Ever since the Metaverse discussion went mainstream and organizations began investing in their slice of the Web 3.0 pie, there has been a debate about governance. The fundamental structures that underpin the ethical and technological foundation of the Metaverse are decentralized, and therein lies the problem.
While decentralized architecture provides far more opportunities for organizations, large and small, to participate in the Metaverse, a significant shift away from the corporate control facilitated by a centralized model, decentralization also makes governance difficult. However, as we have already seen, unified governance is critical. Its absence has led to dire consequences.
Already there have been numerous reports of sexual harassment, so the safety of children has been an ongoing concern. There is no proper protocol for data privacy. Also, crypto hacks aren’t going anywhere either. Last week, thieves got away with $100 million in cryptocurrency after infiltrating Harmony’s Horizon bridge.
So, what’s the solution? In this article, we’ll run through the various areas of governance that require attention and the possible ways they will be addressed in the future for the Metaverse.
Data Privacy
Data protection is one area of governance that might be relatively easy to implement. The laws that govern data protection regulations in physical and Web 2.0 environments, such as the GDPR, are relatively transferable.
Ultimately, the key to ensuring a user’s right to privacy is to transfer existing real-world legislation to the virtual space. Of course, this degree of regulatory oversight borders on centralized control. However, crucially, the power is in the hands of governmental, not private organizations.
With fines in the millions of dollars range and prison time being a real possibility in some cases, existing data protection regulations are a significant deterrent. The difficulty will come in determining the jurisdiction as to where these laws will apply.
Do you focus on the registered location of the company responsible for developing a platform? Do you go with the physical location of the company building on a third-party platform? Or, do you attempt to geo-locate the users themselves?
Cybersecurity
Cyber threats are a severe concern for Metaverse platforms and users alike. With so much lucrative data created so frequently, the temptation for an attack is overwhelming.
Regarding governance, platforms must adhere to a minimum standard of cybersecurity infrastructure. There may eventually be a rating system that users can refer to before using a particular platform.
Similar to a health and safety rating on physical premises, a unified cyber safety rating will enable users to make informed decisions about their technologies. Beyond this, new Metaverse platforms must be secure by design. This commitment could ensure that all emerging platforms can boast a gold standard for cybersecurity.
User Rights
As we mentioned at the start of this article, user safety is already a concern in the Metaverse. For users to feel completely secure operating and enabling minors to operate on Metaverse platforms, there must be a unified consensus on what constitutes a safe environment.
Again, this will likely come down to a code of conduct that platforms agree to follow, understanding that failure will result in fines. How organizations achieve these demands will undoubtedly vary from platform to platform. Additionally, technologies will differ. So, protection measures will require a bespoke solution.
However, Metaverse pioneers must consider not only ‘physical’ safety. Users in the Metaverse must have their human rights honored. This will include a commitment to protection from hate speech, verbal abuse, racist behavior, and more. While human rights issues are contested in many countries, the Metaverse could provide a space where a unified commitment to human rights is instilled from the ground up.
Interoperability
One area of governance that is already moving forward is interoperability. In terms of the Metaverse, this refers to the ability platforms have to share information, enable users to transition easily between them, and collaborate on various projects.
The Metaverse Standards Forum was launched recently. The forum aims to support an open Metaverse by encouraging organizations to commit to interoperability standards.
The forum is free to join and should, on paper, develop a set of technical standards that will unite multiple Metaverse platforms. Already, some significant names have gotten on board, including Adobe, Alibaba Epic Games, Meta, Microsoft, NVIDIA, Sony Interactive Entertainment, and many more. Keep a lookout for a more in-depth take on the report coming soon on the Acceleration Economy website.
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