Decentraland Explained: A Beginner’s Guide to the Virtual Real Estate Revolution

As the digital world evolves, we are witnessing an exciting shift toward virtual reality spaces known as the metaverse. This digital realm is more than just an internet playground—it’s an immersive environment where users can socialize, work, play, and even make real-world investments through virtual assets. One of the pioneers in this field is Decentraland, a virtual world entirely owned and operated by its users through blockchain technology.

Decentraland offers a unique environment where you can own virtual land, build structures, explore creative spaces, and even interact with other users—all in a decentralized, digital setting. This platform brings together virtual reality and cryptocurrency, enabling users to purchase virtual properties, engage with others, and even monetize their digital content.

So, what makes Decentraland so popular? In short, it empowers users by giving them ownership over digital assets in the form of non-fungible tokens (NFTs), allowing them to shape, control, and invest in the world itself. For crypto beginners, Decentraland serves as a gateway to understanding blockchain applications beyond traditional cryptocurrencies, offering hands-on experience in the thriving world of NFTs and virtual assets.

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Background: Origins and Purpose of Decentraland

Founders and Timeline

Decentraland was conceived by Ari Meilich and Esteban Ordano, who envisioned a virtual world powered by blockchain that would grant full ownership rights to its users. Their journey began in 2015 when they created a prototype for Decentraland, initially represented as a 2D grid where users could claim ownership of pixels on a digital map. Since then, Decentraland has transformed into a three-dimensional, immersive environment where people can build, socialize, and trade.

The platform officially launched in 2017 after raising over $24 million in its initial coin offering (ICO). By 2020, Decentraland opened its doors to the public, offering anyone the chance to participate in this decentralized metaverse. This milestone marked Decentraland as one of the earliest virtual worlds to utilize blockchain for ownership and governance, setting it apart from other virtual spaces.

Project Goals and Vision

Decentraland’s primary mission is to build a decentralized virtual world that encourages users to express creativity, establish communities, and have control over their digital assets. Unlike traditional games or online worlds managed by corporations, Decentraland is unique because users—not a central authority—shape its direction. This user-first philosophy is evident in its governance system, where token holders can vote on platform changes and influence its development.

The platform also aims to foster a space for people to create and monetize digital experiences. From hosting concerts and art exhibitions to building interactive games, Decentraland empowers users to bring their imaginations to life and potentially earn revenue through their creations. This emphasis on creativity and ownership has attracted artists, developers, gamers, and businesses alike.

Blockchain Foundation

Decentraland runs on the Ethereum blockchain, a technology known for its security, transparency, and flexibility in supporting decentralized applications (dApps). Ethereum’s structure allows Decentraland to operate with smart contracts, ensuring that ownership transactions are secure and transparent. Through blockchain, Decentraland can offer its unique value proposition—verified ownership of virtual assets—by tokenizing LAND and items in the metaverse as NFTs. This ensures that users can securely buy, sell, and trade their assets without needing an intermediary.

Ethereum’s blockchain also supports Decentraland’s native cryptocurrency, MANA, which users need to buy virtual land, goods, and services. MANA, an ERC-20 token, plays a vital role in this ecosystem by powering the economy of Decentraland. When users buy LAND parcels, they must burn MANA tokens, reducing the circulating supply, which, in theory, can increase MANA’s value over time.

Key Features of Decentraland

One of the key reasons Decentraland has attracted attention is the variety of unique features it offers within the metaverse. As a decentralized virtual world, Decentraland empowers users to fully control their experiences and assets. Here, we’ll explore some of the platform’s most prominent features, including LAND ownership, the MANA token, decentralized governance, user-generated content, and interactive elements that bring this digital universe to life.

LAND Ownership: Building Your Digital Real Estate Portfolio

In Decentraland, virtual real estate, or LAND, is one of the most essential assets. LAND parcels are digital pieces of real estate represented as NFTs on the Ethereum blockchain, which means each parcel is unique and verifiable. Here’s how it works:

• Ownership Structure: Each LAND parcel is an NFT (ERC-721 token) that can be purchased, sold, or traded by users. The size of a standard LAND parcel is 16×16 meters in the virtual world, though users can combine multiple parcels to create larger estates.
• Marketplace and Value: LAND parcels are traded on the Decentraland Marketplace, where users can buy and sell them with MANA tokens. The value of LAND varies depending on factors such as location, size, and proximity to popular virtual attractions, much like in the physical real estate market.
• Customization: Once a user owns a parcel of LAND, they can build anything they wish on it, from art installations and interactive games to virtual stores and social hubs. This feature has led to the rise of creative virtual districts within Decentraland.

