Metaverse: Technologies, Opportunities and Threats (Studies in Big Data, 133) 9819946409, 9789819946402

Table of contents :
Foreword
Preface
Contents
Historical Process and Theoretical Foundations of Metaverse Starting from Web 1.0
1 Introduction
2 Internet and Web
3 Artificial Intelligence
4 Blockchain
5 Metaverse
6 Web 3.0 and Its Possible Risks
7 Conclusion
References
History and Development of Virtual Worlds and Metaverse
1 Introduction
2 History of Virtual Worlds
3 History of Metaverse
4 Conclusion and Discussion
References
Metaverse and Decentralization
1 Introduction
2 Information and Communication Technologies
3 Network Topologies
4 Elements Supporting Decentralization
5 Decentralization-Based Blockchain
6 CryptoCurrency, Token Economy, and NFT
7 Decentralized Autonomous Organizations (DAO)
8 Decentralized Internet
9 Decentralized Metaverse
10 Conclusion and Discussion
References
The Role of Artificial Intelligence and Robotic Solution Technologies in Metaverse Design
1 Introduction
1.1 Artificial Intelligence and Robotics
1.2 Artificial Intelligence
1.3 Traditional Machine Learning
1.4 Deep Learning
1.5 Robotics
2 Metaverse and Artificial Intelligence
2.1 Artificial Intelligence-Assisted Metaverse Techniques
2.2 Robotic Technologies
2.3 Artificial Intelligence and Robotics Technologies in Metaverse
3 Conclusion and Discussion
References
The Extended Reality Technology and Its Utilization in Metaverse
1 Introduction
2 Extended Reality (XR) Technology
3 The Use of Extended Reality (XR) Technology in Metaverse
4 Conclusion
References
Evaluation of Open Source, Open Data Sharing, and Data Anonymization Concepts in the Development of the Metaverse
1 Introduction
2 Concepts of Data, Open Source, Open Data Sharing, and Data Anonymization Concepts
2.1 The Concept of Data
2.2 Open Source
2.3 Open Data Sharing
2.4 Data Anonymization
2.5 Data in Metaverse Architecture
3 Open Source, Open Data Sharing, and Data Anonymization in the Metaverse System
3.1 Determination of Joint Contract and Rules
3.2 Collection of Data in Non-Profit Structures
3.3 Value of Data When Used Commercially
4 Conclusion
References
Metaverse and New Cybersecurity Threats
1 Introduction
2 Current Global Trends
3 The Metaverse from Cybersecurity Perspective
3.1 Featured and New Cyber Security Threats for the Metaverse
4 Conclusion
References
Data Privacy and Security in the Metaverse
1 Introduction
2 Threats to Data Privacy and Security in the Metaverse
2.1 Identity Privacy
2.2 Data Privacy
3 Precautions for Data Privacy and Security in Metaverse
4 Conclusion and Discussion
References
Non-fungible Tokens (NFT), Virtual Real Estate and Digital Assets, Cultural and Artistic Works
1 Introduction
2 NFT: Yesterday, Today (and Tomorrow)
3 NFT Production
3.1 Value of NFT and NFT Ecosystem
4 NFT Marketplaces and NFT Trading
4.1 The Future of NFTs
5 Conclusion
References
Consumer Behavior, Marketing Approach, Branding, Advertising, and New Opportunities in the Metaverse Areas
1 Introduction
2 Metaverse
3 Metaverse and Businesses
3.1 Digital Marketing in Metaverse Areas
3.2 Consumer Behavior in Metaverse Areas
3.3 Brand in Metaverse Areas
4 Conclusion and Discussion
References
Consumer Behavior in the Metaverse
1 Introduction
2 Consumer Behavior and Development
3 Consumer Behavior and Metaverse
3.1 Consumer Decision-Making Process and Metaverse
3.2 Consumer Behavior, Metaverse, and Constraints
3.3 Consumer Behavior, Industries, and Metaverse
3.4 Consumer Behavior in the Information, and Communication Technologies Sector and Metaverse
3.5 Apparel, Fashion, Retail Sector, and Consumer Behavior in Metaverse
3.6 Automotive Sector and Consumer Behavior in Metaverse
4 Conclusion and Discussion
References
The New Economic Models of Metaverse and Its Implications in International Financial Markets
1 Introduction
2 The Metaverse Economy
3 The Role of Blockchain Technology in the Metaverse Economy
4 Business Opportunities in the Metaverse
5 Conclusion and Discussion
References
Gamification in Metaverse
1 Introduction
2 Conceptual Gamification
2.1 Gamification Model
2.2 Player Types
3 Gamification Design
3.1 Examples of Gamification in Metaverse
4 Conclusion
References
Evaluation of the Metaverse Universe in Light of Psychology and Sociology
1 Introduction
2 Metaverse and Anticipations from the Future
2.1 Examination of Metaverse and Its Possible Effects Within the Context of Avatar, IoT, NFT, AR/VR/MR, and Blockchain
2.2 Psychological and Sociological Aspects of Metaverse
3 Conclusion and Discussion
References
Metaverse and Human Rights: Do We Need Metaversal Declaration of Human Rights?
1 Introduction
2 Kuçuradi's View of Human Rights and the Concept of Human Rights as Ethical Principles
3 Conditions and Potentialities of Human Existence
4 Concept of Human Rights
5 Metaverse and Human Rights
6 Conclusion
References
Metaverse Governance
1 Introduction
2 Digital Transformation in Government: A Journey from Web 1.0 to Web 3.0
3 From New Public Management to Digital Era Governance: Theoretical Background and Recent Approaches
4 Metaverse Governance: Concept and Framework
5 Conclusion
References
Citizenship and Citizen Participation in Metaverse
1 Introduction
2 Digital Citizenship Regimes the Changing Role of the Individual and Technology
3 Metaverse Citizenship and Citizenship in the Metaverse
4 Conclusion and Discussion
References
The Role of the Law in Metaverse Regulation
1 Introduction
2 The Metaverse Regulation
3 The Necessity to Regulate Metaverse via Legal Instruments
3.1 Metaverse Interactions
3.2 Regulation of Metaverse Platforms
3.3 Uncertainty of Regulatory Framework Applicable to Crypto Assets and Effects on Metaverse Regulation
4 The Role of Criminal Law in Metaverse Regulation
5 Conclusion
References
The Metaverse and Terrorism
1 Introduction
2 What is Terrorism?
3 The Use of the Internet by Terrorist Organizations
4 The Metaverse and Terrorism
5 Conclusions and Policy Implications
References
The Relationship Between Blockchain Applications in Financial Markets and Metaverse
1 Introduction
2 The Process of Change in Financial Digitalization and Decentralized Finance
2.1 Transformation of Financial Technologies
2.2 Decentralized Finance and Business Models
3 Blockchain Technology and Usage Areas
3.1 Blockchain Technology and Operation
3.2 Uses of Blockchain Technology and Its Effects on the Financial Market
4 The Relationship of Blockchain Applications and Metaverse
4.1 The Role of Metaverse and Blockchain Technology in Metaverse
4.2 Metaverse Economy and Its Effects on the Financial Market
5 Conclusion
References
Technology Giant South Korea’s Metaverse Experiences
1 Introduction
2 Latest Technological Developments in Korea
2.1 Views and Plans of the Korean State on Metaverse
2.2 Seoul Metaverse Project
2.3 Korea and the Metaverse in Health
3 Korean Metaverse Platforms
4 K-Pop, K-Drama, and Metaverse
5 The Korean Presidential Election and the Metaverse
6 Human Resources Management and Metaverse
7 Expected Challenges
8 Conclusion and Discussion
References
E-Sport: Ball and the Rifle Are on the Net
1 Introduction
2 Homo Ludens and Traditional Sports
3 E-Sports: The Transition of Reality into Virtual Reality
4 Conclusion
References
Metaverse: Transformation and Future of Agriculture
1 Introduction
2 The Place and Importance of the Agricultural Sector in the Economy
3 Agriculture and Technology
3.1 Developmental Stages of Agricultural Technology
3.2 Agriculture 1.0: Combining Animal Power and Mechanization
3.3 Agriculture 2.0: The Beginning of Engines and Tractors in Agriculture
3.4 Agriculture 3.0: Moving to Guidance Systems and Precision Agriculture Practices
3.5 Agriculture 4.0: Connected Agricultural Practices
3.6 Precision Agriculture Applications
3.7 Drone Applications
4 Agricultural Financing and Fintech Applications
4.1 Crowdfunding
4.2 Digital Agriculture Market (DİTAP)
4.3 Contracted Agricultural Practices
4.4 Electronic Product Bill (ELUS) Applications
5 Examples of Countries Using Technology in Agriculture
5.1 The Case of the Netherlands
5.2 The Case of Israel
6 Transformation and Future of Agriculture: Agriculture in the Metaverse
6.1 Virtual Reality (VR) and Augmented Reality (AR) Applications in Agriculture
6.2 Extended Reality (XR) Application in Agriculture
7 Conclusion
References
Metaverse Applications in Biotechnology Era
1 Introduction
2 Understanding the Language of Life in the Digital World
3 Future Health and Metaverse
3.1 4P Approach in Future Healthcare
3.2 Innovation in Medicines and Vaccines Development
3.3 Innovative Diagnostic and Therapeutic Applications
3.4 Brain–Computer Interactions
4 Future Agricultural Practices and Metaverse Solutions in Food Production
5 Biotechnology and Metaverse for a Sustainable Life
6 Conclusion and Future Insights
References
The Tourism Sector in Metaverse: Virtual Hotel and Applications
1 Introduction
2 Metaverse and the Tourism Sector
3 Advantages and Opportunities, Risks and Threats for Tourism Companies in the Metaverse
4 A Virtual Hotel and Applications
5 Conclusion and Discussion
References
Metaverse and Supply Chain Management Applications
1 Introduction
2 Metaverse-Enabling Digital Technologies for Supply Chains
2.1 Big Data and Data Analytics
2.2 Internet of Things
2.3 Digital Reality
2.4 Artificial Intelligence
2.5 Digital Twins
2.6 Blockchain
3 Meta Supply Chain Management
3.1 Effective Collaboration at All Layers of the Supply Chain
3.2 Increased Supply Chain Transparency
3.3 Effective Balancing of Supply and Demand
3.4 Effective Planning and Forecasting
3.5 Streamlining the Procurement Process
3.6 Streamlining the Production Processes
3.7 Enabling Product Life Cycles
3.8 Enabling Warehouse Design
3.9 Enabling Quality Control and Audits
3.10 Reducing Returns and Effective Returns Management
3.11 Effective Training of Human Resources
4 Conclusion
References
Metaverse Applications in Education: Systematic Literature Review and Bibliographic Analysis of 2010–2022
1 Introduction
2 Metaverse and Education
2.1 From the Traditional Classroom Environment to the Constructivist Classroom Environment
2.2 Virtual Environments and Environment Design
3 Previous Studies
4 Method and Process
5 Research Questions
6 Data Analysis
6.1 Data Sources and Terms
6.2 Selection Criteria
6.3 Selection of Studies
6.4 Quality and Data Extraction
7 Findings
7.1 Q1. What Topics Are Being Researched in the Context of  “Virtual Worlds”, Including the Concept of “Metaverse” in Education?
7.2 Q2. What Are the Teaching Styles Applied in These Virtual Worlds?
7.3 Q3. Which Software and Tools Were Used While Designing the Specified Virtual Environments Within Virtual Worlds?
8 Conclusion and Discussion
References
Securing Data in the Metaverse: What We Need to Know
1 Introduction
2 What is the Metaverse?
3 Understanding Data Security in the Metaverse
3.1 Securing Data in the Metaverse
3.2 Why Data Security is So Important?
3.3 How Can Protect Metaverse Data from Potential Threats?
3.4 Keeping Data Secure in the Metaverse
3.5 Encryption Software for Metaverse
3.6 Data Encryption Methods for Metaverse
3.7 Virtual Security Network Solutions
3.8 Exploring Advanced Encryption for Digital Worlds
3.9 End-To-End Encryption for Metaverse Data
3.10 Secure Communication Systems for Virtual Worlds
3.11 Blockchain-Based Data Solutions
3.12 Network Security
3.13 Data Security
3.14 Email Protection
4 Cyber Security Solutions for a Hyperconnected Digital World
4.1 How Multi-Factor Authentication Keeps Your Data Secure?
4.2 What is Multi-Factor Authentication?
4.3 Why is MFA Necessary?
4.4 How Does MFA Work?
5 Conclusion
References

Citation preview

Studies in Big Data 133

Fatih Sinan Esen Hasan Tinmaz Madhusudan Singh   Editors

Metaverse Technologies, Opportunities and Threats

Studies in Big Data Volume 133

Series Editor Janusz Kacprzyk, Polish Academy of Sciences, Warsaw, Poland

The series “Studies in Big Data” (SBD) publishes new developments and advances in the various areas of Big Data- quickly and with a high quality. The intent is to cover the theory, research, development, and applications of Big Data, as embedded in the fields of engineering, computer science, physics, economics and life sciences. The books of the series refer to the analysis and understanding of large, complex, and/or distributed data sets generated from recent digital sources coming from sensors or other physical instruments as well as simulations, crowd sourcing, social networks or other internet transactions, such as emails or video click streams and other. The series contains monographs, lecture notes and edited volumes in Big Data spanning the areas of computational intelligence including neural networks, evolutionary computation, soft computing, fuzzy systems, as well as artificial intelligence, data mining, modern statistics and Operations research, as well as self-organizing systems. Of particular value to both the contributors and the readership are the short publication timeframe and the world-wide distribution, which enable both wide and rapid dissemination of research output. The books of this series are reviewed in a single blind peer review process. Indexed by SCOPUS, EI Compendex, SCIMAGO and zbMATH. All books published in the series are submitted for consideration in Web of Science.

Fatih Sinan Esen · Hasan Tinmaz · Madhusudan Singh Editors

Metaverse Technologies, Opportunities and Threats

Editors Fatih Sinan Esen Ankara University Ankara, Türkiye

Hasan Tinmaz Endicott College of International Studies Woosong University Daejeon, Korea (Republic of)

Madhusudan Singh College of Engineering Technology Management (ETM) Oregon Institute of Technology (Oregon Tech) Oregon, OR, USA

ISSN 2197-6503 ISSN 2197-6511 (electronic) Studies in Big Data ISBN 978-981-99-4640-2 ISBN 978-981-99-4641-9 (eBook) https://doi.org/10.1007/978-981-99-4641-9 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore Paper in this product is recyclable.

Foreword

Since humankind started using tools, the frontal lobes of the brain began to evolve differently in comparison with that of other animals. Consequently, human beings started to establish active relations with the environment. The tools we have utilized for thousands of years—such as fire, the wheel, writing, printing, and more recently, machines and information technologies—now coexist with us as technologies that support our existence. Mankind’s experiences with technology during the past century have started to diverge from those of the previous thousands of years. Rather than simply supporting our lives as conventional tools and technologies, technology, particularly information technologies, has started to take on a dominating role in our lives. In fact, this determination may have gone as far as to stretch the boundaries of natural life of men, civilizations, and our planet. On the one hand, we are attempting to comprehend and further develop the most powerful information technologies that our brains and minds have devised as a result of the power accumulated over millions of years of evolution; while on the other, we are questioning whether it damages itself (humanity). This essential compilation in your hands analyzes the Metaverse, one of the most extreme points of informatics, from various perspectives by our country’s leading experts. A substantial portion of what is written addresses the key and supporting technologies that play critical roles in the transfer of our lives to the virtual world, that is, in the construction of the Metaverse. The most important among these are augmented/virtual reality, crypto technologies, artificial intelligence, e-commerce applications, the internet of things, cybersecurity, and games. Some chapters discuss how these technologies can be used to create apps that successfully execute what we do in the Metaverse regarding real-world work and life. Other chapters look at how the Metaverse will affect the future of societies; addressing the issues of privacy, individual rights, legal infrastructure and regulations, and security. These are the concerns, in my opinion, that we as experts in this area need to focus our attention the most, since they have a significant impact on how mankind will evolve in the future; and the inclusion of those topics in this work has been particularly accurate. While the Metaverse is still in its infancy, the fact that such a well-timed study has been carried out in a country, such as Turkiye, also marks a great and significant step. v

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Being able to participate in international competition along with the tech giants that control data and technology in many countries is very significant for accumulation of research. From these aspects, this study also undertakes and fulfills an important role. Furthermore, a number of significant technological studies conducted in recent years as if in sync, have gone beyond creating and using brains as a simple tool. It is evident that the modern human beings have the capacity to consciously design the future of the societies they live in with both existing and emerging technologies. These include the Metaverse as well as the internet of intelligent things, artificial intelligence, CRISPR, last-generation mobile technologies, nanobots, organoids, and brain-to-brain signaling systems. Through this research, as we professionals of the field, study the Metaverse and related subjects, a more advanced understanding of what kind of society we might live in the near future will be clearer. We will have the opportunity to examine more closely where it stands among the civilizations we have built over thousands of years—how compatible will our brains be with the technology it creates? What about the influences on the society and other natural systems on our planet? How will these emerging technologies which, unlike previous industrial revolutions, not only multiply our physical strength but also produce results faster and more precisely than human beings, affect the civilizations we will create in the not-too-distant future? With these questions in our minds and our hearts, I hope you will find this work, which has been put forward at a very critical time for the Metaverse studies, highly useful. I would like to express my thanks to all the experts who participated, especially to the editors Dr. Fatih Sinan Esen, Dr. Hasan Tinmaz, and Dr. Madhusudan Singh, and to all those who contributed; and I present this important work for your attention and interest and hope that this work will be a source of inspiration for our bright, young people, particularly in the field of informatics. Balikesir, Türkiye

Dr. ˙Ibrahim Ku¸sçu Founder of Turkish AI Consortium

Preface

What is real? How do you define ‘real’? If you’re talking about what you can feel, what you can smell, what you can taste and see, then ‘real’ is simply electrical signals interpreted by your brain, said Morpheus to Neo. These words, spoken by one of the main characters in the 1999 science fiction film The Matrix, highlight the varying definitions of reality across different sciences, disciplines, and individuals. How can we determine what is real and what is virtual when even famous philosophers grapple with this question—one of the oldest and most fundamental philosophical debates? Does reality depend on our definitions? Are there multiple realities? If so, which is truly real? What is the truth? What is virtual? Behind science fiction works often lies a philosophy and an alternative point of view. Every invention is preceded by at least one dream, every innovation by at least one necessity, and every virtual reality by at least one actual reality. This is why science fiction literature matters to scientists; many innovations and concepts have their origins in these scenarios. Simon Lake, who designed the Argonaut—the first submarine in the modern sense—was inspired by Jules Verne’s novel Twenty Thousand Leagues Under the Sea. Igor Sikorsky, who designed the first helicopter, named it after himself and drew inspiration from Jules Verne’s Robur the Conqueror. Robert Goddard, who designed and launched the first liquid-fueled rocket, was influenced by H.G. Wells’ novel The War of the Worlds. The device used by Captain Kirk and Mr. Spock in the 1966 Star Trek series reappeared years later as a smartphone. These subsequent events are assumed to have occurred in a chain of cause and effect. So, what “possible reality” inspired Neal Stephenson’s 1992 science fiction novel Snow Crash, whose name we hear so often lately, and which will later become part of our daily lives? When Mark Zuckerberg’s Facebook, founded in 2004, changed its name to Meta in October 2021, it drew attention to both the company and the relatively unknown concept of the Metaverse. Meta, the pioneer of this concept, announced it would hire 10,000 employees specifically for this sector and invest a total of $10 billion. Subsequently, it was revealed that large companies such as Google, Microsoft, Nvidia, and Epic Games have made or are planning significant investments in this sector. What prompted these companies—whose annual revenues exceed the vii

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national income of most countries—to make such substantial investments in the great unknown? Where did this idea and need come from, and is it truly feasible? Is it possible to construct and maintain one or more global platforms that are always accessible, engage three, four, or possibly all five senses simultaneously, and are decentralized and secure? At a time when even small-scale online multiplayer games often suffer from poor internet connections, what technological advancements need to be developed to create a platform accessible to all, allowing 3D reality to run smoothly? What other technological breakthroughs can be expected in this process, and are the resources available to support them? Since the official introduction of the Internet to the general public, countless innovations have made their way into our daily lives. Initially, people were excited by simple tasks like sending an email, but today we often complain about the messages and notifications on our smartphones that keep us constantly connected. Over time, the Internet has permeated stories, movies, and even cartoons, and the masses have become accustomed to being online all the time. We started discussing Internet and video game addicts who spend days at a time on the computer and began to fear the “darknet,” the sinister underbelly of the Internet that has become a center for various illicit activities. With the dawn of the Web 2.0 era, social networking and social media have become hot topics. These platforms, which we initially found “very useful and functional” as they allowed us to reconnect with old friends, are now associated with a psychological problem known as “social media addiction.” Few things in the world are associated with their “user,” like cigarettes, drugs, and social media. On the other hand, the first implementation of blockchain technology, a cryptocurrency called Bitcoin, has gained popularity because it is not tied to any central authority, thus lowering transaction fees for money transfers. In the meantime, numerous other cryptocurrencies were launched and used for investments and exchanges. However, over time, these markets were also found to be used for criminal activities such as illegal trading, smuggling, and terrorist financing. In addition, many countries have banned cryptocurrency mining due to the environmental damage it causes. Information and communication technologies are not the only ones that can lead to unintended consequences. Antibiotics, for example, which were discovered and developed with great hopes and could perhaps save millions of lives, have unfortunately become a major threat to humanity because proper precautions were not taken. From all these examples, we can speculate about the future of one or more Metaverse platforms and the purposes they may serve if no measures are taken. So how will these platforms affect people, the environment, and communities? What precautions can be taken to prevent potential ethical and legal problems, and what steps can be taken to address them both technically and legally? Will we be citizens or guests on these potential platforms? While even the smallest country and regional markets are enticing to global companies, how will they use this platform where everyone can get on at the same time? How will these new payment systems and massive mobility affect national and household economies? How and by whom will this whole process be managed? Metaverse platforms, as envisioned, will provide users with qualified ownership through the use of hosted blockchain technology. There come NFTs (non-fungible

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tokens), the first implementations of which we have seen recently and which, unfortunately, are still considered investment tools by most users. While it is well known that many people make money buying and selling NFTs, it has been shown that NFTs are structures capable of completely changing the art world and even beyond that, the norms of ownership for artifacts, structures, and anything else you can imagine. Although the level of awareness is not yet high enough, it is expected to improve and become widespread over time. So, what other areas will be changed by the Metaverse, blockchain, and thus NFTs? What will be the consequences of these changes, and how will they affect markets and supply chains? What investments are countries at the forefront of technological development making, and for what purposes do they plan to use the Metaverse in the future? Over the past 50 years, nearly every technological advancement has brought both benefits and harms to the world. Sometimes, these harms have reached colossal proportions, as exemplified by the atomic bomb, developed under the guidance of individuals with flawed ethical perspectives. Consequently, when discussing a technology or innovations arising from the integration of multiple technologies, it is crucial to examine the subject from both technical and social–ethical standpoints, elucidating its potential impact on industry, work, competition, and specific sectors. This book provides an exemplary presentation of this approach, addressing all the aforementioned concerns. You will learn about the extensive, disruptive, and possibly even destructive nature of the Metaverse, which many individuals mistakenly equate only with 3D glasses and virtual environments. Moreover, you will gain insights into what is likely to transpire over the next 10–20 years. We would like to express our gratitude to all the authors, ranging from engineers to academics, business people to economists, communicators to psychologists, as well as Springer for their valuable contributions. We wish you an enjoyable reading experience. Ankara, Türkiye Daejeon, Korea (Republic of) Oregon, USA

