The interest in the metaverse has waned considerably, with many brands asserting its lack of relevance. Companies that have previously made investments in the metaverse have become disinterested due to encountering various issues, such as the absence of privacy assurances resulting from a lack of governing authority, misrepresentation of identity, and challenges related to time and space. Additionally, there is a growing apprehension among these companies regarding potential conflicts with data regulations.
What Really is Metaverse?
The term ‘metaverse’ was initially coined by Neal Stephenson in his science fiction novel, Snow Crash, in 1992. It depicted an alternate 3D world that served as an escape for people. In contemporary usage, the metaverse refers to a virtual 3D space created through the internet, allowing individuals to immerse themselves using virtual reality and augmented reality headsets. Within this environment, people can experience aspects of life that do not exist in the real world.
The metaverse facilitates persistence and accommodates multiple participants, enabling communication, socialization, collaboration, and engagement in virtual reality games. It relies on technologies such as virtual reality (VR) and augmented reality (AR). There is some debate regarding the extent to which the average person comprehends the concept of the metaverse and its various dimensions.
Around two years ago, the hype surrounding the metaverse gained momentum when tech giant Facebook rebranded itself as “Meta” and shifted its primary focus towards pioneering metaverse technology. The intention was to eventually transition all their interests into the metaverse space. However, Meta and similar companies have struggled to provide a clear explanation of what they mean by the term “metaverse”. Nonetheless, this idea captivated the attention of affluent venture capitalists who sought to be part of the next significant technological advancement.
What Are the Reasons Indicating That the Metaverse Is Irrelevant for Brands?
As the number of users in the metaverse continues to grow, the maintenance of one’s identity becomes a prominent concern. The issue of verifying and authenticating identity holds particular importance in relation to cryptocurrencies and the emerging metaverse. It is crucial to assess the existing security measures, as well as the trustworthiness and legitimacy of the entities involved.
The potential for reputation damage and legal consequences serves as a significant deterrent for brands contemplating involvement in this ecosystem. The ease with which fraudulent activities can be carried out, such as the manipulation of facial features, voice, digital labels, and other identity markers, intensifies these concerns.
As the metaverse expands to incorporate augmented reality experiences, the necessity for advanced security methods becomes imperative. These methods must align with the intricacies of a three-dimensional augmented reality space. Consequently, valid concerns arise regarding the increased volume of personal data that individuals may be required to disclose to these networks, which may not adequately protect their information.
Legal jurisdiction within the virtual space is still in its nascent stages, even in highly developed nations. In this scenario, brands have no recourse for any issues they may encounter. This situation becomes even more complex when confronted with the current loosely defined laws, particularly those that have not been specified for VR/AR.
There is a risk of frequent conflicts arising as this virtual space expands, thereby adding to its real-world implications. Consequently, the challenge of identifying jurisdictions and establishing uniform legislation across diverse global governments becomes apparent in the metaverse.
A common point of agreement among most stakeholders is that the metaverse may currently be irrelevant for its target market. This is evidenced by a significant decline in metaverse funding. However, the potential of augmented reality (AR) and virtual reality (VR) is being recognized, and this technology will eventually transform various industries.