This ownership model not only enables users to invest in virtual real estate but also allows them to explore creative possibilities, which can be a source of revenue through rental or sale in the marketplace.

MANA Token: Decentraland’s Digital Currency

The lifeblood of the Decentraland economy is MANA, an ERC-20 token that serves as the platform’s native cryptocurrency. MANA has several uses within Decentraland, from purchasing LAND to buying virtual goods and services. Here’s a closer look at how MANA functions:

• Buying LAND and In-Game Purchases: To acquire LAND, users must spend MANA, and once they do, the MANA tokens used are burned, reducing the overall supply of MANA. This burning mechanism can positively impact the token’s scarcity, making it valuable within the ecosystem.
• Goods and Services: Users can use MANA to buy digital items like clothing for avatars, accessories, or unique collectibles within Decentraland. This supports a vibrant in-game economy, where creators and sellers can monetize their digital creations.
• Exchangeable on Other Platforms: Since MANA is an ERC-20 token, it can also be traded on major cryptocurrency exchanges. Users can buy MANA with fiat currency or other cryptocurrencies, giving them flexibility in engaging with Decentraland’s economy.

For newcomers, MANA provides an accessible way to get involved in Decentraland’s ecosystem and participate in the marketplace, making it easier to understand blockchain-based economies.

Decentralized Governance: The Decentraland DAO

One of the core elements that set Decentraland apart from traditional virtual worlds is its governance model. The platform is managed by a Decentralized Autonomous Organization (DAO), which allows MANA and LAND holders to propose and vote on decisions regarding the platform’s development. Here’s how the DAO works:

• User Voting Rights: Users who own MANA or LAND can vote on important decisions affecting the platform, such as policy updates, marketplace fees, and development initiatives.
• Community-Driven Evolution: This decentralized governance approach ensures that the community collectively shapes the future of Decentraland. By giving users a voice, the platform fosters a sense of ownership and alignment with its vision.
• Proposals and Improvements: Any user can submit a proposal, and if it garners enough support, it can be enacted. This structure ensures transparency and community participation in shaping Decentraland’s growth and direction.

The Decentraland DAO embodies the platform’s commitment to decentralization, allowing users to influence everything from content policies to new features, creating a community-led ecosystem.

User-Generated Content and Experiences

Decentraland’s thriving community is driven by user-generated content, which gives users creative freedom to bring their ideas to life in the metaverse. The types of content and experiences users can create are virtually limitless, including:

• Digital Art and Galleries: Artists can showcase and sell digital art as NFTs, creating virtual galleries where visitors can view or purchase pieces. Some users host interactive art exhibits, making Decentraland a haven for digital artists.
• Games and Interactive Experiences: Developers can build mini-games or interactive experiences on their LAND parcels, offering visitors an engaging way to explore the metaverse.
• Events and Social Spaces: Users often host events like concerts, workshops, or meetups, allowing visitors to gather in virtual spaces. This feature supports a vibrant social community, attracting a diverse range of users.

Decentraland’s user-generated model allows it to remain dynamic, as the content constantly evolves based on user creativity and preferences.

Interactivity and Avatars

Avatars are a big part of Decentraland’s appeal, giving users a digital persona within the world. Here’s how Decentraland supports interactive social engagement through avatars:

• Avatar Customization: Users can create and customize their avatars with unique clothing, hairstyles, and accessories. Many of these items can be purchased in the marketplace, adding another layer to the digital economy.
• Social Interactions: Avatars can communicate through chat and even gestures, making social interaction in Decentraland more immersive. Users can make friends, form communities, and even collaborate on creative projects.
• Events and Activities: From virtual parties to conferences, Decentraland hosts various events where avatars can gather, interact, and engage. These events foster a sense of community and encourage social networking in a virtual space.

The interactive aspect of Decentraland offers users a feeling of immersion and community, making it not just a marketplace or investment platform, but a social hub within the metaverse.

