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Second Life is a global phenomenon. Reuters estimates that only 31.2% of active Second Life users are U.S. residents. The majority of active users (more than 54%) are from Europe. Second Life usage is so pervasive in Korea, for example, that it is beginning to impact the country’s social agenda, according to virtual world expert Edward Castronova.

In a recent interview for National Public Radio Weekend Edition (www.npr.org, Feb. 9, 08), Bloomfield described the basics of the Second Life economy and the real financial losses from the recent Second Life banking crisis. (The currency used for economic transactions in Second Life is called Linden Dollars. Linden Dollars can be exchanged for real U.S. dollars at a rate of approximately 260-to-1. Last year, Linden Lab banned online gambling operations that had become popular in Second Life. Early this year, Linden Lab banned unregulated banking operations in Second Life because several banks were reneging on unsustainable high interest rates on deposits.) Bloomfield attributes his initial interest in Second Life to its potential use as an economic simulator in which reactions to new financial regulations could be studied by FASB.

Professor Steven Hornik, of the University of Central Florida, is another accounting professor exploring accounting education applications. He created a Second Life location called Really Engaging Accounting and maintains a blog about his efforts at www.mydebitcredit.com. In his financial accounting course, he uses the social networking capabilities of Second Life and interactive 3-D objects that he creates. The objects demonstrate basic accounting principles. One simulates the effect of transactions on the basic accounting equation. Another simulates the use of T-accounts to record changes to account balances. Students use their avatars to manipulate the models. Videos of his Second Life creations are available on YouTube (search “second life accounting”).

SUMMARY Second Life is an immersive and engaging 3-D virtual world with economic implications and opportunities for the real world. CPA Island is the current center of the public accounting profession in Second Life, but this won’t be the case for long as other CPA firms choose to use it as a tool for meeting, connecting, sharing and collaborating with others. Where business activity goes, it seems certain that CPAs will follow.

Actually - and for some of my readers maybe surprisingly - I think that Linden Lab has a strategy for the coming years and Second Life's place in the Metaverse.

In parallel, it is interesting to see, that Linden Lab created a "Department of Public Works" earlier this year, which is responsible for "beautifying Second Life" - after a long long time, where the company just flooded the market with more and more "land" (servers) which quickly were converted into huge trailer parks.

I believe, that they are all part of a unified strategy to position Second Life as a standard tool for creating and accessing the future Web 3D as well as to position Linden Lab as one - but not the only - important service provider.

The problem for Linden Lab is, that they target so many dfferent audiences. And it is impossible, to offer all of these audiences ONE single product, a product that will make all of them happy.

ut, comparing SL to "The West" (as Mitch Kapor did it in his birthday speech), please consider: not all of the important groups and personalities in the American West of the 1840s or so would be well respected citizens in the California of 2008

a second important audience, Linden Lab is targeting, too, is the corporate audience, the educational institutions, etc. Despite Linden Lab's propaganda, this is a very small market today (the majority of earnings comes from consumers) but it is growing. This audience needs more "control & security". If Linden Lab wants to succeed in these markets, they have to provide that - not only on seperate estates, because the vast society of Second Life CAN be an interesting aspect for some of these projects, too :) Not all of them work best in a walled garden.

For those who want a walled garden, I am sure, that Linden Lab will soon offer some options which go well beyond what is possible on private estates. It will be possible to host closed sub-grids in Linden Lab's data centers in 2009. I am very certain of that.

Linden Lab will offer one. Others will do that, too. There will be "adult grids" (they are already being built). There will be grids for many, many sub-cultures and those will certainly not have the same set of rules like Linden Labs SL has (now or then). And there will be corporate "Intraworlds", educational and marketing grids, tightly controlled and partly or fully closed off to the public.

"I'd really like to do virtual talking parrots," he said, "and then virtual babies.