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 a future where one’s ranking on a scoreboard could possibly be rewarded in dollars, and sterling, euros and yen.

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

Digital currencies have already been slowly gaining in maturity both with regards to their functionality and the financial infrastructure that enables them to be used as a credible option to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was made in 2009 2009 2009 there have been 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 incorporate a large scale virtual economy in a casino game. Players could collect coins by undertaking quests, battling monsters and finding treasure and spend these on armour, weapons or real estate. This was an early on incarnation of a virtual currency in that it existed purely within the game though it did mirror real life 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 thus 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 real 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 sought after. These characters would then be sold on eBay to Western gamers who have been unwilling or unable to put in the hours to level-up their own characters. In line with the calculated exchange rate of EverQuest’s currency as a result of 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 between Russia and Bulgaria and its GDP per capita was greater than the People’s Republic of China and India.

Launched in 2003 and having reached 1 million regular users by 2014, Second Life is perhaps the most complete exemplory case of a virtual economy to date whereby it’s virtual currency, the Linden Dollar which may be used to buy or sell in-game goods and services could be exchanged for real world currencies via market-based exchanges. There were a recorded $3.2 billion in-game transactions of virtual goods in the a decade between 2002-13, Second Life having turn into a marketplace where players and businesses alike were able to design, promote and sell content that they created. Real estate was a particularly 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 ’09 2009 from Second Life activities.

How exactly to be paid in dollars for mining asteroids…

To date, the opportunity to generate non-virtual cash in video gaming has been of secondary design, the player having to proceed through non-authorised channels to switch their virtual booty or they needing to possess a degree of real life creative skill or business acumen that could be traded for cash. This could be set to improve with the advent of video gaming being built from the bottom up around the ‘plumbing’ of recognised digital currency platforms. The approach that HunterCoin has had is to ‘gamify’ what is typically the rather technical and automated procedure for creating digital currency. Unlike real life currencies which come into existence if they are printed by way of a Central bank, digital currencies are manufactured by being ‘mined’ by users. The underlying source code of a particular digital currency that allows it to function is named the blockchain, an online decentralised public ledger which records all transactions and currency exchanges between individuals. Since digital currency is only intangible data it really is more susceptible to fraud than physical currency for the reason 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 will not happen the blockchain is ‘policed’ by volunteers or ‘miners’ who test the validity of every transaction that’s made whereby with the aid of specialist hardware and software they make sure that data is not tampered with. This is a computerized process for miner’s software albeit an exceptionally 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 new unit of digital currency and rewards them with it being an incentive to keep maintaining the network, thus is digital currency created. Since it may 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’, utilizing the joint processing power of their computers to mine coins quicker.

HunterCoin the game sits within such a blockchain for a digital currency also known as HunterCoin. The act of playing the game replaces the automated process of mining digital currency and for the very first time helps it be a manual one and without the need for expensive hardware. Using strategy, time and teamwork, players go out onto a map searching for 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 visit the miners maintaining HunterCoin’s blockchain and also a small percent of any coins lost whenever 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 gaming with monetary reward built-in as a primary function.

Though still in development VoidSpace is a more polished approach towards gaming in a functioning economy. Bitcoin Era Review (MMORPG), VoidSpace is defined 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 own galactic empire. Players will undoubtedly be rewarded for mining in DogeCoin, a far more established form of digital currency which is currently used widely for micro-payments on various social media sites. DogeCoin will also be currency of in-game trade between players and the means to make in-game purchases. Like HunterCoin, DogeCoin is a legitimate and fully functioning digital currency and like HunterCoin it can be traded for both digital and real fiat currencies on exchanges like Poloniex.

The future of video games?

Though it is start with regard 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 as a result of how player’s reactions to an unintended plague mirrored recorded hard-to-model areas of human behaviour to real life outbreaks. It could be surmised that eventually in-game virtual economies could possibly be used as models to test 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 that have the promise of moving beyond mere vehicles of exchange and into exciting regions of personal digitial ownership for instance. In the mean time, players now have the means to translate hours in front of 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 that a player could comfortably recoup their initial registration fee of 1 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 more established digital currency like Bitcoin. During writing the exchange rate of HUC to Bitcoin (BC) is 0.00001900 while the exchange rate of BC to USD is $384.24. 1 HUC traded to BC and then to USD, before any transaction fees were taken into account would equate to… $0.01 USD. This is not to say that as a new player becomes more adept that they could not grow their team of virtual CoinHunters and perhaps hire a few ‘bot’ programmes that would automatically play the game beneath the guise of another player and earn coins for them aswell but I think it’s safe to state that right now even efforts like this might only realistically bring about enough change for a daily McDonalds. Unless players are prepared 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 perhaps this is a good thing, because surely if you receives a commission for something it stops being a game any more?