A Review of Davos' Metaverse Report

We have just concluded the first Davos Summit, in which the Metaverse was one of the main topics. This summit marks a new chapter for Davos and the Metaverse industry to progress together. The summit brought together leading ideas in almost every field, particularly the economy, resulting in highly productive criticisms and improvements. One of the reports issued for the Metaverse at the summit already indicates how beneficial Davos can be for the Metaverse.

One of the key issues in the industry is the inability of different blockchain networks to exchange data among themselves. The Davos report, which addresses this problem specifically within the Metaverse, approaches the issue from a social perspective rather than a technical one, thus broadening our perspective on the matter. Although bridge applications have been attempted as solutions, the majority of hacking incidents that occurred last year were caused by vulnerabilities in these bridges. Therefore, it was a wise decision for the summit's first report to address this issue directly.

Common Asset Universe

Currently, numerous artists are working to create concepts, games, avatars, various items, and decorations for Metaverse platforms. However, it is difficult to say that these assets are being used to their full potential. This is because there is no interoperability among Metaverses. Therefore, assets created for one Metaverse cannot be used for another. As a result, the markets and audiences that assets can reach are limited to their own Metaverse markets.

If we were to have a common asset universe, the diversity of products for each Metaverse would increase dramatically and the quality of ventures built on these infrastructures would also improve. Artists would not be confined to one market, which would increase both their income and fame and foster competition among them. As a result, all these factors would lead to users having more enjoyable and high-quality experiences.

In the report, in addition to the volatility of virtual assets, it is also highlighted that physical assets can also be connected to the Metaverse. For example, a car manufacturer can create a virtual showroom in the Metaverse where users can view and test drive the car before purchasing it. This can be a huge opportunity for companies to reach new audiences and increase sales.

Metaverse Passport

The Metaverse is a three-dimensional version of the social media platforms we use. In the past, social media giants have been involved in scandals regarding the misuse or unauthorized use of user data. The use of user data is also a concern in the Metaverse. Especially in an unregulated area, it is crucial for users to be able to control their own data.

When accessing Web 3.0 platforms, connecting our wallet is usually sufficient. However, sometimes additional information is also required. It is not always clear how much of this information is truly necessary for the platform and how much is being collected for other purposes. To address this, experts in the field have proposed a data standard that can protect users from potential malicious situations.

The report also highlights that determining common standards and rules for user data will be easier when platforms are interoperable. This standard can also be implemented with a token assigned to wallets. For example, when a user first enters a Metaverse platform, they share their information in accordance with the established standards. This information is then stored in a token assigned to their wallet. This token acts as a passport, allowing users to automatically log in to other Metaverse platforms. By raising the standard of quality between platforms and questioning the motives of those that don't comply, the use of user data can be made more secure.

Character and Age Variability

In the Metaverse, the relationship between users and their avatars becomes crucial. Users may want to identify with a single avatar across different platforms, or they may choose to switch avatars depending on the platform. This is similar to how we present different facets of our personality in real life, depending on the context and situation. In the Metaverse, users may want to have multiple avatars for different moods and situations. For example, when socializing with business colleagues, a user may want to use a more formal avatar, while in a Metaverse where they're unknown, they may want to take on a different persona and corresponding avatar.

Additionally, the accessibility of the metaverse is a relatively easy technology and it is expected to become even simpler as it reaches more people and its infrastructure improves. Therefore, it is highly likely that we will see younger users on metaverse platforms in the future. Currently, these users spend a lot of time on central metaverses such as Fortnite, Minecraft, and Roblox. Therefore, decentralized metaverses should also have different plans for users of different ages. Because, as expected, each age has a different expectation from the metaverse. Therefore, while the variety of game and socialization products on the platform is very important, it may also be necessary to introduce regulations such as a family/child filter for young users.

Opportunity Equality

The report also touches on the issue of opportunity equality in the metaverse. It states that accessibility to the metaverse is crucial and that measures should be taken to ensure that everyone can enjoy the experience, such as providing a child-friendly environment while still allowing adults to use the platform and making sure that those with limited economic means can still access the metaverse through a browser rather than just VR/AR headsets. It also suggests that with the increasing number of users in the metaverse, content will also be quickly transferred to the metaverse infrastructure, and that local censorship will no longer be a problem as users will no longer have to rely on VPNs. The report also mentions that accessibility for disabled users should also be considered, such as providing a voice-based interaction system for visually impaired users and sign language integration for hearing impaired users.

Regulation Variability

Unlike other issues, the only interoperability that may not have a positive contribution is regulatory variability. The convergence of users from all over the world on the metaverse naturally brings many legal problems.

The report elaborates on this situation with the example of a user who connects to a metaverse that has servers in Australia, while he is a German citizen living in the US and on vacation in Peru. The question is, whose laws will govern and store the user's data?

As volatility increases, it is expected that common standards will vary in every field, but it seems that creating these standards will be a very difficult process.

The report also states that a common regulatory standard is needed to protect highly sensitive data such as heart rate, blink rate, and eye pupil response to events that are measured through various physical devices such as VR/AR glasses that will be used for the metaverse. Otherwise, platforms or third parties may use this data.

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The report published by Davos on interoperability is actually a surprising and pleasing development. This is because generally, organizations of this type usually have a very high reluctance towards sectors such as crypto and metaverse. Some organizations and companies only make a superficial attempt to take advantage of the interest here. However, in the Davos report, on the contrary, there was a positive attitude towards the industry and useful critiques for development. Therefore, it would not be wrong to say that this year's Davos Summit has a historical significance for the metaverse due to its different perspective on interoperability.

Click here to read the report.

Written By: Berkay Aybey