Virtual Currency

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Virtual Currency (often referred to synonymously as Digital Currency, Credits or Points) is a form of currency exchanged electronically, typically set up as credits and used in relation to a specific Video Game or Virtual World.

Depending on its implementation and purpose, a Virtual Currency is usually comparable to a loyalty program[1], customer rewards plan or coupon system, especially if the units of value are represented by a physical denomination rather than a single account balance. The perfect example of this would be Canadian Tire money[2], as it demonstrates some key criteria of Virtual Currency:

  1. it is redeemable only at a particular location or via a specific platform (i.e. at Canadian Tire stores or their online shop), this location/platform is comparable to a "Virtual Economy"
  2. it can not be redeemed directly for real-world currency (i.e. Canadian Tire will not and does not need to redeem Canadian Tire money with real US or Canadian Dollars, or any other currency)
  3. it is denoted in very small amounts to deter/detect fraud and theft (most denominations issued worth < $1, largest token worth at most $2)



Projects

Money 2.0

MONEY 2.0 is a mutual credit concept specifically designed to replace the current monetary system (in which the power to issue money is a monopoly exercised by banks). In MONEY 2.0, anyone can issue money who is willing to exchange products or services.

MONEY 2.0 offers the following features:

  1. Availability: MONEY 2.0 is automatically created through trades, therefore it is easily available where needed, and an economic crisis induced by the misallocation of money is impossible.
  2. Stability: Since those who issue money are also required to sell an equal amount of goods and services, the amount of currency in MONEY 2.0 automatically keeps step with the value of available goods. This removes the prime reason for inflation.
  3. Impartiality: Since the power to issue MONEY 2.0 rests with all market participants, MONEY 2.0 isn't vulnerable to the manipulations of a few.
  4. Fairness: In MONEY 2.0, the power to issue money is relative to each participant's economic productivity. Since the availability of money does not depend on borrowing, the total amount of interest in the system is significantly reduced, and the likelihood, that money is accrued by those who require it as an exchange medium, is increased.
  5. Independence: MONEY 2.0 does not in any way rely on the traditional financial sytem - therefore, it cannot be affected by a crash or "crisis" of traditional currencies.
  6. Compatibility: MONEY 2.0 is open for exchange against other currencies (old and new).
  7. Grassroots: MONEY 2.0 currencies can be launched and run by any person or institution, without cooperation or even permission of an existing institution or authority.
  8. Scalability: The MONEY 2.0 concept can be used for any size currency - from family money (with only a handful of participants) to a large commercial market involving millions of traders.
  9. Transparency: The software for running MONEY 2.0 is open source, and all relevant system data - including the costs of administrating the currency - are public. Unlike the traditional money system, there are no hidden costs.

CES

With the impending implosion of the usury-based, global money system, now is the time to seek a new way of 'doing' money, one not based on debt and controlled by a global monetary elite that seems happy about destroying our planet in the pursuit of profit.Conventional money is created as debt by private financial institutions for their own profit-making purposes, not as a public service. This is the root cause of the economic, social and environmental problems that beset us. The amount of debt determines the quantity of money, which has nothing to do with the amount of money we need to live decent lives.CES money is 'created' by its users so it can never be in short supply. So long as you can offer something of value you can have from the community goods and services of like value.


CC


Equal Money

Sounds like a decent proposal on its face, but strongly advocates an implanted micro-chip which is certainly not a good idea.




Platforms

Open

PaySwarm

PaySwarm is an open standard web platform that enables web browsers and internet devices to perform micropayments and copyright-aware, peer-to-peer digital media distribution.


Proprietary

Amazon Coins

Facebook Credits

Ven

A Hong Kong-based virtual currency used for transactions within the "Hub Culture"[7] SNS platform.

Failed Virtual Currencies





EXAMPLES

BCmoney

BCmoney is an initiative to create a fair and sustainable Virtual Currency for measuring and rewarding the contributions and loyal participation of users of online Content Management Systems.

MotionEmpire

MotionEmpire is an impressive site which, although clearly cobbled together, represents a closer step towards Semantic Web enabled Online Video... also contains alot of fresh Movie & TV content, often times content not yet released). On top of the

Bitmunk

Bitmunk is an independent music site powered entirely by PaySwarm transactions.


Tools


Resources


Tutorials


External Links

Signs it’s time to sell?


References

  1. wikipedia: Loyalty program
  2. wikipedia: Canadian Tire money
  3. Facebook patent - Giving gifts and displaying assets in a social network environment: http://tinyurl.com/76mmbvd
  4. Facebook patent application - Virtual Currency platform: http://www.trademarkia.com/f-77934145.html
  5. Bing Gordon - The Zynga/Facebook Credits Battle Was The Cuban Missile Crisis Of Tech: http://techcrunch.com/2011/05/24/bing-gordon-the-zyngafacebook-credits-battle-was-the-cuban-missile-crisis-of-tech/
  6. Facebook privacy concerns - fact or phobia: http://www.seedcatalyst.com/joomla/market-trends/facebook-privacy-concerns-fact-or-phobia
  7. wikipedia: Hub Culture
  8. Flooz Bluez - online currency website to file bankruptcy: http://www.ecommercetimes.com/story/13107.html
  9. InternetCash.com
  10. InternetCash.com patent - Anonymous on-line cash management system: http://worldwide.espacenet.com/publicationDetails/biblio?CC=US&NR=7814009&KC=&FT=E&locale=en_EP
  11. How Can Kids Buy Stuff on the Web? Ask InternetCash: http://www.businessweek.com/smallbiz/0003/ep000307.htm
  12. What It's Like to Work at Beenz.com Inc.: http://www.computerworld.com/s/article/49034/What_It_s_Like_to_Work_at_Beenz.com_Inc.
  13. Beenz.com sold in multi-million dollar deal: http://www.theregister.co.uk/2001/10/05/beenz_com_sold_in_multimillion/
  14. The telephone is the tool - A cashless society is reaching for its mobile phone: http://www.economist.com/node/1101473?story_id=E1_TTDTQSP
  15. Beenz means business: http://news.bbc.co.uk/2/hi/business/297133.stm
  16. Don't have a credit card? Can't buy stuff online?: http://digicredit.com

See Also

Currency | Digital Currency | Economy | Money | Virtual World | Virtual Economy | Online Video | E-Commerce