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An entire Pacific country will upload itself to the metaverse

The Pacific nation of Tuvalu is planning to create a version of itself in the metaverse, as a response to the existential threat of rising sea levels. Tuvalu’s minister for justice, communication and foreign affairs, Simon Kofe, made the announcement via a chilling digital address to leaders at COP27. He said the plan, which accounts for the “worst case scenario”, involves creating a <a href="https://theconversation.com/au/topics/digital-twin-89034" target="_blank" rel="noopener">digital twin</a> of Tuvalu in the metaverse in order to replicate its beautiful islands and preserve its rich culture: <blockquote> The tragedy of this outcome cannot be overstated […] Tuvalu could be the first country in the world to exist solely in cyberspace – but if global warming continues unchecked, it won’t be the last. </blockquote> <figure><iframe src="https://www.youtube.com/embed/sJIlrAdky4Q?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe><figcaption>Tuvalu turns to metaverse as rising seas threaten existence, 16 Nov 2022.</figcaption></figure> The idea is that the metaverse might allow Tuvalu to “fully function as a sovereign state” as its people are forced to live somewhere else. There are two stories here. One is of a small island nation in the Pacific facing an existential threat and looking to preserve its nationhood through technology. The other is that by far the preferred future for Tuvalu would be to avoid the worst effects of climate change and preserve itself as a terrestrial nation. In which case, this may be its way of getting the world’s attention. What is a metaverse nation? The <a href="https://theconversation.com/what-is-the-metaverse-and-what-can-we-do-there-179200" target="_blank" rel="noopener">metaverse</a> represents a burgeoning future in which augmented and virtual reality become part of everyday living. There are many visions of what the metaverse might look like, with the most well-known coming from Meta (previously Facebook) CEO Mark Zuckerberg. What most of these visions have in common is the idea that the metaverse is about interoperable and immersive 3D worlds. A persistent avatar moves from one virtual world to another, as easily as moving from one room to another in the physical world. The aim is to obscure the human ability to distinguish between the real and the virtual, for <a href="https://theconversation.com/what-is-the-metaverse-a-high-tech-plan-to-facebookify-the-world-165326" target="_blank" rel="noopener">better or for worse</a>. Kofe implies three aspects of Tuvalu’s nationhood could be recreated in the metaverse: <ol> <li> territory – the recreation of the natural beauty of Tuvalu, which could be interacted with in different ways </li> <li> culture – the ability for Tuvaluan people to interact with one another in ways that preserve their shared language, norms and customs, wherever they may be </li> <li> sovereignty – if there were to be a loss of terrestrial land over which the government of Tuvalu has sovereignty (a tragedy beyond imagining, but which they have begun to imagine) then could they have sovereignty over virtual land instead? </li> </ol> Could it be done? In the case that Tuvalu’s proposal is, in fact, a literal one and not just symbolic of the dangers of climate change, what might it look like? Technologically, it’s already easy enough to create beautiful, immersive and richly rendered recreations of Tuvalu’s territory. Moreover, thousands of different online communities and 3D worlds (such as <a href="https://secondlife.com/" target="_blank" rel="noopener">Second Life</a>) demonstrate it’s possible to have entirely virtual interactive spaces that can maintain their own culture. The idea of combining these technological capabilities with features of governance for a “<a href="https://theconversation.com/what-are-digital-twins-a-pair-of-computer-modeling-experts-explain-181829" target="_blank" rel="noopener">digital twin</a>” of Tuvalu is feasible. There have been prior experiments of governments taking location-based functions and creating virtual analogues of them. For example, Estonia’s <a href="https://en.wikipedia.org/wiki/E-Residency_of_Estonia" target="_blank" rel="noopener">e-residency</a> is an online-only form of residency non-Estonians can obtain to access services such as company registration. Another example is countries setting up virtual embassies on the <a href="https://www.learntechlib.org/p/178165/" target="_blank" rel="noopener">online platform Second Life</a>. Yet there are significant technological and social challenges in bringing together and digitising the elements that define an entire nation. Tuvalu has only about 12,000 citizens, but having even this many people interact in real time in an immersive virtual world is a technical challenge. There are <a href="https://www.matthewball.vc/all/networkingmetaverse" target="_blank" rel="noopener">issues