Virtual Currency Games
Every little boy’s (and many grown men’s) dream of earning money by playing video games is edging nearer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency instead of virtual princesses or gold stars point towards another where one’s ranking on a scoreboard could possibly be rewarded in dollars, and sterling, euros and yen.
The story of the millionaire (virtual) agent…
Digital currencies have already been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that allows them to be utilized as a credible option to non-virtual fiat currency. Though Bitcoin, the very first and most well known of the crypto-currencies was created in 2009 2009 2009 there were forms of virtual currencies found in video games for a lot more than 15 years. 1997’s Ultima Online was the initial notable attempt to add a large scale virtual economy in a casino game. Players could collect gold coins by undertaking quests, battling monsters and finding treasure and spend these on armour, weapons or property. This was an early on incarnation of a virtual currency for the reason that it existed purely within the overall game though it did mirror real world economics to the extent that the Ultima currency experienced inflation as a result of the overall game mechanics which ensured that there is a never ending supply of monsters to kill and therefore gold coins to collect.
Released in 1999, EverQuest took virtual currency gaming a step further, allowing players to trade virtual goods amongst themselves in-game and even though it had been prohibited by the game’s designer to also sell virtual items to each other on eBay. In a genuine world phenomenon that was entertainingly explored in Neal Stephenson’s 2011 novel Reamde, Chinese gamers or ‘gold farmers’ were employed to play EverQuest and other such games full-time with the purpose of gaining experience points to be able to level-up their characters thereby making them better and popular. These characters would then be in love with eBay to Western gamers who were unwilling or unable to devote the hours to level-up their own characters. In line with the calculated exchange rate of EverQuest’s currency due to real life trading that occurred Edward Castronova, Professor of Telecommunications at Indiana University and a specialist in virtual currencies estimated that in 2002 EverQuest was the 77th richest country on the planet, somewhere within Russia and Bulgaria and its own GDP per capita was higher than the People’s Republic of China and India.
Launched in 2003 and having reached 1 million regular users by 2014, Second Life could very well be the most complete exemplory case of a virtual economy up to now whereby it’s virtual currency, the Linden Dollar that can be used to get or sell in-game goods and services could be exchanged for real world currencies via market-based exchanges. There have been a recorded $3.2 billion in-game transactions of virtual goods in the 10 years between 2002-13, Second Life having turn into a marketplace where players and businesses alike were able to design, promote and sell content they created. Real estate was an especially lucrative commodity to trade, in 2006 Ailin Graef became the 1st Second Life millionaire when she turned a short investment of $9.95 into over $1 million over 2.5 years through buying, selling and trading virtual real estate to other players. Examples such as for example Ailin are the exception to the rule however, just a recorded 233 users making a lot more than $5000 in 2009 2009 from Second Lifestyle.
How to be paid in dollars for mining asteroids…
To date, the ability to generate non-virtual cash in video games has been of secondary design, the player having to proceed through non-authorised channels to exchange their virtual booty or they having to possess a degree of real world creative skill or business acumen that could be traded for cash. This may be set to change with the advent of video games being built from the ground up round the ‘plumbing’ of recognised digital currency platforms. The approach that HunterCoin has taken is to ‘gamify’ what’s typically the rather technical and automated procedure for creating digital currency. Unlike real life currencies which come into existence if they are printed by a Central bank, digital currencies are created by being ‘mined’ by users. worldoftechnicalanalysis.com underlying source code of a specific digital currency which allows it to function is called the blockchain, an online decentralised public ledger which records all transactions and currency exchanges between individuals. Since digital currency is nothing more than intangible data it is more susceptible to fraud than physical currency in that you’ll be able to duplicate a unit of currency thereby causing inflation or altering the value of a transaction after it has been made for personal gain. To make sure 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 hardware and software they ensure that data has not been tampered with. This is an automatic process for miner’s software albeit an extremely time consuming one which involves a lot of processing power from their computer. To reward a miner for verifying a transaction the blockchain releases a fresh unit of digital currency and rewards them with it being an incentive to help keep maintaining the network, thus is digital currency created. Since it can take anything from several days to years for an individual to successfully mine a coin groups of users combine their resources into a mining ‘pool’, using the joint processing power of these computers to mine coins more quickly.
HunterCoin the overall game sits within such a blockchain for an electronic currency also known as HunterCoin. The act of playing the overall game replaces the automated procedure for mining digital currency and for the very first time makes it a manual one and without the need for expensive hardware. Using strategy, time and teamwork, players go out onto a map in search of coins and on finding some and returning safely to their base (other teams are out there attempting to stop them and steal their coins) they are able to cash out their coins by depositing them to their own digital wallet, typically an app made to make and receive digital payments. 10% of the value of any coins deposited by players go to the miners maintaining HunterCoin’s blockchain plus a small percent of any coins lost when a player is killed and their coins dropped. As the game graphics are basic and significant rewards remember to accumulate HunterCoin is an experiment that might be viewed as the first video game with monetary reward built in as a primary function.
Though still in development VoidSpace is really a more polished approach towards gaming in a functioning economy. A Massively Multiplayer Online Roleplaying Game (MMORPG), VoidSpace is set in space where players explore an ever-growing universe, mining natural resources such as for example asteroids and trading them for goods with other players with the purpose of building their very own galactic empire. Players will be rewarded for mining in DogeCoin, a more established form of digital currency which is currently used widely for micro-payments on various social media sites. DogeCoin may also be currency of in-game trade between players and the means to make in-game purchases. Like HunterCoin, DogeCoin is really a legitimate and fully functioning digital currency and like HunterCoin it might be traded for both digital and real fiat currencies on exchanges like Poloniex.
The future of video games?
Though it is early days when it comes to quality the release of HunterCoin and VoidSpace can be an interesting indication of what may be the next evolution for games. MMORPG’s are being considered as ways to model the outbreak of epidemics due to how player’s reactions to an unintended plague mirrored recorded hard-to-model aspects of human behaviour to real life outbreaks. It could be surmised that eventually in-game virtual economies could be used as models to check economic theories and develop responses to massive failures predicated on observations of how players use digital currency with real value. Additionally it is a good test for the functionality and potential applications of digital currencies which have the promise of moving beyond mere vehicles of exchange and into exciting regions of personal digitial ownership for example. In the mean time, players now have the means to translate hours before a screen into digital currency and dollars, sterling, euros or yen.
But before you quit your day job…
… it’s worth mentioning current exchange rates. It’s estimated a player could comfortably recoup their initial registration fee of just one 1.005 HunterCoin (HUC) for joining HunterCoin the game in 1 day’s play. Currently HUC cannot be exchanged right to USD, one must convert it into a competent digital currency like Bitcoin. During writing the exchange rate of HUC to Bitcoin (BC) is 0.00001900 as the exchange rate of BC to USD is $384.24. 1 HUC traded to BC and to USD, before any transaction fees were taken into consideration would equate to… $0.01 USD. This is simply not to say that as a new player becomes more adept that they cannot grow their team of virtual CoinHunters and maybe employ a few ‘bot’ programmes that could automatically play the game beneath the guise of another player and earn coins for them as well but I believe it’s safe to state that at the moment even efforts such as this might only realistically result in enough change for an everyday McDonalds. Unless players are willing to submit to intrusive in-game advertising, share personal data or join a casino game such as CoinHunter that is built on the Bitcoin blockchain it is improbable that rewards are ever apt to be a lot more than micro-payments for the casual gamer. And maybe this is a good thing, because surely if you receives a commission for something it stops being truly a game any more?