Every little boy’s (and several grown men’s) dream of earning money by playing video gaming 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 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 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 popular of the crypto-currencies was made in 2009 2009 2009 there were forms of virtual currencies found in video games for 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 property. This was an early 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 way to obtain monsters to kill and therefore gold coins to collect.
Released in Plateforme de trading , 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 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 along with other such games full-time with the purpose of gaining experience points in order 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 put in 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 an expert in virtual currencies estimated that in 2002 EverQuest was the 77th richest country on the planet, somewhere within 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 could very well be the most complete exemplory case of a virtual economy up to now whereby it’s virtual currency, the Linden Dollar which may be used to get 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 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 that 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 for example Ailin will be the exception to the rule however, only a recorded 233 users making more than $5000 in 2009 2009 from Second Life activities.
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 ball player having to go through non-authorised channels to exchange their virtual booty or they having to possess a degree of real world creative skill or business acumen which 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 taken is to ‘gamify’ what is typically the rather technical and automated procedure for creating digital currency. Unlike real life currencies that come into existence when they are printed by a Central bank, digital currencies are created by being ‘mined’ by users. The underlying source code of a specific 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 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’s been made for personal 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 using 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 fresh unit of digital currency and rewards them with it as 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 sets 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 game sits within such a blockchain for a digital currency also called HunterCoin. The act of playing the overall game replaces the automated procedure for mining digital currency and for the 1st time makes it a manual one and without the need for expensive hardware. Using strategy, time and teamwork, players venture 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 can 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 visit 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 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 own galactic empire. Players will be rewarded for mining in DogeCoin, a far more established type of digital currency that 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 might be traded for both digital and real fiat currencies on exchanges like Poloniex.
The future of video games?
Though it is start with regards to quality the release of HunterCoin and VoidSpace is an interesting indication of what may be the next evolution for games. MMORPG’s are currently being considered as ways 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 world outbreaks. It may 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. It is also 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 instance. In the mean time, players now have the means to translate hours in front of a screen into digital currency and then dollars, sterling, euros or yen.
But before you quit your entire 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 overall game in 1 day’s play. Currently HUC cannot be exchanged directly 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 to USD, before any transaction fees were taken into consideration would mean… $0.01 USD. This is not to say that as a player becomes more adept 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 think it’s safe to state that at the moment even efforts like this might only realistically bring about enough change for a daily 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 perhaps this is a good thing, because surely if you get paid for something it stops being truly a game any more?