Exchanging real money in virtual worlds

During the last few years, so-called virtual worlds have evolved. Second Life is a prominent example -- with a registered user base targeting the 10 million mark. Avatars (virtual personalities) build virtual houses, purchase virtual goods and engage in electronic transactions.

Conducting business in these virtual worlds is only possible by implementing an efficient payment environment, which includes the introduction of a virtual currency and payment mechanisms.

Creating a payment environment

The concept of a virtual currency has to be created to allow for trading within the virtual world. Second Life has introduced Linden Dollars; Cyworld trades in Acorns; and World of Warcraft users pay for their transaction with virtual gold. In addition, an efficient payment mechanism has to be installed within the virtual world to make transactions possible.

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