Makes an interesting reading.*

Dr D.C.Misra
September 23, 2007
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*Investing virtually: New Delhi is India's First City on Second Life

Siddhartha Sarma

Posted online: Sunday, September 23, 2007 at 0000 hrs
<http://www.indianexpress.com/printerFriendly/220104.html>

NEW DELHI, SEPTEMBER 22: Mumbai may be the country's financial
capital but it is Delhiites who rule virtual reality finance. Of the
over 12,000 active users of Second Life, the net-based virtual reality
(VR) world, from India, nearly 9,000 are from Delhi. And about 90 per
cent of the accounts registered from Delhi are engaged in some serious
financial investments.

Under the Second Life programme, people can register using different
names as "avatars", customising their VR appearances and profiles. They can join
online communities, VR townships, operate businesses, buy and sell real estate,
just like in the real world. The users can even create their own content, like
furniture, vehicles and
buildings.

More importantly, Linden Labs, the creators of Second Life, has a
currency exchange as well, where real world currencies can be exchanged for
virtual currency called Linden Dollars and vice versa. At the current exchange
rate, one US dollar is equivalent to 270 Linden Dollars.

The number of active Indian "residents" — those who build,
trade and invest on the site — has shot up from about 3,300 in the
beginning of the year to over 12,000. "We have been informed that
the ratio of active residents to registered users is one of the highest in India
and China," said Joe Miller, vice-president, platform and technology, Linden
Labs.

One of the more common ways of investing in Second Life is to buy
virtual real estate. Then, like in the real world, the user can wait for
property prices to escalate, before selling at a profit. The entire transaction
is carried out in Linden Dollars, which can be converted into real world
currencies on the exchange.

"Only estimated figures are available because of the confidential
nature of transactions, but the number of users who visit our VR
business solutions on the Second Life system has also shot up,"
revealed Daniel Dias, director, Research Lab, IBM India, one of the
companies with a massive presence on the system. "More than 90 per
cent of the active users, mostly form the National Capital Region, are
also investing in the currency exchange," he added.

what is second life

• Second Life is an online virtual reality world, launched by Linden
Research Inc in 2003. Unlike gaming sites, users don't just play and
win. Focus is on functioning like in the real world

• To register, users can log on to www.secondlife.com. Whie
registration is free, transactions can be carried out through any credit
card that supports international currencies.

• Users can create their virtual personalities called avatars, as
well as clothes, cars, furniture.

• Active "residents' can buy land and modify it, owning up
to 512 sq m without paying any additional fees. The currency used is
Linden Dollar (270L$=Rs 39). Further real esate purchases come with fees based
on tier systems.

• Among those present are Reuters, Ford and IBM.

(Source: Sarma, Siddhartha (2007): Investing virtually: New Delhi is
India's First City on Second Life, The Sunday Express, New Delhi,
September 23, 2007, p-1,
http://www.indianexpress.com/sunday/story/220104.html, accessed
September 23, 2007).

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