4. How to Get Started in Decentraland

For newcomers, Decentraland can be an exciting gateway into the world of blockchain and virtual worlds. In this section, we’ll walk through the steps needed to set up an account, get MANA, and begin exploring Decentraland’s digital spaces.

Creating an Account and Wallet Setup

To start, users need a digital wallet compatible with Decentraland, as it will store both MANA tokens and NFTs. Here’s a quick guide to setting things up:

1. Choose a Wallet: MetaMask is one of the most popular digital wallets for Decentraland due to its ease of use and Ethereum compatibility. It’s available as a browser extension and mobile app.
2. Download and Install: Visit MetaMask’s official site, download the wallet, and follow the prompts to set it up. Make sure to secure your wallet by safely storing the private key and seed phrase provided during setup.
3. Connect Your Wallet to Decentraland: Once your wallet is ready, go to the Decentraland website. When you click “Play,” you’ll be prompted to connect your wallet. Follow the instructions, and you’re all set!

With a wallet connected, you’ll be able to interact with Decentraland, make purchases, and store assets.

Accessing Decentraland

Decentraland is accessible through web browsers, making it easy for beginners to jump in without additional hardware. Here’s how to get started:

• Browser Access: You can access Decentraland directly through a compatible web browser. While Google Chrome and Firefox are popular options, Decentraland’s website lists recommended browsers for an optimal experience.
• Virtual Reality (VR): For those who want an immersive experience, Decentraland offers VR support. However, VR isn’t required, and most users explore Decentraland through a standard desktop browser.

To start exploring, users can enter as a guest or log in with their connected wallet for full access. Once inside, you can roam the virtual world, visit popular locations, and attend events—all without any purchase required.

Buying MANA: Getting Your First Tokens

To interact fully with Decentraland’s economy, you’ll need to acquire some MANA tokens. Here’s a quick guide:

1. Select an Exchange: MANA is available on major cryptocurrency exchanges like Binance, Coinbase, and Kraken. Sign up for one of these platforms and go through any necessary verification steps.
2. Purchase MANA: Once your account is set up, search for MANA, choose how much you’d like to buy, and confirm the purchase. You can usually buy MANA using fiat currencies (like USD) or other cryptocurrencies (like BTC or ETH).
3. Transfer MANA to Your Wallet: After purchasing MANA, transfer it from the exchange to your wallet address. Be sure to double-check your wallet address before confirming the transfer.

With MANA in your wallet, you’ll be ready to buy LAND or other virtual items in Decentraland.

Purchasing LAND: Your Guide to Virtual Real Estate

Buying LAND in Decentraland is one of the most exciting parts of joining the platform, as it allows users to own and customize a piece of the virtual world. Here’s how it works:

1. Navigate to the Decentraland Marketplace: On Decentraland’s official site, visit the Marketplace section, where you can browse available LAND parcels.
2. Choose a Parcel: LAND parcels vary in price based on their location and proximity to popular areas. For example, parcels near high-traffic zones or virtual landmarks tend to be more expensive. Browse the map and select a parcel that suits your interests and budget.
3. Buy LAND with MANA: Once you’ve chosen a parcel, you’ll see the price listed in MANA. Make sure you have enough MANA in your wallet, then click to purchase. You’ll be prompted to confirm the transaction through your wallet, and the LAND will be transferred to your account.
4. View Your Ownership: After purchasing, you can view your LAND ownership in your wallet as an NFT, as well as in your Decentraland profile. Now, you can build on it, customize it, or even hold it as an investment.

Purchasing LAND is optional, and beginners can explore Decentraland without owning LAND. However, owning a parcel allows users to create their own digital experiences and build their presence in the metaverse.

Benefits of Decentraland for Users

Decentraland is more than just a virtual world; it’s a platform that allows users to explore new opportunities in ownership, creativity, and income generation. For many beginners, the benefits of Decentraland extend beyond entertainment, offering a pathway to understanding digital ownership and how the blockchain can empower users in unprecedented ways.