of bandwidth</a>, computing power, and the fact that many users have an aversion to headsets or suffer nausea. Nobody has yet demonstrated that nation-states can be successfully translated to the virtual world. Even if they could be, others argue the digital world makes <a href="http://thestack.org/" target="_blank" rel="noopener">nation-states redundant</a>. Tuvalu’s proposal to create its digital twin in the metaverse is a message in a bottle – a desperate response to a tragic situation. Yet there is a coded message here too, for others who might consider retreat to the virtual as a response to loss from climate change. The metaverse is no refuge The metaverse is built on the physical infrastructure of servers, data centres, network routers, devices and head-mounted displays. All of this tech has a hidden carbon footprint and requires physical maintenance and energy. <a href="https://theconversation.com/the-internet-consumes-extraordinary-amounts-of-energy-heres-how-we-can-make-it-more-sustainable-160639" target="_blank" rel="noopener">Research</a> published in Nature predicts the internet will consume about 20% of the world’s electricity by 2025. The idea of the metaverse nation as a response to climate change is exactly the kind of thinking that got us here. The language that gets adopted around new technologies – such as “cloud computing”, “virtual reality” and “metaverse” – comes across as both clean and green. Such terms are laden with “<a href="https://www.publicaffairsbooks.com/titles/evgeny-morozov/to-save-everything-click-here/9781610393706/" target="_blank" rel="noopener">technological solutionism</a>” and “<a href="https://eprints.qut.edu.au/203186/" target="_blank" rel="noopener">greenwashing</a>”. They hide the fact that technological responses to climate change often <a href="https://www.sciencedirect.com/science/article/abs/pii/S0921800905001084?via%3Dihub" target="_blank" rel="noopener">exacerbate the problem</a> due to how energy and resource intensive they are. So where does that leave Tuvalu? Kofe is well aware the metaverse is not an answer to Tuvalu’s problems. He explicitly states we need to focus on reducing the impacts of climate change through initiatives such as a <a href="https://www.theguardian.com/environment/2022/nov/08/tuvalu-first-to-call-for-fossil-fuel-non-proliferation-treaty-at-cop27" target="_blank" rel="noopener">fossil-fuel non-proliferation treaty</a>. His video about Tuvalu moving to the metaverse is hugely successful as a provocation. It got worldwide press – just like his <a href="https://youtu.be/jBBsv0QyscE" target="_blank" rel="noopener">moving plea</a> during COP26 while standing knee-deep in rising water. Yet Kofe suggests: <blockquote> Without a global conscience and a global commitment to our shared wellbeing we may find the rest of the world joining us online as their lands disappear. </blockquote> It is dangerous to believe, even implicitly, that moving to the metaverse is a viable response to climate change. The metaverse can certainly assist in keeping heritage and culture alive <a href="https://eprints.qut.edu.au/131407/" target="_blank" rel="noopener">as a virtual museum</a> and digital community. But it seems unlikely to work as an ersatz nation-state. And, either way, it certainly won’t work without all of the land, infrastructure and energy that keeps the internet functioning. It would be far better for us to direct international attention towards Tuvalu’s other initiatives described in the <a href="https://devpolicy.org/tuvalu-preparing-for-climate-change-in-the-worst-case-scenario-20211110/" target="_blank" rel="noopener">same report</a>: <blockquote> The project’s first initiative promotes diplomacy based on Tuvaluan values of olaga fakafenua (communal living systems), kaitasi (shared responsibility) and fale-pili (being a good neighbour), in the hope that these values will motivate other nations to understand their shared responsibility to address climate change and sea level rise to achieve global wellbeing. </blockquote> The message in a bottle being sent out by Tuvalu is not really about the possibilities of metaverse nations at all. The message is clear: to support communal living systems, to take shared responsibility and to be a good neighbour. The first of these can’t translate into the virtual world. The second requires us to <a href="https://theconversation.com/ending-the-climate-crisis-has-one-simple-solution-stop-using-fossil-fuels-194489" target="_blank" rel="noopener">consume less</a>, and the third requires us to care.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/194728/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> Writen by Nick Kelly and Marcus Foth. Republished with permission from <a href="https://theconversation.com/an-entire-pacific-country-will-upload-itself-to-the-metaverse-its-a-desperate-plan-with-a-hidden-message-194728" target="_blank" rel="noopener">The Conversation</a>. Image: Getty Images

