Philip Rosedale and Fred Ehrsam discuss blockchain in a virtual salon

It seems the virtual world High Fidelity is hosting interesting events, like this salon about blockchain with Philip Rosedale (High Fideltiy, founding father of Second Life) and  Coinbase co-founder Fred Ehrsam. I think it’s a good idea to organize these salons, they remind me of the Metanomics series in Second Life – years ago – where we discussed economics, anthropology and all things virtual worlds.

The look and feel of the avatars does not appeal to everyone, but then again this is a very young virtual world, still being born, using fancy stuff such as virtual reality headsets, hand- and face-trackers.

The discussion itself is pretty fascinating as it touches the philosophical – and increasingly also practical – question of what is “real”. Let’s not forget that Rosedale also is very knowledgeable about virtual currencies since the whole Second Life economy works in Linden dollars which are exchangeable in American dollars. One could easily imagine that virtual worlds use virtual currencies such as bitcoin or ethereum or even other currencies specifically created for those worlds and communities.

Those worlds could run their own monetary policy and economy – but the same could be done by communities in the physical world. The blockchain technology could also be used to identify each and very object in a virtual world, but also in the physical world. The blockchain technology enables a shared reality through a distributed ledger which stores transactions in such a way that the records can not be tampered with. This could be of utmost importance for managing identities, not only of objects, but also of people.

Having a central company such as Facebook controlling the databases with identities, posts and pictures is maybe not too terrible as people use Facebook but do not actually live in it, while the ambition of virtual worlds creators such as Rosedale is that people work, study and ultimately pass a substantial part of their lives in those environments – so the issue of who controls the databases becomes of existential importance. Hence the importance of distributed, tamper-proof solutions.

More about this subject:

VR is a Killer App for Blockchains by Ehrsam
Metaverse Identity on the Blockchain by Rosedale
Blockphase To Test Its Ethereum-based Virtual Reality Content Distribution Platform

Blockchain for avatars

Even though I’m sceptical about the appeal of open-ended, user-created virtual worlds for a mainstream audience, I still follow people who are very active in that field because they tend to be highly creative out of the box thinkers. One of them is Philip Rosedale, the founding father of Linden Lab and Second Life, and these days busy creating a new world which takes full advantage of VR, High Fidelity.

In the post Metaverse Identity on the Blockchain he tackles the question of how we can prove our identities in a digital environment without revealing our real life identity:

As we begin to live and work in digital spaces, we must design an identity system that is safe, secure, and decentralized like the web. A combination of theblockchain and digital certificates seems like the best design.

Being a true Maker, Rosedale does not limit himself to a theoretical explanation, but will try the coming months to implement such a technology in High Fidelity. All this even fits into my ideas about Mixed Reality, as one could consider such a virtual implementation as a big rehearsal for ‘real world’ applications. Rosedale:

And of course, this sort of identity system might someday even work well for real-world things, like who can vote, or keeping track of who owns parcels of land. It seems likely that a distributed database like this, applied to identity information, could be a bigger value to people than the current applications which have been mostly for virtual currencies like Bitcoin.

Hat tip to Wagner James Au for discussing Rosedale’s article on the New World Notes.