Dr. Fatih Sinan Esen Dr. Hasan Tinmaz Dr. Madhusudan Singh

Contents

Historical Process and Theoretical Foundations of Metaverse Starting from Web 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bahadir Avsar

1

History and Development of Virtual Worlds and Metaverse . . . . . . . . . . . Hakan Kayakoku

19

Metaverse and Decentralization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enis Karaarslan and Senem Yazici Yilmaz

31

The Role of Artificial Intelligence and Robotic Solution Technologies in Metaverse Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nida Gokce Narin The Extended Reality Technology and Its Utilization in Metaverse . . . . . Banu Kucuksarac Evaluation of Open Source, Open Data Sharing, and Data Anonymization Concepts in the Development of the Metaverse . . . . . . . . Emre Cihan Ates, Erkan Bostanci, and Mehmet Serdar Guzel Metaverse and New Cybersecurity Threats . . . . . . . . . . . . . . . . . . . . . . . . . . Duygu Saracoglu

45 65

83 99

Data Privacy and Security in the Metaverse . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Tuba Parlar Non-fungible Tokens (NFT), Virtual Real Estate and Digital Assets, Cultural and Artistic Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Sebnem Ozdemir Consumer Behavior, Marketing Approach, Branding, Advertising, and New Opportunities in the Metaverse Areas . . . . . . . . . . . . . . . . . . . . . . . 151 Kursad Ozkaynar

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Consumer Behavior in the Metaverse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Fatma Irem Konyalioglu The New Economic Models of Metaverse and Its Implications in International Financial Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Mehmet Sahiner Gamification in Metaverse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 Nur Meric Afacan Evaluation of the Metaverse Universe in Light of Psychology and Sociology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Atiye Pinar Zumrut Metaverse and Human Rights: Do We Need Metaversal Declaration of Human Rights? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Gokce Cobansoy Hizel Metaverse Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 Mehmet Metin Uzun Citizenship and Citizen Participation in Metaverse . . . . . . . . . . . . . . . . . . . 245 Sava¸s Zafer Sahin ¸ The Role of the Law in Metaverse Regulation . . . . . . . . . . . . . . . . . . . . . . . . 259 Osman Gazi Gucluturk The Metaverse and Terrorism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Aybike Yalcin-Ispir The Relationship Between Blockchain Applications in Financial Markets and Metaverse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 Harun Turker Kara Technology Giant South Korea’s Metaverse Experiences . . . . . . . . . . . . . . 305 Hasan Tinmaz E-Sport: Ball and the Rifle Are on the Net . . . . . . . . . . . . . . . . . . . . . . . . . . . 323 Yigit Anil Guzelipek Metaverse: Transformation and Future of Agriculture . . . . . . . . . . . . . . . . 333 Figen Büyükakin and Özgür Bayram Soylu Metaverse Applications in Biotechnology Era . . . . . . . . . . . . . . . . . . . . . . . . 357 Sevgi Salman Unver The Tourism Sector in Metaverse: Virtual Hotel and Applications . . . . . . 373 Seda Karagoz Zeren Metaverse and Supply Chain Management Applications . . . . . . . . . . . . . . 383 Gülçin Büyüközkan

Contents

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Metaverse Applications in Education: Systematic Literature Review and Bibliographic Analysis of 2010–2022 . . . . . . . . . . . . . . . . . . . . . 397 U˘gur Sirvermez and Sehnaz ¸ Baltaci Securing Data in the Metaverse: What We Need to Know . . . . . . . . . . . . . 419 Madhusudan Singh

Historical Process and Theoretical Foundations of Metaverse Starting from Web 1.0 Bahadir Avsar

Abstract The World Wide Web has come a long way since its emergence, from a small impact on our daily lives to a vast universe that accommodates all of humanity today. This study delves into the historical and theoretical foundations of the web, which is preparing to present a world that will cover our five senses. The chapter begins by explaining the difference between the Internet and the web and goes on to examine the transition process from Web 1.0, which provided information connections, to Web 2.0 technologies that focus on interaction. The chapter continues by discussing Web 3.0 and its decentralized protocols, new technologies, and algorithms. It also investigates the commercial, cultural, and social implications of next-generation web technologies such as artificial intelligence, augmented reality, three-dimensional universes, and semantic networks. To investigate these effects, the concepts of blockchain, NFTs, tokens, and the Metaverse are used. In summary, the goal of the study is to provide a comprehensive understanding of the evolution of the web and the impact of new technologies on our daily lives. Keywords Web · Metaverse · Blockchain · Internet · Data · Artificial intelligence · Technology · Network · Social · Information

1 Introduction From the dawn of civilization to the emergence of the Metaverse, advances in communication technology and human imagination have led to transformative changes in our perception of time and space. These technological developments have made vast distances seem closer and reduced the time and effort required to complete tasks, from months to mere days, minutes, and even milliseconds. In particular, the rise of web technologies has transformed the Internet into a nexus for communication, with unprecedented levels of multimedia content in forms such as writing, audio, and images. As Tim Berners-Lee notes, communication technologies undergo paradigm B. Avsar (B) Turkish Radio and Television Corporation (TRT), Ankara, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_1

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shifts every decade, from the use of computers for communication in the 1990s to the emergence of Internet technologies in the 2000s, and now, to the transition to the Web 3.0 Metaverse, which leverages artificial intelligence [1]. The Internet has undergone rapid technological progress since its inception, and the power of Moore’s Law was fully evident in the 1990s, with exponential increases in digital transformation speed. These advancements have brought people closer together than ever before, virtually eliminating time and space barriers in communication. Today, the virtual world has grown to a point where big data analysis can even influence the democracies of global powers. While virtual shopping has become commonplace, methods for facilitating safe and straightforward international trade have become increasingly robust, with thousands of complex transactions and security measures. These technological changes have not only transformed lifestyle and consumption habits but have also changed the very ways in which people perceive and define the world. With the emergence of Web 1.0, humankind marked its first attempt to declare independence from time and space. Web 1.0 made disciplines shaped by centuries of accumulated information, such as education, art, economy, and publishing, available for download on portable devices. Web 2.0, with its web technologies, facilitated socialization and instant management of social and economic relations. The communicative structure evolved from a one-way, static model to a two-way, dynamic mode where users could also produce content. Web 3.0, which combines software–hardware devices with exceptional audio and geospatial capabilities, blends the Internet through virtual and augmented reality to pave the way for Metaverse technologies [2]. In this section, we will focus on the basic concepts of the web and how web technology has evolved from its emergence to the present day, covering topics such as artificial intelligence, blockchain, NFTs, and Metaverse. We will review the historical and theoretical context of these concepts and their economic and socio-cultural consequences to create semantic integrity.

2 Internet and Web The Internet is the physical infrastructure that enables communication within a network of millions of globally connected computers, mobile devices, cars, and innovative home systems. It is important to note that the Internet is not synonymous with the Web [3], which is a system that runs on the Internet infrastructure and is a way of accessing information over the Internet through web pages in a browser. The Web is a set of protocols on the Internet that uses hyperlinks to link information containing text, graphics, audio, and video. The Web is just one of the various services provided by the Internet, including mail and File Transfer Protocol (FTP). The ancestor of the modern Internet, ARPANET, was created in the 1960s by the Advanced Defense Research Projects Unit of the US Department of Defense. It was the world’s first packet distribution network and the first version of the available Internet. After 1969, the Internet entered people’s lives, and protocols such as Simple

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Mail Transfer Protocol (SMTP), Network News Transfer Protocol (NNTP), FTP, and Hypertext Transfer Protocol (HTTP) were developed to facilitate communication and data transfer. In 1991, the Internet evolved into a publicly accessible space with the “www” at the European Center for Nuclear Research (Conseil Européen pour la Recherche Nucléaire—CERN). The Web, which stands for “world wide web,” was named by Tim Berners-Lee, one of the CERN software developers, in 1989 [4]. It is more than just an interface and contains various protocols and rules that combine communication processes on this interface. Fundamentally, to effectively use a single window browser to reach the Internet, the basis of the working principle is the HTML protocol, which corresponds to the process of television receivers transforming signals in the air into an image. Web documents are hypertext structures accessed over HTTP or HTTPd servers on the Internet using a URL (Uniform Resource Locator). The URL, also known as the “web address,” references a web resource that specifies its location in a computer network and a mechanism to retrieve it. HTTPd is a software program that usually runs as a background process and plays the role of a server in a client–server model using HTTP and/or HTTPS network protocols [5]. In summary, the Internet is a technology that covers the physical infrastructure and protocols that connect all devices included in the system globally. The Web is a chain of tools for viewing a website through browsers and is just one of the various services provided by the Internet. Protocols such as SMTP, NNTP, FTP, and HTTP facilitate communication and data transfer on the Internet [6]. The HTML protocol is the basis for effectively using a single-window browser to reach the Internet, and web documents are accessed over HTTP or HTTPd servers using a URL. Web 1.0 The web adventure began with Tim Berners-Lee’s proposal in 1989 to create a global hypertext field where network-accessible information would refer to a single “Universal Document Identifier” or “UDI.“ The adventure continued with the development of primary identifiers such as Uniform Resource Identifier (URI) and URL, as well as HTML and HTTP technologies. Berners-Lee completed the World Wide Web (WWW) while working for CERN and made it publicly available in August 1991 by announcing it in newsgroups [7]. With the widespread use of the Internet, a world emerged where every place was connected. Even with the advancements in communication, the furthest place was within a click of a button [8]. The ambition behind the Web was to create a space where people could share and form a shared information sphere [9]. The 1990s were defined as the “Web era 1.0,” during which the Internet opened up to the masses. In this era, Internet sites were static and single-directional. If an individual institution or organization wanted to be visible worldwide and create a website, they primarily needed to reach out to site builders and providers. Along with strong programming capability, they needed to compose hundreds of codes to create even the simplest content. The Web had a revolutionary nature as it provided a practical way of “reaching hundreds of thousands,” which did not exist until then. Nevertheless, it had a structure that was not user-friendly and had no interaction with the user. The

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primary purpose of Web 1.0 was to create an online space by publishing every piece of content without time and space limitations. Web 1.0 covers the period from 1990 to 2004. The fundamental feature of this Internet was that it allowed the creation of “read-only websites” and delivered only information. The recipient had little to no influence on the information presented. They could read but not add or modify comments. In short, they could not interact with the content of the carrier. Websites consisted of static HTML pages that were rarely updated. Those who entered these websites did not contribute to the site. The connection structure was fragile, and website contents were stored in simple static file systems instead of databases. They did not go beyond “GIF” motion pictures, externally prepared flash animations, and occasional JavaScript structures. In the Web 1.0 epoch, protocols such as HTTP, URL, TCP, and IP were established, and swift and decisive versions were developed. In short, Web 1.0 is, according to Berners-Lee, the earlier stage of the Web’s abstract transformation, the “read-only web” [5]. During this period, those desiring to find and purchase products or services switched from offline to online. However, visitors could not interact with the content creation process. Web pages were static and mainly stayed the same. Manufacturers and service providers began posting online catalogs to advertise their products or services. The immediate goal of websites was to publish information for everyone at any moment and to establish an online presence [10]. Web 2.0 Web 2.0, introduced by O’Reilly Media in 2004, refers to the second generation of Internet technology, which enables social networks to be transferred to the digital world by promoting mutual interaction and eliminating the one-way and static situation found in Web 1.0 [11]. Dale Dougherty defined Web 2.0 as a “read–write network” in the same year. Web 2.0 makes it possible for anyone to become a producer, as basic computer knowledge is sufficient to participate in the creation and development process and brings complex and appealing website processes to a simple desktop software face and functionality [12]. This generation of the Web is called the “social web era” and focuses on collaboration and data transmission at online platforms, such as social networking sites, blogs, wikis, and mashups, where social media dialogues enable interaction and collaboration [13]. Web 2.0 brings about a dynamic model from a traditional publisher model, where website developers can present dynamic visual and audio content and update it instantly. This new era of the Web is characterized by the emergence of the next generation of web-related technologies and standards that separate the data exchange layer from the presentation layer, allowing web pages and web applications to change content dynamically without reloading the entire page. These technologies include Ajax, HTML, CSS, JavaScript, ECMAScript, Cascading Style Sheets (CSS), and Document Object Model (DOM). Web 2.0 allows for the creation of blogging, image and video sharing, web apps, voice-over IP, instant messages, social bookmarking, podcasting, weblogs, and other technological online interactions. Web programming languages such as Active Server Pages (ASP), ASP.Net, and Hypertext Pre-processor (PHP) have emerged, strengthening the interaction of site applications

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and making the web environment more dynamic. With the second generation of Internet technologies, anyone using online platforms can create content, comment on content, update it, and collaborate, allowing information to flow in both directions on behalf of content providers and viewers. Web 2.0 has brought about the emergence of social media platforms such as Myspace, Facebook, Twitter, YouTube, Instagram, blogs, and wikis, with some reaching billions of users. Despite the positive results, such as an intense increase in interaction and the development of communication and cooperation between users with Web 2.0, there are also disadvantages. These include data leakage and selling of collected data for commercial purposes, violation of data privacy, and the ease with which individuals can share their data on the social web and third parties can control it. Social media attacks, such as Clickjacking and Likejacking, are also common, which exploit vulnerabilities found in applications or web pages to allow attackers to manipulate their computers for their advantage [14]. In addition, Web 2.0 poses a significant risk to data privacy, with some online account holders sharing their passwords with family or friends and cases of data manipulation having significant effects, such as the Cambridge Analytica scandal, which manipulated the US elections and the UK’s exit vote from the European Union (EU) “Brexit” [15] (Fig. 1). Despite its inherent risks, the social web has provided numerous advantages. The increased ability to share ideas and access information from experts, coupled with the reduced costs of communication technologies, travel, and operations, has made many subjects more accessible and functional. Consequently, paradigm changes have occurred in several social areas, including education, trade, health, security,

Fig. 1 The evolution of the web over time (Radar Networks and Nova Spivack 2007) from http:// www.novaspivack.com/uncategorized/the-evolution-of-the-web-past-present-future. It is located in the slide https://www.slideshare.net/novaspivack/web-evolution-nova-spivack-twine

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and tourism after the emergence of Web 2.0. With the social web, the structure of education has shifted from teacher-centered to student-centered, enabling students to take charge of their learning [16]. Web 2.0 has enabled e-health users to actively change their web information, providing potential for improving e-health, particularly in rural areas. Moreover, Web 2.0 has expanded the scope of marketing while decreasing the time needed for marketing. Traditional media such as newspapers, radio, or television can be costly, but Web 2.0 technologies have made it possible to reach a broader audience via web blogs and social networks at a much lower cost. Additionally, Web 2.0 has enabled businesses to engage with their customers by inviting them to participate in product development, providing critical feedback, and utilizing Internet technologies such as Internet banking, payment gateways, and digital marketing. However, despite the numerous advantages of Web 2.0, one of its most significant drawbacks is its centralized client–server architecture. The central server stores all user data and digital assets, posing a considerable threat to individuals’ privacy. In contrast, a decentralized network is relatively free from the threat of data breaches since no one has authority over personal information. With Web 3.0, users can own digital assets in addition to reading and writing, making it a significant improvement over Web 2.0. In conclusion, the social web has brought significant changes in various social areas, improving accessibility and functionality. However, while Web 2.0 has numerous advantages, its centralized client–server architecture poses risks to individuals’ privacy. Web 3.0 offers a solution by enabling users to own digital assets and participate in a decentralized network. Web 3.0 Web 3.0 can be defined as the restructuring of existing Internet services and products into open protocols built on transparent blockchain networks that are accessible to all users. Tim Berners-Lee was the first to introduce the concept of Web 3.0 as a “semantic web,” which leverages the power of artificial intelligence to process information with human-like intelligence. The World Wide Web Consortium (W3C) has defined the semantic Web as a framework that allows for the pervasive sharing and reusability of data across application, organization, and community boundaries [17]. This framework has the ability to quickly understand user interests, assist in finding what people want, and comprehend the relationships between “things.” By reducing human tasks and decisions and providing machine-readable content on the Web, Web 3.0 aims to enable machines to take on more tasks [18]. In 2014, Ethereum co-founder Gavin Wood proposed a solution to centralized data and user privacy concerns through decentralization. Although the development of new protocols and artificial intelligence algorithms shape Web 3.0, the central concept that differentiates it from other web generations is decentralization. Web 3.0 can be defined as a new generation of Internet technology that integrates technologies such as artificial intelligence and machine learning into the blockchain database and realizes the idea of being “decentralized.” Web 3.0 enables the protection of data

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privacy through digital identities that are fully encrypted, anonymous, and crossplatform. User consent is combined with these digital IDs, and unlike Web 2.0, users can be asked if they want to see an ad. In Web 3.0, applications are developed on blockchains that are operated by everyone who builds the network, rather than being stored on a single server. This decentralization strengthens data privacy, prevents data leaks and malicious use, eases censorship, and pledges an open and transparent structure while ensuring user privacy. Web 3.0 opens up secure data transfers, ownership swaps, and cryptocurrency payments, which radically change how humans and machines interact. Web 3.0 is manifested through new technologies such as cryptocurrencies, virtual and augmented reality, artificial intelligence, and more. For example, if someone is looking for flight times to a particular country, they can find flight times, details of weather conditions during their visit, maps, city guides, and other helpful information, such as hotel, restaurant, and car rental reservations. The Web 3.0 data is represented graphically by the Resource Description Framework (RDF), based on XML syntax. RDF was originally designed as a data model for metadata and is a W3C standard. RDF is a directed graph of triple expressions, where the subject is represented by a node, the predicate is represented by an arc from a matter to an entity, and the object is represented by another node [8]. RDFS represents taxonomies of classes and properties, while the Web Ontology Language provides the OWL standard vocabulary. OWL is characterized by standard semantics and is the official language used to create ontologies in computer science and artificial intelligence. Ontology languages are generally based on either first-order logic or explanation logic and often include rules of reasoning that support the processing of information. “Simple Protocol” and RDF Query Language SPARQL are used to query RDF data [19]. The logic and proof layers ensure the credibility of the entries, and for input data, the source is verified with digital signatures. User applications are created at the top of all layers (Fig. 2). Web 3.0, as a next-generation Internet technology, encompasses a range of advanced features, including semantic technologies and social computing environments. Semantic technologies are open standards that can be deployed atop the Web, while social computing environments facilitate human–machine collaboration and the organization of multiple social web communities. These two key components

Fig. 2 The transformation of the Internet from Web 1.0 to Web 3.0 [2, p. 2]

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together form the backbone of Web 3.0, enabling new levels of innovation, efficiency, and interconnectivity across a broad range of domains [20] (Table 1). The advent of Web 3.0 technologies has brought about a promising web environment, as it incorporates user interaction with software resolutions of artificial intelligence. Today, websites and applications equipped with artificial intelligence algorithms are able to offer users alternative and relevant suggestions based on their interests and digital orientations. These technologies have been integrated into assistant applications such as Apple’s “Siri”, which operates on MacOS and iOS, as well as Samsung’s “Bixby”, which functions under the Android operating system. These developments can be seen as the hallmark of the Web 3.0 era [21]. Table 1 Comparison of three generations on the web [18, p. 77] Criteria

Web 1.0

Web 2.0

Web 3.0

Start

1994

2002

2006

Who invented

Tim Berners-Lee

Dale Dougherty

John Markoff

Generation

Informatics

Contact

Co-operation

Description

Web or Internet

Documentation network

Data network

Human interaction

Reading Only

Reading and writing

Personalization

Data representation

HTML

HTML, XHTML, XML

RDF, RDFa, Microformats

Semantics

No

No

Yes, using RDFS/ OWL

Connections

Hyperlink

Hyperlink

URI

Metadata (Metadata)

Relational schematic

XSD/DTD

Hype

Data modelling

Relational

Relational, hierarchical

Graphic

Machine learning

No

No

Yes

Query language

SQL

SQL, XPath

SPARQL

Questions and answers Where to search for data?

How to share data with someone else?

How is data searched, integrated, and controlled?

The effort required to search for product/ service/person

Too much effort required

Reduced effort through product reviews and labeling

Much less effort, thanks to mobile agents and the integration of data

Examples

News/information websites, e-commerce websites

Wikis, logs, social media sites

Google Squared, Zemanta, TripIt, Siri, Wolfram Alpha, Watson, etc.

Application areas

Search, shopping, advertising, etc.

Social network

Smart search engines, semantic social network

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3 Artificial Intelligence Artificial intelligence (AI) refers to the integration of semantic capabilities and natural language processing within the web, allowing computers to understand information on a “human-like level” and provide faster and more relevant results to users [22]. AI technologies continue to evolve, offering the potential to meet users’ needs with increasing accuracy. The origins of AI research can be traced back to a workshop at Dartmouth College in 1956. The field gained popularity in the late 1990s and early twenty-first century as it produced precise solutions to specific problems. 2015 marked a significant year in the advancement of AI research. At Google, the number of software projects using AI increased from occasional use in 2012 to more than 2,700 projects in 2015 [3]. Researchers in the field of AI seek to simulate intelligence by focusing on substages of natural intelligence, such as knowledge representation, common sense knowledge, explanation logic and ontology, automatic planning and scheduling, learning, natural language processing, perception, movement and manipulation, emotional computing, and general artificial intelligence [23]. They aim to create a totality by layering AI, resulting in various subsets that support traditional goals of AI research, including natural language processing, learning, knowledge representation, planning, perception, and abilities such as moving and manipulating objects. Researchers employ various problem-solving techniques, including search, neural networks, mathematical optimization, statistics, formal logic, probability, and economics-based methods. AI technologies are employed in various applications such as advanced web search engines (e.g., Google, Bing), recommendation systems (e.g., YouTube, Amazon), and assistants that understand and respond to human speech (e.g., Siri, Alexa). Driverless vehicles, strategic game systems, and automated decision-making algorithms are other examples of AI. Online review platforms like Trustpilot also leverage AI to enable consumers to distinguish between genuine and fraudulent reviews. Some sources predict that Web 3.0 will be characterized by intelligent machines that can read and interpret emotions conveyed through data, transforming them into meaningful insights [24].