Technology

Digital fashion and the Metaverse: a new way for people to experience fashion

Is screen wear the new street wear? As people spend more time online – in meetings, social media and video games – clothing brands and designers are increasingly interweaving digital design with physical fashion. The wave of new fashion technology encompasses everything from tailoring the look of your online gaming avatar, to digital sampling and fittings, through to virtual runways and fashion shows. Industry experts discussed the emerging trends at a <a href="https://www.youtube.com/watch?v=TH6l5Gk5dZ4" target="_blank" rel="noreferrer noopener">panel on Fashion and the Metaverse</a> <a href="https://tmice.edu.au" target="_blank" rel="noreferrer noopener">hosted by</a> The Masters Institute of Creative Education. Founder of virtual reality and streaming start up Inverse Darren Vukasinovic, says interest in digital fashion and technologies like augmented and virtual reality, surged as people shifted to online spaces like Zoom and Teams during the pandemic. He says it wasn’t long before people began thinking, “what is my identity when I’m living in a digital space?” “I saw it in the creativity of the backgrounds people were starting to use, their virtual backgrounds. You’d get on these calls and the first couple of times it’s normal… and then, all of a sudden the backgrounds and getting more elaborate and the filters are getting more elaborate.” Australian fashion designer <a href="https://www.danielavakian.com" target="_blank" rel="noreferrer noopener">Daniel Avakian</a> says, digital technologies like 3D pattern making and rendering can alleviate the cost, work, time and waste involved in traditional fashion sampling. Avakian says, “in the fashion industry in the back end … a designer creates an idea, an inspiration and they create a 2D technical drawing. And then they give it to a pattern maker and the pattern maker will create a sample. And this all costs time and money. “And then you’ve got a dozen people in the back room doing that. But upskilling them with this new technology and this new workflow saves all brands, many, many costs in that long arduous process. “And we stop having to create all that wastage in sampling … we can see it digitally … it will create a new, efficient way for people to experience fashion.” Avakian’s company has been experimenting with the use of 3D body scanning technology to create red carpet gowns. “So [for] a couple of red carpet pieces we’ve been doing in Australia, the clients have a body scan, and we’ve made them a red-carpet dress in, like, two weeks. And it’s through the body scan technology we get all their measurements… my factories are able to then custom-make the garment from the design.” The efficiencies in these new digital processes offer sustainability benefits in the form of lower greenhouse emissions, waste and transport miles involved in sending new season clothing sample sets around the world. On the flip side, some technologies like blockchain and cryptocurrencies can consume large amounts of energy. Avakian says he sees the need for upskilling and education, ensuring that fashion, textiles and design students understand these emerging digital concepts. “Having young designers learn how to be able to use 3D pattern making software to show, to see changes on a lapel, or changes on a dress.” ‘Screen wear’ is term used for the technology which allows people to add photo-realistic clothing items to their social media photographs. This gives people opportunities to purchase and ‘wear’ items that they might not otherwise choose, or be able to afford in the real world. Eugene Leung, the creative director of fashion and design company <a href="https://theinjury.com.au/" target="_blank" rel="noreferrer noopener">Injury</a>, says digital fashion and 3D rendering can also help eliminate the real-world waste that results when certain types of consumers, like Instagram influencers, buy an item of clothing and only wear it once. “Digital fashion can basically satisfy the desire for consumption, but in a more sustainable way,” he says. Increasingly there is blending between digital and physical worlds. For example, Leung says sometimes customers will buy a piece of digital clothing and later ask him to make a physical version. Digital producer and retired model <a href="https://www.caitlinlomax.com" target="_blank" rel="noreferrer noopener">Caitlin Lomax</a>, says the technology already exists for rendering digital clothing items onto a photo of a person, or an avatar in a game. “When we’re talking about fashion in a rendered, simulated thing. We can get such high-quality beautiful visuals,” she says. Lomax says, ‘digital first’ designers focus on developing the clothing and styles – known as ‘skins’ – for computer game and Metaverse avatars on the screen, rather than fashion in the physical world. Avakian says digital campaigns can also offer new ways of marketing clothing. “At <a href="https://nyfw.com/home/" target="_blank" rel="noreferrer noopener">New York fashion week</a>, our finale dress … we took a Metaverse asset and brought it into the real world and let it walk down the runway.” “We’ve sold quite a few of those dresses as the real garment, just from that Metaverse imagery,” he says. Image credits: Getty Images <img id="cosmos-post-tracker" style="opacity: 0; height: 1px!important; width: 1px!important; border: 0!important; position: absolute!important; z-index: -1!important;" src="https://syndication.cosmosmagazine.com/?id=220452&title=Digital+fashion+and+the+Metaverse%3A+a+new+way+for+people+to+experience+fashion" width="1" height="1" /> <div id="contributors"> This article was originally published on <a href="https://cosmosmagazine.com/technology/digital-fashion-and-the-metaverse-a-new-way-for-people-to-experience-fashion/" target="_blank" rel="noopener">cosmosmagazine.com</a> and was written by Petra Stock. </div>

Beauty & Style

Alcohol marketing has crossed borders and entered the metaverse – how do we regulate the new digital risk?

