In the second part of the talk, I will describe our preliminary effort in characterizing and caching of textures in Second Life. We found that, surprisingly, textures constitute up to 85% of all data in Second Life. This finding leads us to design and implement a caching proxy for textures for Second Life. Using the insights we gain from our traces, we design a caching algorithm for textures that improves the hit rate compared to using standard caching algorithms.