DEFINITION of ‘Linden Dollar’
A digital currency utilized in the virtual world Second Life. Second Life was developed by Linden Lab and was launched in June of 2003. Users of the programs are called residents and they interact with other users through avatars. Residents can travel around the virtual world, socialize and participate in activities. In addition, residents can create and trade virtual property and/or services with other residents. The purpose behind Second Life is to allow users to become immersed in a virtual world through a user-created, community-driven experience.
BREAKING DOWN ‘Linden Dollar’
Linden dollars (L$) can be used to buy, sell, rent or trade land, goods and services. Goods include cars, clothing, jewelry and buildings. Services include entertainment, camping and wage labor. Linden dollars fluctuate in value against the U.S. dollar. Linden dollars can be bought using U.S. dollars and certain other currencies on the exchange service provided by Linden Lab. The virtual economy reportedly has about one million active users as of 2011.