The World Health Organization’s newly <a href="https://www.who.int/publications/i/item/9789240046504" target="_blank" rel="noopener">released report</a> on regulating cross-border alcohol marketing raises the alarm for countries like Australia and New Zealand, given their light touch towards alcohol advertising. Alcohol is widely consumed in Australasia but there is ongoing tension over how much restraint, if any, should be placed on the marketing of these products. Australia and New Zealand are at the unrestrained end of the marketing continuum. Both countries rely on industry-led policy in the form of voluntary codes – an approach identified as insufficient by the WHO report. What is cross-border alcohol marketing? Alcohol marketing, created and disseminated in one country and spread across borders into others, is commonly used by multinational corporations striving to increase sales and normalise alcohol as an everyday product. Much of this advertising is taking place in the digital media sphere. The increased use of these media platforms by alcohol corporations allows them access to cheap advertising opportunities. For as <a href="https://au.reset.tech/uploads/resettechaustralia_profiling-children-for-advertising-1.pdf" target="_blank" rel="noopener">little as US$2</a>, an advertising campaign based in Australia could reach a thousand young people profiled as interested in alcohol, for example. Marketing across digital media has also increased the impact of those messages. Brands interact with users on social media platforms, encouraging the posting, sharing and liking of <a href="https://pubmed.ncbi.nlm.nih.gov/33573719/" target="_blank" rel="noopener">branded images and messages</a>. Higher user engagement is associated with <a href="https://pubmed.ncbi.nlm.nih.gov/32079562/" target="_blank" rel="noopener">more drinking</a>. <figure class="align-center "><img src="https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" alt="AB InBev logo behind a smartphone also showing the logo" /><figcaption>Multinational corporations like AB InBev have been quick to embrace digital platforms as a new way to advertise alcohol products. <a class="source" href="https://www.gettyimages.com.au/detail/news-photo/in-this-photo-illustration-an-ab-inbev-logo-is-seen-on-a-news-photo/1234971135?adppopup=true" target="_blank" rel="noopener">Pavlo Gonchar/Getty Images</a></figcaption></figure> Targeting the individual The increased power of these advertisements reflects the effectiveness of “personalised marketing”. Companies can now target individuals and “look alike” audiences. This approach is made possible thanks to the enormous amount of data collected as we interact together, purchase products and indicate our interests and passions through our clicks and likes. This data is extremely valuable to marketers and alcohol corporations. It gives them insight into the best time of day, the best brand of alcohol and the best type of marketing message to send our way. All groups across society are vulnerable to being bombarded by messages encouraging the purchase and consumption of alcohol. Digital advertising can target everyone: teenagers looking for brands which exemplify their identity; young adults, the heaviest “occasion drinkers” in Australia and New Zealand, some of whom are developing drinking habits that may be hard to change in later life; and adults of all ages who wish to reduce their consumption, often for health reasons. Digital media has become an all-encompassing marketing environment in which the “buy” button – with home delivery and often no checks on age or intoxication – provides a seamless marketing and distribution system. In New Zealand, <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/dar.13222" target="_blank" rel="noopener">online sales</a> increased significantly during the COVID-19 lockdowns, particularly among heavier drinkers. Entering the metaverse The alcohol industry is now showing its initiative by entering the emerging <a href="https://www.ypulse.com/article/2022/02/03/metaverse-mansions-more-tiktok-how-brands-are-marketing-for-this-years-super-bowl/" target="_blank" rel="noopener">metaverse</a>. To understand the metaverse, <a href="https://thedecisionlab.com/insights/technology/brave-new-world-how-the-metaverse-may-shape-our-psychology" target="_blank" rel="noopener">according to one commentator</a>, you should <blockquote> take today’s social media, add a splash of sophisticated 3D, fold in a plethora of options for entertainment and gaming, garnish it all with data-driven personalisation, and you are all set to take away your order of a supersized social media network, the metaverse. </blockquote> In terms of marketing, this provides a new opportunity. The biometric data essential to a virtual reality experience is also available to develop “<a href="https://scholarship.law.vanderbilt.edu/jetlaw/vol23/iss1/1/" target="_blank" rel="noopener">biometric psychographics</a>”, allowing for the even greater personalisation of advertising. Virtual alcohol brands created and used by avatars in the metaverse support the development of brand allegiance in real life, and virtual reality will transform e-commerce experiences and increase the power of sponsorship. AB InBev, the largest global alcohol corporation, was an early adopter of the metaverse. One of its brands, <a href="https://sifted.eu/articles/metaverse-brands-nft/" target="_blank" rel="noopener">Stella Artois</a>, is sponsoring the Australian Zed Run platform on which virtual horses can be raced, bred and traded. The Zed Run platform experienced 1,000% growth in early 2021. <figure class="align-center "><img src="https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" alt="Two people stand in front of a screen with a digital image of a horse." /><figcaption>Digital horse racing game Zed Run has exploded in popularity, with alcohol companies using the digital platform to reach a new audience. <a class="source" href="https://www.gettyimages.com.au/detail/news-photo/performers-tyra-cartledge-and-kendall-drury-takes-part-in-a-news-photo/1329475903?adppopup=true" target="_blank" rel="noopener">Lisa Maree Williams/Getty Images</a></figcaption></figure> Regulating to reduce alcohol harm The digital world is extremely dynamic. It is also opaque to most policy makers and public health practitioners. It is telling that there is no reference to the metaverse as a cross-border alcohol marketing opportunity in the WHO report. There is an urgent need for debate regarding how policy makers should better understand the risks involved with the targeted marketing of hazardous products such as alcohol. The WHO report outlines various partial and unsuccessful approaches to regulating marketing in the digital media. Attempts, such as <a href="https://helda.helsinki.fi/bitstream/handle/10138/303690/Alcohol_marketing_on_social_media_sites_in_Finland_and_Sweden_2019.pdf" target="_blank" rel="noopener">Finland’s</a> regulation of user-shared branded material, have failed because they did not interfere with the basic architecture of the social media platforms, which is predicated on engagement via sharing and liking. The most successful examples offered by the WHO report have been countries like Norway, which have imposed a complete ban on alcohol marketing including in the digital media. The report emphasises the need for surveillance and enforcement, suggesting ways in which alcohol companies could be penalised for marketing breaches. The support provided by international agreements such as the <a href="https://fctc.who.int/who-fctc/overview" target="_blank" rel="noopener">Framework Convention on Tobacco Control</a> is identified as a possible template for future discussions. The response to tobacco marketing provides a good and largely effective model for officials and policy makers. That said, the public health goal for alcohol is not equivalent to the smokefree goal. Advocates are not trying to eliminate alcohol altogether. However, there are parallel arguments in favour of creating a healthier media environment through regulation to prevent the promotion of alcohol products via increasingly sophisticated technological and psychological tools. These products are significant causes of reduced well-being, and this marketing increases consumption and therefore harm. The messages of the WHO report are timely and should be heeded.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/183334/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/sally-casswell-862029" target="_blank" rel="noopener">Sally Casswell</a>, Professor of public health policy, <a href="https://theconversation.com/institutions/massey-university-806" target="_blank" rel="noopener">Massey University</a> This article is republished from <a href="https://theconversation.com" target="_blank" rel="noopener">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/alcohol-marketing-has-crossed-borders-and-entered-the-metaverse-how-do-we-regulate-the-new-digital-risk-183334" target="_blank" rel="noopener">original article</a>. Image: Getty Images

