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They have been used in academic environments for distance education, collaboration (such as Diversity University), group decision systems, but others are primarily social in nature, or used for role-playing video games, or simply to take advantage of the programming possibilities.
The more popular of the two, the Lambda MOO server, is named such as indication of the close historical and continuing association of the MOO server code with the first public MOO, Lambda MOO.
Stephen White (also known by the handles "Ghondahrl" and "ghond") wrote the first version of the MOO server, which was released on May 2, 1990, and used for the operation of a server called "Alpha MOO".
Pavel Curtis, an employee of Xerox PARC and also known by his handles "Lambda", and "Haakon", took the basic design, language, and code, fixed bugs and added features to release the first version, called "Lambda MOO" on October 30, 1990.
There are a handful of such MOO "core" databases which serve as foundations of code and utilities from which to start your MOO, including Lambda Core (from Lambda MOO), Minimal DB (considered the minimum necessary code and utilities to work usefully in a MOO), JHCore (from Jay's House Moo), and en Core (from Lingua MOO).
Every object in the MOO is assigned a number, and may be referred to by this number, prefixed with a #, as well as its name when the user is in the object's presence.