4 Blockchain A blockchain is a decentralized, distributed database or ledger that is shared among the nodes of a computer network [25]. This technology is based on the concept of Distributed Ledger Technology (DLT), which eliminates the need for an intermediary to process or verify transactions [26]. The primary distinction between a Web 2.0 standard database and a blockchain is the way data is structured. While a standard database typically organizes data in tables, a blockchain organizes data in parallel arrays (blocks). Once recorded, this data cannot be reversed, deleted, or altered due

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to the technological structure of the database. Each block has a specific capacity, and when the block is full, the next block is generated, which creates a chain of data by linking to the previous block. The concept of blockchain was first proposed as a research project in 1991, but it gained widespread popularity in 2009 with the implementation of the virtual currency Bitcoin. Bitcoin is a decentralized digital currency that utilizes blockchain technology to maintain a public ledger of transactions. Each blockchain contains the cryptographic hash of the previous block up to the starting block. Network nodes can verify transactions, add them to their ledger copies, and then broadcast them to other nodes. Each network node maintains its copy of the blockchain to verify the ownership chain independently. At intervals that vary every 10 min on average, a new set of accepted transactions called a “block” is created, added to the blockchain, and quickly disseminated to all nodes without central oversight. Tokenization is a process that involves converting various assets and rights into digital representations or tokens that can be utilized on a blockchain network. With the advent of cryptocurrency and exchangeable tokens, digital currency has been created that facilitates seamless exchange of assets, thereby fostering a new business model that decentralizes finance and commerce. Non-fungible tokens (NFTs) represent data units that can be owned by users and serve as unique assets, such as digital art or trading cards. Crypto wallets, on the other hand, facilitate storage of digital assets on the blockchain and provide access to these assets via a unique private key. The basic principle underlying crypto wallets is to enable asset transfer through freer, faster, and more advantageous means, without being reliant on central authorities. There are two main types of crypto wallets: cold and hot wallets. Cold wallets store crypto assets on hardware devices such as USB sticks, while hot wallets are those that can be transacted with private keys connected to the Internet. Blockchain technology has made significant strides with respect to tokenization, DeFi (Decentralized Finance) as an ecosystem, and the creation of NFT applications. DeFi, which provides financial instruments without relying on intermediaries such as brokerage houses, exchanges, or banks, using smart contracts on a blockchain, can be defined as the “ecosystem of the digital economy.” DeFi platforms enable people to lend or borrow money, speculate on asset price movements using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. The transparency of blockchain technology ensures that all transactions within the blockchain network can be monitored and executed seamlessly. The assets that can be transacted within the blockchain network can be diverse, including houses, cars, cash, land, intellectual property, patents, copyrights, and brands. Through the use of blockchain technology, risks and costs can be effectively lowered. Blockchain technology is based on three essential elements: Distributed Ledger Technology (DLT), smart contracts, and immutable records. Once a transaction is posted to the shared ledger, it cannot be modified. If an error is found, a new transaction is added, and both transactions remain visible in the system. Smart contracts are sets of rules that are stored in the blockchain and automatically executed to speed up transactions.

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Each transaction that takes place on the blockchain is recorded as a data block, and the information contained in each block can be selected. Blocks are connected to each other in the form of a chain, and a new block is created and added to the chain as information in the previous block changes. The encrypted chain that links the blocks ensures that a new block cannot be inserted before or after any block, and the time and order of the blocks are thoroughly verified [27]. Each block validates the previous block, and once a block is finished, it cannot be changed or undone, providing the blockchain with the fundamental strength of immutability. Thus, a reliable transaction ledger is formed, eliminating the possibility of external or internal interference with the records. Blockchain technology provides unprecedented levels of security and privacy to user data. Since every node in the network has a copy of the data ledger, a cyber-attack would require hackers to access multiple nodes simultaneously, making it extremely difficult and costly to violate this security level. We can think of blockchain as a credit-paying ledger, where each page is locked by connecting it to the previous and next pages, and changes to the previous page can only be made on the following pages with the confirmed approval of the business partners. More than cracking a 10–256-digit password is required to unlock each page, and since the previous and next pages are also encrypted with each other, it is necessary to crack the passwords of the previous and next pages as well. The blockchain’s reliable, transparent, and immutable features offer significant advantages in numerous fields, including public services, healthcare, cadastral operations, election and voting processes, and international trade. The unmatched speed, security, and reliability of blockchain technologies make them particularly useful in securely storing and protecting medical records. Given the large commercial structure of the pharmaceutical industry, information regarding patient records has both commercial and ethical value. Storing patient information using blockchain technologies ensures honest, safe, and reliable healthcare services for people. Blockchain technologies can also be utilized to resolve issues related to registering and exchanging immovable goods. The blockchain database, with its highspeed and secure data storage and access, can identify who owns any field, plot, or flat. Currently, state employees are required in land registry cadaster centers, where the central database of the district, and land registry systems are manually entered. Although second-generation Internet technologies have digitized the process, legal and bureaucratic procedures still require a significant amount of time in case of disputes regarding real estate. This long and costly process is prone to human error. As the primary pillar of third-generation Internet technologies, the blockchain database has the potential to eliminate this expensive, complex, and inefficient process. In other words, ownership of fields, lands, flats, villas, or any real estate can be recorded on the blockchain. When verified, property owners can be confident that their title deeds are recorded correctly and permanently. In war-torn countries like Syria or areas with no infrastructure and no land registry, it can be almost impossible to prove property ownership. Transparent and clear ownership timelines created with blockchain in such areas will set things right in the long run. Blockchain can also be utilized to facilitate a voting system. The US state of West Virginia tested blockchain voting

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during the November 2018 midterm elections, and it was found to have the potential to eliminate electoral fraud and increase voter turnout. The blockchain protocol is also a structure that will maintain transparency in the election process, reducing the staff required to conduct an election and allowing authorities to achieve results almost instantly. This would remove the need for a recount or genuine concerns that dishonesty could threaten the election [28]. Blockchain technologies, which have emerged as a significant component of Web 3.0, hold tremendous potential for facilitating faster and more efficient global trade. The global trade management system currently in use worldwide relies heavily on legal contracts to ensure the delivery of goods and services. However, ensuring compliance of these contracts can be a timeconsuming and costly process. This is especially true in the case of international trade, where speed, security, and reliability are considered essential prerequisites. Consider a hypothetical scenario where a product needs to be shipped from South Africa to the UK. The process of obtaining documents that conform to the required international standards, arranging contracts according to mutual agreements, and obtaining the necessary transactions and documents for trade ports can be an extremely time-consuming and expensive process. Such delays can cause severe financial damage to companies and put perishable products at risk. This is where NFTs (non-fungible tokens) as smart contracts, a hallmark of the Web 3.0 era, come into play. Smart contracts are pieces of open-source code with terms agreed upon by both parties before the start of the transaction. These contracts are automatically executed when predefined conditions are met. The use of smart contracts makes services verifiable and easily enforceable, enabling users to receive services from anywhere in the world and pay directly and automatically according to the contract. This technology significantly reduces the cost of contract monitoring and transaction control. Implementation of NFTs and smart contracts for international trade can streamline the processes of contract management and payment execution, reducing the risk of errors and delays. The efficiency and transparency offered by this technology provide a secure and cost-effective solution to international trade, facilitating smooth transactions that adhere to international standards. The use of smart contracts can have a significant positive impact on the global economy, promoting transparency, security, and efficiency in international trade. Thanks to blockchain technologies, which are now being used in international trade, the process of delivering products to end-users can be monitored reliably and transparently. The bureaucratic process that traditionally took months can be reduced to a matter of hours [29]. For instance, the IBM Food Trust leverages blockchain technology to allow suppliers to record the origins of the materials they purchase, thereby enhancing supply chain transparency and reducing the risk of fraudulent practices.

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5 Metaverse The Metaverse can be defined as an Internet-supported three-dimensional virtual environment that can be accessed through computers and augmented reality devices [3]. The term Metaverse was originally coined by science fiction writer Neal Stephenson in his 1992 Cyberpunk novel Snow Crash, in which he presented a 3D virtual world where people represented as avatars could interact with each other and be represented as artificially intelligent agents. Despite being a concept that has been around for some time, it has recently gained significant popularity due to Facebook’s decision to change its name to “Meta” in 2021 and the subsequent introduction of the Metaverse universe by Facebook’s owner and CEO, Mark Zuckerberg, at the “Facebook Connect 2021” meeting held on October 28, 2021. The Metaverse universe can be viewed as a virtual universe where individuals have a customizable digital avatar and can navigate different virtual worlds, play games, watch concerts, socialize, or collaborate. This can be accomplished through a fully virtual environment using virtual reality (VR) technologies or with a virtual content layer using augmented reality (AR) or mixed reality (MR) technologies. Virtual reality aims to provide an experience that is wholly isolated from real life, while augmented reality builds on real life and makes it more interactive. For example, the popular game “Pokémon GO” is an example of mixed or augmented reality. In the Metaverse universe, users are represented by avatars that enable them to perform various activities such as talking, walking, working, dancing, and playing. Virtual reality devices are required to enter this area, and these devices are rapidly evolving to incorporate more touch, sensing, and olfactory features. XR (technology that combines augmented and mixed reality) devices are expected to be used extensively to access Metaverses, and they create a virtual world while recording geospatial data and the player’s voice. The game “Second Life” is a notable example of an early attempt at creating a Metaverse. Launched in 2003, Second Life allows users to join the virtual world and have a second life in the virtual world. Published in Web 2.0 terms, Second Life offers individuals opportunities to explore, meet other residents, and participate in individual or group activities, much like in the real world. Distinctive Features and Risks of Metaverse Metaverse distinguishes itself from other web technologies by its ability to represent the natural world in a virtual environment, allowing participants to perform activities that they can do in the real world, and even more in the virtual world. Metaverse participants can attend concerts, play games, acquire, and apply skills, and travel in a virtual environment. Additionally, Metaverse offers an advanced level of digital interaction, surpassing the capabilities of Web 2.0. By connecting with people in the virtual world, users can collaborate, party, hold meetings, attend virtual conferences, and showcase themselves using avatars. The high-performance computing infrastructure is another defining feature of Metaverse. To create and run meta-strings, advanced computing capabilities such as fast processing, storage, and high-speed

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Internet are essential. Furthermore, the infrastructure must be permanent, allowing users to access the virtual world at any time and make changes, such as adding new virtual buildings or other objects. As with social media, user-generated content, digital creations, and personal stories are integral to Metaverse [2]. Metaverse is also suitable for remote working conditions, providing an environment where managers can communicate with employees, read their body language, and maintain face-to-face interaction. Additionally, Metaverse is an open-source platform where anyone can produce worthwhile projects and trade NFTs for financial gain. Metaverse’s potential extends beyond entertainment and business, with implications for the healthcare sector. The increased Internet speed and decreased delay times can open the way for surgery via Metaverse. It is also a valuable tool for healthcare professionals who face geographic restrictions, enabling doctors to interact with patients, examine them, and understand their health status. Overall, Metaverse offers a novel and exciting virtual environment with many practical applications for a variety of industries. Like all recent technologies, Metaverse has its handicaps. There are problems with security and privacy issues. The technologies that power Metaverse platforms come with their own set of risks. Cyber-attacks are the first thing that comes to mind when discussing the digital world. With Metaverse, the digital space will be closely intertwined with the real world, and the risk of cyber-attacks will increase. Numerous concerns, such as network credential theft, identity theft, social engineering attacks, and ransomware attacks, can arise due to the AR and VR technologies powering the Metaverse. Failure to take cyber-attacks and security measures seriously will have negative consequences in individuals’ lives that are much more profound and effective than previous generations of the Web. Anyone with other network credentials in the Metaverse can easily impersonate that person in the meta string. In addition, hackers can use devices to compromise users’ network credentials. Hacking is, in fact, one of the most severe risks for retailers using VR and AR-based shopping apps. Theft of network credentials can compromise financial and personal information stored in meta-user profiles. Potential risks, such as immersive attacks with VR tools, also exist. This type of attack is a new type of attack that focuses on its unique features and vulnerabilities, and there is a risk of harming the user physically or mentally. Another attack that can potentially enter our lives with Metaverse is the “human joystick” attack. Ibrahim Baggili, Professor of Computer Science at New Haven University, says: “We are looking at screens right now. With Metaverse, screens are so close to our eyes that they make us feel inside. If we can control the world, someone is in, and we can control the person in it” [30]. Researchers have discovered that it is possible to control users entering the Metaverse using VR systems and move them somewhere in physical space without their knowledge. Ransomware is one of the most critical threats VR poses in the Metaverse. People need a real social life, family, and friends because of their thousands of years of routine. Virtual friends and families will not provide the same happiness and satisfaction as real ones. Although the exact measurement of the Metaverse has not been made, there is no risk of it affecting our perception of real time and space. The more virtual worlds we live in, the more likely we are to distance ourselves from Reality.

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Creating avatars and virtual identities in Metaverse will meet the same standards as creating fake identities. Therefore, many things that cannot be done with social and cultural barriers in the real world can be done in Metaverse. Having multiple identities in a Metaverse and appearing only with an avatar will push the limits of freedom and create social, cultural, moral, social, philosophical, etc. It will bring about many new discussions. Because of how our bodies and minds work, the impact of these virtual identities on our authentic selves can be seen as the simplest of risks out of thousands of potential ontological risks. Metaverse means producing many times more than the currently produced data stack. Transforming the real world into virtual worlds, replacing the actual economy with digital economies, will require massive amounts of 2D and 3D content. This will inevitably increase data creation, storage, and transfer demand. In other words, the accumulation that we call “big data” today will grow much larger tomorrow, and its solution will be more difficult.

6 Web 3.0 and Its Possible Risks Third-generation Internet technologies (Web 3.0) have risks as well as advantages. The fact that data is not collected in a single center reduces the risk of attack and includes new types of attacks. According to experts, decentralization will bring a lack of oversight, exacerbating the problems with monitoring and regulating Web 3.0. This could lead to increased cybercrime, online abuse, and more [17]. Smart Contract Hacks: Attacks on smart contracts target coded logic in blockchain services. Attackers create malware associated with malicious smart contract codes on the blockchain. Because smart contracts are often not protected by law or are scattered across jurisdictions, they can also lead to serious legal problems. DApp and Partial Decentralization: Applications running on the blockchain system that can operate autonomously through smart contracts are called DApps. DApps are generally not distributed; they respond to websites on the blockchain rather than a central database. So, while we use Web 3.0 in DApps, we also use Web 2.0. Although DApp technologies are third-generation and decentralized, the websites that enable us to access those technologies are second-generation websites with central servers. This is a state of partial decentralization. Therefore, DApps are open to all the risks that Web 2.0 poses. Information Quality: Our idea of the information quality produced in Web 3.0 technologies needs to be clarified in other web generations. In Web 1.0, accuracy depended on the reputation of publishers. Web 2.0 has reduced data quality, leading to increased misinformation and disinformation. Web 3.0, on the other hand, has many question marks in this regard. For example, “Is there consensus to accept machinemanaged data in Web 3.0? Who is making this decision, what qualifications do they have, and what motivates them to be fact-based rather than pushing an agenda?” Questions such as these are the factors that affect the quality of information.

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Wormhole Bridge: Wormhole Bridge is a blockchain. It is an interoperability protocol that allows users to transfer assets between centralized applications blockchains. Wormhole Bridge, a cross-chain bridging solution, allows hackers to perform different transfers. This situation draws attention as another weakness seen in the system. Wormhole Bridge, the DeFi bridge between Solana (SOL) and other blockchains, lost 120,000 wETH ($325 million) in a hack [2]. Data Manipulation: The deliberate manipulation of data used to train AI is another significant risk for cybersecurity in Web 3.0. Humans can create insufficient data to get the desired results, making AI the world’s largest disinformation system. For example, “Chatbot,” Microsoft’s software application for online chat conversation via text or text-to-speech, is named “Thai.“ When Tay was allowed to find out on Twitter, he was sent abusive tweets and trained to be racist [2]. Advanced Spam: Websites, search engines, and applications can target, use, and contaminate specific resources to respond to users, treating all Internet resources as databases and distributing spam to their competitors. This spam can be embedded in an application. Personal data is collected by spreading malicious JavaScript code to each user. Unless a ransom is paid, it can threaten to release or block access to the victim’s personal data. Ransomware, a type of malware originating from crypto virology, is an example. Key Phrase Attack: Wallet cloning attacks account for the vast majority of security incidents affecting Web 3.0 users. In such attacks, hackers act as customer service representatives. Offers to respond to users’ publicly posted Twitter or Discord server requests. Promising to offer assistance, hackers aim to obtain users’ private crypto wallet key phrases. Anyone with access to the private key of the crypto wallet will take complete control of that wallet. Cryptojacking: A form of cybercrime that involves the unauthorized use of people’s devices (computers, smartphones, tablets, and even servers) by cybercriminals to mine cryptocurrency. These risks will increase as Web 3.0 progresses. Cybercriminals hack devices to install crypto-jacking software. The software runs in the background, mining for cryptocurrencies or stealing from cryptocurrency wallets. Rug Pull: A scam in which a crypto developer introduces a new project to investors and then disappears with millions of dollars raised from the market with the promise of high returns. Cryptocurrency-based crime hit an all-time high in 2021, according to blockchain analytics firm “Chainanalysis.” While $7.8 billion Rug Pull crime was committed with illegal addresses in 2020, this figure increased to $14 billion in 2021 [31]. One of the most famous carpet-pulling scams is shown on the popular Netflix series “Squid Game.“ The crypto asset Squid, produced after the Squid Game series, fell to 1 cent after being sold to people for $ 2 thousand 586. Ice Phishing: In this attack, the user approves the transaction, which transfers the digital wallet’s critical statements to the attacker. Using this method, the attacker can quickly empty all the user’s wallets by performing the approval process over time.

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An example is the Badger-DAO attack, which drained approximately $121 million in November–December 2021 [32].

7 Conclusion In conclusion, the present study has endeavored to shed light on the transformation that has occurred in the process of transitioning from Web 1.0 to Metaverse, along with its profound implications for our lives. The diverse hardware and software technologies that constitute each web generation, along with their respective strengths and weaknesses, have been scrutinized from economic, social, and cultural perspectives. Since its inception in 1989, the Web has made remarkable strides, gradually evolving into a colossal network of interactive platforms. This advancement continues at an accelerated pace, in response to ever-evolving needs, possibilities, and technologies. Web 1.0’s read-only Web, e-commerce, search engines, and other such technologies, while the technologies of Web 2.0 or interactive Web, such as blogs, wikis, social networks, etc., imbue them with meaning. Artificial intelligence, blockchain technologies, cryptocurrencies, virtual and augmented reality, etc., are the leading indicators of Web 3.0. Similarly, Metaverse is the latest addition to this series of technologies that are poised to proliferate in the coming years. Although the ultimate success of Metaverse is yet to be determined, it represents a natural extension of the digital world as it transitions from 2 to 3D. As web technologies continue to advance and expand, more and more people are benefiting from them, which, in turn, increases the number of potential cybercriminals. Consequently, data privacy and security have long been major concerns for people worldwide. Amidst all these challenges, the Metaverse has emerged as a revolutionary technological solution.

References 1. Ku¸s, O.: Metaverse: perceptions of opportunities and concerns in the digital big bang. Intermedia Int. e-J. 8(15), 245–266 (2021). ISSN: 2149-3669 2. Nath, K.: Evolution of the Internet from web 1.0 to Metaverse: the good, the bad and the ugly. TechRxiv. Preprint (2022). https://doi.org/10.36227/techrxiv.19743676.v1 3. The Free Encyclopedia. https://en.wikipedia.org 4. Blog. https://medium.com 5. Digital Platform. https://www.brandingturkiye.com 6. E-Commerce Platform. http://www.practicalecommerce.com 7. Digital Platform. https://stringfixer.com 8. Tümertekin, E., Özgüç, N.: Economic geography globalisation and development. Çantay Bookstore, Istanbul (2013) 9. Digital Platform. https://www.w3.org 10. Aghaei, S., Nematbakhsh, M., Farsani, H.: Evolution of the world wide web: from web 1.0 to web 4.0. Int. J. Web Semant. Technol. (IJWesT) 3(1) (2012) 11. Kirik, A.M.: Developing web technologies and social media addiction. Social Media Res. 1, 77–101 (2013)

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12. Lin, K.: Building web 2.0 University of California. Irvine, May, pp. 101–102 (2017) 13. Shah, S., Solanki, R.: Comparative study of semantic web applications. Int. J. Adv. Manag. Technol. Eng. Sci. II(3) (v), 42–46 (2012). ISSN: 2249-7455 14. Jain, A., Sahoo, R., Kaubiyal, J.: Online social networks security and privacy: comprehensive review and analysis. Compl. Intell. Syst. 7(5), 2157–2177 (2021) 15. Digital Platform. https://www.teknolojioku.com 16. Chawinga, W.D.: Taking social media to a university classroom: teaching and learning using Twitter and blogs. Int. J. Educ. Technol. High. Educ. 14(1), 1–19 (2017) 17. IT Technology Company. https://developer.ibm.com 18. Solanki, M., Abhijit, R.: A journey of human comfort: web 1.0 to web 4.0. Int. J. Res. Sci. Innov. (IJRSI) III(IX) (2016). ISSN 2321-2705 19. Dwivedi, D., Rani, R., Anju, A.: Adding intelligence to Internet: service 3.0, research communication. VSRD Int. J. Comput. Sci. Inform. Technol. 1(3), 124–133 (2011) 20. Suphakorntanakit, N.: Web 3.0 (2008). http://webuser.hs-furtwangen.de/~heindl/ebte-08ssweb-20-Suphakorntanakit.pdf. Et: 13 May 2022 21. Academic Publication Center. https://www.mdpi.com 22. Digital Analytics Center. https://www.expert.ai 23. Cryptocurrency Exchange Blog. https://coinmarketcap.com 24. University. https://plato.stanford.edu 25. Digital Library. https://www.investopedia.com 26. IT Technology Company. https://www.ibm.com 27. Scientific Article Platform. https://www.researchgate.net 28. Turkish National Bank. https://www.isbank.com.tr 29. Casey, P., Baggili, I., Yarramreddy, A.: Immersive virtual reality attacks and the human joystick. IEEE Trans. Depend. Sec. Comput. 18(2), 550–562 (2021) 30. Sigalos, M.: There’s a = Squid Game’ cryptocurrency—and it’s up nearly 2,400% in the last 24 hours (2021). https://www.cnbc.com/2021/10/28/squid-game-cryptocurrency-up-nea rly-2400percent-in-the-last-24-hours.html 31. Blokchain Data Platform. https://go.chainalysis.com 32. Wang, N.: BadgerDAO reveals details of how it was hacked for $120M (2021). https://www.coi ndesk.com/business/2021/12/10/badgerdao-reveals-details-of-how-it-was-hacked-for-120m/

History and Development of Virtual Worlds and Metaverse Hakan Kayakoku

Abstract On October 28, 2021, with the old name Facebook, now known as Meta, introduced the research areas that Meta company targeted and decided to direct its investment, and with a more radical decision to change the name of the company in this direction [1], the concept of Metaverse made a great impression on both the media and researchers and has garnered some attention. Today, we define Metaverse as an immersive platform that we can access with augmented or virtual reality, interact with any medium using permanent avatars and innovative digital technology. But the truth is that Metaverse is not a new term. This word was first used in 1992 in the science fiction novel Snow Crash written by Neal Stephenson, similar to its current definition. Although there is no universally accepted definition of the concept of Metaverse, like every cumulatively advancing science, has historically experienced a lot since it was first introduced in 1992 and has been published in many movies and books until today and has been the subject of news and scientific research. Looking back to understand where all these developments will lead in future and contextualizing the important steps we have taken on the way to the Metaverse as humanity will be very eye-opening for the future. For this reason, the article examines the 40-year historical development, milestones, and etymological origins of Metaverse, which has now started to gain a technological and scientific infrastructure, out of science fiction, and sheds light on the past and future of Metaverse. Keywords Metaverse · Virtual world · Metaverse history · Avatar · Blockchain

1 Introduction Significant technological developments in computer science in recent years have caused a significant sociological change in human interaction and communication. So much so that, for the first time in the 2010s, with the development of technology, a new term called the fear of missing out (FOMO) was introduced and started to be H. Kayakoku (B) TOGG, Department of Computer Engineering, Ankara University, Ankara, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_2

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studied scientifically [2]. In terms of affecting human behavior, computer science developments can be examined in 3 different technology waves as the spread of personal computers, the internet, and mobile devices in the historical process. Considering the recent developments, it is seen that the fourth wave of innovation is developing around 3D technologies such as virtual reality and augmented reality [3]. It is expected that this wave will create an information processing paradigm that has the potential to transform the concept of online education, remote work, and the current understanding of entertainment and makes it possible to be accessed from anywhere. This new paradigm is called Metaverse. When we look at the historical development of this paradigm, it is seen that the concept of Metaverse is used as a combined word consisting of two different words. The first of these, the word “Meta”, is of Greek origin; significates “after”, “beyond”, and the other component of the word, “verse”, is of English origin and is derived from the word “Universe” [4]. From this point of view, the word Metaverse means “beyond the universe”. However, although the word Metaverse does not have an agreed definition and dictionary meaning, today, with the word components, Metaverse can be defined as a post-reality universe, a permanent and permanent multi-user environment that combines physical reality with digital virtuality. In this chapter, although they are thought of as close expressions, virtual worlds, and Metaverse are examined separately, and their developments in the historical process are discussed.

