Metaverse Challenges: Companies demand more applications and clear standards

🌐 More applications and standards are needed, less data protection and legal uncertainties.

The metaverse, a digital parallel world that merges real and virtual interactions, has the potential to fundamentally change the digital landscape. However, companies view the metaverse with mixed feelings: on the one hand, it is seen as a potentially revolutionary technology; on the other hand, numerous challenges and obstacles hinder rapid and widespread adoption. These challenges include technical, legal, and financial aspects, as well as internal barriers within companies.

🚧 The challenges of the metaverse

1. Lack of practical applications and insufficient benefits

One of the biggest hurdles for companies is the lack of diverse practical applications in the metaverse. A Bitkom survey revealed that 76% of the companies surveyed consider the lack of concrete application possibilities a key challenge, compared to 66% two years ago. This illustrates that expectations for the metaverse have risen, but at the same time, practical and useful use cases that could motivate companies to invest more heavily are lacking.

This perceived lack of direct benefit is also reflected in the attitude of 43% of companies, who currently see no added value for their own business models. For a further 14%, the metaverse is not currently a priority, as they are investing in other emerging technologies that are considered more promising in the short term.

Suitable for:

• The German economy is still putting the brakes on the Metaverse

2. Technological immaturity and lack of standards

Technological immaturity and a lack of standardization are hindering the growth of the metaverse. Around three-quarters of the surveyed companies (73%) believe the technology is not yet mature. This is directly related to interoperability, the ability to seamlessly connect different platforms and applications. Currently, the metaverse lacks common standards, resulting in each platform essentially existing in a silo and preventing the development of overarching, compatible systems. Therefore, 55% of the companies are calling for greater standardization to enable seamless use across different platforms.

Interoperability is crucial for truly broadening the reach of the metaverse. Only when platforms can communicate with each other and content and digital assets can be seamlessly transferred from one environment to another will the metaverse develop sustainable economic relevance for businesses.

3. Regulatory uncertainties: Data protection and legal issues

Another key problem area concerns data protection and the legal framework. 67% of companies see data protection requirements as a challenge, while 44% point to legal uncertainties and an unclear legal framework. Particularly with regard to the General Data Protection Regulation (GDPR), companies in the Metaverse face a complex challenge. The GDPR requires strict measures to protect personal data, which poses a particular challenge in the Metaverse, where large amounts of sensitive information, such as biometric data, are often processed.

The uncertainties extend not only to data protection but also to questions of legal jurisdiction and applicable law. Since the metaverse is designed as a global network where users from different countries can interact, it is often unclear which laws apply and how violations can be prosecuted. These legal questions also concern intellectual property, which is frequently difficult to define and protect in the virtual space.

4. Internal obstacles: know-how, qualified personnel, and financial resources

In addition to external challenges, internal obstacles within companies also hinder the path to the metaverse. Approximately half of the companies surveyed report a lack of necessary know-how (52%) and qualified personnel (46%). These knowledge gaps are not surprising, as the metaverse represents an entirely new field that combines technical, creative, and strategic expertise. Consequently, finding specialists capable of developing innovative metaverse projects becomes a further challenge.

Furthermore, 17% of companies lack the financial resources and time to delve deeply into the topic. Developing and implementing metaverse applications is costly and time-consuming, and companies are hesitant to invest large sums until clear use cases and benefits for their business are apparent.

🌟 Applications and potential of the metaverse

Despite these challenges, the metaverse opens up promising fields of application that already offer innovative opportunities for companies. Initial areas of use are already emerging in various industries:

Gaming

In the gaming sector, the metaverse offers the opportunity to create fully immersive game worlds that blur the lines between reality and gameplay through virtual reality (VR) and augmented reality (AR). By introducing new monetization models, such as NFTs or microtransactions for virtual goods, companies can tap into new revenue streams.

Education

In the education sector, the metaverse enables the creation of virtual learning environments that promote interactive learning. Pupils and students can experience complex topics in an immersive environment, which can increase understanding and retention. Virtual classrooms and labs offer the opportunity to more closely link theory and practice.

