Auditing the Metaverse – Attempting to explain what a Venezuelan gold farmer is and how it relates to the Metaverse
Welcome to the Digital Frontier
Picture this: It’s 2003. Lord of the Rings is sweeping the box office, iTunes is changing the way we listen to music, and I was six years old—wait, does that make me old now? But something else was happening: the rise of the first interactive metaverse. Second Life emerged, offering a digital world where people could own land, trade goods, and even run businesses. It wasn’t just a game—it was an economy.
Fast forward two decades, and the metaverse concept has evolved. Virtual economies are no longer just niche communities for gamers; they are multibillion-dollar ecosystems influencing real-world finance, business, and regulation. Platforms like EVE Online, Decentraland, and Meta’s Horizon Worlds have demonstrated that digital economies are more than speculative hype—they’re shaping the way we interact, work, and spend money.
But where money flows, so does scrutiny. Enter the auditors.
Why Should We Care About Virtual Money?
Let’s look at some surprising numbers:
- In 2021, the market for NFTs (digital collectibles) was worth $40 billion.
- The online game EVE Online has an in-game economy valued at $7.4 million.
- The biggest online battle in EVE Online resulted in $330,000 in real-world losses.
- Roblox players made 3.2 billion transactions in 2022, and top creators earned at least $140,000 each.
Virtual economies are no joke. People are investing real time and money, and that means we need rules to keep things fair and safe.
What Are the Risks?
Auditors are like digital detectives. They look for problems in financial systems to make sure everything is running smoothly. In the metaverse, they face big challenges:
- Who’s in Charge? Virtual worlds don’t have clear rules on who oversees financial transactions.
- Fraud and Scams – Digital money can be stolen or used for illegal activities.
- Taxes – If someone makes money in a game, do they have to pay taxes on it?
- Privacy & Security – Virtual worlds collect a lot of data about users. Who protects it?
Governments are trying to catch up, but auditors are already stepping in to help solve these problems.
Can You Audit a Virtual World?
Yes, but it’s tricky. Traditional auditing relies on real-world records like bank statements and receipts. In the metaverse, things work differently:
- No Set Rules – There aren’t clear standards for how to audit virtual money.
- Fake or Stolen Data – Digital assets can be copied or hacked.
- Anonymity – Many virtual transactions don’t have real names attached to them.
Auditors have to be creative, using new tools like blockchain analysis and AI-powered fraud detection.
How Auditors Bring Order to Digital Chaos
To keep virtual economies safe, auditors are learning new skills:
- Using AI and Blockchain – Tracking digital transactions with advanced technology.
- Working with Governments – Helping lawmakers create better rules for virtual worlds.
- Focusing on High-Risk Areas – Investigating NFT marketplaces, digital currency exchanges, and online financial transactions.
The more auditors adapt, the better they can protect digital economies.
My Experience with Virtual Worlds
I’ve spent quite a bit of time in digital worlds, from Runescape to EVE Online, and I’ve seen how serious these economies can be. Managing virtual money isn’t just a game—it’s real investment and risk.
Throughout these worlds there are so many ways that you can see the real-world interact with these economies in surprising ways.
Runescape is a fantasy massively multiplayer online role-playing game (MMORPG) released in January 2001. The game has existed for more than two decades and with it a number of communities have developed around it. In my experience with the game, I’ve interacted with Venezuelan “gold farmers”, literally earning real money by making and selling the virtual currency within the game. In one interview carried out within the linked article, “Over time [their] salary became less than $4 [a month] and [they] just couldn’t do anything with it… [instead] [they] earned $450 by gold farming in RuneScape, and used that money to flee Venezuela and move to Peru”.
In addition, take EVE Online, for example. It’s often called a “spreadsheet simulator” because of how complex its in-game economy is. Every spaceship, resource, and battle has financial consequences, with players managing supply chains, trade routes, and corporate finances just like in real-world business. Some players even specialize in fraud and espionage, leading to massive in-game financial scandals that mirror real-world corporate fraud. To succeed, players must analyze market trends, track transactions, and mitigate risk—skills that sound a lot like auditing.
What’s Next?
Auditing is changing fast. In the future, we’ll see:
- AI assisted Audit Techniques – Machines helping track and verify transactions in real time.
- Better Tools – More secure ways to record and audit digital assets.
- New Rules and Guidelines – Governments and businesses working together to create clear standards.
Time to Level Up
Virtual economies are here to stay. Whether it’s gaming, digital finance, or NFTs, auditors will play a big role in keeping these spaces fair and secure.
So here’s the big question: Will the metaverse change how auditing works, or will auditors shape the future of the metaverse?
Let’s find out.