Legal

The metaverse: three legal issues we need to address

The “<a href="https://www.wired.com/story/what-is-the-metaverse/" target="_blank" rel="noopener">metaverse</a>” seems to be the latest buzzword in tech. In general terms, the metaverse can be viewed as a form of cyberspace. Like the internet, it’s a world – or reality, even – beyond our physical world on Earth. The difference is that the metaverse allows us to immerse a version of ourselves as <a href="https://medium.com/@ppreddy576/digital-avatars-and-working-with-human-like-creatives-b84f24005a05" target="_blank" rel="noopener">avatars</a> in its environment, usually through <a href="https://hbr.org/2016/10/the-mainstreaming-of-augmented-reality-a-brief-history" target="_blank" rel="noopener">augmented reality</a> (AR) or <a href="https://www.britannica.com/technology/virtual-reality" target="_blank" rel="noopener">virtual reality</a> (VR), which people are and will increasingly be able to access using tools like VR goggles. While it all seems very exciting, a curious lawyer like me is inclined to ask: who or what governs the metaverse? The way I see it, there are three key areas which, at this stage, are legally murky. 1. A boundless marketplace Transactions in the metaverse are generally monetised using cryptocurrency or <a href="https://edition.cnn.com/2021/03/17/business/what-is-nft-meaning-fe-series/index.html" target="_blank" rel="noopener">NFTs</a> (non-fungible tokens). An NFT is a unique digital asset: it could be an image, a piece of music, a video, a 3D object, or another type of creative work. The NFT market is booming – in some cases we’re talking about <a href="https://edition.cnn.com/style/article/beeple-first-nft-artwork-at-auction-sale-result/index.html" target="_blank" rel="noopener">sales</a> equivalent to millions of pounds. While it’s difficult to say whether this is simply a trend, or a new and exciting form of capital investment, these kinds of transactions raise some interesting legal questions. For example, in the “real” world, when it comes to purchasing a piece of art, property law dictates that <a href="https://www.reedsmith.com/en/perspectives/2021/05/reed-smith-guide-to-the-metaverse" target="_blank" rel="noopener">ownership</a> is two-fold. First, ownership can be attributed in the actual physical art work. And second, the buyer may or may not own the intellectual property of the art work, depending on the terms of the sale. But what kind of ownership is precisely included in a transaction of digital art? International law firm <a href="https://www.reedsmith.com/en/perspectives/2021/05/reed-smith-guide-to-the-metaverse" target="_blank" rel="noopener">Reed Smith</a> has said that “ownership” in the metaverse is nothing more than a form of licensing, or provision of services. In such instances, true ownership still lies with the owner. This may mean, for example, that the buyer cannot sell the item without permission from the true owner. Virtual real estate has also become an NFT, with individuals and companies <a href="https://theconversation.com/real-estate-in-the-metaverse-is-booming-is-it-really-such-a-crazy-idea-174021" target="_blank" rel="noopener">spending enormous sums</a> to own a “property” in the metaverse. Do the intricacies of land law apply here? For example, will real-world legislation cover trespassers on private land in the metaverse? Can you take out a mortgage on your virtual property? The metaverse may also be susceptible to hosting a virtual marketplace somewhat like <a href="https://www.newscientist.com/article/mg24933260-400-silk-road-review-the-true-story-of-the-dark-webs-illegal-drug-market/" target="_blank" rel="noopener">Silk Road</a>, which was a dark web marketplace dealing in illegal drugs, weapons and, allegedly, “<a href="https://www.bbc.co.uk/news/av/technology-24378137" target="_blank" rel="noopener">murder for hire</a>”. What kinds of laws can be put in place to safeguard against this happening in the metaverse? It would be ideal to have a global regulatory authority overseeing the metaverse, although this would be difficult to implement. 2. Data Another possible legal implication of the metaverse is around data and data protection. The metaverse will expose new categories of <a href="https://www.cms-lawnow.com/ealerts/2022/01/legal-advice-in-the-metaverse" target="_blank" rel="noopener">our personal data</a> for processing. This might include facial expressions, gestures and other types of reactions an avatar could produce during interactions in the metaverse. The EU’s General Data Protection Regulation (<a href="https://gdpr.eu/" target="_blank" rel="noopener">GDPR</a>) could arguably apply to the metaverse, as could the <a href="https://www.legislation.gov.uk/ukpga/2018/12/contents/enacted" target="_blank" rel="noopener">UK’s Data Protection Act</a>. But given the novel nature of the metaverse, to ensure that users’ rights are protected, the processes governing informed consent around data processing may need to be revisited. <figure class="align-center "><img