Imagine if you could buy a piece of virtual land the same way you purchase real land. You go to a bank, borrow the money, and with it buy a piece of land. Well as of yesterday, you can, thanks to the partnership between Decentraland and Ripio Credit Network (RCN).
What Is The Nature Of This Partnership?
Unlike the traditional credit channels, RCN runs on Ethereum. They use smart-contracts to formulate a secure way of forming credit agreements. This credit network also has a unique token, which allows them to overcome traditional financing obstacles.
You can live anywhere, use any tokens or currencies, and still obtain an RCN loan. Moreover, their fees are much lower than they are in traditional lending. The firm is also transparent, featuring a DApp that measures credit rating in an unbiased way.
Those that repay their loans on time will have a greater chance of obtaining their next investment. On the other hand, lenders (such as RCN) will have a clear insight into the borrowers' finance.
Will This Partnership Change Decentraland?
It will, and in a proper fashion! Both RCN and Decentraland users can now apply for a mortgage to purchase on-sale land in Decentraland. This change will benefit all Decentraland users, specifically designers, artists, and gamers.
Now, all inquiries regarding land purchase go through the RCN. This process will not only speed up the process of obtaining land but will also allow Decentraland team to focus their energy and resources on future updates and changes.
How Can You Obtain A Mortgage?
The process of obtaining a mortgage is built in the Decetraland marketplace. Once you're there, follow these steps:
- Use one of the following wallets to log in: Ledger, Mist, MetaMask.
- Select an account (for the LAND mortgage).
- Verify the RCN smart contract using MANA following these steps: Account Settings -> Check the 2 boxes that say LAND by Mortgage
- Select a parcel for which you are requesting a mortgage.
- Now click on the Request Mortgage button.
How To Fill Out A Mortgage Form?
Once you've done the above steps, you'll need to fill out a form. You'll also need to deposit 10% of the parcel value. If a parcel you want to buy is worth 250 000 MANA, you'll need to deposit at least 25 000 MANA.
Next, you'll need to enter data regarding the total mortgage value, repayment duration, interest rate payment options, as well as mortgage expiration date.
Keep in mind that a successful mortgage request doesn't mean that you've purchased the LAND. Only when your application is processed and mortgage closed will you claim the parcel of LAND you desire.