The metaverse is being hailed as the next phase of the internet, offering a virtual world where people can live, work, shop, and interact. However, as this concept takes shape, there are concerns surrounding the need for digital IDs and the risks associated with collecting biometric data.
According to the World Economic Forum (WEF), the metaverse will require digital ID technologies to facilitate shopping and interaction within this virtual realm. The WEF believes that the metaverse has the potential to provide digital identities to those who are currently unaccounted for in existing ID systems. This inclusive access to educational, financial, and other services could be a significant step forward. Accenture, a consulting firm, estimates that the metaverse could be worth $1 trillion within the next three years, with the help of generative AI.
While some applications within the metaverse may rely on anonymous or pseudonymous identities, certain areas such as banking, education, and work-related experiences may require legal identification. This could potentially create risks, but the WEF suggests that these can be mitigated by establishing a trust network that allows individuals to request trusted digital IDs and exchange proof of identity in a privacy-preserving manner.
The WEF has also released a paper titled Metaverse Privacy and Safety, which addresses concerns about the metaverse’s potential for surveillance. Extended reality (XR) technologies, including virtual (VR) and augmented (AR) reality, often utilize biometric identifiers and real-time location tracking. This raises concerns about user privacy and security. Elizabeth Renieris, a senior research associate at the Institute for Ethics in AI at Oxford University, warns that when combined with biometric identification systems, these technologies could inadvertently expose individuals to constant surveillance without their knowledge or consent.
Nevertheless, experts believe that web3 and blockchain technologies could play a vital role in building the metaverse. These technologies offer immutable identities, tokenized digital IDs, and increased data ownership for ID holders. Additionally, they could enhance the efficiency and security of Know Your Customer (KYC) data management. With cryptographic keys granting access to specific data points, individuals would have more control over who can access their personal information. This could lead to businesses adopting self-sovereign identity (SSI) for a more efficient and secure KYC process.
Overall, the metaverse holds great promise for providing digital identities and inclusive access to various services. However, it also raises concerns about privacy and surveillance. While blockchain and web3 technologies offer potential solutions, it’s crucial to ensure that the metaverse is developed with privacy and security in mind. By striking a balance between convenience and protecting user rights, the metaverse could truly revolutionize the way we live, work, and interact in the digital realm.