Healthcare

The metaverse also shows promising potential in healthcare. Medical simulations allow doctors and nurses to be trained in realistic scenarios. Furthermore, the metaverse can improve telemedicine by enabling patients to interact with doctors in virtual consultations.

property

In the real estate sector, virtual tours offer the opportunity to experience properties in an immersive way, regardless of location. Potential buyers can tour houses and apartments virtually, simplifying and accelerating the purchasing process.

🔒 Data protection and legal uncertainties

Data privacy presents a particularly complex challenge in the Metaverse. Unlike traditional digital platforms, the Metaverse often processes sensitive and personal data, including biometric information such as facial features and movement profiles. While this data is necessary for creating realistic avatars and virtual interactions, it poses a significant privacy challenge.

Since there are currently no specific laws that explicitly address the metaverse, companies must apply existing data protection regulations, such as the GDPR, to this new environment. This leads to uncertainty about how exactly these regulations should be implemented in virtual spaces. Companies face the challenge of ensuring data protection while simultaneously providing a realistic and seamless user experience.

Furthermore, legal uncertainties exist regarding jurisdiction and applicable law in the global context of the Metaverse. Since users from different countries can interact in a virtual environment, it is often unclear which laws apply and how violations can be prosecuted. Clarifying these issues will be crucial for the development of the Metaverse.

🔮 Technological maturity and common standards

The metaverse holds enormous potential and offers opportunities for innovative business models and new experiences across numerous industries. At the same time, companies face challenges that must be overcome before the metaverse can be used on a broad scale. This requires not only technological maturity and common standards, but also clear regulatory frameworks and responsible handling of personal data.

Successful integration of the metaverse will only be possible if companies internally develop the necessary knowledge and resources to fully exploit the potential of this technology. Establishing clear legal frameworks will also be crucial to paving the way for investment and innovation in the metaverse.

The metaverse is still in its early stages of development, but the possibilities are manifold. Companies should already be strategically preparing for this future technology to be in a strong starting position for its further development.

Suitable for:

• Examples of Metaverse applications: Bosch, Siemens and the automotive industry

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🚀 Businesses in the metaverse face a dilemma between utilizing innovative technologies and complying with strict data privacy regulations. This challenge is particularly complex because the metaverse is an immersive digital world where physical and virtual realities merge. Vast amounts of personal data are collected in this environment, including biometric data such as eye movements and posture, location information, and financial data.

🌐 Technological opportunities in the metaverse

The metaverse offers numerous opportunities for businesses, particularly in e-commerce, digital advertising, and virtual interactions. Its immersive nature allows companies to enhance their marketing strategies by delivering personalized ads based on real-time user behavior data. These new business models could potentially generate higher revenues, as companies are no longer limited to two-dimensional advertising.

Furthermore, blockchain technology opens up new opportunities for data privacy. Web 3.0 and blockchain could enable users to have more control over their data and store it decentrally. This would reduce the power of large technology companies and offer users greater privacy.

🔒 Data privacy challenges in the metaverse

The downside of these technological innovations is significant data privacy risks. More personal data than ever before is being collected and processed in the metaverse, which can lead to new threats such as identity theft, cybercrime, and misuse through deepfakes. The EU's General Data Protection Regulation (GDPR) sets high standards for the transparency and protection of personal data. Companies must ensure that they respect users' rights, including the right to access and delete their data.

Another problem is the issue of responsibility within the metaverse: Often, multiple actors are involved in processing user data (e.g., platform operators, companies, payment service providers), which raises the question of who is ultimately responsible for data protection. This complex structure further complicates it for companies to meet legal requirements.

⚖️ The dilemma: Technology vs. data privacy

Companies are thus faced with a dilemma: On the one hand, they want to fully exploit the technological possibilities of the metaverse to gain a competitive advantage; on the other hand, they must comply with strict data protection regulations to avoid legal consequences and gain user trust. This is particularly problematic for large technology companies whose business models rely heavily on the monetization of user data.

The solution to this dilemma could lie in the development of technologies that offer "built-in data protection." This means that data protection is integrated into software and hardware development from the outset. Furthermore, decentralized technologies such as blockchain could help users retain more control over their own data.

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#️⃣ Hashtags: #Metaverse #DataProtection #Blockchain #Technology #GDPR

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