2 History of Virtual Worlds The concept of virtual world used with Metaverse today is described as a simulation environment where many users connect online in a 3D world and interact with each other [5]. The fact that these worlds are an automated set of rules and that they use self-determined physics dynamics stands out as their basic elements. Each player represents an individual in the virtual world, in other words, a player character. These characters are called “avatars”. In the virtual world, the interaction takes place in real time and the result of the interaction affects all users in the environment depending on the rules defined previously. At the same time, virtual worlds continue their lives independently of the user and are not paused [6]. In other words, after a user leaves the virtual world, that is, offline, the world should continue to exist and the changes made by the user in the world should not be lost [7]. Although interaction tools such as 3D simulation environments and virtual reality glasses are used for virtual worlds today, when we look at the historical development of these worlds based on the aforementioned definition, five different phases stand out in parallel with the development of technology [8]. Text-based virtual worlds, which began in the late 1970s, are seen as the first stage in the development of virtual worlds. Multiplayer dungeon game, which is one of the first types of text-based universes, or MUD (Multi-User Dungeons) with its

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Fig. 1 Gameplay view and game main screen of the virtual world named Colossal Cave Adventure

frequently used original name, is the general name given to text-based fantasy roleplaying games played over the internet [9]. Textual virtual reality games verbally describe a physical virtual world to users. The players in the game provide realtime communication with each other with the help of the characters specified in the rules of the game. Players can read or view descriptions of rooms, objects, other players, or non-player characters and actions performed in the virtual world, and players interact with each other and the virtual world, often by typing commands that resemble natural language. The text-based virtual world game Colossal Cave Adventure, designed by Will Crowther in 1976, is considered the first step in the evolution of computer-based environments [10] (Fig. 1). The second phase of the virtual world concepts started about 10 years later with the announcement of the virtual world called Habitat, which was developed by the production company named Lucasfilm for Commodore 64 in 1986 and Fujitsu platforms in 1989. Habitat was both the first high-profile commercial implementation of virtual worlds and the first virtual world to include a graphical interface [11]. At the same time, although Habitat offered a 2D interface in accordance with the computer graphics standards of the period, it was a multi-participant online virtual environment, where each participant could use the computers of the period as an interactive client via dial-up low-speed modems. Habitat was the first virtual world to use the term “avatar” to describe its digital inhabitants included in the virtual universe [12] (Fig. 2). The third phase of development, which began in the mid-1990s, has led to greater realism and interactivity in virtual worlds compared to the previous phase, with major advances in computing power, the increase in content created on the Internet by online users, and the development of three-dimensional graphics. In 1994, Web World introduced an isometric world, called 2.5 dimensions that provided users with open-ended building capability for the first time. The reason why the mentioned virtual world is called 2.5 dimensional is due to the fact that the characters in the world are presented in two dimensions, although the environment looks three-dimensional. Since then, the inclusion of user-based content creation tools has led to a paradigm shift from pre-built virtual environments to online environments contributed, modified, and created by participants in real time. In 1995, Worlds, Inc. launched the first publicly available virtual world with full 3D graphics. The company Worlds, Inc., revived

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Fig. 2 Screenshots of the game called Habitat

the turn-based dungeon game genre that was popular in the 70s by enabling users to socialize in virtual spaces with the virtual world they named “Worlds Chat”. In this way, virtual worlds have been moved away from a mere game model, creating an alternative environment or culture to express the full scope and complexity of human behavior. So much so that in 1996, the marriage ceremony of two users named Janka and Tomas was held in another virtual world called AlphaWorld, which was built in the type belonging to the same company [13]. The firm’s technologically constrained approach to the concept of the virtual world has significantly affected the scope and variety of activities in virtual worlds. In 1996, OnLive! Traveler became the first public 3D virtual environment to feature voice chat and movement of avatar lips by rendering sounds to its users. At the Internet Developers Conference organized by Microsoft on the same date, Microsoft CEO Bill Gates took part in a demo including the virtual world of OnLive! Traveler and introduced his avatar [14] (Fig. 3). The period, which is accepted as the fourth stage of the development of virtual worlds, begins after the 2000s, which is called the millennium. In this period, virtual worlds have developed on a commercial basis with the widespread use of online

Fig. 3 Screenshots of virtual worlds AlphaWorld (left) and Worlds Chat (right)

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payment systems and the response by internet users. The online multiplayer online role-playing game called Second Life, which started to be developed in 1999 and released its first version in 2003, is one of the most important examples of virtual worlds that influenced the mentioned period. In this world called Second Life, users, called residents, could make friends, chat using online messaging, and buy real estate in the virtual world, just like in real life. The application used a special currency called Linden Dollar as its currency, and at the same time, virtual coins earned with the avatar could be converted into real currencies. In this way, a new ecosystem was created for users to earn money [15]. Again, in this period, the virtual world called Blue Mars, which was released by Avatar Reality in 2009, was developed on the graphics engine named CryEngine2 owned by Crytek, and it stands out as the most realistic virtual world experience of the period in terms of graphics. Similar to Second Life, in Blue Mars, users could use the currency called Blue Mars dollar to buy and rent properties around the world, and at the same time convert the earned virtual money into cash [16]. Although Blue Mars’ efforts to achieve more graphic-based realism provided a high-level experience to its users, over time, users began to meet the system requirements of Blue Mars. The preference for high-configuration graphics has caused Blue Mars, which is considered a promising venture, to be drastically downsized and rescaled in the industry (Fig. 4). In-game virtual money and property acquisition systems pioneered by the virtual worlds Second Life and Blue Mars brought a new stage in the history of the virtual world with the emergence of open source and decentralized virtual world infrastructures after 2007. Solipsis, whose first stable version was published in 2009, is one of the first virtual worlds to be released with open source and decentralized infrastructure [17]. Together with Solipsis, open source and decentralized projects such as Open Cobalt and Open Wonderland, which allow users to create virtual worlds, also play an important role in the development of virtual worlds [18]. The introduction and popularization of decentralized and open-source virtual worlds led the Second Life platform to separate the client and server sides from each other and to make the viewer part of the virtual world open source and to establish a network protocol that can run without being connected to the server side [19]. In this way, Second Life, which allows third-party applications to access their servers, and Kokua and

Fig. 4 Screenshots of the virtual worlds BlueMars (left) and Second Life (right)

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Fig. 5 Screenshots of the virtual worlds Solipsis (left) and Open Wonderland (right)

Phoenix, the first third-party viewers, enabled the projects to come to life. On the server side, OpenSimulator, similar to Open Wonderland, emerged as a Second Life analogue and alternative [20] (Fig. 5). The emergence and proliferation of interoperable, decentralized, open-source, and end-to-end virtual worlds constitute the final stage of virtual worlds, which is studied in five stages. Today, interoperability and interchangeability between virtual world servers and clients are gathered around a standard HTTP(S) protocol, similar to the fact that today’s internet protocols consist of multiple client (browser) and server options and each client negotiates through this common platform. Today, the widespread availability of open source, and the ease of authentication using cloud computing and social network credentials facilitate the integration of users in virtual worlds [21]. In this way, it can be said that an open and collaborative development phase has been entered for virtual worlds [22]. Table 1 summarizes the key milestones for virtual world development and developments in virtual world technology in more than 30 years since the launch of multiplayer dungeon games.

3 History of Metaverse When we look at the development and history of the concept of the Metaverse, it is striking that the first developments were shaped in philosophical and literary fields, unlike virtual worlds. For this reason, different definitions have been made about the concept in the historical process and different approaches have been adopted. Especially with the developments in technology and the popularization of virtual worlds, science fiction novels, in which virtual worlds and virtual realities are the subject and the literature is determined, stand out in the late 1900s. Metaverse was first used as a word in 1992 by Neil Stephenson in his science fiction novel Snow Crash [23]. In the aforementioned novel, people in the physical world enter a parallel virtual world called the Metaverse through digital avatars and begin to live there. In the novel, it is seen that the characters enter the depicted virtual world with a

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Table 1 Milestones of virtual worlds Year

Events

Significance

1979

Multiplayer Dungeon Game

Text-based virtual worlds are defined as the first stage in the development of virtual worlds

1986–1989 Habitat

First commercial virtual world environment to use the term “avatar” with 2D graphics inspired by William Gibson’s book Neuromancer

1984

Web World

A 2.5-dimensional isometric world where tens of thousands of users can chat in a virtual environment. Web World has brought a new dimension to the concept of a virtual world by creating virtual real-time worlds that users can contribute and change

1995

Worlds Inc.

It is one of the pioneers of the first 3D virtual worlds. It developed the open-ended non-game-based genre by allowing users to socialize in 3D spaces

1996

OnLive! Traveler

It is the first public virtual world with voice chat that processes sounds and combines the movements of the lips of the avatars

2003– …

Second Life

It is one of the most popular open-ended commercial virtual worlds still in use today, which includes in-world online editing, the ability to transfer externally created 3D objects to the virtual environment, and advanced virtual economy elements

2009–…

Blue Mars

Graphics-oriented virtual world that promises much higher graphics, using 3D graphics engine technology originally developed in the gaming industry

2007

Solipsis

The first open-source and decentralized virtual world

2008

Kokua

One of the oldest alternative open source viewers for the popular virtual world server Second Life

2009

Open Simulator

One of the first alternative examples of the Second Life server side

After 2010 Open source era for Virtual Worlds and Metaverse

Beginning of the era of interoperability and interchangeability between standard virtual world protocols and clients. Creation of common protocols of virtual worlds, just like web server common protocols

kind of virtual reality glasses [24]. The Metaverse world in the novel is a 100-mwide path that traverses the entire black planet, whose circumference is 65536 km (corresponding to the number 2–16 in the binary system, which is also the highest number that can be represented by a 16-bit field) and is defined as a geometrically perfect sphere. Although the Metaverse designed by Stephenson had a digital and synthetic reality, what the characters experienced in the virtual world had a real impact on their physical selves, and what they experienced in the virtual world affected their real-world selves. Another literary precursor to the concept of the Metaverse is the 1984 science fiction novel Neuromancer, which preceded Snow Crash. In the book written by William Gibson, a cyberspace called The Matrix is mentioned [25]. In the work, a fictional character who hacks electronically by connecting to a digital reality

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system called cyberspace is described. The term Matrix in the mentioned work was also used in a similar sense in the science fiction action movie The Matrix, written and directed by the Wachowski brothers in 1999. In the movie, the term Matrix is used to refer to a dystopian future where humanity is unknowingly trapped in a simulated reality, and the world is designed by intelligent machines to distract people while using their bodies as an energy source. When it comes to the 2000s, it is seen that Metaverse, which often finds its place in science fiction novels, has also found its place in the academic field over time. In fact, when the period from 1992, which is when the word Metaverse was introduced to humanity, to 2007 is examined, it is seen that there are a total of 18 academic articles in the SCOPUS database. This period can be called the embryo period of the Metaverse [26]. Schroeder et al. [27] made an academic review of Activeworlds, a virtual world based entirely on the vision expressed in Neil Stephenson’s 1992 novel Snow Crash, in 1995, and predicted the future of the Metaverse and the social interaction that exists in that virtual world, and defined the word Metaverse as an embedded virtual world where the geography and physical features of the real world are modeled in a networked digital space where the user is represented as an avatar. Another study conducted in 2003 [28] defined the concept of Metaverse as a comprehensive environment that uses a universal and shared media network that removes the barriers of time and space by deceiving users’ visual senses. In the said article, 24 Metaverse elements consisting of projectors and cameras and a virtual world prototype covering two walls and a floor are introduced. Using the feedback from the aforementioned prototype cameras, the system automatically calibrates itself according to the user’s position, processes the images, adapts to radiometric changes such as shadows and lighting, and creates a consistent image for the user’s eye position regardless of the underlying screen surface geometry. It is one of the first of the interaction-based virtual worlds. Another article published in 2004, Ondrejka [29] examined the technical difficulties of creating a virtual world close to the complexity and realism depicted in the novel Snow Crash, and its potential to open up huge markets for capital and wealth, with rights such as content creation, ownership, barter, etc., to be given to users in the future (Fig. 6).

Fig. 6 Human interactive virtual world prototyped by Jaynes et al. [28]

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With the increasing popularity of virtual worlds between 2007 and 2013, academic interest in Metaverse has also increased. During this period, the number of articles related to the Metaverse in the SCOPUS database increased to 105. Announced in 2007, the Metaverse Roadmap Project offered a multifaceted understanding of the Metaverse that includes both “simulation technologies that consist of physically persistent virtual spaces, such as virtual worlds”, and “technologies that virtually augment physical reality, such as augmented reality” [30]. The current period is called the primary period of the Metaverse. During this period, academic interest in Metaverse was mostly shaped around virtual worlds and video games. In the guide about the Second Life virtual world, Metaverse was defined as an environment where you can create your personality, quickly visit different places, explore large buildings and shop as you wish, and emphasize the in-game shopping and monetization ecosystem of the aforementioned virtual world. In another study [31], a Metaverse was defined based on the virtual world game Second Life and a case study was conducted. In this context, a lectern was set up in the virtual world and users were asked to participate in a survey in exchange for 150 Linden dollars (the currency of Second Life). In the article, the results of the survey that 138 users participated in were examined in detail and the idea that the Metaverse could affect society as a whole in fields such as business, education, and social sciences was presented. In another study, details were made about active museums and art activities on Second Life and museums that the author of the article experienced in the virtual world [32]. In another published article [33], the idea of a virtual currency exchange office for more than one virtual world was put forward, and focused on a system where users can exchange their assets earned in virtual worlds in terms of each other. Academic research on Metaverse between 2014 and 2019 shows a decrease compared to the previous period. During this period, there are 43 articles related to the Metaverse in the SCOPUS database. Although this period is expressed as a period of stagnation, there are various studies on the usage examples of existing virtual worlds in different sectors, similar to the previous period. An article published in 2015 introduced a blink system for avatars belonging to the virtual learning classroom in the Metaverse. Within the scope of the research, the number of blinks of each student during online lessons was recorded using a special software, and blinking behaviors were associated with the emotional reactions of users to various problems they were asked to discuss [34]. In another study in 2016, a group of nine students, whose English level was below medium, was given language training in the Second Life virtual world environment and an evaluation was made about the applicability of educational sciences in the Metaverse by taking the opinions of the students after the training [35]. After the Metaverse event announced by Facebook after 2020, the concept of the Metaverse has attracted great attention from researchers. On March 10, 2021, Roblox, a sandbox gaming platform, included the “Metaverse” concept in its prospectus for the first time and successfully debuted on the New York Stock Exchange. The company’s market capitalization exceeded $40 billion on the first day of listing [36]. This phenomenon has thrown the tech and capital worlds into turmoil and rekindled the debate about the Metaverse. This period can be called the development period

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of the Metaverse. During this period, the Metaverse integrates the latest science and technology developments such as 5G, cloud computing, computer vision, blockchain, and artificial intelligence. In particular, the point reached in blockchain technology has paved the way for the development of decentralized worlds, allowing decentralized virtual assets such as non-fungible token (NFT) to be used in virtual worlds. After this period, virtual worlds started to find a place not only in the entertainment sector but also in many sectors such as education, health, finance, simulation, and security. Today, each virtual world has its own virtual currencies and virtual assets that can be converted into physical currencies.

4 Conclusion and Discussion In this study, the developments and milestones of the concepts of virtual world and the Metaverse, which have gained popularity in recent years, are examined, and technological developments and academic studies that are thought to affect the course of the concepts are included. In light of these developments, significant progress has been made in the transition to the technical implementation of the concept of the Metaverse and virtual worlds, which existed only in the literary imagination before the text-based multi-user virtual environments from the 1970s until today. Today, virtual worlds have become more complex, more similar to the real world, and more interactive for the user, with increasing 3D realistic graphics, integrated spatial audio, open source content creation tools, developments in data communication tools, and their unique economies. At this point, contemporary virtual worlds are becoming digital cultures rather than game contexts, which have found their place in almost every field of life such as business, socialization, education, economy, and health. Besides the forces driving the development of the Metaverse, one of the problems that may hinder the speed or extent of this progress is undoubtedly related to the current limits in computational methods related to virtual worlds [37]. For example, Intel stated that 1000 times more computing power is needed for the construction of virtual worlds that can reach a very high number and targeted reality perception [38, 39]. On the other hand, although the communication protocols between virtual worlds are capable of communicating over a common interface, just like internet clients; considering the current conditions, the problem stands out as one of the most important challenges today that completely independent environments between virtual worlds cannot work in an integrated manner with each other and the achievements gained in any virtual platform do not have a counterpart in other worlds. In the current situation, the fact that various Metaverse platforms form an independent ecosystem from each other and the gains obtained on one platform lose their validity for other platforms, which also causes a negative motivation for users. With a future-oriented perspective, it is predicted by the author of the article that the Metaverse platforms that are more integrated with each other will emulate the real world more, thus, a

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digital paradigm change will take place by increasing the sense of belonging of users to virtual worlds.

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Metaverse and Decentralization Enis Karaarslan and Senem Yazici Yilmaz

Abstract Metaverse is evolving as a structure that provides three-dimensional access with the creation of various virtual worlds using different technologies. The internet has undergone a comprehensive advancement before the formation of the Metaverse. The transition from centralized systems to decentralized systems played the most significant role in the basis of this change. Information security, power, politics, and the economy are the driving forces of interdisciplinary decentralization. Decentralization gained more importance after it became possible with blockchain technology. Blockchain enables decentralized transactions in many areas. The economic dimension of these systems is at a high level, and cryptocurrencies have started to be used within this framework. Decentralized internet is the most essential requirement for these developments. In this process; new structures are being developed that provide more advanced interaction with internet sites with virtual rooms and three-dimensional avatars. New experiments and applications are constantly being carried out on Metaverse. In the information technology age, every trial and application is brought to the attention of users and developers as soon as possible. Decentralization is behind the rapid development of this process. With the elimination of intermediaries, peer-to-peer transactions become possible, and users can realize what cannot be done before using distributed and decentralized network technology. This enables a very high number of system users to be reached in a much shorter time. In this way, many economists believe that the Metaverse market has a potential exceeding a trillion dollars. Metaverse users will want to protect their personal data that is transfered to this environment and the digital assets. In this sense, decentralized systems provide the user and service providers confidence. Web 3.0 will take information-sharing processes to higher levels with smart contracts, crypto assets, and the token economy. In this chapter, the concept of distributed systems and decentralization is examined from an interdisciplinary perspective. The decentralized Metaverse concept is explained by evaluating the opportunities and possible problems of the decentralized systems. Keywords Metaverse · Decentralised · Distributed · Centralised · Network E. Karaarslan (B) · S. Yazici Yilmaz Mugla Sitki Kocman University, Mugla, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_3

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1 Introduction The concept of decentralization includes multiple contexts, fields, and disciplines. Decentralized and distributed systems have led to unique social and economic applications [1]. The development of disruptive technologies has been rapid [2]. Successful applications of destructive technologies since 2010 have been a source of hope for solving many deep-rooted problems of humanity [3]. In 2019, a pandemic emerged that profoundly affected the world’s health, economic, and social systems. During the pandemic, people had to stay at home, could not work, and could not travel. Countries have closed their border gates. Transportation has approached a standstill. These closures, which took place during the pandemic, primarily required the solution of rapid interaction and communication problems. Information and communication technologies have progressed faster than ever since the pandemic, and people have adapted to this development and used all types of technology. An essential element of this process is that the formation of the Metaverse enters an effective and active period. This chapter will explore the relationship between the Metaverse and decentralization under the following titles: information and communication technologies, network topology, elements that support decentralization, blockchain, cryptocurrency, decentralized Internet, and the decentralized Metaverse.

2 Information and Communication Technologies Information and Communication Technologies (ICT) is defined as “capturing (finding), processing, storing and transmitting information electronically” [4: 729]. ICTs are based on digital information held at 1 and 0 s and consist of computer hardware, software, and networks [5]. Technologies that deal with information are not ICT. These technologies include “intermediate” technology, primarily based on analog information captured as electromagnetic waves, such as radio, television, and telephone; secondly, “literate” technologies based on information held as the written word, such as books and newspapers; Finally, there are “organic” technologies based only on the human body, such as the brain and sound waves [5, 6]. All these technologies are based on information. There are four layers and sub-layers in the ICT model [5]. Information forms the first layer [7]. Technology is the second layer, which includes the brain, radio, TV, software, hardware, and networks [8]. The third layer comprises information systems consisting of people and processes. In its simplest terms, this model creates a support “information system” that helps members of a team share information via e-mail. However, this information system cannot avoid (separate) external events and influences. The last layer is the environment, which includes the market, institutions, organizations, groups, economy, policy, and other factors. Information: It exists in an environment where institutions (organizations, groups, markets) and influencing factors (political, economic, sociocultural, technical, and legal) exist [9, 10].

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There is also a need for information on other environmental factors, such as competitors and laws [11]. The transformation of raw data into usable information is a gradual process called an information chain. Peripheral components must be present for the information chain to function. These include open resources (money, skills, and technical infrastructure), resident/social resources (trust, motivation, knowledge, and power), and raw data [12]. Access to ICT information requires many open sources and infrastructure. Communication infrastructure, electricity infrastructure, human resources, money, and technology literacy are required for network access and sustainability [13]. Poor or underdeveloped countries do not have such resources. Around the world, societies do not have reliable communication, Internet, or electricity access [14]. There are also language barrier problems because English is the universal language of the digital world [15].

3 Network Topologies Decentralization is often used as a general term to describe network architectures that span from decentralized to distributed more precisely [16]. Distribution is important for determining the topology (nodes and interconnections) of networks. Network topologies were classified into three categories: centralized, decentralized, and distributed networks [16, 17] (Fig. 1). In the triple classification, centralized describes a network with one central node (e.g., a server) or a cluster of tightly connected nodes connected to all other nodes (clients) in the network, whereas all the other nodes indicate dependency on only one central node. Failure or destruction of the central node disconnects all nodes from the network and prevents them from communicating with each other, causing the system to become inoperable. In a decentralized network, there is a hierarchy

Fig. 1 Centralized, decentralized, and distributed networks topologies [16]

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of nodes in which the nodes at the bottom of the hierarchy are essentially part of a small-star network connecting them to a node one level higher in the hierarchy. These nodes are part of another star network that connects them to the next top node in the hierarchy. The failure of several nodes in a decentralized network leaves a few connected components of the nodes that can still communicate with each other (but not with nodes in a different component). At the other end of the spectrum, distributed networks are networks in which each node has roughly the same number of connections (called edges) as other nodes. Distributed networks have the property that the failure of a few nodes (even if they are deliberately chosen) leaves the network connected, allowing all nodes to communicate with each other (albeit over a long path). In general, the more distributed the network, the more resilient it is to various forms of attack and corruption. The network as a whole is less dependent on any node [18]. This also shows that the network may be less dependent on any individual, company, or organization that will operate a particular node. This situation also explains why the Internet is not centralized but distributed [19]. The concepts of centralization and distribution can be applied to both physical and virtual networks. In short, the Internet is a tangible decentralized network (with real physical connections between nodes), but when we connect to central web servers, services, and platforms, it often becomes a centralized virtual network [20]. Centralized networks have always been preferred because they are easy to control [21].

