Economic Trouble in First Life

2007:

The popularity of Second Life grows. The virtual world is not only the place for social interaction and mean of entertainment; it becomes serious platform for e-commerce, e-learning and e-governments. World wide known companies like Apple, Reebok or ABN Amro open their services in this 3D environment. Second Life becomes main source of income for many freelancers. The tax free economy is blooming giving birth to first millionaires.
Being part of the digital environment also Second Life is not free of cyber crime. After short close down caused by a worm attack called “grey goo” (which installs spinning objects in the virtual world that slows the servers as users try to interact with them) Linden Labs is faced with CopyBot. This new program enables users to quickly copy characters, objects, and buildings, potentially eroding the value of people's virtual property. First trials concerning copy rights and property ownership issues follow. As a respond Linden Lab publishes the blacklist and several users are banned from virtual world. In the meanwhile, a group calling themselves the "Second Life Liberation Army" (SLLA,) stages the first online terrorist attack. Linden Lab receives several complains about the growing menace of mafias and gangs that are forcing members out of public areas. Users become more and more annoyed by the Linden Lab reluctance to take any legal action against cyber criminals or involve in dispute resolution.

2008:

Linden Lab comes with new services to attract younger people to join the virtual reality. New schools, playgrounds, game centers are open. The age range of Second Life residents’ gradually shifts from 25-45 to 16-45. Also e-government and e-commerce services slowly expand. Whole cities are “copied” to the virtual world. The residents are given the opportunity to travel, attend courses at the universities, visit museums or use the e-lockets for the district administration. The opportunities seem to be endless.
Linden Lab looses first law trails against the residents concerning the copy rights and property ownership. At the same time the gangs are getting more powerful distracting several public events and a still more cases of illegal mafia’s activities come to the day light. Linden Lab bounds the possibility of multiple personalities within the Second Life and starts IP blocking of the users involved in any kind of cyber crime. This method thou is still not effective enough mostly because of the use of zombie networks that make the correct identification much more complex.

2009: Growth halted

Economy growth halted

2010: Crash!

Depression

2011: Instability

Economy crash

2012: Nuked

Linden Lab closes