Virtual Currency

Just about every little boy’s (and many grown men’s) dream of making a living by playing video games is edging closer to reality. Often the recent release of HunterCoin and the in-development VoidSpace, video game titles which reward players in digital currency rather than virtual princesses or gold stars point towards a future everywhere one’s ranking on a scoreboard could be rewarded in cash, and sterling, euros and yen.

The story of the millionaire (virtual) real estate agent…

Digital currencies have been slowly gaining with maturity both in terms of their functionality and the financial commercial infrastructure that enables them to be used as a credible alternative to non-virtual volvo currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997’s Ultima Online was the initially notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins by undertaking quests, struggling monsters and finding treasure and spend these with armour, weapons or real estate. This was an early incarnation of an virtual currency in that it existed purely within the video game though it did mirror real world economics to the amount that the Ultima currency experienced inflation as a result of the game motion which ensured that there was a never ending supply of monsters to help kill and thus gold coins to collect.

Released in 1999, EverQuest needed virtual currency gaming a step further, allowing players that will trade virtual goods amongst themselves in-game and though it turned out prohibited by the game’s designer to also sell digital items to each other on eBay. In a real world phenomenon that is entertainingly explored in Neal Stephenson’s 2011 novel Reamde, Chinese gamers or ‘gold farmers’ were employed to learn EverQuest and other such games full-time with the aim of earning experience points so as to level-up their characters thereby which is why they are known as more powerful and sought after. These characters would then possibly be sold on eBay to Western gamers who were unwilling or unable to put in the hours to level-up their own characters. While using calculated exchange rate of EverQuest’s currency as a result of real life trading that took place Edward Castronova, Professor of Telecoms at Indiana University and an expert in virtual various currencies estimated that in 2002 EverQuest was the 77th the big doggs country in the world, somewhere between Russia and Bulgaria and its GDP per capita was greater than the People’s Republic connected with China and India.

Launched in 2003 and acquiring reached 1 million regular users by 2014, Secondly Life is perhaps the most complete example of a virtual economy at this point whereby it’s virtual currency, the Linden Dollar that may be used to buy or sell in-game goods and services can be exchanged for real world currencies via market-based exchanges. There were a recorded $3. 2 billion in-game transactions of virtual goods inside 10 years between 2002-13, Second Life having become a souk where players and businesses alike were able to design, showcase and sell content that they created. Real estate was a particularly worthwhile commodity to trade, in 2006 Ailin Graef became the initial Second Life millionaire when she turned an initial expenditure of $9. 95 into over $1 million through 2 . 5 years through buying, selling and dealing virtual real estate to other players. Examples such as Ailin are classified as the exception to the rule however , only a recorded 233 end users making more than $5000 in 2009 from Second Life activities.¬†look at here now

The best way to be paid in dollars for mining asteroids…

At this point, the ability to generate non-virtual cash in video games has been of second design, the player having to go through non-authorised channels to exchange their virtual booty or they having to possess a degree of real life creative skill or business acumen which could be traded in for cash. This could be set to change with the advent of video gaming being built from the ground up around the ‘plumbing’ of identified digital currency platforms. The approach that HunterCoin has pushed is to ‘gamify’ what is typically the rather technical and intelligent process of creating digital currency. Unlike real world currencies that come into existence when they are printed by a Central bank, digital camera currencies are created by being ‘mined’ by users. The underlying reference code of a particular digital currency that allows it to function is called the blockchain, an online decentralised public ledger which will records all transactions and currency exchanges between folks. Since digital currency is nothing more than intangible data it can be more prone to fraud than physical currency in that you can duplicate a unit of currency thereby causing inflation or even altering the value of a transaction after it has been made for particular gain. To ensure this does not happen the blockchain is ‘policed’ by volunteers or ‘miners’ who test the validity of each transaction that is made whereby with the aid of specialist appliance and software they ensure that data has not been tampered having. This is an automatic process for miner’s software albeit a remarkably time consuming one which involves a lot of processing power from their computer. To help reward a miner for verifying a transaction often the blockchain releases a new unit of digital currency in addition to rewards them with it as an incentive to keep maintaining the multilevel, thus is digital currency created. Because it can take whatever from several days to years for an individual towards successfully mine a coin groups of users combine their own resources into a mining ‘pool’, using the joint processing power in their computers to mine coins more quickly.