5G, Industry 4.0, The Digital Economy and The Metaverse: Implications and Regulatory Challenges

A Brief On the Status of the 5G Deployment in Asia and the Pacific (GSMA)

I had the opportunity to attend a very insightful webinar organized by the Joint Foreign Chambers of Commerce in Thailand (JFCCT) and the European Chamber of Commerce Thailand (EABC) on the recent progress of the "5G" technology in relation to the fourth Industrial Revolution (Industry 4.0), and how the advances in the GSM technology will affect the Digital Economy in ASEAN and globally.

The guest speaker was Terence Wong, Head of APAC 5G Industry & IoT Community, and Market Development Director, Asia Pacific, representing the GSMA (Global System for Mobiles Association).

The conversation covered the current status of the 5G deployment in the Asia Pacific. Indeed recent surveys conducted by GSMA have established that most countries in the region have frameworks on a national level, recognizing the potential of Industry 4.0.

Such frameworks will be crucial in the efforts by governments to stimulate post-Covid 19 economic recovery.

Government agencies and industry players are working to deliver Industry 4.0 objectives within the next five years.

In that perspective, effective regulatory frameworks, such as making a new spectrum available for enhanced connectivity, and increasing innovations in new solutions will be necessary.

Because connectivity is a foundational element of the digital economy and society, Mobile operators have played a critical role in delivering high-quality connectivity in the region, having invested in widespread 4G networks and currently doing the same for 5G.

While 5G and Industry 4.0 policies vary from country to country, there is a consensus that at a certain point in time, effective regulation from collaboration across the board from policy-makers, to lawmakers and industry players will be necessary.

The Disruptions

The 5G technology is disruptive and has implications such as speed, reduction of latency, scalability, interoperability, and high definition.

From Telecommunication to Artificial Intelligence (AI) to Machine Learning (ML) and the Internet of Things (IOT) there is a tsunami of changes that will be overwhelming. It will be necessary to change the way we think, communicate, work, do business and create value.

Beyond these disruptions, my personal interest was how 5G technology, coupled with blockchain technology, will affect the new world in the making, and that revolves around new popular words such as Crypto-currency and the Metaverse.

The Metaverse

The Metaverse (or Meta) as Facebook calls it, is a revolution within the Internet evolution and the buzzword of the moment.

The irony is that no one really knows what "Metaverse" stands for and how to define it. Does the Meta even exist?

Universe, Multiverse, Metaverse, and Metacosm

To give a broader perspective, the "Universe" was the reality created by the Creator or, the "God", that humans know.

Many believe that there is also a "Multiverse", which are parallel universes animated by a "Creator" or, "God", that humanity doesn't understand (yet) because of human limitations.

Then there is the "Metaverse", which is a world created by humans as Virtual Reality (VR). The Universe is a "Macroverse" defined by tangibility. The Metaverse is a Metacosm defined by intangibility and virtuality.

Etymology of Metaverse

The term metaverse was coined in?Neal Stephenson's 1992?science fiction?novel?Snow Crash, where humans, as?avatars, interact with each other and?software creations, in a?virtual space that uses the metaphor of the real world.?Stephenson used the term to describe a virtual reality that will be created after the?internet era.

In other words, "Metaverse" was made up by blending "Meta" (from Greek, meaning "sense") and "Universe".

From Metaverse to Metacosm

Since "Metaverse" is just about playing around with words and making things up, why don't we join the party? I would also like to propose "Metacosm" which is the closest one can imagine, to describe what the Metaverse was intended to represent in the fancy world imagined by Stephenson.

Etymologically, the roots of the two words have similar meanings ie., “Sense of Universe” and “Sense of Cosmos”.

The universe is a planetary system that God has created. It can be seen, measured, and mapped.

On the other hand, the cosmos goes beyond the perceivable planetary system. It is much more powerful and bigger. It better represents the unlimited power and imperium of God and cannot be measured and mapped! The Cosmos better represents the limits and insignificance of humanity than the Universe!