4 Elements Supporting Decentralization Each of the applications that occur in decentralized or distributed networks consists of interdisciplinary driving forces. Social, political, and economic structures should be established based on peer-to-peer communication or exchange in a decentralized network. Information security is an important element of decentralization. The next steps are power, politics, and economics. The frequency and prevalence of the use of decentralized structures are increasing with the benefits that arise as a result of the most accurate integration of these elements. Because the network as a whole is not connected to a node, if one node is compromised, the rest of the network will continue to function as intended. The distributed network ensures that information integrity is not compromised and information security is protected [21]. Centralized network topologies provide significant power to those who control and access the server to monitor, manipulate, or intercept traffic [16]. In decentralized networks, privacy and security can be increased by ensuring that data are not maintained or controlled by a third party [22]. In order to ensure information security, data replicated in multiple nodes instead of keeping them on a single server can be used even if some nodes are offline. In decentralized networks, information is stored between multiple devices and routed as a result of authentication, thereby ensuring the integrity and security of the information.

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Historical relationships, social structures, policies, and ideologies are based on centralism. On the other hand, decentralized and distributed technical systems were proposed to change and eliminate political pressures, economic inequalities, or concerns about the existing power asymmetries of social interactions. On the basis of decentralization lies the desire for change, which cannot be controlled and created by the rebellion caused by suffering injustice. In the concept of decentralization, ideology-dominated libertarian and anarchist thought dominate [23]. It is the voice of those who oppose the abuse of political or economic power arising from historical conditions and experiences [24]. This change has significant implications for the development of decentralized and distributed networks. In decentralized and distributed networks, everyone controls power. Power relations in real life are multidimensional and polycentric [25]. Multiple forms and sources of power can intersect, both in complex social settings and seemingly simple technical systems. A decentralized and distributed network eliminates intermediaries and prevents potential malicious intermediaries from using their power for their own benefit. The primary purpose of eliminating intermediaries is to reduce costs. With the elimination of intermediaries that can control, censor, tax, limit, or increase certain social and economic interactions, transacting parties and types of transactions can be freed [26]. On the other hand, central intermediaries provide value by reducing transaction costs, coordinating transactions, enforcing democratically agreed rules, correcting failures, and limiting negatives. However, in decentralized or distributed networks, transaction and coordination costs must be met individually. Applications of distributed networks are based on disintermediation [27]. Decentralized networks create institutional frameworks for the scope, depth, and reliability of the services they provide, enabling, and facilitating transactions within their own specific rules with their own costs and benefits. However, the change in central systems built over many years is not sufficiently fast. The development of decentralized networks has historically been intertwined with economics. Economic freedom is at the forefront of the ideologies underlying these networks. Studies have begun on decentralized mechanisms to solve the problems experienced in applications taking place in centralized networks [28]. Therefore, the models created using a distributed network reflect most of the assumptions of the market economy. Among the most important problems of these networks is collusion between nodes without the use of governance mechanisms, people lying to each other, cheating in the markets, and creating significant costs for people to pay [29]. Blockchain and other distributed ledger technologies have led to the initiation of new formations by blending different economic concepts [27]. These new concepts include blockchain technology-based crypto economy/money and token economies [28, 30, 31].

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5 Decentralization-Based Blockchain Blockchain is a system that monitors the appropriateness of transactions for the purpose it was established and records successful transactions without using intermediaries. It ensures reliable storage, ownership, sharing, and verification of information of the approved transactions. It is necessary to assure that there are no intermediaries in the system, that the system works fairly, and that the nodes that maintain the system do not abuse the system. This is fundamentally what the consensus protocol provides. The nodes are the devices that sustain the blockchain system; they reach a consensus in confirming transactions and writing blocks by using consensus protocols. The confirmed transactions are collected in data structures called blocks and added regularly to the blockchain ledger. The whole system is like a single entity, ensuring that the state of all nodes is the same. Records are not deleted; new records are added to the blockchain later when it is necessary to update the information. The choice of the consensus protocol to be used depends on the anonymity of the nodes and the trust to the nodes. As an example, since anyone in the world can become a node in the Bitcoin infrastructure without a need for an approval, a comprehensive protocol, PoW (Proof of work), is used in this network [31]. The accessibility and transparency of records are other features. In blockchains with cryptocurrency purposes, records are public. The transactions can be queried through interfaces that are called the explorer. This context ensures that each transaction is transparent and reliable. In corporate solutions, records are kept private. In this case, only parties that have access to the network can access the records. The thing that identifies the user in the system is the account. The account is identified by a series of hexadecimal characters and is an address on the blockchain. The user can be an institution, software, a computer, or even a robot. Account information is anonymous by default, but the user can configure it. The user can control what information they share with whom by integrating decentralized identity systems. Blockchain is an architecture that actively uses cryptographic algorithms. Hash functions are used for the integrity of the records and the system. These cryptographic systems are generally based on asymmetric encryption. Many solutions use elliptic curve encryption techniques, and the characters identifying the account are taken as the public key. Solutions using quantum encryption are also emerging for generating systems that are resistant to quantum transaction attacks [32]. Protocols define what the user can do on the platform and how the services run on it. It is possible to eliminate intermediaries with blockchain and establish autonomous (self-operating) systems with deterministic codes called smart contracts. The operation of smart contracts is given in Fig. 2. Firstly, software developers upload the program code to the blockchain network as a record. Blockchain user accounts can be used to call these smart contracts with this registration address. The related subfunctions operate autonomously when the conditions defined in the smart contract are fulfilled. When a change in the state is required, this information is recorded in the blockchain as a record. This system can also ensure that authorities such as inspectors control these records if it is necessary.

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Fig. 2 Operation of smart contracts [33]

Blockchain systems make sense when multiple parties write to the same registry. Supply chains are a good implementation example. Various transportation companies, banks, and government agencies will keep records of transactions even in a procurement process with only one supplier and one buyer. It will be possible to follow this process reliably and instantly by using a blockchain technology-based supply chain. In such solutions, instead of seeing the blockchain as a database, it is possible to think of it as a system that keeps records of transactions and the data address. The main reason for this is; data storage is costly in terms of both transaction and record space, as records will be kept on a large number of nodes in the blockchain. In this case, it is more effective to use cloud or distributed file systems such as IPFS (Interplanetary File System) as a data storage unit [34]. IPFS is actively used in many projects as it guarantees the integrity of the files with its addressing system. Blockchain is a constantly evolving technology. There are improvement efforts, especially on processing speed, energy consumption, and scalability. Vitalik Buterin, one of the founders of the Ethereum blockchain, states that the basic characteristics of blockchain are decentralization, security, and scalability. He claimed that only two of these can be ensured at a time. In this case, one of these features will have to be waived, and that is usually the scalability feature. In this case; as the number of nodes and the amount of data kept increases, the data access speed decreases. Different data structures, consensus protocols, and modes of operation are proposed to improve scalability and speed. A detailed review of these solutions was made in a previous study [35]. The most fundamental feature that distinguishes the blockchain system from traditional information systems is its decentralization. It is possible to use blockchain platforms with different features for different solutions. All of these solutions may not be

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distributed and decentralized at the same time. Distributed is defined as performing calculation and storage operations in multiple places. Decentralization is more about the ownership of these nodes by one authority or more than one party [36]. It is also important to be aware that decentralization is a spectrum from partial decentralization to full decentralization. In the study of Molina-Jiménez et al. [36], the considerations on which the level of decentralization depends are grouped under two main headings as hardware and software factors. Hardware factors are the architecture of the network, the geographical and internet network-based distribution densities of the blockchain nodes, the supported consensus protocols, the hardware power (graphics processing unit, processor power, etc.) of the nodes, and the presence of the miner pools if any. Software factors are various parameters such as the way and frequency of software updates, the qualifications of developers in the developer community, and especially the presence of developers who can lead new features [36]. While there may be fully decentralized solutions in crypto asset blockchains such as Bitcoin, decentralization is more limited in enterprise solutions targeting only a specific sector. As an example; in the TOGG electric car project, it is possible to create an enterprise blockchain solution where only the actors within this ecosystem are connected, and none of them dominate the system. The actors in this network will also be able to perform private transactions among themselves using cryptology techniques. In a hybrid architecture; such blockchain solutions will also have to communicate with centralized servers. Just as the Internet is formed by interconnecting various computer networks, different blockchain networks will need to communicate with each other to use decentralization more effectively in the developed solutions. Multi-platform Interoperable Scalable Architecture (MPISA) has been proposed as a multi-platform, interoperable, and scalable architecture [35]. As shown in Fig. 3; decentralized identity systems, interoperability platforms, and cloud systems will be used together in this architecture. Decentralized Application (DAPP) should be developed in such a way as to use these systems efficiently. These applications will perform the authentication via Decentralized Identity System (DID). After getting user approval, which data the application can access will be determined. It is recommended to keep data in the cloud or distributed file system. DAPPs will be able to send updates to different blockchain systems other than their blockchain platform by using interoperability platforms [35]. It is possible to apply this model to different solutions, studies on different solutions are still ongoing in this area. Although the blockchain provides a trustworthy structure, it is also necessary to be aware that platforms, especially the decentralized services running on them can carry security vulnerabilities. It is critically important to focus on secure code development and blockchain testing practices while developing decentralized systems [33].

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Fig. 3 Multi-platform, interoperable and scalable architecture MPISA [35]

6 CryptoCurrency, Token Economy, and NFT Cryptocurrency and tokens are just investment tools for many people. However, these digital assets ensure sustainability and security for blockchain platforms and decentralized services. Blockchain platforms have cryptocurrencies specific to their networks. As an example, Ether is the crypto asset of the Ethereum blockchain network. The system issues new cryptocurrencies each time a block is written at blockchain platforms using the mining-based Proof of Work (PoW) consensus protocol. On some crypto money platforms, this reward is given directly to the miner who writes the block, while a share of this amount is allocated to the developers on other platforms. Blockchain platforms started to move to Proof of Stake (PoS) or hybrid full consensus models as the PoW protocol uses an excessive amount of energy. In PoS, the priority of nodes in the transaction approval processes increases with their investment in the system (stake). PoS consumes less energy, but decentralization is also sacrificed a bit. In cryptocurrency systems, a few digital assets are removed from the distribution with cryptocurrency burning processes. This burning can be used for the internal operation of the Proof of Burn (PoB) consensus protocol. It is also carried out so that the miners do not abuse the system for their benefit. In this context, some of the payments received as transaction fees are destroyed for the system security. This burning process is sometimes used as an economic model. It is also used to increase the value of a cryptocurrency by reducing the amount of supply [37]. We can generate a private token linked to a smart contract on blockchain platforms. Several standards exist that define these tokens. We can define any data as tokens; it can describe a work of art, intellectual property, or a diploma. Tokens are used to buy tea/coffee in offices in real life. An economic model can be created by producing any

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number of tokens on decentralized systems for different usages [38]. Non-fungible Tokens (NFTs) are a distinctive token type that can be associated with smart contracts [39]. We can generate tokens quickly with existing source codes. However, many existing token systems have design flaws and are not reliable due to security vulnerabilities. There are also difficulties and challenges in sustainable mechanism design and legal regulations. We can ensure the sustainability of the systems by creating token economy models suitable for the intended use [40]. Token-based systems play an active role in ensuring the decentralization of finance with Decentralized Finance (DeFi) and Decentralized Autonomous Organization (DAO). In new web environments called Web3 or decentralized web, the user can dominate and tokenize their data by the effective use of tokens and digital wallet technologies where these assets are kept.

7 Decentralized Autonomous Organizations (DAO) DAO is an administrative structure that uses decentralized technologies to coordinate the activities of the relevant organization. Administrative and financial information is transparent in such a structure. The members who own the tokens of that organization will be able to vote and put the changes into effect in any change processes of the organization [40]. The effective use of DAO systems for allocating resources, coordinating activities, and decision-making processes are questioned nowadays. As stated in the related report [40], there is increasing interest in the usage of these systems, especially for the ESG (environmental, social, and governance) objectives of crypto ecosystems.

8 Decentralized Internet Although the Internet is aimed to be decentralized, it has central features, especially in the way the domain name system (DNS) and certificate authorities are used. Successful attacks on these systems and restrictions by states in the name of censorship or regulation; shows how much a decentralized internet is needed. When we say decentralized internet, we are not talking about the absence of any regulatory authority such as Internet Assigned Numbers Authority (IANA), and Internet Assigned Numbers and Names Authority (ICANN). Such organizations are necessary, but working as a DAO would be more effective. In this section, the use of blockchain technology for decentralization in internet access processes will be discussed, rather than such organizations. When we want to establish any connection over the Internet; the systems first use Domain Name Service (DNS) to convert the destination domain name to an IP address. The applications check whether the system to be connected is the real

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system by using certificate authorities. It is also possible to develop decentralized DNS systems that are an alternative or complement to this traditional process. The DNS in the decentralized internet goes beyond the traditional definition. We can define decentralized identity, DAPP, and the data storage place with decentralized domain names. As mentioned earlier in the chapter, decentralized applications use smart contracts and decentralized identity. Cloud systems are centralized solutions where data is stored, and virtual servers run. Instead of these centralized solutions, we can use distributed systems such as IPFS, and also the integrity of the stored files can be guaranteed. For details on how decentralized DNS works, see Karaarslan and Adiguzel [41].

9 Decentralized Metaverse Although there are different opinions about the targeted possible Metaverse environment, it is possible to define it with the features given in Fig. 4. Decentralization will ensure the existence of these features. Stephenson was the first to use the Metaverse term and stated that he did not foresee the decentralized web (Web3) while imagining the Metaverse environment in his work called Snow Crash. He also indicated that blockchain technology is necessary for the “Metaverse” realization [42]. Blockchain technology will be used effectively with its reliability, interoperability, full-function economy, and permanence of digital assets. Blockchain technology will ensure the existence of systems by which everyone can safely confirm transactions without being under the domination of any authority. We can develop blockchain platforms and smart contracts to make different universes work with each other. For these to become real, we first need blockchain platforms that work faster and have no scalability issues. Web3 technologies and decentralized identity systems will actively be used in future Metaverse environments. We will have the means of following up with whom and how our data is shared. It will be possible to convert personalized data into economic value whenever wanted. A fully functioning economy and sustainability will be doable with the token economy. Innovation and updates of the created systems will be encouraged, especially with the creator economy. NFTs will find use in the Metaverse, especially by enabling the identification of personal digital assets. Ownership and permanence of knowledge will become much more essential. The individual will be cable of carrying the obtained digital assets (coin, NFT, etc.) between the universes with his crypto wallet without losing them.

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Fig. 4 Metaverse key features

10 Conclusion and Discussion Researchers continue to investigate whether decentralized or distributed network systems will be more beneficial owing to the abuse of centralized structures. Although there are central systems that are poorly organized and secured, there are also central systems that provide good security. On the other hand, while there are distributed systems that work very well, there are also applications that have serious implementation problems. Blockchain-based projects especially support the success of distributed systems. None of the social, political, or economic systems are truly monolithic in real life. Often, we rely on multiple systems that coexist and cooperate to facilitate the work. The robustness of a distributed system comes from duplicating the resources. The robustness of our complex social and economic organization also depends on having more than one different system to achieve similar goals. The existence of the future internet, the Metaverse, depends on the success of such distributed and decentralized systems. It is worth noting that blockchain-based technologies are still under development. There is a need to work in many areas, such as ensuring the scalability of these systems and testing the security of the applications developed on them. We should work on economic models to ensure the sustainability of these infrastructures.

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The Role of Artificial Intelligence and Robotic Solution Technologies in Metaverse Design Nida Gokce Narin

Abstract Metaverse is designed as a time and space-independent environment where virtual and reality will be intertwined, real-time and multi-user, human– computer–robot interactions will be possible. Metaverse design needs to be handled together with the internet, social networks, computer games, virtual reality glasses, augmented reality software, the internet of things, wearable devices, 5G/6G internet infrastructure, cryptocurrencies, artificial intelligence, and robotics technologies. The Metaverse in design is a concept that covers every field, from education to art, from commerce to health, and from games to entertainment. Platforms, where many people of different languages, religions, races, and ages can interact simultaneously with avatars, AR/VR, smart devices, and wearables, have the potential to generate enormous amounts of data. The analysis of this produced data with advanced artificial intelligence techniques has critical importance in terms of both the ecosystem’s continuity and the user experience’s improvement. Artificial intelligence and robotic technologies act as a bridge between the real and virtual worlds in Metaverse platforms. To provide communication between human–avatar, avatar– avatar, human–robot, and robot–avatar, natural language recognition, voice recognition, voice-to-text conversion, and text-to-speech conversion tasks can be performed with artificial intelligence technologies. Metaverse platforms, where individuals in the real world can control their avatars or robots in the virtual world with various hardware, communicate with others, and produce rich digital content, also promise to make their economies. However, such a Metaverse ecosystem has not been created, as the necessary technology and infrastructure are not yet available. In addition, the hardware required for users to enter these Metaverse platforms is limited in number, quite expensive, cumbersome, and unsuitable for long-term use. For this reason, technology companies and social media giants are investing heavily to create their Metaverse ecosystems. Therefore, the future of the internet is shaped in parallel with the development of infrastructure and technology. Keywords Metaverse · Artificial Intelligence · Robotics · Technology · Future N. Gokce Narin (B) Mugla Sitki Kocman University, Mugla, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_4

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1 Introduction Today’s Metaverse platforms are environments where internet users can access using AR (Augmented Reality), VR (Virtual Reality), and various smart devices and perform activities such as having fun, socializing, shopping, and vacationing through an avatar that represents themselves. The Metaverse, designed as the future of the internet, will be an environment where human–computer interaction will increase, and people can actively feel their presence in a fictional universe through artificial intelligence (AI) and robotic technologies. Research conducted in embodiment and robotics aims to strengthen the Metaverse experience by providing human and avatar interaction. In the past months, Meta AI (Artificial Intelligence) has announced that it can measure contact strength with the help of images obtained from the cameras placed inside the sensor while determining the communication position with the new touch sensors it has developed [1]. In addition, prototypes of AR-based lenses were also introduced [2]. AI-based natural language recognition and image analysis studies, in which many people from different languages, religions, and races can communicate simultaneously, have increased in recent years [3–13]. Countries began to design their Metaverse ecosystems. Meta introduced the first supercomputer, the RSC (Research Super Cluster), which it plans to have operational by the end of 2022 [14]. RSC aims to contribute to the development of next-generation AI, as it will have the potential to create higher performance AI models in Metaverse environments and simultaneously translate and work in hundreds of different languages. Along with supercomputers, studies on the development of technological infrastructure such as AR/VR devices, 3D modeling, AI, Edge Computing, and 5G, which are required for Metaverse design, have gained momentum [15–19]. Many companies, such as Meta AI [20], PyTorch3D [21], and NVIDIA TensorRT [22], have started investing in the Metaverse in recent years to create real-time and high-performance 3D objects on both the software and hardware side. NVIDIA has developed an AI module called GANverse 3D, which allows the creation of virtual copies of photographed objects [23]. In this section, together with the analysis of big data that will emerge in future, which is designed in light of all these developments and investments, how AI and robotic technologies will be used and how they will shape the future are discussed in detail.

1.1 Artificial Intelligence and Robotics AI and robotics are two critical components for Metaverse platforms to deliver realistic user experiences. While AI offers advanced solutions for many complex problems, such as improving real-time decision-making processes, increasing efficiency, and personalization, they connect robotic systems, mechatronic components, sensors,

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and computer-based controllers and the virtual and real world. AI and robotics technologies are seen as building blocks that will shape the world of the future with the support of data science [24–27].

1.2 Artificial Intelligence AI is a general name given to systems that learn from data by imitating human learning with the help of algorithms based on statistical and mathematical methods [24]. It refers to technologies that automatically enable machines to perform intelligencebased jobs and tasks using data from experience. In a world where data is digitized, AI technologies have also increasingly taken place in decision-making. AI technologies use traditional machine learning or deep learning approaches by focusing on three problems: clustering, classification, and regression.

1.3 Traditional Machine Learning Traditional machine learning algorithms are based on three basic learning strategies: supervised, unsupervised, and reinforcement learning [28]. The problem addressed and the characteristics of the data are effective in determining the learning strategy. Supervised learning needs labeled data on the target output and focuses on learning the relationships between inputs and labeled target outputs. It is treated as a classification problem if the target output is discrete/categorical and as a regression if the target output is continuous. Decision Trees [29], Bayesian Networks [30], KNearest Neighborhood [31], Support Vector Machines [32], and Artificial Neural Networks [33] are widely used supervised learning approaches for both regression and classification problems [28]. Unsupervised learning approaches are algorithms that run on unlabeled data whose target output is unclear. They focus more on clustering, size reduction, and association problems. They are used to model hidden patterns in data and identify similar groups without the need for human intervention. They are based on traditional approaches such as hierarchical clustering, k-means, principal component analysis, and association rule [28]. Supervised learning is more expensive in terms of time and costs as it requires labeling data by experts. However, limiting the application spectrum in unsupervised learning is a significant problem. Semi-supervised learning algorithms that use these two learning strategies together are also included in the literature. This learning strategy can be accomplished in two different ways, in two steps: ● First, similar data are clustered with unsupervised learning algorithms over unlabeled data, and these clusters are labeled; then, a supervised learning model

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is developed, in which the existing labeled data is used to label the remaining unlabeled data. ● First, a supervised learning model is developed on a small amount of labeled data, and then this model is used to predict the labels of the unlabeled data. Here, without needing all data to be labeled by experts, only the model estimates are checked by experts, faulty labels are corrected, and the model performance is increased by reducing the labeling cost. Graph-based models, generative networks, Boosting, and self-training models use semi-supervised learning strategies [28]. The reinforcement learning approach is used in rule-based machine learning algorithms where an agent learns to achieve a goal in an uncertain and complex environment. It is carried out based on the reward–punishment system over more game-like and real-time scenarios. It aims to accomplish the task that will maximize the reward and minimize the penalty for a complex problem through trial and error due to entirely random tests. It has more potential for use in Metaverse environments than other learning approaches.

1.4 Deep Learning In traditional machine learning systems, the preparation of the data for which the model will be developed and the feature selection for the problem are performed by a human expert. Some issues, such as the inclusion of unnecessary features in the model and the fact that some important features were not added to the data set because the researcher needs more domain knowledge, negatively affect the performance of the developed machine learning model. Also, traditional models mostly need structured data for training. Deep learning approaches are designed to automatically learn fundamental properties of unstructured data without the need for human intervention or domain knowledge in feature selection. Their architecture is flexible, they can learn from raw data without the need for feature selection, and they can achieve high learning performances when sufficient data is provided. Recurrent Neural Networks [34], Convolutional Neural Networks [35], Self-Organizing Feature Map [36], and Autoencoder [37] are the most widely used deep network architectures [38]. Recursive neural networks have two different architectures, Long Short-Term Memory (LSTM) [39] and Gated Recurrent Unit (GRU) [40]. They can produce a result by processing instantaneous data and time-dependent or orderly inputs. They are preferred when the input data at any time t and the results from time t-1 affect the decision at time t. In this way, they are used in many areas, such as analyzing time-dependent data, speech texts, and voice modeling. One of the deep network architectures that produce very successful results in learning complex patterns from high-dimensional unstructured data is CNN. It has successful results in analyzing different types of data, such as image, video, audio

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signals, and communication signals. CNN consists of three main layers: convolutional layers for feature extraction, pooling layers to reduce dimensionality, and fully connected layers for classification/regression. Standardized CNN architectures such as Inception [41], VGG [42], GoogleNet [43], ResNet [44], AlexNet [45], DenseNet [46], and EfficientNet [47] are widely used in solving computer vision problems.

