I’ve always subscribed to the belief that people operate in virtual worlds a lot like they do in real life. Technology Review talks with John Zdanowski about what it is like to manage the financial economy within Second Life.
Technology Review: What is the reason for having a virtual economy in Second Life, complete with its own currency?
John Zdanowski: To give people the incentive to create things in world, we implemented the Linden dollar and the Linden-dollar economy in order to facilitate a market for these virtual goods. In July, for example, there were about 12 and a half million transactions that made up the economy in the world. But the average transaction size is quite small, and you couldn’t use credit cards because the fees are too high.