Breaking down the hype around Metaverse

Context: The race between technology companies to build the ‘metaverse’ has officially started with Facebook Inc announcing that ‘from now on, we’re going to be metaverse-first, not Facebook-first’.

About Web 3.0 and Metaverse 

• Web 3.0: Next generation of Internet architecture that will supposedly be free from centralisation that is a part of today’s Web 2.0 Internet systems.
• Metaverse: ‘Metaverse’ is a broad term encompassing interconnected 3D virtual worlds made possible through advancements in technologies such as augmented reality (AR)/virtual reality (VR), artificial intelligence (AI) and blockchains.

Significance of ‘Web 3.0 – Open Metaverse’

• An ideal future digital environment: Platforms run on a hypothetical metaverse with use of technologies such as blockchains and tokens to create a decentralised internet for online interaction and online payments.  
• Truly open and inclusive space:  Paving way for an ideal world, furthering empowerment, expression and exploration. 
• Rich social and economic possibilities: Through enhanced interoperability, i.e., the ability to seamlessly transfer data between different virtual worlds.
• Creator economy will become a reality: NFTs (Non-Fungible Tokens) will allow proof of ownership of digital assets Eg. Virtual goods, paintings and memorabilia.

Challenges

• Advancing corporate goals of tech-giants: Their aim is likely to get to the next level of commodification of human interaction, where every single action, down to the tiniest levels, is tracked and surveilled for profits, and designed in a way to maximise data collection and keep the user coming back for more.
• Psychological effects on teenagers: Metaverse ‘avatars’ will be new version of showing off glamorous social media profiles – both masking who the person really is behind-the-scenes, perpetuating narcissism, mental health issues and insecurities.
• Scope for exploitation of millions of underpaid workers: As lot of the critical infrastructure and supply chains of Big Tech depend on the resources extracted from them.
• Misplaced priorities: Great potential to revolutionise fields such as education and health care but as long as they are run purely from a profit motive, the benefits would likely be lesser.
• Promotion of violent and hateful contents: If left unregulated, something similar could happen on an even larger scale in immersive virtual worlds, through targeted advertising and propaganda.
• Centralisation can lead to closed Metaverse: The metaverse in the hands of one corporation would surely be detrimental to the entire Web 3.0 decentralisation movement. 
  • Eg. Competitors are likely to pop up with their own versions of the technology, leading to a number of ‘Closed’ metaverses, which would basically be Web 2.0 system all over again.
• Criticisms against NFTs: They are an attempt to create value and scarcity where there should not be — that they are nothing more than another new avenue for capitalist expansion.
• Development of virtual economies around customisation of Metaverse ‘avatars’.
• Privacy and security threats: Real world identities will be more connected to system than ever before. Data breaches and theft, thus, could prove even costlier.
• Cybercrimes could also take on new forms in these new virtual worlds. Eg. Expansion of deep fakes.
• Jurisdiction and governance challenges: In distant future, virtual worlds could even someday grow into alternatives to nation state, as rise of blockchain-based DAOs (decentralized autonomous organisations) seems to suggests.
• Environmental Challenges: The technologies for metaverse requires tremendous processing power and, consequently, would lead to a great cost in terms of the environment.

Way Forward

• Decentralisation of Metaverse: Initiatives towards closed metaverses shall be ceased at roots. 
• Oligopolies or monopolies in something as revolutionary as the metaverse space is a cause for concern and competition law regulators should look into them.
• Introduction of technology law: To get hold of the virtual world that might be possible with the advent of operation of multiverse by Big-tech companies.

Conclusion: With the metaverse, possibilities are aplenty, but so are the dangers. 

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