src="https://images.theconversation.com/files/443780/original/file-20220201-17-1a83bq0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/443780/original/file-20220201-17-1a83bq0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/443780/original/file-20220201-17-1a83bq0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/443780/original/file-20220201-17-1a83bq0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/443780/original/file-20220201-17-1a83bq0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/443780/original/file-20220201-17-1a83bq0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/443780/original/file-20220201-17-1a83bq0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" alt="A rendering of two avatars shaking hands." /><figcaption>Interactions in the metaverse will expose new types of personal data. <a class="source" href="https://www.shutterstock.com/image-illustration/business-man-wear-virtual-glasses-shaking-2089653463" target="_blank" rel="noopener">Athitat Shinagowin/Shutterstock</a></figcaption></figure> Further, the “no-boundaries” nature of the metaverse means that while we might want to assume the GDPR will apply, the clauses dealing with transfer and processing of data outside the EU may need to be clarified. The GDPR applies <a href="https://www.metaverselaw.com/category/gdpr/" target="_blank" rel="noopener">based on</a> the location of the subject when their data is processed, not on their home country or citizenship. So can we look to the location based on the person operating the avatar, or is it more appropriate to look at the avatar itself, since it’s the avatar’s data that will be processed? And if we look to the avatar’s location, how would we determine which jurisdiction the metaverse falls under? 3. User interactions When users interact through their avatars, we may have situations where some kind of altercation occurs that would equate to breaking the law, if it took place between people in the real world. Such incidents could be in breach of tort law (which covers civil claims such as negligence or nuisance) or criminal law (involving illegal acts and crime such as assault, murder, burglary or rape). Imagine one avatar assaults another. Could we apply criminal laws of assault and battery to this situation? How could we make an avatar responsible for their actions in the metaverse? This would be complicated, because it would mean that we need to attribute a <a href="https://www.cms-lawnow.com/ealerts/2022/01/legal-advice-in-the-metaverse" target="_blank" rel="noopener">legal persona</a> to the avatar, giving them rights and duties within a legal system; allowing them to sue or be sued. Proving assault or battery would also be much more difficult because it usually requires “<a href="https://www.cps.gov.uk/legal-guidance/offences-against-person-incorporating-charging-standard#:%7E:text=The%20offence%20is%20committed%20when,or%20caused%20the%20bodily%20harm." target="_blank" rel="noopener">actual bodily harm</a>”. In the metaverse, there will naturally be no actual bodily harm. It would be challenging to prove harm, loss or injury suffered by an avatar. Worryingly, <a href="https://www.thetimes.co.uk/article/my-journey-into-the-metaverse-already-a-home-to-sex-predators-sdkms5nd3" target="_blank" rel="noopener">sexual predators</a> are already emerging in the metaverse, masking their identity behind an avatar that may not easily be traced back to its operator in the real world. For example, we’ve seen incidents of <a href="https://www.technologyreview.com/2021/12/16/1042516/the-metaverse-has-a-groping-problem/" target="_blank" rel="noopener">groping</a>. Users in the metaverse can wear haptic vests or other technologies which would actually allow them to feel the sensations if they were touched or groped. <a href="https://www.reeds.co.uk/insight/should-sexual-harassment-be-a-criminal-offence-in-the-uk/" target="_blank" rel="noopener">Sexual harassment laws</a> do not require physical contact to constitute sexual harassment. But are existing laws adequate to deal with this issue? Within the environment of VR and gaming, for example, upon whom rests the responsibility to ensure the safety of users? There is little doubt issues of sexual harassment will make their way into the metaverse, particularly if unscrupulous users know this is a grey area. Believing that their actions cannot be proved, or that they cannot be held responsible for events that take place in the metaverse, might embolden such behaviour. This comes back to the question of legal personas of avatars – is a legal persona necessary to make avatars responsible for their actions in the metaverse? And what kind of standards and criteria need to be in place to distinguish between a “legal” avatar and the true legal person who operates that avatar? These issues should all be addressed before the metaverse becomes mainstream.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/175891/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/pin-lean-lau-1282877" target="_blank" rel="noopener">Pin Lean Lau</a>, Lecturer in Bio-Law, Brunel Law School | Centre for Artificial Intelligence: Social & Digital Innovations, <a href="https://theconversation.com/institutions/brunel-university-london-1685" target="_blank" rel="noopener">Brunel University London</a> This article is republished from <a href="https://theconversation.com" target="_blank" rel="noopener">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-metaverse-three-legal-issues-we-need-to-address-175891" target="_blank" rel="noopener">original article</a>. Image: Getty Images

