Every little boy’s (and several grown men’s) dream of making a living by playing video games is edging closer 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 be rewarded in dollars, and sterling, euros and yen.
The story of the millionaire (virtual) real estate agent…
Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin Evolution Scam , the very first 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 more than 15 years. 1997’s Ultima Online was the first notable attempt to add a large scale virtual economy in a 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 incarnation of a virtual currency for the reason 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 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 though it had been prohibited by the game’s designer to also sell virtual items to one another on eBay. In a real world phenomenon which 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 in order to level-up their characters thereby making them better and sought after. These characters would then be in love with eBay to Western gamers who were unwilling or unable to put in the hours to level-up their own characters. Using the calculated exchange rate of EverQuest’s currency because of the real world trading that occurred Edward Castronova, Professor of Telecommunications at Indiana University and an expert in virtual currencies estimated that in 2002 EverQuest was the 77th richest country on earth, 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 is perhaps the most complete example of a virtual economy up to now whereby it’s virtual currency, the Linden Dollar which can 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 in the 10 years between 2002-13, Second Life having turn into a marketplace where players and businesses alike could actually design, promote and sell content they created. Real estate was an especially lucrative commodity to trade, in 2006 Ailin Graef became the very first 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 property to other players. Examples such as Ailin will be the exception to the rule however, only a recorded 233 users making more than $5000 in ’09 2009 from Second Lifestyle.
How exactly to be paid in dollars for mining asteroids…
To date, the ability to generate non-virtual cash in video gaming has been of secondary design, the player having to proceed through non-authorised channels to exchange 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 may be set to improve with the advent of video gaming being built from the bottom up round the ‘plumbing’ of recognised digital currency platforms. The approach that HunterCoin has had is to ‘gamify’ what is usually the rather technical and automated process of creating digital currency. Unlike real life currencies which come into existence if they are printed by a Central bank, digital currencies are manufactured when you are ‘mined’ by users. The underlying source code of a specific digital currency that 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 only intangible data it really is more prone to fraud than physical currency in that it is possible 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 ensure this does 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 ensure that data has not been tampered with. This is a computerized process for miner’s software albeit an exceptionally time consuming one which involves lots 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 keep maintaining the network, thus is digital currency created. Because it may take anything from several days to years for an individual to successfully mine a coin groups of users combine their resources right into a mining ‘pool’, using the joint processing power of their computers to mine coins more quickly.
HunterCoin the overall game sits within this type of blockchain for a digital currency also called HunterCoin. The act of playing the game replaces the automated procedure for 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 venture out onto a map searching for coins and on finding some and returning safely to their base (other teams are on the market trying to stop them and steal their coins) they are able to cash out their coins by depositing them into 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 whenever a player is killed and their coins dropped. As the game graphics are basic and significant rewards take time to accumulate HunterCoin can be an experiment that might be seen as the first gaming 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 goal of building their very 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 methods to make in-game purchases. Like HunterCoin, DogeCoin is really 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 gaming?
Though it is early days regarding quality the release of HunterCoin and VoidSpace can be an interesting indication of what could be the next evolution for games. MMORPG’s are being considered as methods to model the outbreak of epidemics because of 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 test economic theories and develop responses to massive failures predicated on observations of how players use digital currency with real value. Additionally it is an excellent 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 instance. In the mean time, players will have the methods to translate hours before a screen into digital currency and then 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 1 1.005 HunterCoin (HUC) for joining HunterCoin the overall game in 1 day’s play. Currently HUC cannot be exchanged right to USD, one must convert it right into a competent 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 consideration would equate to… $0.01 USD. This is simply not to say that as a new player becomes more adept they could not grow their team of virtual CoinHunters and perhaps employ a few ‘bot’ programmes that could automatically play the game under the guise of another player and earn coins for them as well but I believe it’s safe to say that at the moment even efforts like this might only realistically result in 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 really is improbable that rewards are ever apt to be more than micro-payments for the casual gamer. And perhaps this is a positive thing, because surely if you receives a commission for something it stops being a game any more?