1.5 Robotics Robots were originally designed to be used in dangerous missions and in space, underwater, high temperature, or radiation environments where human beings cannot live. They generally have three essential components: controller, mechatronic, and sensors. The controller is the central processing unit that allows it to be programmed for a specific task. Mechatronic features enable robots to move, and sensors allow them to sense their environment. There are six commonly used types of robots: autonomous mobile robots, automated guided vehicles, articulated robots, humanoids, cobots, and hybrids. They are used in many industries to increase efficiency, speed up processes, ensure security, and improve experiences. According to their usage areas, they are examined under two headings as industrial robots and service robots. Industrial robots are machines that are widely used in the manufacturing sector that do not resemble humans in form. On the other hand, service robots are designed to be closer to the human form and are used in home services in many countries, especially Japan.

2 Metaverse and Artificial Intelligence AI is seen as an important technology working on Metaverse platforms to provide users with a seamless virtual reality experience. In simulating the physical world, AI can be used to create bots that display humanoid behaviors and avatars that display lifelike autonomous behaviors. It can enable users’ real-world movements to be transferred to the virtual world and interact comfortably with other objects in the Metaverse. Thanks to AI, many tasks such as speech recognition, sensory analysis, facial expressions and emotions recognition, body movements recognition, and predicting the next move can be performed with high accuracy on Metaverse platforms. AI technologies play a significant role in the Metaverse design transition within and between layers. Voice recognition algorithms are needed for system tools to understand user commands and natural language processing algorithms are needed for multilingual support. In the analysis of sensor data collected from multiple devices, such as wearable devices and smartwatches, it is possible to analyze and learn complex patterns in human actions with machine learning and deep learning algorithms to recognize physical activity. As a result, computer vision applications

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have been successfully applied in many fields, such as wireless communication, human–computer interaction, gaming, and finance. The combination of AI with technologies such as AR/VR, blockchain, and network infrastructure can make the Metaverse a reliable, scalable, open platform environment and enable users to have more realistic virtual experiences in this environment. AI technologies are needed to ensure infrastructure security and increase network performance in Metaverse. In 5G and future 6G systems, many complex problems, such as effective spectrum monitoring, automatic resource allocation, channel forecasting, traffic offloading, intrusion prevention, and network fault detection, can be solved by machine learning algorithms. Sensor data from wearable devices, human movements, and complex actions can be analyzed with AI methods with the help of other human–machine interactive tools. In addition, AI technologies can be used in the content creation process.

2.1 Artificial Intelligence-Assisted Metaverse Techniques AI-assisted Metaverse techniques are examined under six primary headings, Natural Language Processing (NLP), Machine Vision, Blockchain, Networking, Digital Twin, and Neural Interface, as shown in Fig. 1.

2.1.1

Natural Language Processing (NLP)

NLP is a branch of AI that covers models and learning processes developed for the automatic understanding and analysis of human languages, including speech and text. It examines the topics of speech-to-text—text-to-speech conversion, speech

Fig. 1 AI-assisted Metaverse techniques

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design, voice tagging, and multilingual, multicultural audio. AI-supported models are needed to understand changing dialects, different tones, and complex speech, to answer questions, and to improve the quality of answers [3]. It uses RNN [4], LSTM [39], and CNN [45] architectures in language modeling. They are mostly trained on unsupervised and deep neural network architectures to perform complex tasks such as speech-oriented text generation, question type classification, text parsing, semantic tagging, extracting information from context, language interpretation, and dialogue generation for a specific topic. In addition, it is critical to provide realtime communication between human users and virtual assistants or avatars on the Metaverse platform.

2.1.2

Machine Vision

Machine vision, which includes computer vision and augmented reality technologies, is one of the core technologies of the Metaverse [48]. Machine vision allows operations to recognize objects and reveal features in an image or video. Today, AIassisted use is common, especially in industrial automation systems. It is effectively used when processing the raw data that the machine detects from visual media such as optical displays and video players and transferring it back to users via head-mounted devices, smart glasses, or smartphones. In recent years, high-performance graphics processing units (GPU, TPU, etc.) have contributed to the high-efficiency modeling of visual systems with deep network architectures and strengthened AI studies in this field. Computer vision technologies have the potential to positively improve the interaction of users in the physical world with their Metaverse environments. Computer vision studies focus on three basic tasks: classification, object detection, and segmentation [48]. Classification is recognizing a single object in the image and determining the class to which the object belongs according to its properties. Object detection is the whole of studies that aim to detect all possible objects in an image and set their boundaries with a bounding box. Segmentation, on the other hand, sees all things in an image at the pixel level, extracts regions with objects belonging to different classes, and groups all objects separately by masking them. Metaverse environments consist of visual units containing various single-object or mostly multi-object modules. For this reason, it is critical for the Metaverse that AIbased, especially 3D object detection and segmentation processes, can be performed quickly and accurately. CNN-based approaches can be used for image restoration and image enhancement to solve problems such as different image resolutions and blurring caused by different VR devices in Metaverse environments. Suppose the technological infrastructure can meet the real-time video processing speed. In that case, AI methods can solve many problems, such as blur estimation, blur removal, color correction, and texture reconstruction in the image, effectively [49]. With the support of motion-detection devices, machine vision technology is needed to solve many problems, such as automatically recognizing the posture or movements of avatars and predicting the continuation of

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action, human pose estimation, identifying body parts, and making predictions by real-time tracking [50].

2.1.3

Blockchain

Blockchain is defined as a decentralized digital ledger that enables the secure transfer of data and valuable assets thanks to encryption technology [51]. Transparent information shared in this digital ledger, which can only be accessed by authorized network members, cannot be changed. Blockchain technologies and smart contracts powered by AI are candidates to ensure the security and privacy of the enormous amount and variety of data that will emerge on the Metaverse. In recent years, in most studies on data security and privacy, deep learning architectures have been used together with traditional machine learning methods to detect and classify cyber attacks in blockchain-based networks. DeepChain [52], MEC [53], IoV [17], and Federated Learning [19] are blockchain-based AI solutions developed to ensure data security and privacy. In the Metaverse environment where multiple parties participate and contribute to digital content of different formats and structures, data security, privacy, and interoperability can be achieved with the collaboration of AI and blockchain technologies.

2.1.4

Networking

Metaverse aims to provide many users with real-time multimedia services and applications over wireless networks. In recent years, investments and studies have increased to increase the overall performance of wireless communication and network systems. Fifth-generation (5G) and beyond (6G) networks focus on improving data transfer rates and reducing end-to-end latency. Therefore, highcapacity computing resources are needed to develop Metaverse environments to achieve ultra-reliable and low-latency communication. In this sense, machine learning, deep learning, and reinforcement learning algorithms are used to solve many problems, such as spectrum management and optimization, channel estimation, traffic estimation on the network, and mobility estimation [54, 55].

2.1.5

Digital Twin

A digital twin is a digital representation of any physical object. It enables the monitoring and analysis of operational assets, systems, and processes and the forecasting of subsequent mobility. It is necessary for the full realization of the transition between the physical world and the digital world connected via the Internet of Things. It allows application developers and service providers to reconfigure virtual copies of machines and processes where they can remotely perform any physical analysis with AI [56]. In Industry 4.0, digital twin technology is used in different areas such as

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sensor-error detection, isolation, and compliance, creating a digital copy to perform human–robot interactive actions, diagnosis and treatment in smart health systems, early detection of health anomalies, and management of smart urban agriculture services [57–59].

2.1.6

Neural Interface

Neural interface technology goes one step beyond virtual reality devices and aims to access the nervous system directly with brain–machine or brain–computer interfaces. Sensing and analyzing neural signals through external electrodes or optical sensors attached to the skull or other parts of the human body is a critical step toward achieving general artificial intelligence. Neural interface aims to fill a critical gap that creates the difference between the real and virtual worlds. Today, there are applications based on traditional machine learning and deep learning using sensor data and EEG signals [60, 61]. In the literature, the applications performed in virtual environments accessible via AR/VR and using AI techniques are given in Table 1.

2.2 Robotic Technologies Robotic technologies are an interdisciplinary field with many engineering branches, such as mechanical, electronic, and computer engineering. It is an advanced technology field with high added value in a wide area from health to education, agriculture to animal husbandry, entertainment to retail, and industrial automation to the defense sector. The popularity of robotic systems, which were used to automate production applications, especially in labor-intensive jobs, has increased as information processing technologies have developed and started to enter into personal use. Artificial intelligence-based robotic solutions have become widespread with the development of the production of subsystems and components such as processors and circuit sensors. In Table 2, the application areas in which robotic technologies are widely used today are given on the basis of the sector.

2.3 Artificial Intelligence and Robotics Technologies in Metaverse Artificial intelligence and robotics technologies play an important role in connecting the real and virtual worlds in the Metaverse. Innovative mechatronic products equipped with a digital twin, AR/VR/XR, and YZ technologies are designed to be used in the interaction areas of the real and virtual worlds. Meta company has taken an important step toward giving robots senses such as sight and feeling with

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Table 1 Artificial Intelligence Techniques and Metaverse Applications Metaverse techniques

Applications

AI techniques

Natural language processing

Natural language modeling, vocabulary, and linguistic prediction [3, 4, 62]

RNNs, LSTM networks, Enhanced memory networks with residual connectivity

Analyzing and understanding word representations from characters, identifying prefixes and suffixes, and detecting misspelled words [5, 63]

General deep networks with CNN, LSTM, and Bi-LSTM architectures

Sentiment prediction and question type classification [11]

CNN, LSTM

Creating short text from the image title and long text from virtual question answers [9]. Semantic labeling, context understanding, and language interpretation [7]

Deep learning with RNN/LSTM and LSTM-CNN hybrid architectures, unsupervised and reinforcement learning with RNN/ LSTM and CNN models

Machine vision

Estimating eye fixations in the virtual Feature extraction and prediction environment in VR glasses use [12] with deep learning methods with multiple CNN architectures VR quality assessment for 2D and 3D Deep learning with CNN compressed videos [8, 13] architecture

Blockchain

Networking

Semantic segmentation and object detection [6, 10, 64–66]

CNN, Reinforcement learning

Images/video quality enhancement, such as image haze removal, color correction, texture reconstruction, and super-resolution [67–69]

Network structure and U-Net learning now, multi-scale CNN architectures. Whole 3D CNN architecture with concurrent and discrete spatial features

Human pose estimation, action/ activity recognition [70–73]

Discriminatory models with hidden structural SVR. CNN

Detection and classification of cyber Clustering, SVM, bagging CNN, attacks in blockchain-based networks LSTM, Deep boundary learning [74, 75] Data privacy in heterogeneous IoT devices [76]

Federated learning

Attack detection in smart transportation systems [77]

Federated learning framework with CNN model

Resource sharing issue for eMBB and Reinforcement learning, double uRLLC [54]. Subcarrier-power Q-learning management and distribution [12] Management of transmission of unscheduled and scheduled uRLLC traffics [78]

Supervised learning with traditional machine learning algorithms

Automatic modulation classification in radio systems [48]

CNN architecture with sophisticated design (continued)

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Table 1 (continued) Metaverse techniques

Digital twin

Applications

AI techniques

CSI prediction in 5G wireless systems [16]

CNN and LSTM, supervised learning

Intelligent cellular traffic forecasting [79]

End-to-end CNN architecture with 3D convolution

Sensor fault detection, isolation, and solution [57]

Multilayer perceptron machine learning

Diagnosis of heart disease and detection of heart problems [59]

Data analysis with traditional classification algorithms

Estimation of system design based on A few standard ML algorithms for the digital twin of urban farming [80] Linear Regression (LR) and classification (SVM) Improved resource utilization in edge Deep learning and reinforcement computing powered IoVs network learning, Deep Q network [81] architecture

Neural ınterface

Real-time operating state simulation and behavior analysis [82]

Deep reinforcement learning and federated learning

ERP classification in BCI systems [83]

LR, Naive Bayes, and SVM

Spatial object localization in aerial images [60]. ERP detection in BCI systems [61]

Feature selection with SVM classification, capsule network

Brain-controlled robotic arm system [84]. EEG-based classification tasks in BCI systems [85]

Cross-subject transfer learning and fine-tuning with DL, EEG-Inception network with versatile CNN and bidirectional LSTM

the mechanical eye patent it has received, the tactile glove prototype it has developed, and the synthetic skin they call ReSkin [86]. Hyundai Motors introduced the concepts of Metamobility and MoT (internet of robotic-based mobility) at CES 2022 [87]. The company, which calls the Metaverse connection of smart mobile devices Metamobility, introduced its mobility solutions in the field of robotics under the title of MoT [88]. Robotic systems that will take place in smart homes, smart factories, and smart cities can be controlled thanks to the Metaverse remotely, and robots can be made to move in designated locations via virtual reality. Virtual reality headsets may be possible to access and control all devices in any factory and environment. It may be possible to physically attach to many objects and move them up and down, left and right. For example, when you go on a trip, you can relocate the furniture in your home, feed your pet remotely, if any, and water your plants at the right time. Developed by Beyond Imagination, the humanoid Robot Beomni can be controlled from anywhere in the world with virtual reality glasses and gloves [89].

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Table 2 Application areas of robotic technologies Sector

Scope of application

Medicine and health

Surgical operations, treatment of paralyzed patients, patient guidance, wearable medical technologies, remote diagnosis, and prescribing, remote patient follow-up

Education

In the teaching of courses such as science, mathematics, engineering, and health, in the education of children with mental retardation and autism, in the role of auxiliary teaching in foreign language education

Agriculture and livestock

Plowing fields, sowing seeds, harvesting, irrigation, fertilizing, spraying, milking, and animal feeding

Retail, banking, and hospitality

Customer service, room service, and luggage assistance in the execution of data-driven routine work

Warehouse, logistics, and production

Warehouse logistics applications, inventory management, security audits, automated order fulfillment

Defense industry

For high-risk missions in terms of privacy and security,

Smart cities

Cleaning, navigation, public safety

Beomni is considered to be used in household chores, elderly care, and future space studies. Developed by Engineered Arts and described as the most realistic humanoid robot ever, Ameca can imitate human gestures successfully, thanks to artificial intelligence [90]. The game vests introduced by Owo are designed for users to feel everything in Metaverse games [91]. It is entirely wireless, and with sensors focused on ten different parts of the body, it allows users to feel light or severe injuries, hitting, stabbing, punching, and insect bite-like sensations. Thanks to a coating developed using electrophoresis technology, BMW has produced the iX Flow model, which can change color with a single button. When the vehicle is stimulated with electrical signals, different pigments come out on the surface, and thus a color change occurs on the body. Currently, only black and white color options are planned to be increased in future [92]. John Deere company designed the first autonomous tractor [93]. The tractor can be controlled via a smartphone equipped with six dual stereo cameras and smart sensors. In addition, these cameras, and sensors have the potential to be placed on an existing tractor. The developed autonomous system uses machine learning methods to detect objects and prevent accidents. Sengled developed smart bulbs that can monitor the heart rate, body temperature, and sleep patterns of individuals in the room using radar sensors, AI, and Bluetooth technologies [94]. When these bulbs are integrated with AI technologies, they have the potential to warn people and emergency health institutions in risky situations. Artificial intelligence and robotics applications, which may be the first steps of Metaverse studies, are given in Table 3.

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Table 3 Artificial intelligence and robotics applications in metaverse Type

Definition

Machine Learning Models

Virtual environments

3D Computer vision [64] Deep learning

Motion recognition, event detection, etc.

Federated learning [95]

Augmented reality applications

Parameter server-based learning

Reducing execution Centralized federated latency and learning disadvantages of AR [97]

Artificial Intelligence-based objects

Virtuality-reality interaction

Implementation

Collaborative learning

Enabling cognitive smart cities [98]

Semi-supervised deep Smart city services reinforcement learning

Avatar face recognition [99]

Markov random field

Face recognition

Detection and monitoring CNN [100]

Multi-person monitoring

Non-player character training [66]

Reinforcement learning

Domination games

OpenAI Five [10]

LSTM and distributed Dota2 learning

Avatars acting smart [101]

Reinforcement learning based Bayesian networks

Game play tracking

Interactive avatar control [65]

Motion Status

Animate and control avatars

Human–computer interaction [95, 95]

Reinforcement learning

Avatar gestures

Transferring a controller trained in a virtual environment to the physical world [67, 102]

LSTM and mixed density networks

Robot education, digital twin for human–machine interaction

Studies in the literature have been examined under three headings: virtual environments, AI-based objects, and virtual and real-world interactions. Under the title of virtual environments, applications related to learning indoor navigation, motion recognition, event detection, and smart city services were carried out. There are studies on recognizing avatar faces with artificial intelligence technologies, multiplayer monitoring in multi-user games, game tracking, and activating and controlling avatars. Digital twin applications have been developed in robot education and human–machine interaction.

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3 Conclusion and Discussion In this section, the potential for the use of artificial intelligence technologies and robotic systems on Metaverse platforms has been examined. The current status of AI and robotic technologies to be used to create the Metaverse ecosystem and the infrastructure and components required for an immersive Metaverse experience are explained. AI-based solutions have been shown to have the potential to enhance the user experience in the virtual world and to provide connectivity between the virtual and real worlds. Most existing Metaverse projects are at the level of multiplayer games. In these environments, users experience customized experiences such as performing specific tasks, buying/selling products, socializing, and having fun using virtual reality glasses and augmented reality. AI technologies will play an active role in the real-like modeling and animation of animate or inanimate objects, together with avatars, in Metaverse environments. Robots or any robotic system designed for real-world use can be remotely controlled with the help of virtual reality and augmented reality, providing the link between the real world and the virtual world. Natural language processing methods play a critical role in communication between avatars and human–avatar–robot interactions. Real-time translations and understanding different languages and dialects are significant for the sustainability of Metaverse ecosystems. Metaverse platforms, which created their own economies, started to carry out real-world e-commerce activities in the virtual world. They also carried commercial activities such as their own cryptocurrencies, virtual spaces, shopping malls, and products/costumes for their users in the virtual world. Although these platforms, which are seen as the first steps of the Metaverse, give an idea about the designed future, a full Metaverse ecosystem with all its components has not yet been realized. This requires severe technology and infrastructure. Various body-worn sensors and IoT devices should be integrated into the Metaverse and image-processing techniques for human–computer interactions. In addition, devices to be used in Metaverse environments should be inexpensive and user-friendly. The current technology is both costly and not suitable for long-term use. Many AI-enabled services or activities in Metaverse are currently run by technologies based on machine learning models without explainability and interpretability. This makes it difficult for developers, designers, and users to understand decisionmaking processes on Metaverse platforms. Explainable AI models can also increase model auditability and operational efficiency, as they enable end-to-end monitoring and understanding of processes. As a result, a radical transformation is expected in all sectors with the support of AI and robotic technologies. Although Metaverse is very popular and requires serious investments, it still needs to be debated whether a Metaverse platform can be designed with all its components. Although it contains many questions and uncertainties, it is a driving force that directs today’s technology. Therefore, it needs to be considered in all its aspects. In addition to technical and infrastructure deficiencies in Metaverse design, data privacy and security, psychological and social effects, and legal dimensions should

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also be examined. To reduce the personal and social risks and threats of the content created on Metaverse platforms, countries, non-governmental organizations, and official institutions should seriously discuss ethical issues and make appropriate legal arrangements.

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The Extended Reality Technology and Its Utilization in Metaverse Banu Kucuksarac

Abstract In today’s world, where digital changes and transitions are experienced with the developments in technology, many inventions and innovative applications enter daily life. The extended reality technology, which covers virtual reality, augmented reality, and mixed reality technologies, is among these innovative applications. These technologies not only change the way individuals get information, rejoice, make decisions, and act but also enable the creation of a participatory experience. For this reason, the extended reality technology, which has been increasingly used in many fields and disciplines, is one of the significant building blocks of the widely spoken Metaverse. Based on the convergence of technologies that enable multi-sensory interactions with extended reality technology, digital objects, and people, Metaverse is defined as a network of immersive environments with interconnected social networks on permanent multi-user platforms. Accordingly, in this network, it is possible to travel, work together, play games, shop, and engage in educational activities with avatars and digital twins created and controlled by users. In this study, extended reality technology, which is one of the significant building blocks of Metaverse, and the use of this technology in Metaverse were discussed. In this regard, the study, which has been planned as a descriptive study, includes literature analysis and definitions and explanations about extended reality technology and Metaverse; Afterward, the use of extended reality technology in Metaverse was explained by supporting it with current examples. Keywords Extended reality · Augmented reality · Virtual reality · Mixed reality · Metaverse

B. Kucuksarac (B) Kocaeli University, ˙Izmit, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_5

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1 Introduction Extended reality comes to the fore among innovative applications and technologies today, where interaction and experience gain importance with digitalization. This technology is an umbrella term that refers to virtual reality, augmented reality, and mixed reality technologies which empower and support reality. Therefore, a threedimensional virtual environment that goes beyond physical reality by carrying the features of the technologies it contains as a concept, by including the real perceptions of the users or by including the auditory or tactile information and digital objects in the real-world user perceptions, offers a variety of opportunities such as interaction, experience, participation, ease of use, speed, and fun. For this particular reason, extended reality, which has started to be used in various fields and disciplines, is one of the significant building blocks of Metaverse. In Metaverse, which is based on the convergence of technologies that enable multi-sensory interactions between extended reality technology, digital objects, and people [1], individuals can get together with their friends, meet with their friends, attend meetings, concerts, fashion shows, and events, buy a digital product and try it on their avatars without changing their position in the real world, using XR devices. Therefore, these technologies provide users with realistic, interactive environments and offer unforgettable experiences in different contexts. Considering this study, it is aimed to discuss the technology of extended reality, which is one of the significant building blocks of Metaverse, and its use in Metaverse. Although there are studies about extended reality technology and Metaverse in the literature, there is no study focusing on the use of extended reality technology in Metaverse. In the literature, the use of extended reality technology in Metaverse is encountered in a limited number of researches [2–4] related to Metaverse architecture, structure, or layers. Therefore, the deficiency in the literature on the subject reveals the necessity and original value of this study. This study aims to explain the XR technology and its use in Metaverse by examining examples. Thus, the research questions were formed as follows: 1. What is extended reality technology, and what are its features and usage areas? 2. How is extended reality used in Metaverse? In order to find answers to these research questions, the study, which is designed as a descriptive study, includes definitions and explanations about extended reality technology and Metaverse by making a literature analysis; In addition, its use in Metaverse is explained by supporting it with current examples.