Legal

Model drops over $100,000 on digital home

A supermodel has joined the growing number of celebrities buying digital property in the metaverse. Sara Sampaio, a former model for Sports Illustrated and Victoria’s Secret, <a href="https://www.domain.com.au/news/supermodel-drops-110000-on-digital-island-in-the-metaverse-1119732/" target="_blank" rel="noopener">has bought</a> a digital island getaway for a hefty price in The Sandbox metaverse. According to The Sandbox’s <a href="https://sandboxgame.gitbook.io/the-sandbox/" target="_blank" rel="noopener">website</a>, it is a “community-driven”, online platform where people can monetise games, art, and other digital assets to generate a passive income. In order to create these assets and earn money, people buy a piece of digital real estate in the online world using a digital currency called Ethereum (ETH). Sampaio paid 25 ETH for the non-tangible asset, which is equivalent to almost $118,000. <img src="https://oversixtydev.blob.core.windows.net/media/2022/02/metaverse-home.jpg" alt="" width="1396" height="785" /> Sara Sampaio bought a digital island getaway in The Sandbox metaverse. Image: Exclusible Her new property was sold through the website <a href="https://exclusible.com/Exclusible/Exclusible-Private-Islands" target="_blank" rel="noopener">Exclusible</a>, which describes itself as a “premium, curated NFT website”. Sampaio’s island was one of 25 offered on the site’s exclusive archipelago, which is said to be close to rapper Snoop Dogg’s digital property that is also found in The Sandbox’s version of the metaverse. Although Sampaio spent a relatively small amount considering her million-dollar status, her latest investment comes after she made a loss on her (real-world) three-bedroom apartment in Manhattan. Having spent $3.92 million on the flat in the fashionable area of East Village, Sampaio went on to sell it for a loss of $160,000. Image: @sarasampaio (Instagram) / Exclusible

Real Estate

Real estate in the metaverse is booming. Is it really such a crazy idea?

