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 possibly 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 used 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 have been forms of virtual currencies found in video games for a lot 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 overall game though it did mirror real world economics to the extent that the Ultima currency experienced inflation due to the game mechanics which ensured that there was 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 what 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 aim of gaining experience points to be able to level-up their characters thereby making them more powerful and popular. These characters would then be sold on eBay to Western gamers who have been unwilling or unable to devote the hours to level-up their own characters. In line with the calculated exchange rate of EverQuest’s currency as a result of the real world trading that took place 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 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 to date whereby it’s virtual currency, the Linden Dollar that may be used to buy or sell in-game goods and services could be exchanged for real life currencies via market-based exchanges. There have been a recorded $3.2 billion in-game transactions of virtual goods in the 10 years between 2002-13, Second Life having become 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 1st 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 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 more than $5000 in ’09 2009 from Second Lifestyle.
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 switch their virtual booty or they needing 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 games being built from the ground up round the ‘plumbing’ of recognised digital currency platforms. The approach that HunterCoin has had is to ‘gamify’ what’s typically the rather technical and automated process of creating digital currency. Unlike real life currencies which come into existence when they are printed by way of a Central bank, digital currencies are created when you are ‘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 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 each transaction that is made whereby with the aid of 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 the one that involves a great deal 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. Because it may take anything from several days to years for a person to successfully mine a coin groups of users combine their resources right into a mining ‘pool’, utilizing the joint processing power of these computers to mine coins quicker.
HunterCoin the 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 go out onto a map in search of 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 visit 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 coincapcentral are basic and significant rewards take time to accumulate HunterCoin can be 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. A Massively Multiplayer Online Roleplaying Game (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 goal 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 will also be currency of in-game trade between players and the means to make in-game purchases. Like HunterCoin, DogeCoin is really a legitimate and fully functioning digital currency and like HunterCoin it could be traded for both digital and real fiat currencies on exchanges like Poloniex.
The future of video games?
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 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 be used as models to test economic theories and develop responses to massive failures based 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 areas of personal digitial ownership for example. In the mean time, players will have the methods 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 just one 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 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 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 player becomes more adept that they cannot grow their team of virtual CoinHunters and perhaps hire 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 result in enough change for an everyday McDonalds. Unless players are prepared to submit to intrusive in-game advertising, share personal data or join a game such as CoinHunter that’s 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 perhaps this is a good thing, because surely if you receives a commission for something it stops being truly a game any more?