Envision a 3D virtual world (but this could apply to any MxN matrix, including non-Euclidean and Minkowski space) where the coordinate system is based on a bitcoin based addressing scheme and the consequences of that technology if used as a foundation for a vector based knowledge representation (i.e. a typical MMORPG today or FPS, or a representation of links between documents, abstract syntax trees, and function lookup tables, particle physics simulations and so on).
If a virtual world, such as Second Life, allocated virtual property initially, and then allowed markets to emerge where people bought and sold virtual property and virtual goods and services, what would it be like if you made virtual property have built in value as bitcoins? If every three dimensional point in a 3D world is worth 1 btc initially, then the value of virtual property could be pinned to the price of Bitcoin with sidechains and/or coloured coins.
If you represent a point in space as a hash of the bitcoin address - a 160 bit number, with the standard x, y, z coordinates, then money in the form of btc may be sent to a location in virtual space, and a private key holder of that address would be the only one who could spend the bitcoins. As we know, it may not just be btc … it may be any script or contract or media as well. Graphical images, content, virtual pets. They could be sent to an address, and bought and traded on the bitcoin network and also be virtual properties, goods, and even services (as scripts or even real-time personal interaction). This system could also be used to do any kind of programmatic interface between two or more points in space, such that local programmatic interaction can take place without central observation.
For example, at some point in space a player or NP character navigates and has access to public data exposed by the address but not the private data. Although all the data about the world is shared, one player can't use knowledge forbidden by the protocol automatically, preventing all kinds of cheating or aim bots. However, a governing force in a game may see both players' views by using a system of multisigs. Teams of people could form and dissolve by key exchange, such that if a character joined the red team suddenly and dropped a bomb that only killed blue team members in the vicinity, the game could be designed with minimal logic to apply conditions based on the public and private key holder and digital signatures of in game content and scripts.
