Second life is a 3-D game in which the players are able to pick an avatar body to explore the virtual environment. It, as most of the 3-D games, “resembles theme parks in terms of both design and culture.” Players immerse and engage to the space dynamically through the virtual body. They don’t have the limitation of the real world of being in a controlled environment.  Players as the citizens of the online community are able to navigate and interact with other players’ avatars. The theme of this online game is very similar to the BAL Masque where people hide their real identity to have more freedom to do whatever they like and experience things they are unable to experience in their own situation. All these are possible not through hiding their face behind the mask but by hiding behind a virtual character in an unreal environment. Players are given the opportunity to extend their imagination by choosing a figure, which is considered mostly to be a representation of suppressed aspects of themselves and play freely with no real world obligations. Throughout the whole experience the chosen avatar would be a consistent representation of the player. Players through their avatars navigate into a virtual world and interact with others in the game. They are actively involved in virtual environment to make their own fantasy world. The fantasy world of each individual player creates a single, contiguous virtual environment where everyone shares his or her dreams. Second life empowers the players to play with themselves in a virtual environment that has the flexibility for any kind of explorations and manipulations. So, the players of second life have the ability to engage in the productive activity in the game through the means offered within the game structure.  In second life, it is the players who take over their play experience completely not the game designer. The avatars in the game are able to walk, chat, fly, have sex, and buy and sell virtual stuff for real money. So, the whole experience of real life is transferred into a virtual world for those who are interested to experience different kind of being.
Although it seems as a very virtue and positive experience, the practice has showed that it is not the case all the time. The big promise of the game is allowing a diversity of people and experiences in order to attract a diversity of people to these environments.  LambdaMoo, is also another example of these kinds of open environments, where the participants make their own legal systems as well as their social structures.  In this game, the important problem has been handling the legal system as any other virtual environments. The reason for the necessity of the legal system is that frequently the players have confronted with issues such as sexual harassment, violence, and so on. As one of the participants of the second life says:
“I spent a week virtually living and breathing inside Second Life: the massively multiplayer online world that contains everything from lottery games to libraries, penthouses to pubs, skyscrapers to surrogacy clinics….Oh, and an awful lot of virtual sex.”
It seems that it is an obvious and easily noticeable issue. I myself was not familiar with the concept of these virtual environments when I started to play in second life. As a new player and a novice with no mindset about the game, I came with the understanding that this game can be harsher than what I can imagine. Initially, I was asked to pick a character. The female characters that I was offered had strange make-ups with the exposed body parts and sexual appearance. It seemed they were the only choices I had. I picked one of them even though I felt no connection with it. With the chosen avatar, I entered to the space. It seemed so empty and dark. I liked the fact that I was able to navigate the space. However, I had the feeling that every corner of the space, I might see sex scene or violent act. It was when I got the message of entering my age in order to be able to go in some places that I felt I am not going to see undesired scenes. However, I felt uncomfortable yet by being in such a dark and empty environment sometimes. I think the feeling of the environment is a part of the intentional decision of the designers of this game. It provides a good condition for the players to feel that this is the place where they can also experience all those things that they were banned to do freely in the real life. I can imagine it would get even more joyful for those participants from a closer society. This space would provide them the freedom they are starving for in the real life.
Therefore, in order to protect the space from all undesirable outcomes, the necessity of creating a legal system that considers punishment is important here. The main challenge in creating legal system though is recognizing to what extend the law can be defined and enforced in a virtual world. Should be an appropriate relationship between the legal system within the virtual world and the legal systems that exist outside of it? It was predicted that Second Life has potential for serious issues on 2007 such as tax-free commerce, child-porn distribution and other unsavory activities. Another issue is that Second Life’s virtual assets have actual value that might also cause depute.  However, it seems “Disputes involving the issues of free speech and harassment are generally more emotionally charged than the disputes arising over property rights.” The controversy over Mr. Bungle’s ghostly sexual violence in LambdaMoo is an example of these kinds of issues. In fact “every set of facts in virtual reality is shadowed by the real life facts.”  Although, no one in the real life is hurt or touched, the victim players feel insulted by what has happened to them. So, the act of virtual sex has turned to a serious issue that brings up the necessity of creating a legitimate virtual community. The hard part is to recognize how to do the punishments in a virtual world. Does the system of punishment extend to the real world or not? 
At the end, I think understanding these growing virtual environments with all the fans who are spending increasing amount of time in them, is a very important task. It will help to know the potential and existing social and ethical issues of them better. 
 Celia Pearce, Narrative Environments, From Disneyland to World of Warcraft
 Celia Pearce, Productive Play, Game Culture From the Bottom Up
 Mnookin, J., Virtual(ly) Law: The Emergence of Law in LambdaMOO
 Julian Dibbell, A Rape in Cyberspace
 Curtis, P., Mudding: Social Phenomena in Text-Based Virtual Realities
 Kristina Dell Thursday, Second Life’s Real-World Problems http://www.time.com/time/magazine/article/0,9171,1651500,00.html
 T. L. TAYLOR, Intentional Bodies: Virtual Environments and the Designers Who Shape Them