Every little boy’s (and several grown men’s) dream of making a living by playing video gaming 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 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 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 a lot more than 15 years. 1997’s Ultima Online was the first notable attempt to incorporate 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 real estate. This was an early incarnation of a virtual currency in that it existed purely within the game though it did mirror real world economics to the extent that the Ultima currency experienced inflation because 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 was 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 along with other such games full-time with the aim 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 have been 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 as a result 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 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 could very well be the most complete example of a virtual economy to date whereby it’s virtual currency, the Linden Dollar which is often 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 a decade between 2002-13, Second Life having become 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 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 will be the exception to the rule however, only a recorded 233 users making a lot 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 needing to possess a degree of real life 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 ground up round the ‘plumbing’ of recognised digital currency platforms. More info 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 manufactured when you are ‘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 only intangible data it really 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’s 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 every transaction that’s made whereby using specialist hardware and software they ensure that data is not tampered with. This is an automatic process for miner’s software albeit an extremely time consuming one which involves lots 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. Because it may take anything from several days to years for a person to successfully mine a coin sets of users combine their resources into a mining ‘pool’, using the joint processing power of their computers to mine coins quicker.
HunterCoin the game sits within such a blockchain for an electronic currency also known as HunterCoin. The act of playing the 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 searching for coins and on finding some and returning safely with their base (other teams are out there trying to stop them and steal their coins) they can 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 and also a small percent of any coins lost when a player is killed and their coins dropped. While the game graphics are basic and significant rewards take time to accumulate HunterCoin can be an experiment that might be seen as the first video game 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. 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 be rewarded for mining in DogeCoin, a more established type of digital currency that is currently used widely for micro-payments on various social media marketing sites. DogeCoin will also be currency of in-game trade between players and the methods to make in-game purchases. Like HunterCoin, DogeCoin is a legitimate and fully functioning digital currency and like HunterCoin it usually is traded for both digital and real fiat currencies on exchanges like Poloniex.
The future of video gaming?
Though it is early days with regard to quality the release of HunterCoin and VoidSpace is an interesting indication of what could be the next evolution for games. MMORPG’s are currently 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 may 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. It is also an excellent 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 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 directly to USD, one must convert it right into a more established digital currency like Bitcoin. At the time of 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 equate to… $0.01 USD. This is not to say that as a 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 under the guise of another player and earn coins for them as well but I think it’s safe to say that at the moment even efforts such as 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 really is improbable that rewards are ever likely to be 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 a game any more?