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The 2000s in America

Second Life

by Cait Caffrey

Definition: Online virtual world where players can interact with each other through avatars

In the summer of 2003, the virtual world of Second Life was introduced to the public. Second Life allowed users to escape from the real world and construct their own alternate universe online. The program became a means of socialization and commerce, as users could buy, sell, and trade goods and services they created within the online universe.

The idea for Second Life grew from an online video game created by Linden Labs founder Philip Rosedale and his team. Rosedale had an idea to create an online world where users could create their own avatars and build their own virtual environments. Rosedale was also interested in giving users the ability to be entrepreneurial within their online universe.

Funding was initially difficult to find. Many potential investors did not understand Rosedale’s idea. As a result, Linden Labs suffered. The company eventually found an investor who provided enough backing to keep it afloat. The funds helped Linden Labs develop what would become Second Life, which was officially offered to consumers in June of 2003.

Second Life was not an immediate success. Linden Labs came very close to shutting down before the company came up with a unique design that enticed investors. Linden Labs decided to give full creative rights to their users, or Residents, as they were called. This meant that anything a Resident created on Second Life was his or her intellectual property. Rosedale and his team also decided to give value to the virtual property that could be bought and sold within the online world. Residents would conduct business using the Linden dollar as currency. This cyber currency could then be exchanged for real US dollars.

By 2006, Second Life users could participate in a virtual free-market economy in which people could buy and sell virtual products but also promote real-world products. Internationally known companies including Nike, American Apparel, and Reebok created shops within the virtual community to sell both simulated and real-life products. Second Life became a marketing essential for many businesses.

Impact

Second Life continued to permeate the online virtual world throughout the 2000s. Residents used the space as a forum for gatherings such as business meetings and class reunions. Second Life even received a technology and engineering Emmy Award in 2008. Its virtual economy had grown so much by 2009 that some users were grossing more than $250,000 annually from virtual land and currency holdings.

Further Reading

1 

Au, Wagner James. The Making of Second Life: Notes from the New World. New York: Harper, 2008. Print.

2 

Rosedale, Philip. “How I Did It: Philip Rosedale, CEO, Linden Lab.” Inc. Mansueto Ventures, 1 Feb. 2007. Web. 6 Dec. 2012.

3 

Siklos, Richard. “A Virtual World but Real Money.” New York Times. New York Times Co., 19 Oct. 2006. Web. 6 Dec. 2012.

Citation Types

Type
Format
MLA 9th
Caffrey, Cait. "Second Life." The 2000s in America, edited by Craig Belanger, Salem Press, 2013. Salem Online, online.salempress.com/articleDetails.do?articleName=2000_0335.
APA 7th
Caffrey, C. (2013). Second Life. In C. Belanger (Ed.), The 2000s in America. Salem Press.
CMOS 17th
Caffrey, Cait. "Second Life." Edited by Craig Belanger. The 2000s in America. Hackensack: Salem Press, 2013. Accessed September 18, 2025. online.salempress.com.