Ownership and Investment Potential

One of the primary attractions of Decentraland is the ability for users to own their digital assets, an experience that’s unique to blockchain-based virtual worlds. Here’s why ownership is such a significant benefit:

• Digital Real Estate: LAND parcels in Decentraland offer users a form of digital real estate that has its own market value. Like real-world property, LAND can increase in value, especially in high-demand locations, providing users with investment potential.
• Resale Opportunities: LAND owners can sell their parcels on the Decentraland Marketplace or external NFT marketplaces. As the Decentraland community grows, well-located LAND parcels become more desirable, creating opportunities for profitable resales.
• Increasing MANA Value: Since LAND purchases require MANA, a high demand for LAND can positively affect MANA’s value over time. For users who hold MANA, this can mean appreciating assets within the ecosystem.

For those curious about digital investments, Decentraland offers an accessible, hands-on way to explore the concept of virtual real estate ownership and value appreciation.

Creative Freedom: Bringing Ideas to Life

Decentraland empowers users to unleash their creativity, allowing them to build digital spaces and experiences without the restrictions of a centralized platform. This freedom attracts digital artists, game designers, and social influencers alike. Here’s how users can express their creativity:

• Customizable LAND: Owners have complete control over the appearance and functionality of their LAND parcels. With tools provided by Decentraland, users can design virtual homes, art galleries, games, or interactive social spaces.
• Creative Collaboration: The platform’s collaborative environment enables users to work with others, combining ideas to build expansive districts or themed areas. For example, multiple users may create an entire neighborhood dedicated to showcasing NFT art or hosting gaming tournaments.
• Showcase Talents: Artists and creators can showcase their work on LAND, attracting visitors who may support their work or even purchase digital art pieces directly from them.

By providing users with control over their virtual spaces, Decentraland fosters a community of creators who are free to experiment, express, and bring imaginative ideas to life.

Monetization Opportunities

For many users, Decentraland isn’t just a virtual playground—it’s a place to make money. With numerous avenues for monetization, users can turn their time and creativity into potential income sources:

• Selling NFTs: Decentraland is a prime environment for creators to sell digital art and collectibles as NFTs. Artists can set up galleries or exhibitions where visitors can browse and purchase items directly.
• Hosting Events: Virtual events like concerts, meetups, or workshops can be held on Decentraland. LAND owners can charge entry fees or partner with sponsors to host large-scale events, creating an income stream.
• Leasing LAND: If users own LAND in high-traffic areas, they can rent it out to other users or brands looking for visibility. Leasing LAND is becoming increasingly popular as companies look to reach Decentraland’s growing audience.
• Advertising Space: For businesses, Decentraland offers a novel advertising platform. Users who own prime locations can partner with brands to display virtual billboards or host branded spaces, earning income through advertisement deals.

With these monetization opportunities, Decentraland provides users with the chance to capitalize on their digital assets and creativity, making it appealing to those looking to generate income in the metaverse.

6. Risks and Challenges of Decentraland

While Decentraland offers exciting opportunities, it also comes with its share of risks and challenges. For beginners, understanding these aspects can help them make more informed decisions and set realistic expectations.

Volatility of MANA and LAND Values

One of the primary challenges for users is the volatile nature of cryptocurrency and NFT markets, which directly impacts the value of MANA and LAND in Decentraland.

• Fluctuating MANA Prices: Like most cryptocurrencies, MANA is subject to market fluctuations. Economic trends, regulatory news, and investor sentiment can cause MANA’s price to rise or fall dramatically, affecting the purchasing power of users within Decentraland.
• Uncertain LAND Value: The value of LAND parcels in Decentraland is also unpredictable. While some users have made profitable investments, LAND prices can drop based on demand, platform popularity, and competition from other virtual worlds. For users viewing Decentraland as an investment, this volatility presents a risk that should be carefully considered.

Technology Requirements and Accessibility

Decentraland requires certain technology specifications to run smoothly, which can limit accessibility for users with older devices or limited technical knowledge.

• Device Specifications: Decentraland is best experienced on a modern computer with a capable graphics card, sufficient RAM, and stable internet connectivity. Users with outdated devices may struggle with lag or lower quality graphics, impacting their overall experience.
• VR and Browser Limitations: While Decentraland supports VR for an immersive experience, not all users have access to VR equipment, and the platform’s performance can vary depending on the browser. Beginners may need to try different setups to find the most compatible option for their devices.

These technological requirements may pose a barrier to entry, especially for beginners who are unfamiliar with optimizing their computer settings or accessing VR technology.

