The Economy of Second Life
One important feature of Second Life is that it has a virtual economy where users can buy and sell virtual goods using an in-world currency that can be exchanged for real world currency. The name of this in-world currency is called Lindens, after Linden Lab, the company that created SecondLife.com. The use of a virtual currency is similar to the use of gambling chips in a casino. The use of a fictitious currency allows a user to forget that they are spending real money when they are spending Lindens.
There are many things that a user can spend money on in-world. A user can buy virtual land either from Linden Lab directly, or from other individuals selling it. A user can also buy many produced objects that are created by other users with the toolbox built into Second Life. These objects include realistic homes, cars, motorcycles, and spaceships, each of which may have scripts in them to allow them to drive and fly inside Second Life, and some of which duplicate objects existing in the real world. Users can also purchase virtual clothing and accessories of every style for their avatar, including alternate physical shapes that allow a user to change their in-world appearance, weapons that shoot virtual bullets, and formal wear for men and women who want engage in virtual ballroom dancing.
In addition to spending money, it is also possible for users to earn money in Second Life by creating virtual goods and selling them to other users. Second Life is filled with virtual shops selling virtual goods of all kinds. To buy something that is for sale all you need to do is right-click on an item and select pay from the circular pop-up menu. When you buy something, the cost of that item is automatically deducted from your Linden balance, always displayed in the upper right-hand corner of your screen. If you do not have enough Lindens in your account you will offered the opportunity to buy more currency using your PayPal account or credit card.
In addition to selling virtual goods, users can sell virtual services. One example is that women can purchase attractive avatars and dance in virtual clubs for tips. Performing these virtual dances requires no skill on the part of the user. All dances are scripted. Users have only directional control of their avatars using the arrow keys on their keyboard, or the ability to point at in-world objects using their mouse and do the most basic movement, sitting. All complex in-world movements such as specific static poses or patterns of movement like dancing must be programmed in. To use a movement script, all a user needs to do is use the sit function on objects that contain the script for that movement, typically a scripted ball, and then give the script permission to move your avatar. Scripted movements include virtual dancing of all kinds, driving virtual spaceships, and having virtual sex.
In the past, there were people who were so successful in running virtual businesses and earning Lindens that they were able to make their real life livings from the income they would make in Second Life. However, Linden Lab has now put a limit on the number of Lindens a user can exchange for dollars in any given day, which means that it is no longer possible to withdraw enough money out of Second Life each day to earn a living, no matter many Lindens your virtual business earns. Although there is a virtual economy in Second Life, Linden Lab has now done what they can to prevent anyone from using it, except themselves.