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- 1 The hype around the metaverse seems to be cooling down in the wake of brands looking at other aspects of Web 3.0.
- 2 Attributed to diverse issues like identity, data security, regulative jurisdiction, and many more, brands gradually sack investments.
Metaverse does not appeal as much anymore as it used to, with most brands stating it “just not relevant”. Companies who have already invested have sparked a disinterest after facing issues like the absence of a privacy guarantee due to lack of authority, misrepresentation of identity, and challenges of time and space. They also fear coming into conflict with data regulations.
What Really is Metaverse?
The term ‘metaverse’ was first coined by Neal Stephenson in his science fiction novel, Snow Crash, in 1992. It depicted an alternative 3D world which people could escape to. Today, it stands for a virtual 3D space created with the internet where people can immerse themselves via using virtual reality and augmented reality headsets and experience life in ways that don’t exist in the real world.
This environment can be persistent and allow multiple participants. The users can communicate, socialise, collaborate, and play virtual reality games. The metaverse is based on virtual reality (VR) and augmented reality (AR) technologies. Consensus varies on whether or not the average person fully understands what metaverse is, and if so, how many?
The hype around metaverse seems to have emerged around two years ago when the tech giant Facebook changed its name to “Meta” to rebrand itself as a company mainly focused on pioneering in the metaverse technology and eventually pivot all its stakes into the metaverse space.
But, Meta and other companies alike have yet not been able to explain what they mean when they say “metaverse”. But the idea, at the time, encaptivated the attention of affluent venture capitalists, out of the desire to be “in” on the “next big thing”.
Reasons Indicating Irrelevance for the Brands
As footfall in the metaverse increases, maintenance of one’s identity becomes a prominent cause for concern. The question of identity verification and authentication is important when it comes to cryptocurrencies and the emerging metaverse. It is crucial to understand the existing measures and their level of security, and the trustworthiness and legitimacy of the entities involved.
The potential for reputation damage and legal repercussions is a significant deterrent for brands considering participation in this ecosystem. The ease with which fraudulent activities can be conducted, including the forging of facial features, voice, digital labels, and other identity markers, further amplifies these concerns.
As the scope of the metaverse expands, incorporating augmented reality experiences, the need for advanced security methods becomes imperative. These methods must align with the intricacies of a three-dimensional augmented reality space. Consequently, there are valid concerns regarding the increased amount of personal data that individuals may need to disclose to these networks, which may not adequately safeguard their information.
Legal jurisdiction in the virtual space is only very new even in highly developed nations. In this scenario, brands have no remedy to any problems they may suffer and becomes even more complicated if they find themselves in an ambush with the current loosely defined laws that are especially unspecified for VR/AR.
They risk falling into conflict now and then as this virtual space expands, adding to its real word implications. Therefore, identifying jurisdictions and setting a uniform legislature across diverse global governments is a challenge for the metaverse.
A common point that most stakeholders can agree on is that metaverse may be irrelevant right now for its target market. There has been a steep decline in metaverse funding. But the scope of AR and VR is being recognized and this technology will eventually transform industries.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