User Security and Privacy

Since Decentraland operates on the blockchain and requires users to connect digital wallets, there are inherent security and privacy considerations.

• Wallet Security: Connecting a wallet to Decentraland exposes users to certain risks, such as phishing attacks or potential hacks. Beginners may be less familiar with wallet security practices, like double-checking URLs, using two-factor authentication, and safely storing private keys.
• Privacy of Personal Information: Although Decentraland is designed to be a secure environment, privacy risks still exist. Since blockchain transactions are public, user activity is theoretically traceable, raising concerns for individuals who prioritize privacy.
• Risks of Scams: Decentraland’s marketplace and social spaces are largely community-driven, which opens the door for scams or misleading offers. New users should exercise caution, research before making purchases, and engage with trusted sellers or verified content.

Understanding security best practices can help users avoid these risks and make their experience in Decentraland safer.

Platform Maturity and Competition

While Decentraland is one of the leading metaverse projects, the broader virtual world space is still in its early stages and subject to rapid change.

• Platform Evolution: As a developing platform, Decentraland faces the challenge of evolving to meet user demands and technology advances. Issues such as technical bugs, platform updates, or even shifts in governance could impact user experience over time.
• Growing Competition: With other platforms like The Sandbox, CryptoVoxels, and new projects entering the space, Decentraland faces competition within the metaverse market. Shifts in user interest or the emergence of more advanced virtual worlds could impact Decentraland’s popularity.

Despite these challenges, Decentraland’s continuous development and commitment to community governance give it resilience. However, users should be aware that the platform and the metaverse landscape are evolving rapidly, and investing in Decentraland carries inherent risks.

Decentraland Use Cases and Real-World Examples

Decentraland has sparked interest across various industries, from art and gaming to education and business. Here, we’ll explore some of the unique ways users and organizations are leveraging Decentraland for creative, social, and commercial purposes.

Gaming and Social Interaction

For many users, Decentraland offers a place to unwind, play games, and meet others. Gaming is a huge draw within the platform, where users can enjoy a variety of user-created games or even design their own.

• Interactive Gaming: Users can find and play mini-games scattered across the metaverse, from simple obstacle courses to more complex, user-designed games. These gaming experiences often include incentives, such as in-game rewards or NFTs, adding excitement and engagement.
• Social Hangouts: Decentraland is also a social hub where people gather, chat, and build friendships. Users can join themed districts, attend parties, or explore virtual neighborhoods, making it an interactive space that encourages social connections.

Art and NFT Showcases

One of Decentraland’s most popular use cases is as a virtual gallery for digital art and NFTs, transforming the metaverse into a creative space for artists and collectors.

• Virtual Art Galleries: Decentraland hosts numerous galleries where digital artists display their work as NFTs. Users can browse, admire, and purchase unique pieces of art, bringing new opportunities to artists looking to reach a global audience.
• NFT Exhibitions and Auctions: Some artists and galleries organize special NFT events or auctions, where art collectors can buy limited-edition pieces. The ability to showcase digital art in an immersive environment has attracted artists from various backgrounds, making Decentraland a thriving space for digital art enthusiasts.

Education and Training

Educational institutions and organizations have started experimenting with Decentraland to offer virtual learning experiences.

• Virtual Classrooms and Workshops: Some educators use Decentraland to create virtual classrooms or host interactive workshops. By holding lessons in a 3D environment, educators can make learning more engaging, especially for students interested in digital or creative fields.
• Conferences and Panels: Professionals across industries hold events in Decentraland, such as conferences, panel discussions, or networking meetups. These events offer people worldwide a way to participate in valuable learning and networking opportunities without needing to travel.

Business Opportunities

As brands and businesses recognize the potential of the metaverse, Decentraland has become a platform for companies to experiment with virtual commerce, branding, and customer engagement.

• Virtual Stores and Showrooms: Some brands have opened virtual stores within Decentraland, allowing users to browse and purchase digital items or services. Virtual showrooms let businesses showcase products in creative, immersive environments, giving customers a unique shopping experience.
• Event Sponsorships and Branding: Businesses also sponsor virtual events, placing their logos or branding on digital billboards and other virtual assets. This exposure allows brands to connect with Decentraland’s audience, especially as more users explore the metaverse.