2 Extended Reality (XR) Technology The phenomenon of reality [5], which is interpreted as all existing things, the truth, and reality, emerges as a phenomenon that has been discussed from the first philosophers to the present day and that can be grasped, transformed, and built through

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objects and senses, together with technological developments today. Baudrillard explains it with the concept of hyperreality, which he includes in his simulation theory. Baudrillard [6] describes today’s reality world as the “simulation” universe, likening it to the world of images created by machines or computer programs. In this universe, the reality is lost in the simulation network and turns into hyperreality. Therefore, today, the reality is something produced by media and communication technologies, and anything desired can be presented to people as a reality, and this artificial reality presented is to become hyperreal by surpassing reality. With hyperreality, it is possible to construct new realities at any time. Today, one of the technologies used in the creation of hyperrealities is extended reality. Extended reality (XR) refers to all real and virtual environments that provide interaction between humans and machines through computer technology and hardware [7]. XR consists of virtual reality-VR, augmented reality-AR, and mixed realityMR technologies that empower and support reality. As an umbrella term covering all of these technologies, it refers to all real and virtual environments created by computer graphics, sensors, and smart wearable devices. Accordingly, the “X” in XR denotes technology and wearables, representing a variant for any existing or future spatial computing technology. In other words, the X in the abbreviation of extended reality does not simply mean extended but a variant for all future technologies to be implemented under this umbrella term [8]. XR, describing an advanced system as an umbrella term, can be better understood in the figure below (Fig. 1). By integrating virtual environments simulated with reality, XR puts users inside a simulation, thus expanding their perception of reality in both real and virtual environments and offering them a unique sense of presence [9]. In other words, XR, which helps people immerse in an immersive reality experience by combining the physical world and the sense of reality perceived in it with all kinds of computer-based visual, Fig. 1 The System of extended reality (Source: https://envision-is.com/xr/)

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auditory, or tactile data, covers all platforms and contents that allow users to see real-life physical objects in a digital environment or on the contrary, to use digital objects in real life. In this context, XR consists of a combination of VR, AR, and MR technologies. Therefore, to better comprehend the concept of XR, it is crucial to clarify each technology behind it [10]. VR is defined as an immersive environment that provides real-time and multisensory interactions designed for users to discover new things in the digital space, share their thoughts and ideas, and gain new experiences [11]. As per Craige et al. [12], VR makes users believe they are in a different world by using advanced technology and allows them to explore a virtual world. In short, VR is an alternative, completely separate, digitally generated artificial environment. The users feel immersed in VR, feel the presence of a different world, and operate in similar ways as they do in the physical environment [13]. Thus, in VR, a version of reality that is nonexistent but must be perceived as in the real world by our senses like taste, smell, touch, sight, and hearing [14] and a real or simulated virtual environment in which a user lives is in question [15]. With the help of specialized multi-sensor equipment such as immersion helmets, VR headsets, and versatile treadmills, the user experience is enhanced by sight, hearing, touch, motion, and natural ways of interacting with virtual objects [16, 17]. VR, which has been used for the first time in its current form since the 1960s, can be used through equipment such as glasses, headgear, gloves, headsets, and cabinets. The flight simulator, developed by Thomas A. Furness in 1966, is considered a significant development in the virtual reality process; However, the first example of the headsets used for VR perception today was encountered in 1968. Developed by Ivan Sutherland, this device, called “The Sword of Damocles”, is mounted on the head and allows drawing on the computer screen by the user’s head position and direction [18]. In the early 1970s, Myron Krueger made his studies on human–computer interaction, and by attaching receptors to the body, he made people perceive the virtual environment they are in as a real-world environment, thanks to VR. Krueger created an interaction between the digital objects on the screen and the user’s image with his innovation called “Videoplace” [19]. In the 1980s, Jaron Lanier worked to commercialize the products of this technology by developing VR-related datagloves, various headsets, and types of software [20]. In the 1990s, rapid developments were seen in VR with the use of virtual reality technologies in computer games, and with the beginning of the 2000s, VR has found a wide application area in fields such as entertainment, art, education, health, engineering, and communication. The most known and used examples of these application areas appear in computer games and entertainment. Today, in many countries, there are arcades based on VR technology. Apart from these game arcades, users can play many popular VR games such as Minecraft VR, Half-Life: Alyx, Star Wars: Squadrons, Defector, and Doom VFR through simulators and even consoles in their home environments with VR headsets, glasses, gloves, and thus, by finding the opportunity to take an active part and role in these 3D games, gamers can gain experiences that they have not experienced before [21].

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VR applications developed for educational purposes, especially in the game and entertainment industry, are also very popular. With VR, which offers various products and equipment for almost all levels of education, any subject within the scope of the course is presented to students in 3D and more realistic, resulting in more enjoyable, easy, permanent, and interactive learning [22]. The advantages of VR technology are also evident in the medical field. Preliminary experiments can be carried out using the diagnosis and treatment modulators of diseases and simulations of surgical procedures; In addition, surgical procedures can be performed efficiently with 3D images of scanned tissues and organs. Similarly, with VR, which we encounter in the engineering and manufacturing industries, it becomes possible to create virtual prototypes of products during the design process, to collect the work of engineering teams by providing a 3D virtual environment, to carry out ergonomic tests in a virtual environment and to train qualified personnel. Briefly, VR has significant potential that can be used in reshaping engineering and manufacturing processes. Additionally, VR is used extensively for promotional and marketing purposes. While it provides various advantages for institutions and brands at the point of generating potential customers, product–service experiences, educational experiences for the production process, creating commercial opportunities, product promotion and launch, retail experiences, event experiences, market research, and relationship building, it is used as an extension of marketing activities in many sectors such as fashion, cosmetics, tourism, and automotive [10]. To give an example, Marriott Hotels, which is among the most luxurious hotel brands in the tourism sector, offered a VR experience to newly married couples going on their honeymoon via cabins with the concept called “teleportation cabins” that they set up on the streets to generate potential customers [23], regarding relationship building, thanks to their “VROOM Service” project, hotel customers were able to visit China, Rwanda or Chile via VR [24]. Car brands such as BMW, Volvo, Toyota, and Range Rover have also provided virtual driving experiences to introduce new models to consumers and convince their audiences that these vehicles are superior to other brands and their predecessors. Similarly, Dior, one of the leading fashion brands, offered fashion lovers a unique experience to show behind the scenes of the podium with a VR headset called “Dior Eyes”. Tequila’s “Hacienda Patrónb” brand has also benefited from the VR technology to provide an informative experience and increase the interest and trust in the brand by conveying its story from the product supply process to production in the factory and the sales stage [23]. Another reality technology that enables an immersive experience is AR, which spatially combines the physical and the virtual world. AR is a new generation technology that creates simultaneous interaction between both types of objects with the connection between the real world and the virtual world [25], enriching it by embedding digital inputs and objects into the physical environment. In other words, it can be expressed as combining the real world with digital data such as computer-generated sound, video, graphics, animation, and GPS. When we look at the historical development of technology that can be used with devices such as smartphones, tablets, glasses, contact lenses, or other transparent

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surfaces, the first studies on the field started in 1901, with the effect of VR applications. Back then, Frank Baum mentioned electronic screens that transfer data to the real world. In 1957, the cinematographer Morton Heiling developed a simulator machine called Sensoroma that activates the senses; in 1968, the first head-mounted display was developed; in 1982, for the first time in a television broadcast, the presentation used for weather events was visualized with AR; in 1992, the concept of AR was first used by Tom Caudell; “Virtual Luminaires”, one of the first AR systems, was launched in 1992 by L.B. Rosenberg, “Spatial AR” was created by Ramesh Raskar, Greg Welch, and Henry Funchs in 1998, the 3D AR technology was developed in the USA in 1998, and ARToolKit was created in Japan by Hirokazu Kato in 1999. In the 2000s, the first mobile AR game called “ARQuake” was developed by Bruce Thomas, AR was used in the “Bamzooki” children’s program broadcast on the BBC channel in 2004, and the development of mobile AR applications on smartphones began in 2010 [26–28]. Allowing simultaneous interaction, AR is easily distinguishable from VR. While VR completely separates the user from reality (typically with the use of special glasses) and lets the user only move in a purely virtual world [29], in AR, on the other hand, users are not separated from reality, the perceived reality is augmented by virtual information [30]. In other words, in AR, data and objects prepared in a digital environment via computers are transferred into the real world. Thus, users can interact simultaneously with real-world data and virtual-world data [31]. Along with these features, AR provides the opportunity to create a participatory experience by addressing the perceptions of users, both sensory and emotionally through the transposition of digital objects to the real world. According to the information on the application examples of AR technologies, they are applied in many fields from education and architectural practices to art, from museums to hotels, from marketing to publishing and tourism studies. To illustrate, the AR application called “Timetraveler” was prepared for the anniversary of the fall of the Berlin Wall. Through this mobile application, users can discover history by viewing photos and videos taken years ago about events that took place in historical areas in Berlin. In the AR application of the American clothing brand “Apparel”, customers were allowed to see the different colors of the product in the store and to read the experiences of other customers who bought it. The AR application named “NO AD”, created by street artist Jordan Seiler by bringing together 50 artists, allows the display of artworks instead of advertisements on billboards in New York subway stations as a social responsibility effort [32]. Today, brands such as Ikea, Estée Lauder, Loreal Paris, Marshall, Coca-Cola, BMW, Audi, Lego, and institutions such as the Directorate of Communications, Ministry of Labor and Social Security, Ministry of Youth and Sports, Fatih Municipality, Bakırköy Municipality, Be¸sikta¸s JK Museum, Pera Museum, and Sakıp Sabancı Museum use AR technology for various purposes. Another reality technology is MR. MR is a technology based on computer graphics, which can be made simultaneously in VR and AR, and includes the continuity of the physical and virtual. The concept of MR is first mentioned in Milgram and Kishino’s [33] Reality–Virtuality Continuum model (Fig. 2), in which they explain the relationships between reality and virtuality.

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Fig. 2 Reality–Virtuality continuum (Source: http://web.cs.wpi.edu/~gogo/courses/cs525H_ 2010f/papers/Milgram_IEICE_1994.pdf)

This model, developed by Milgram and Kishino, explains the concepts and relationships related to real and virtual environments. Based on this model, the environment the user interacts with is placed on a continuum, depending on the amount of computer generated. The real environment is at the far left of this continuum, and the virtual environment is at the far right. As you move from the left to the right of the continuum, the amount of virtual images increases and the connection with reality weakens [34, 35]. Augmented Virtuality in the continuum refers to the integration of real-world components into the virtual world; AR, on the other hand, describes the continuation of the connections between the real world and the virtual, and the coexistence of digital data and images in the same environment. The reality between the real and the virtual environment in this continuum is expressed as MR. MR involves the conjugation of the real and virtual worlds through the virtuality process that connects the purely real environments to the purely virtual ones [36]. In other words, MR bridges the virtual and real world, combining virtual data with real objects in the real environment to create more realistic physical interactions. With MR, virtual objects are positioned like real objects in real environments by aligning with real time and real objects. Thus, the user’s connection with the real world continues, and it becomes possible to orientate virtual objects in the physical environment. In MR, a type of reality in which users’ perceptions of the real world are contextually enhanced with additional information, it is demanding to distinguish between virtual and real [37]. Because in MR, users are in the real world that is fully integrated with digital content. Thus, by interacting with real and digital content [38], they go through immersive experiences. It is possible to better explain this interaction dimension of MR and the difference between VR and AR with the following example [39]: “A virtual reality activity is when you experience an ancient city with glasses containing virtual images at home; On the other hand, augmented reality is when you go to an ancient city and look at the historical artifacts that have lost their old structure with your glasses and see their old states. However, when you enter an ancient city and see people walking around the streets chatting, the smell of cooking in a house, when you can open and close the door of the house, and if the city looks as it was used to, then you are in a mixed reality environment. Thanks to mixed reality, historical information becomes visible in material reality. Thus, past experiences are not reduced to words, pictures and photographs”.

In MR, where Hololens technology is widely used, holographic images can be experienced on many devices through MR glasses, headgear, screens, or platforms. When we look at MR’s technological development, there are plenty of examples in daily life usage because it is a new technology, HoloLens glasses of Microsoft

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Windows are among the first examples. The HoloLens, which started to be produced in 2016, gained popularity as one of the first examples to run the Windows Mixed Reality Platform under the Windows 10 operating system. Those glasses have a structure similar to VR devices, but they provide a unique experience between virtual and physical reality in the real world by reflecting digital content in the user’s environment. Magic Leap also developed a technology similar to Windows and their first product was released in 2017. In 2019, Microsoft launched HoloLens 2 and offered an MR experience to its corporate customers, and in 2021, they introduced the Microsoft Mesh platform, which was built on Azure and offered holographic experiences on many devices such as smartphones, PCs, VR–AR glasses. People using the applications on this platform can establish a virtual connection in any environment they are in and get together with their colleagues or other people to continue their work, hold meetings, and work with 3D models in real time. In addition, this platform allows its users to create holograms or avatars in real time with the support of HoloLens 2, thus enabling interaction with other users [40]. Apart from Microsoft and Magic Leap, companies such as Samsung, Canon, and Lenovo are also seen to create their own MR glasses and headsets by 2021. As in VR and AR, the usage areas of MR are quite diverse. The importance of MR is gradually increasing in fields such as health, industry, army/defense, education, and marketing. In this regard, it is predicted that the global MR market [41], which is expected to reach a value of approximately 103.9 billion dollars by 2026, will become widespread in many sectors in the coming years due to the increase in processor capacities and decrease in costs. Looking at the application examples— though still very limited—NASA is working with Microsoft to create the OnSight software that helps scientists and engineers virtually be on Mars while still on Earth; Japan Airlines appears to be using a HoloLens to train engineers without having to visit a hangar [42]. In the marketing sector, a newly released product or service can be introduced interactively, thanks to MR. To give an example, H&M, one of the world-famous clothing stores, organized a fashion show at New York Fashion Week late in 2018. In this fashion show, they used MR to promote their newest collection in partnership with Moschino. Creating an experiential show for visitors instead of a traditional show, H&M collaborated with computer and software companies Magic Leap and Warpin Media to prepare this experience, providing visitors with engaging, multi-layered and emotional experiences. Lego also developed an MR application with Snapchat, allowing users to experience an empty store as a Lego store [43]. Covering AR, VR, and MR technologies, XR provides consolidation and support of reality by making use of technologies such as the internet, artificial intelligence, and the internet of things, thus offering its users various opportunities such as interaction, experience, participation, ease of use, speed, learning, and entertainment. Consequently, these technologies, which have started to increase in utilization in many fields and disciplines, constitute one of the significant building blocks of Metaverse, which has been a popular discussion topic recently.

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3 The Use of Extended Reality (XR) Technology in Metaverse Metaverse creates a virtual world that opens to the physical world, based on the existing reality interaction and permanence [44]. The use of XR in this virtual world represented by Metaverse can be seen in pioneering studies explaining the structure of Metaverse in the [2–4] literature. Lee et al. [2] mention three stages in the creation of the Metaverse, where digital twins, digital natives, and physical-virtual reality concepts follow each other. The first stage, digital twins, is expressed as large-scale and high-quality digital models and assets reproduced in virtual environments as a digital copy of physical reality. Digital twins are digital copies of physical-real assets, processes, or systems that users use for decision-making and control, which can communicate real-world changes to their representations in the virtual world. In the second stage, digital natives, users create their avatars and with these avatars, they get involved in the system that exists in real life in virtual worlds or exists only in virtual worlds. In the third stage, there is the merging of the physical-real world and the virtual worlds. At this stage, the Metaverse, where physical-virtual reality coexists, is formed. In this regard, a comprehensive technology and ecosystem are declarable in the formation of Metaverse. In their study, Lee et al. [2] present a framework that includes the technologies of the Metaverse concept and the Metaverse ecosystem. Accordingly, the Metaverse ecosystem consists of avatars, content creation, virtual economy, social acceptability, security and privacy, and trust and accountability concepts. The key technologies required to create these areas in the Metaverse are XR, user interaction techniques, robotics/Internet of Things, blockchain, computer vision, artificial intelligence, edge/ cloud, network, and hardware infrastructure. According to Lee et al. [2], XR and user interaction techniques are key technologies that enable users to access the Metaverse. Throughout the advanced continuity of XR, the technology of XR provides interaction between the physical and virtual environment through user interaction techniques, which include techniques such as sensors, smart fabrics, headsets, and headgear, which enable users in their real physical environments to connect with avatars and digital assets on the Metaverse base. The artificial intelligence, computer vision, blockchain, robotics, and Internet of Things concepts in Metaverse work with the user to manage and direct various events within the Metaverse through user interaction techniques and XR. For instance, computer vision is widely used in XR applications to determine the position and orientation of the user and device in order to enable the reconstruction of the 3D environment. In addition to location and environment orientation, the XR interactive system also monitors the body and position of the users. Metaverse also allows users to be followed by computer vision algorithms and displayed as avatars. Radoff [3], on the other hand, examined the status and characteristics of technology companies in Metaverse and created layers about Metaverse. In the model designed by Radoff called “Metaverse Layers”, the layers are as follows: infrastructure, human interface, decentralization, spatial computing, creator economy,

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discovery, and experience. Among these layers, there are user interaction techniques such as mobile devices, VR headsets, wearable haptics, and smart glasses in the human interface; The spatial computing layer includes 3D engines, XR technology, motion recognition, and spatial mapping. Wang et al. [4] blend the Metaverse architecture with the main components of human society, the physical world, and the digital world. Accordingly, the human society represents the acceptance of the Metaverse as human-centered [45]. In this context, users together with their internal psychology and social interactions constitute the human world. Equipped with smart wearables (e.g., VR/AR helmets) users can interact and control their digital avatars to play, work, socialize, and interact with other avatars or virtual entities in the Metaverse via human–computer interaction (HCI) and XR technologies [46]. The physical world meta-directory provides physical control concepts, such as multi-sensory data sensing, transmission, processing, and caching, and supporting infrastructures, including sensing and control, communication, computing, and storage, to enable efficient interaction between digital and human society. However, in digital worlds, there are interconnected virtual worlds, digital life infrastructures, and the Metaverse engine. Based on Xu et al.‘s statements [47], the Metaverse engine consists of interaction, artificial intelligence, digital twins, and blockchain technologies, and uses big data from the real world as input to create, maintain and update the virtual world through these technologies. In particular, with the help of XR and HCI (especially brain– computer interaction (BCI)) techniques, users in physical environments can control their digital avatars in an immersive way for various collective and social activities such as car racing, dating, and virtual goods trading, through their senses and bodies within the Metaverse. According to Wang et al. [4], the interaction in the Metaverse is mainly provided by XR technology. With the help of miniature sensors, embedded technology, and XR technology, XR devices such as helmet-mounted displays (HMDs) are used as main terminals to enter the Metaverse [48]. XR technology (VR/AR/MR) incorporates projector-including holographic displays (especially BCI), HCI, and large-scale 3D modeling experience to realize user/avatar/environment interaction with multisensory immersion [49]. While VR, one of the XR technologies, offers immersive experiences in the virtual world, AR offers real presence experiences of virtual holograms, graphics, and videos in the real world, and MR offers a transition experience between VR and AR. Wearable XR devices realize the ubiquitous detection of objects and the environment, as well as the perception of specific information related to humans, with the help of indoor smart devices (e.g., cameras). In this way, user/ avatar interaction is no longer possible with mobile logins (e.g., phones and laptops), but with any interactive device connected to the Metaverse [4]. The fact that it is based on the use of XR technology, which enables interaction between humans and digital data, Metaverse is expressed as a multi-user immersive environment network [1]. Therefore, XR and Metaverse are an inseparable whole. As for Violante et al. [50], the Metaverse experience is similar to VR, AR, and MR, which is a technology that provides users with realistic, interactive environments and

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innovative modes to deliver unforgettable experiences in different contexts. In Metaverse, individuals can meet with their friends, organize meetings, attend concerts, fashion shows, and various events, buy products and try the products they buy on their avatars, by using XR, in their physical location. The use of Metaverse, which we see mainly for entertainment and games, shopping, marketing, advertising, socialization, and educational purposes [51–54], is becoming more common in sectors such as health, tourism, and manufacturing [44, 55–57]. Given technological maturity, user matching, and content adaptability, games are an excellent way to explore the Metaverse [4]. One of the platforms where it is possible to take part through XR technology and user interaction techniques (VR headsets, smart glasses, mobile devices, wearable haptics, etc.), for example, the Sandbox game on the Second Life platform offers a modifiable 3D virtual world where players can participate as avatars and create and sell their virtual architecture, as well as attend art shows and even social events such as political meetings and embassy visits. Another example, the Roblox game, is a global user-generated gaming platform where players can create games and design items such as skins and clothes. The Fortnite platform, on the other hand, is a massive multiplayer online (MMO) game designed by Epic Games where players can build buildings, shelters, and islands. It is an interesting fact that many companies in Metaverse organize various events through games. For example, concerts such as DJ Marshmello, Travis Scott, and J Balvin; Recreation activities such as Stranger Things, Star Wars, Marvel, and Terminator; Fashion events such as Balenciaga and Moncler, were organized on the Fortnite platform. The Roblox game has hosted sports events such as Liverpool, and NFL, concerts such as Lil Nas X, fashion events such as Gucci, Vans, and Nike, and Fashion Awards. In 2022, Paris Hilton organized a New Year’s Eve party in one of the universes of Roblox. A total of $700,000 revenue was generated from the sales and other agreements made by the brands at this party. All of these revenues and trades were made in digital currencies. In Minecraft, education and music events, such as Cal Poly Graduation and College Green, were organized [58]. Another Metaverse platform, Decentraland, also held the Metaverse Festival, which is described as a 4-day music, culture, and creativity festival. In this event, stands were found in the festival area, where different scenes were available, and items specific to the Metaverse world could be purchased [59]. On another Metaverse platform, Dvision Network, Binance held an AR-based conference to celebrate the first anniversary of the Smart Chain ecosystem [60]. In Metaverse, it is possible to shop just like in real life, take a tour in the virtual world, and hold business meetings with avatars. In the shopping experience where the production and consumption of digital items is the main focus, brands are in the process of digital product production or product design instead of physical production in Metaverse [61], and users/consumers are aimed to purchase these digital products. For example, Gucci produced virtual sneakers for Metaverse and offered them for sale to users of platforms such as the Gucci APP, VR Chat, and Roblox [62].

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In Metaverse, which also has a significant potential for institutions and brands to express themselves, many applications are made in the field of marketing and public relations. Coca-Cola ran a marketing campaign on the Fortnite platform called “Coca-Cola Zero Sugar Byte Pixel Island”. In this campaign, Coca-Cola released Coca-Cola Zero Sugar Byte, the first Coca-Cola flavor born in the Metaverse. The product, which included a mini AR game and was offered to the market in partnership with Epic Games and Coca-Cola, was available for a limited time. The campaign, which included real-world “franchise” attachments such as t-shirts and hoodies extra to the virtual product, drew attention with the slogan “discover the taste of pixels”. Coca-Cola Byte, which first debuted in Fortnite, was sold in limited numbers (up to 25 thousand twin packs) in Latin America and transferred from the Metaverse to the real world [63, 64]. On the Roblox platform, defined as an online game platform and game creation system, Gucci attracted attention by collecting 286 million Robux (the currency that is valid in all games on Roblox and whose value is constantly updated) from the first sale of collectible items by creating the Gucci Garden experience, which allows users to collect limited items in the Metaverse. The environment, in which users have nonsexual and ageless avatars, has created a meta-experience area and made the name of the brands widespread. Another fashion clothing brand, Burberry, brought the fashion world together with the Metaverse by designing in-game clothes for a Chinese strategy game, Nike designed virtual shoes for Metaverse, and Louis Vuitton joined the Metaverse by dressing up a virtual hip-hop group made of “League of Legends (LoL)” characters [65–67]. Thus, brands can enrich their public relations and marketing practices with Metaverse in areas such as sponsored content, product placement, viral marketing, interactive brand management, launch meeting, virtual competition, and event design. When we look at the application examples in the field of health, the Veyond Metaverse company provides medical students, specialists, and surgeons with realtime training in a Metaverse hospital with the anatomical view service it offers in high reality with nanotechnology using XR technology, artificial intelligence and machine learning (Veyond Metaverse, n.d.). At Seoul National University, Metaverse was used for practice in anatomy lessons using VR and AR technologies [68]. Regarding the application examples in the field of manufacturing, the statements concerning the plans of Boeing and Hyundai Motor about Metaverse draw attention. Boeing has announced that they plan to build a production system that includes Metaverse. Stating that they will establish the factories of the future in the next 2 years, Boeing plans to connect robots with the 3D designs they have prepared and to keep its employees in different parts of the world in touch through HoloLens glasses and work together [69]. Hyundai Motor, on the other hand, plans to use the robots in its factories as a tool that will provide connection and interaction between the physical world and the Metaverse, with its concept called “Metamobility”. With the Metaverse-robot connection, users will be able to direct a robot in the physical world, similar to a smart factory. In addition, this technology will enable employees to remotely connect to machines and objects in the factory [70]. Hyundai Motor has also launched “Hyundai

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Mobility Adventure (HMA)” to showcase the future lifestyle in Metaverse. HMA is a collaborative sandbox where various users/players represented as avatars can meet and interact with each other to experience mobility. Through the Metaverse platform, users can customize their avatars and interact creatively with each other [71]. Nissan additionally created the Metaverse platform Invisible-to-Visible (I2V), where invisible information can be visible to assist drivers. I2V has used a variety of systems to provide rich information from inside and outside the vehicle. One of them is the AR interface to connect the physical and virtual worlds. I2V collects real-time data from traffic and surrounding vehicles and analyzes them in the Metaverse system. Based on the analysis, I2V then identifies the driving conditions around the vehicle, then creates a digital twin of the vehicles, drivers, buildings, and environment. In this manner, the digital twin can be used to analyze human–city interaction from the perspective of traffic; also it is possible to connect more to the Metaverse with information driven by user activities. As a result, Metaverse generates information through XR interfaces, and in short, digital transformation with Metaverse provides enriched media to human users on their commute [2, 72].

