland pixels.
Users who wish to get the LAND mortgage will be required to complete the application details that entail transaction history, and a 10% deposit of the valuation of the piece of land. Once the request is received, a fresh loan is then displayed on the RCN dApp. If the land is open for sale, any lender is able to lend money and fulfill the request.
In the end, a smart contract is created locking the parts and transfering the space to new owners or to the borrower. Once the request has been initiated, a pay option emerges on the requester's side. If the user repays the loan, he then has an opportunity to claim land ownership in full.
However, a look at the interest rates shows it is high considering that the loans offered are small. On the side of fiat lending, a smart contract is more inclined to the backend. This feature makes fiat lending difficult.
The mortgage comes with payments split in monthly installments. However, it is not clear how the payment model will work. According to Decentraland boss Ariel Meilich, the platform aims to come up with interesting virtual reality products. He pointed out that it can be ruled by open source standards, unlike centralized organizations.