These diverse use cases highlight Decentraland’s versatility, showing how it’s become a platform where art, entertainment, learning, and business converge.

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The Future of Decentraland and the Metaverse

Decentraland is part of the broader metaverse movement, which experts predict will transform digital interaction and commerce. Here’s a look at some future trends and possibilities for Decentraland and similar platforms.

Growth of the Virtual Real Estate Market

As more people and businesses enter the metaverse, virtual real estate could continue to grow in value. Just as cities develop, Decentraland’s digital landscape may evolve with new neighborhoods, business districts, and social hubs, enhancing the platform’s appeal and investment potential.

Integration of VR/AR Technologies

Decentraland currently supports VR, but as VR and augmented reality (AR) technology advances, we may see deeper integration, making the experience even more immersive. Enhanced VR/AR capabilities would bring Decentraland closer to a fully immersive metaverse, attracting even more users interested in virtual reality experiences.

Competitors and Collaborations

Decentraland faces competition from other metaverse platforms like The Sandbox and Somnium Space. However, future partnerships or cross-platform collaborations could broaden Decentraland’s ecosystem, enabling users to interact with other virtual worlds or carry assets across platforms.

Long-Term Vision and Roadmap

Decentraland has a dynamic roadmap focused on expanding content creation tools, improving user experience, and enhancing governance. As the platform evolves, it may introduce more advanced features and options, making it more adaptable for new use cases and a wider audience.

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Getting Involved: Tips for Beginners

For newcomers ready to explore Decentraland, here are a few tips to help you get the most out of your experience:

• Research First: Before making any investments, take time to understand Decentraland, its marketplace, and the volatility of digital assets.
• Join Decentraland Communities: Engage with other users on platforms like Discord, Twitter, or Decentraland’s official forums. Communities can offer insights, answer questions, and help you stay updated on events or new developments.
• Explore for Free: You can wander through Decentraland as a guest without committing financially. This way, you can see if it’s something you’d like to invest in before purchasing MANA or LAND.
• Stay Updated: Follow Decentraland’s official blog or subscribe to crypto news sources to stay informed about platform updates and trends within the metaverse.

Following these tips can make your experience more enjoyable and help you make informed decisions as you explore this dynamic virtual world.

Conclusion

Decentraland has opened new doors for users to explore digital ownership, creative expression, and virtual economies within a decentralized, community-driven environment. By combining blockchain technology with immersive experiences, Decentraland offers beginners a glimpse into the future of virtual spaces, where users don’t just play but also create, invest, and connect.

Whether you’re looking to buy virtual real estate, showcase your art, or attend virtual events, Decentraland is a platform filled with opportunities. For anyone curious about the potential of the metaverse, it’s a fantastic place to start, offering a hands-on way to learn about blockchain, NFTs, and the possibilities of a decentralized digital world.

Resources for Learning More

For readers interested in exploring Decentraland further, here’s a collection of helpful resources that cover everything from setting up a wallet to community forums and official guides.

• Decentraland Official Website: The main website where you can start your Decentraland journey, set up an account, connect a wallet, and explore the platform.
• Decentraland Marketplace: This is where you can buy and sell LAND, MANA, and various digital assets. Check out the marketplace to see current prices and available properties.
• Decentraland Blog: The official blog offers updates, news, and guides on new features, events, and platform developments. It’s a great way to stay informed.
• MetaMask Wallet: Since MetaMask is a popular wallet for Decentraland users, this link will help beginners download and set up MetaMask to interact with Decentraland securely.
• Decentraland Community Discord: Join the Decentraland community on Discord to connect with other users, ask questions, and get advice from experienced community members.
• Decentraland Docs and Tutorials: The Decentraland Documentation offers a wealth of tutorials, from beginner guides to advanced scripting and building tutorials for those interested in creating within Decentraland.
• CoinMarketCap: MANA Overview: CoinMarketCap provides up-to-date information on MANA’s market performance, trading history, and other metrics to track MANA’s value.
• Ethereum and Blockchain Basics: Since Decentraland operates on the Ethereum blockchain, this guide from Ethereum.org is useful for beginners looking to understand the blockchain technology behind the platform.

By using these resources, beginners can deepen their understanding of Decentraland, stay connected with the community, and keep up with platform updates.