Metaverse, Metacosm, and "Unstoppable" Blockchain Domain Names

While Metaverse is now becoming popular, there is a bigger case for Metacosm to surge in popularity and flip Metaverse for one particular reason. Indeed, blockchain domain names will soon become more and more popular!

This will happen when the industry embracing "Meta" will realize that “Cosmos” is closer to the "Godlike" virtual world they are trying to represent than “Universe”.

Therefore, the rush for blockchain domains such as .crypto or .nft will happen sooner because they belong to the crypto space and will have more use cases and value (combination of domain, ownership, control, and immutability) than web2 domains such as .com or .net!

People just don’t know yet!

While “Metaverse.com” is no more available for sale on Goddady, “Metacosm.com” is still available as a “premium domain” at a staggering 4,209841 THB!!

We are now seeing where things are going. Let us imagine what will be the price of a domain such as “metacosm.crypto” or “metacosm.nft” when the time will come!

But for now, let us stick around "Metaverse" and the possible regulatory implications.

The Need for Definition and Clarity

From the regulatory perspective, regulating the Metaverse will be a challenge because lawmakers are already struggling to catch up with the technology disruptions happening at lightning speed.

The main purpose of regulation is to create clarity. Clarity helps to manage legal risks. That is why definitions are important. Indeed because definitions have legal consequences, it is of great significance to have definitions right to help businesses navigate the complexity of law and regulation.

Tech Innovation vs. Regulators: The Clash of Universes

Two universes are colliding. The first one is composed of tech-savvy innovators and industry players. The second one is populated by the regulators who know very little about the technology and the use cases they are regulating! This is what some authors call the challenge of "Managing the Big Bang"!

When regulation is politically motivated, misguided, uninformed about the subject matter, or opportunistic, it creates liability and risk. The regulation becomes the problem, not the solution society needs!

The Centrality of "Data Unit" in The Regulation of the Metaverse

What has made "Metaverse" possible is the evolution of digitalization that evolved from the power and use cases of "Data Units". Let me break it down to the best of my understanding.

• Data units for communication were at the base of the Internet
• Data units for the creation of contracts and transactions are at the base of "Electronic Commerce"
• Data units to commit crimes are at the base of "Cybercrime"
• Data units used to pay for goods or services or store of value are at the base of "Cryptocurrencies"
• Data units for the creation of rights or obligations are at the base of "Digital Tokens"
• Data units used to create property and value are at the base of "Digital Assets"
• Data units used to create identity are at the base of "Data Subject"
• Data units to generate "Virtual World" are "Metaverse" and as a matter of fact, it covers every possibility offered by data unit applications and use cases.

The metaphor that can be made here, is the "Data unit" in the metaverse can be compared to the photon in the manifestation of energy (light) in the universe.

The Paradigm Shift and The Batte For Control

The word has shifted from tangible to intangible, from intangible to digital, from digital to virtual, from virtual to simulation. This evolution is the closest the human civilization has come to experiment God-like power of the creation of a universe.

The battle for control of 5G is raging between the world's powers. It is about innovation, building the infrastructures, having the best manpower, intelligence and capabilities, dominating the spectrums.

The battle for the control of the Metaverse has started for the same purposes...

Who will own, control and process the massive data that the Metaverse will generate?

We are already seeing that big data company such as Facebook, Google, Amazon, and many others are making claims about the appropriation of the “Metaverse” (Meta) and taking positions for “grabbing” in social media!

What Facebook has done by claiming "Meta" is a form of cultural appropriation!

Now that the stage is set, what is next? What is the direction?

We are at the beginning of a "big bang" data use case that only the smartest and those with extraordinary ability to imagine the future can anticipate. It doesn’t really exist yet, but it is already being felt with NFTs and Gamefi and generating massive economic appetite and competition.

Which side are you preparing to take?

As far as lawmaking and regulation drafting are concerned, there is a necessity to bring all players around the table to understand the function of the technology, the need of the industry, the benefits to the public, and the responsibilities of the regulators.

*** Disclaimer:

The opinions expressed in this note are strictly personal. They do not affect any organization or interest I might be related to directly or indirectly!