Virtual Currency Games

Every little boy’s (and many 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 rather than 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) agent…

Digital currencies have been slowly gaining in maturity both with regards to their functionality and the financial infrastructure that enables them to be utilized as a credible alternative to non-virtual fiat currency. Though Bitcoin, the very first and most well known of the crypto-currencies was made in 2009 2009 2009 there were forms of virtual currencies used 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 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 game though it did mirror real life economics to the extent that the Ultima currency experienced inflation due to the game mechanics which ensured that there is a never ending way to obtain 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 what to each other 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 aim of gaining experience points in order to level-up their characters thereby making them more powerful and sought after. 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 very own characters. In line with the calculated exchange rate of EverQuest’s currency because of real life 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 the globe, somewhere within Russia and Bulgaria and its own 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 could very well be the most complete example of a virtual economy up to now whereby it’s virtual currency, the Linden Dollar that can be used to buy or sell in-game goods and services could be exchanged for real life 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 were able to design, promote and sell content they created. Real estate was a particularly lucrative commodity to trade, in 2006 Ailin Graef became the very first Second Life millionaire when she turned an initial 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 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 Lifestyle.

How exactly to be paid in dollars for mining asteroids…

To date, the opportunity 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 life creative skill or business acumen which could be traded for cash. This could be set to change with the advent of video gaming being built from the ground up around the ‘plumbing’ of recognised digital currency platforms. The approach that HunterCoin has taken is to ‘gamify’ what’s usually the rather technical and automated process of creating digital currency. Unlike real world currencies that come into existence when they are printed by a Central bank, digital currencies are manufactured by being ‘mined’ by users. The 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 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 worthiness 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 using specialist hardware and software they make sure that data is not tampered with. This is an automatic process for miner’s software albeit an extremely time consuming one which involves plenty 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 a person to successfully mine a coin sets of users combine their resources right into a mining ‘pool’, utilizing the joint processing power of these computers to mine coins quicker.

HunterCoin the overall game sits within this type of blockchain for an electronic 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 with no 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 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 designed to make and receive digital payments. 10% of the worthiness 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. While 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 really a more polished approach towards gaming in a functioning economy. A Massively Multiplayer Online Roleplaying Game (MMORPG), VoidSpace is defined in space where players explore an ever-growing universe, mining natural resources such as 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 type of digital currency which is currently used widely for micro-payments on various social media marketing sites. DogeCoin may 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 start regarding quality the release of HunterCoin and VoidSpace can be an interesting indication of what may be the next evolution for games. MMORPG’s are currently being considered as methods 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 world outbreaks. It may be surmised that eventually in-game virtual economies could possibly be used as models to check economic theories and develop responses to massive failures based 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 areas of personal digitial ownership for example. In the mean time, players will have the means 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 game in 1 day’s play. Currently HUC can’t be exchanged directly to USD, one must convert it into a more established digital currency like Bitcoin. At the time of 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 account would equate to… $0.01 USD. This is not to say that as a new player becomes more adept they cannot grow their team of virtual CoinHunters and perhaps employ a few ‘bot’ programmes that could automatically play the game beneath the guise of another player and earn coins for them aswell but I believe it’s safe to say that at the moment even efforts like this might only realistically bring about enough change for a daily McDonalds. Unless Bitcoin Evolution Review are prepared to submit to intrusive in-game advertising, share personal data or join a game such as CoinHunter that is built on the Bitcoin blockchain it really is improbable that rewards are ever likely to be a lot more than micro-payments for the casual gamer. And maybe this is a positive thing, because surely if you receives a commission for something it stops being a game any more?