The idea of spending thousands or even millions of dollars to buy fictitious “land” in a virtual world sounds, to be frank, absurd. But in recent months, we’ve seen significant investments in virtual land within the metaverse. PwC is among <a href="https://www.consultancy.uk/news/30011/pwc-buys-virtual-land-nft-in-the-sandboxs-metaverse">the latest</a> to dive in, having purchased real estate in The Sandbox, a virtual gaming world, for an undisclosed amount. If other reported sales are anything to go by, it would have been a handsome sum. One person recently bought a plot of land in <a href="https://fortune.com/2021/12/09/snoop-dogg-rapper-metaverse-snoopverse/">the Snoopverse</a> – a virtual world rapper Snoop Dogg is developing within The Sandbox – for <a href="https://www.rollingstone.com/culture/culture-news/sandbox-decentraland-virtual-land-sales-soar-metaverse-nfts-1267740/">US$450,000</a> (around £332,500). Meanwhile, the Metaverse Group, a real estate company focused on the metaverse economy, reportedly bought a piece of land in Decentraland, another virtual platform, <a href="https://www.independent.co.uk/life-style/gadgets-and-tech/metaverse-property-decentraland-nft-decentraland-b1965973.html">for US$2.43 million</a>. Let’s refresh on what the “metaverse” is. You probably heard the term a lot when Facebook re-branded to <a href="https://about.facebook.com/meta/">Meta</a> in October 2021. Other companies, such as <a href="https://www.theverge.com/22833369/nike-rtfkt-nft-sneaker-shoe-metaverse-company">Nike</a> and <a href="https://markets.businessinsider.com/news/currencies/5-household-names-companies-plans-metaverse-digital-crypto-2021-12">Microsoft</a>, have also announced they will launch into this space. The metaverse describes a vision of a connected 3D virtual world, where real and digital worlds are integrated using technologies such as virtual reality (VR) and augmented reality (AR). This immersive environment will be accessible through the likes of VR headsets, AR glasses and smartphone apps. Users will meet and communicate as digital avatars, explore new areas and create content. The idea is the metaverse will develop to become a collaborative virtual space where we can socialise, play, work and learn. There are several metaverses already – for example in virtual gaming platforms like The Sandbox and virtual worlds like Decentraland. In the same way a website is part of the broader 2D world wide web, individual metaverses will form a larger, connected metaverse. Importantly, as in the real world, it is and increasingly will be possible to buy things in the metaverse – including real estate. <h2>Virtual land as an NFT</h2> Transactions in the virtual world are generally monetised using cryptocurrency. Other than cryptocurrenies, non-fungible tokens (NFTs) are the primary method for monetising and exchanging value within the metaverse. An <a href="https://www.linkedin.com/pulse/nfts-digital-revolution-embodies-metaverse-theofilos-tzanidis/">NFT</a> is a unique digital asset. Although NFTs are primarily items of digital art (such as videos, images, music or 3D objects), a variety of assets may constitute an NFT – including virtual real estate. On platforms like <a href="https://opensea.io/">OpenSea</a>, where people go to buy and trade NFTs, there are now plots of land, or even virtual houses. To ensure digital real estate has value, supply is limited – a concept in economics called “scarcity value”. For example, <a href="https://decentraland.org/">Decentraland</a> is made up of 90,000 pieces or “parcels” of land, each around 50 feet by 50 feet. We’re already seeing examples where the value of virtual real estate is going up. In June 2021, a digital real estate investment fund called Republic Realm reportedly spent the equivalent of <a href="https://www.reuters.com/article/us-fintech-nft-land-idCAKCN2DU1GA">more than US$900,000</a> to buy an NFT representing a plot on Decentraland. According to <a href="https://dappradar.com/blog/investors-buy-most-expensive-virtual-real-estate-ever-in-decentraland">DappRadar</a>, a website which tracks NFT sales data, it was the most expensive purchase of NFT land in Decentraland history. But then as we know, in November 2021, the Metaverse Group bought their plot in Decentraland for <a href="https://www.reuters.com/markets/currencies/virtual-real-estate-plot-sells-record-24-million-2021-11-23/">US$2.4 million</a>. The size of this purchase was actually smaller than the former – 116 land parcels compared to 259 bought by Republic Realm. <img src="https://images.theconversation.com/files/439652/original/file-20220106-27-dimlq9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="A man wears VR goggles." /> There are already several metaverses. <a href="https://www.shutterstock.com/image-photo/bearded-man-wearing-virtual-reality-goggles-519893707" class="source">SFIO CRACHO/Shutterstock</a> It’s not just Decentraland seeing appreciations. In February 2021, <a href="https://coinquora.com/axie-infinity-land-nft-sells-for-2-3-million-surpasses-record/">Axie Infinity</a> (another virtual gaming world) reportedly sold nine of their land parcels for the equivalent of US$1.5 million – a record, the company said – before one land parcel sold for US$2.3 million in November 2021. While it appears that values are climbing, it’s important to acknowledge that real estate investment in the metaverse remains extremely speculative. No one can be certain if this boom is the next great thing or the next big bubble. <h2>The future of metaverse real estate</h2> Financial incentives aside, you may be wondering what companies and individuals will actually do with their virtual land. As an example, the Metaverse Group’s purchase is in Decentraland’s fashion precinct. According to the buyer the space will be used to host digital <a href="https://www.reuters.com/markets/currencies/virtual-real-estate-plot-sells-record-24-million-2021-11-23/">fashion events</a> and sell virtual clothing for avatars – another potential area for growth in the metaverse. While investors and companies are dominating this space at the moment, not all metaverse real estate will set you back millions. But what could owning virtual land offer you? If you buy a physical property in the real world, the result is tangible – somewhere to live, to take pride in, to welcome family and friends. While virtual property doesn’t provide physical shelter, there are some parallels. In shopping for virtual real estate, you could buy a piece of land to build on. Or you could choose a house already built that you like. You could make it your own with various (digital) objects. You could invite visitors, and visit others’ virtual homes too. This vision is a while away. But if it seems completely absurd, we should remember that once upon a time, people had doubts about the potential significance of the internet, and then social media. Technologists predict the metaverse will mature into a <a href="https://www.matthewball.vc/all/themetaverse">fully functioning economy</a> in the coming years, providing a synchronous digital experience as interwoven into our lives as email and social networking are now. This is a strange fantasy come true for someone who was a gamer in a former life. Some years ago, a younger version of my conscience was telling me to stop wasting time playing video games; to go back to study and focus on my “real” life. Deep inside I always had this wish to see gaming overlapping with real life, <a href="https://www.imdb.com/title/tt1677720/">Real Player One</a> style. I feel this vision is inching ever closer.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/174021/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/theo-tzanidis-1295734">Theo Tzanidis</a>, Senior Lecturer in Digital Marketing, <a href="https://theconversation.com/institutions/university-of-the-west-of-scotland-1385">University of the West of Scotland</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/real-estate-in-the-metaverse-is-booming-is-it-really-such-a-crazy-idea-174021">original article</a>. Image: denisik11/Shutterstock

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