4 Conclusion Regarding this study, which aims to explain the XR technology and its use in Metaverse by examining relevant examples, a descriptive analysis has been conducted using the literature and sample applications to seek answers to the questions about what XR technology is and how it is used in Metaverse. Based on the analysis, the XR technology consists of AR, VR, and MR technologies that combine digital and physical environments; In addition, Metaverse also constitutes one of the predominant technologies with its users and offers various opportunities such as interaction, experience, ease of use, speed, low cost, learning, and entertainment. In this respect, this technology is used to combine physical and virtual environments in Metaverse, which is defined as a multi-user, continuous and permanent environment that combines the reality in the physical environment with the digital environment. Along with other equipment that enables user interaction (AR/VR headsets, smart glasses, mobile devices, wearable haptics, etc.), XR provides an immersive experience in the Metaverse. As per the studies in the literature [2–4], XR emerges as the soul technology that enables interaction with digital objects and people within the Metaverse architecture. In this sense, it provides users with realistic, interactive environments and offers unforgettable experiences. In these experiences, which are also seen in various applications on Metaverse platforms, individuals can interact with and control their digital avatars through XR devices to meet with their friends, play games, organize meetings, attend concerts, fashion shows, and various training events, and shop; Basically, to have fun, learn, work, socialize, and interact in Metaverse while maintaining their position in the real world [46].

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To conclude, this study has the potential to be a guide for institutions and brands interested in XR technology and/or Metaverse by trying to explain what XR is and its use in Metaverse through literature review and current examples; Also, the fact that these aspects of the subject have not been studied before, it is thought that it will make a significant contribution to the literature on XR and Metaverse in academic studies. For future studies on this subject, it is recommended to measure how the XR technology is perceived by Metaverse users, their knowledge levels, and attitudes on usage patterns, possibilities, and limitations of this technology.

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Evaluation of Open Source, Open Data Sharing, and Data Anonymization Concepts in the Development of the Metaverse Emre Cihan Ates, Erkan Bostanci, and Mehmet Serdar Guzel

Abstract As the Metaverse concept becomes widespread in our lives, people are expected to be included in an artificial physical environment, and a new reality phenomenon will emerge in the virtual universe and the existing universe. In this context, the Metaverse concept is an abstract concept used to describe a digital environment to influence people’s physical world and access its content. The information to be included in the virtual universe will be formed by processing the data obtained from individuals, and this situation is expected to reveal many paradigm shifts, especially in the concept of data. Compared to the data in today’s social media usage, the Metaverse will be a greater power in analyzing human behavior, since the data on the Metaverse contains a deeper and wider range of data sources than open sources because participation in the Metaverse system involves the collection of unprecedented volumes and types of personal data. Along with the virtual universe, many situations such as storing sensitive biometric and physiological data and transferring virtual payments between platforms, will increase the possibility of malware attacks and data breaches, and data security policies will be reassessed. For this reason, in parallel with the privacy concerns that will increase with the spread of the Metaverse concept, it is expected that data anonymization will become more important and the open data policy of companies that manage the Metaverse will be questioned. Within the scope of all these reasons, in this section, it is aimed to examine the changes caused by the Metaverse concept, which has revolutionized information technologies today, where data is the greatest power in accessing information, in terms of open source, open data sharing, and data anonymization. Keywords Metaverse · Data · Open source · Open data sharing · Data anonymization

E. C. Ates (B) Gendarmerie General Command, Ankara, Türkiye e-mail: [email protected] E. Bostanci · M. S. Guzel Department of Computer Engineering, Ankara University, Ankara, Türkiye © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_6

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1 Introduction It is a known fact that humanity undergoes constant change from the primitive ages to the modern day and that such a process leads to a series of changes in the perception of norms. It is also publicly known that the concept of the radio, which was quite popular approximately a century ago, changed after the 1990s in line with the development of the internet and involved in different aspects, and that the concept of television which was invented in 1925 and attributed miraculous effects in the recent past, has gradually left its place to virtual platforms today. With each step taken in the name of social development, completely different new technological developments have come with it. Especially in the recent past, the situation that emerged with the web and mobile internet revolutions has given rise to a new reality phenomenon at the virtual level called the “Metaverse” today. The concept of the “Metaverse” is an effort to create temporal and self-sustaining immersive environments for individuals to play, work, and even socialize under the new generation’s internet structure [1]. The virtual world created in the Metaverse ambient is correlated with the real world [2]. For this reason, in the changing internet paradigm, the Metaverse environment will be able to offer individuals an alternative life experience as personalized as possible. People in the real physical environment will manage the avatar they create in the virtual environment through specific equipment such as glasses, keyboards, cameras, etc. that provide human–computer interaction, will communicate with other virtual individuals, and will be able to transform the entire process into an economic value when necessary by producing different content on virtual platforms [3]. All operations will be subject to a certain rule in the virtual environment, just like in the real world [1]. Providing individuals with a different life experience in the virtual universe based on their personalities brings the need to collect and process the obtained data. The technological infrastructure of the stated data requirement covers many areas such as virtual reality (VR), augmented reality (AR), extended reality (XR), internet of things (IoT), artificial intelligence (AI), blockchain, image processing, cloud computing, network technologies, human–computer interaction, and data mining in an integrated manner. Therefore, with the Metaverse environments, paradigm changes in the perception of the new generation internet and the importance of the concept of data, which is the cornerstone of the whole structure, are anticipated to increase gradually. In order for the Metaverse system to copy the real physical universe, it is necessary to collect an unprecedented volume and type of personal data. Along with the generated virtual universes, many situations, such as storing sensitive biometric and physiological data, and transferring virtual payments between platforms, may increase the possibility of malware attacks and data breaches, and in this case, data security policies will be re-evaluated [1, 4]. For this reason, in parallel with the privacy concerns that will increase with the widespread use of the Metaverse concept, the importance of data anonymization and the questioning of open data policies, especially for companies that manage the Metaverse environment, will gradually increase

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[5]. In the scope of all these reasons, this section is intended to examine the changes in the concept of “Metaverse”, representing the studies to create virtual universes to be revealed in terms of data, open source, security, open data sharing, and data anonymization, where data is the greatest power in accessing information.

2 Concepts of Data, Open Source, Open Data Sharing, and Data Anonymization Concepts The concept of data forms the basis of digital technology for the provision of various services based on artificial intelligence. The existence or access to data is a great power for those in power, and in many scandals, such as Cambridge Analytica, it is known that data is processed inappropriately or treated as a commercial commodity [6]. The basic parameter in the Metaverse structure, which is expected to complete its development in the near future, will be data and the processing of data. However, the authority to access data is not equal in the market, and many ideas may fail due to the inability to access data sources. In addition, many public structures or companies that believe in the importance of the concept of open data are sometimes reluctant to share their data with others. Data that cannot be used unless there is a personal or guiding interest is completely garbage. In particular, such data is far from obtaining an economic yield. In this context, the concept of data under this heading will be defined under the basic parameters of the Metaverse.

2.1 The Concept of Data The first use in the history of data science, which is of key importance in the Metaverse system, belongs to Peter Naur, as stated in the study titled “Concise Survey of Computer Methods” in 1974, and it is obvious that it is a quite new concept compared to the history of humanity [7]. Today, as a result of the widespread use of the internet, which is the largest network in the world, the concept of data has become one of the most frequently used words in our daily lives. The word “data” is conceptually defined as the science of obtaining information through data, simple observations, symbols like words, and raw/unorganized facts [8, 9]. It is actively used to understand the past and present, predict the future, and provide decision optimization [9, 10]. Regarding the concept of data, in the analysis made by The Economist [11] magazine, “The most valuable resource in the world is no longer oil, but data.” In parallel with the growth of information technologies for our daily lives, the amount of data we produce and encounter is increasing and constitutes the data stack. Because from the use of internet search engines to bank account movements, playlists of songs we love, sensors in smartwatches, and even if we do not use them, the mobile phones we carry with us will constantly search for the nearest base station, indirectly

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generate location-based data, and produce meaningless data if not analyzed [12]. In this context, when the data is processed and used correctly, it is transformed into information, knowledge, and wisdom, which is the greatest assistance in decisionmaking, as shown in Fig. 1. Along with the concept of wisdom, the data, which first emerges as raw and untreated, becomes meaningful and helps our decision-support activities [10, 13]. Data will appear as the most basic parameter in Metaverse environments, and its importance will increase gradually. However, when we use the word “data”, we refer to different situations that are heterogeneous, as seen in Fig. 2, rather than a homogeneous structure [10, 14, 15].

Fig. 1 Transformation of data into wisdom

Fig. 2 Data types

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● Structured data is a specific type that can match the classical row/column relationship and be examined in a table format by defining the inputs in advance according to a defined rule or model. It is widely used with Excel and SQL database processing operations. Since every data is discrete, it is easier to analyze with less storage space. ● Semi-structured data is a mix of structures in which the input is defined according to a model that is attributed to being defined by undefined stacks of data that do not have a clear rule. The analysis of the defined data type is easier, and undefined inputs need pre-processing. The json, csv, and xml formats used in data representation are the most common forms of representation. ● Unstructured data is the hash of input structures that are attributed to data stacks that do not have a clear rule. Compared to structured data, it is more difficult to analyze, and there is a need to pre-process the data. Databases such as Apache and MongoDB, which can be defined as NoSQL with files such as text, audio, and images, are widely used for this data structure. In this context, when the data structures are examined, 90% of the data currently in our world are unstructured, and the data in question are very heterogeneous, such as videos, texts, or pictures, which are more difficult to analyze [16]. The aforementioned situation arises from the problem of data noise in the interpretation of data on the basis of mining and artificial intelligence. For this reason, in addition to the heterogeneous structure of the data, it is also important that it be qualified [10, 14].

2.2 Open Source Open source expression is used both for software and for data, together with open data expression. As with data, the software acts as a tool for new information discoveries. Unlike data, it is generally protected by copyright, and free use of the software is restricted unless the copyright holder grants a license. In open source, source codes are shared. For this reason, for the software to be considered open source, it must be made public and contain a software license that allows everyone to examine, use, modify, and distribute the source code for any purpose [17]. Many motivations may push individuals or companies to share their data within the scope of the open source [18]. In the Metaverses created by different companies, the transfer of data between different objects or platforms requires the mutual recognition of the code or data type used. The better the interconnection of objects and the use of the data obtained between different platforms, the more successful will be the Metaverses where a mirror world of large-scale and high-quality digital twins is created in virtual environments. For this reason, it is possible to retrieve the data obtained on different platforms using different software languages by using the source codes of the system used by the source. Although source codes are trade secrets for

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many structures, sharing them, even through mutual protocols, is important to create the Metaverse.

2.3 Open Data Sharing The open data movement first focused on scientific data made in 1957 and has been used to ensure basic data standardization in the field of geophysics [19]. The concept of open data was implemented in the 1970s against the partners with international cooperation under the leadership of NASA as a policy, but it could not be sufficiently developed until the internet concept entered our lives after the 1990s and the data could be shared freely [17, 19]. Today, the concept of open data policy has advanced to the point that even states should share some basic statistics or information with their citizens. Some groups see the information obtained from the data as public, with the idea that if one person theoretically uses it, it will not harm the benefit that another person will get from the same use [20, 21]. From this point of view, although the information obtained from the data is an economical consumption, unlike typical items, there is no decrease in stocks, and it contributes positively to social welfare in the case of consumption [19]. In the general theory of property rights, which stipulates that information should not be shared publicly, access to information should be restricted, and in this understanding, it is claimed that the commercial use of innovations with the monopoly effect of intellectual property rights, such as patents or copyrights is encouraging in revealing new information [22, 23]. Especially in recent years, serious studies have been carried out by non-profit structures for sharing open data. In this context, if we examine the definition of open data by the Open Knowledge Foundation-OKF [24]; open means that everyone can freely access, use, change, and share for any purpose (subject to requirements that protect the most resources and openness). Open data and content can be freely used, changed, and shared by everyone for any purpose. Based on the open data dimensions developed by Jetzek [25] with the Sunlight open data policy organization [26], five different dimensions were determined strategically, economically, legally, conceptually, and technically, whereas eight common features of the open data were determined [19]. The aforementioned eight features should be available, affordable, shareable, interoperable, primary, high quality, usable, and accessible, as shown in Fig. 3. It is assumed that such features constitute the framework of necessary conditions for data sharing, so if we explain the common feature below [19]; ● Available open data: The accessibility of the data to everyone, without any limitation, registration, or membership. ● Affordable open data: It means that access to data is free of charge or at a minimum cost in a way that aims to reveal the data.

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Fig. 3 Dimensions of open data

● Shareable open data: Data is the freedom of users to use, review, redistribute, copy, modify data, and share results for any purpose under open licenses. ● Interoperable open data: This feature enables the unobstructed use of data accessible to everyone without the need for additional special software. ● Primary open data: It is the originality of the data from its primary/first source; that is, it is unchanged, and it includes the transparent sharing of basic information about the production process of the data to question the originality of the data. ● High-quality open data: Data is as consistent, complete, valid, accurate, and unique as possible. ● Usable open data: It includes data in formats that machines can read; formats such as jpeg, which machines cannot easily read, cause unnecessary costs. ● Accessible open data: Easily, permanently, and securely accessed and downloaded when necessary. In this context, it is considered that unnecessary waste in the public sphere can be prevented by sharing open data, and data that can be inferred, especially on personal or some social special issues, can be quite dangerous.

2.4 Data Anonymization The increasing number of stored data and the fact that these data can benefit commercial organizations in extracting information with the help of various data mining techniques have increased interest in the data. In parallel with the increase in interest in data and data mining, privacy concerns have also emerged as an increasing problem due to the fact that the data sometimes includes personal information [27]. Because

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Fig. 4 Types of data disclosure

the information to be obtained from the data brings with it the risk of revealing the data of individuals on various subjects. As privacy concerns about sharing and publishing data increase, it is tried to prevent individuals from being associated with data with new data processing techniques that remove or change identity information with methods called data anonymization. The purpose of anonymizing data is to prevent the disclosure of sensitive information belonging to individuals in the publication of data. As seen in Fig. 4, there are three types of information disclosures: identity, quality, and inference. As these types are examined [28]; ● Identity disclosure: It occurs when a predictable algorithm or inadequate anonymization is applied at a level that allows redefinition based on a specific record in anonymized data, and sensitive values within the dataset may also occur. ● Attribute disclosure: It is the form of disclosure that emerges with the newly released data about any person. For example, even if the names are completely hidden in a list of 10 people we work with in the workplace, we can probably know who a man and a 30-year-old are over 100 kg. ● Inference disclosure: it occurs when persons aiming to obtain data acquire confidential information about a person who will associate it with different datasets. After sharing anonymized data, it includes estimating sensitive data through inferences by comparing it with different datasets. Anonymization methods are frequently used to protect privacy, focusing on the conversion of personal data into anonymized data to reduce the risks of disclosure mentioned above [29]. Anonymization of data is the prevention of the ability to identify people’s identity information by removing or changing existing direct and

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indirect identifiers in the dataset or turning it into a dimension that cannot be associated with a real person. Data that is prevented from describing a real person, in other words, data that is disconnected from the person, is considered anonymized. Considering the variable structure of the data, quite different methods are used in anonymization, and some commonly used methods and k-anonymous, which is the basic statistical approach to strengthening anonymization, are explained below [28, 30, 31]. ● Generalization: Maintaining the integrity of form and meaning within the data structure ensures the general expression of data within certain intervals or underinclusive concepts. ● Suppression: It is the process of replacing a value in the data with a meaningless value. For example, common expressions such as “s* * * *” are specific applications ways of this method. ● Distortion: It is the process of making original data hash by converting data structures into different formats. As shown in the equation “Vc = Va + Vb”, Va is real data, whereas a skewed Vc is created by adding Vb. By distorting the original data in this way, a hash value characterizing data belonging is obtained. MD5 is most commonly used in calculating the hash values of the data, and the structure produces a 128-bit, one-way, and irreversible value. ● Swapping: It is the process of randomly rearranging the data structure, and the main risk is that the data remains the same as a result of the randomization process. ● Masking: It is the process of hiding the qualities in the data structure by changing them with different characters. Since more effort is put into controlling and changing value structures, suppression is preferred over this method. ● K-Anonymity: It is an approach that prevents the disclosure of information about individuals with different combinations by identifying more than one person with certain fields in the dataset. In order to ensure k-anonymity, there must be at least as many people in the dataset who share the set of characteristics that can be descriptive for each individual [30]. K-anonymity can be defined as the guarantee of hiding in the crowd: if each individual is part of a larger group, any of the records in this group may correspond to a single person [31, 32]. Although there are different data anonymization techniques, there is not a single type of precaution that fits every data structure, and today, when the importance of data is increasing, obtaining the optimum result can be achieved with hybrid models where different approaches are used together.

2.5 Data in Metaverse Architecture The Metaverse environment is a user-controlled virtual environment where real users are represented through avatars and can be included in the system with the help of any smart device. From a macro perspective, the Metaverse consists of three stages: virtual twins, virtual natives, and surrealism [1]. The first stage, it is aimed to ensure

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Fig. 5 Equivalence of physical and virtual Metaverse worlds

vitality in the virtual environment and create the virtual twins of each individual at the best possible level. Various activities, such as concerts and theaters, have started to be held in order to reveal the representation of physical reality in the virtual world in line with the aforementioned purpose, and all of these activities correspond to the physical equivalent where reality and virtuality are parallel areas. In the second stage, avatars, who are users of the virtual world, will also be able to produce content and transform the digital world into one of equivalent status with as much content as possible. In the last stage, it will reach a surreal maturity and transform into a world of permanent and self-sustaining surrealism that differentiates reality within itself. When the Metaverse transformation is completed, the scope of the virtual world will be much broader than the real world, and the physical and virtual worlds will be in an uninterrupted and integrated position, as shown in Fig. 5. The transformation of the physical world into a virtual platform and the creation of a structure above reality bring with it a very high amount of data requirement. The increase in the amount of data that can be processed is the basis for providing more accurate information production and analyzing the data together with data mining techniques. In this context, if we examine the Metaverse architecture in which data can be obtained [1, 4]; ● Human Society: Although it is accepted that Metaverse is human-centered, people’s physical values, psychology, and social interactions with other people constitute our physical world. For this reason, the more real data that can be obtained, especially from smart wearable devices related to our physical world, the more coexistent universe creation that can be provided in the Metaverse. ● Physical Infrastructures: Transmitting the data needed in the Metaverse with various physical infrastructures and interacting with the real world brings along

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a strong physical infrastructure. With the widely used objects today, it will create the perception and control structure by receiving versatile data from people’s own bodies or surroundings with the help of sensors, and it will be able to use them as much as possible in the real world by transferring them to calculation and storage units with the help of various network connections. The interaction of different object structures with each other will necessitate the formation of some open-source standards, even in part. ● Interconnected Virtual World: According to ISO/IEC 23,005 and IEEE 2888 standards, the digital world can consist of a number of different virtual sub-Metaverse structures that interact with each other. In each Metaverse environment, users will be able to offer goods or services through various avatar identities. Avatars will be a digital representation of individual users in the Metaverse environment and may have different spatial-time dimensions, such as past or future time, to experience an alternative life in virtual environments that are close to the real or simulated in a surreal way [33]. At the same time, avatar users will be able to receive virtual goods or services that can be traded in Metaverse environments, and different concepts, such as the digital market and virtual money, will also enter our lives [34]. As shown in Fig. 6, as a result of all the operations, the data obtained from the physical world and the data that are the output of the actions taken in the virtual world are the two main sources of information for the metadata; therefore, the use of the data is only possible with interconnected virtual universes. ● Metaverse Engine: It is a structure that aims to make the Metaverse environment sustainable by using data from the real world as input based on artificial intelligence and blockchain. In particular, the information obtained through big data analytics and artificial intelligence algorithms will enable the creation of more personalized avatars and more intelligent services that users may need in the Metaverse environment. All services can be used safely for commercial purposes thanks to blockchain technology, which will ensure that the virtual ecosystem has economic added value [35]. ● In-World Information Flow: People are interconnected with various social networks in their lives and interact as a result of a common set of activities. For this reason, especially the IoT-enabled detection/control infrastructure will

Fig. 6 Data with the source of information in Metaverse environments

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play an important role in the digitalization of our physical world with the help of sensors, and the big data produced will be processed and managed by the metadata engine [36]. ● Information Flow Across Worlds: Human beings can observe objective events in terms of structure, transform them into information through subjective consciousness, and evaluate them as a guide in their subsequent behavior. Virtual augmented reality, which has been developing gradually, especially in recent years, can provide an objective experience structure similar to humans. The world and virtual universes are interconnected through the Internet, and individuals will be able to interact with the virtual world with tools that they can objectively observe and perform various learning activities, just like experiencing in the real world. The Internet of Things infrastructure bridges the physical world with the digital world using interconnected smart devices for digitalization so that information can flow freely between the two worlds [37].

3 Open Source, Open Data Sharing, and Data Anonymization in the Metaverse System In the Metaverse environment, making a real-life cycle equivalent and perhaps even better brings along the need for data on a quite large scale. The fact that the majority of the data needed is at a level that can disclose or predict personal information prevents individuals’ commitment to technological developments and increases security concerns. Based on data security concerns, it is necessary to produce different policies to overcome this dilemma. It is crucial to clarify the data-sharing processes between individuals, states, and companies in establishing common policies. The tendency and willingness of all actors in the data ecosystem to work together will accelerate the development of Metaverse technology.

3.1 Determination of Joint Contract and Rules Metaverse environments under different companies are critical to prevent monopolization, but in order to improve data sharing between companies, it is necessary to determine a clear and applicable legal framework for how to use data on an international and national scale. Sharing the data of individuals by taking security measures will create a more competitive environment. In addition, with anonymized data structures, there are thoughts that the data that is disconnected from the person it belongs to cannot be qualified within the scope of the right to property [22]. The current international legal framework allows for the sale or sharing of data through individual contractual agreements between interested parties. In other words, those who hold the data have the right to property on the data, even if it is limited on a contractual basis. Within the framework of their security policies, holders of data ownership

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may grant access to certain parts of the data or restrict access to the data in order to ensure the security of the data. In addition, there are many suggestions about data anonymization and the use of blockchain technology regarding security and privacy concerns regarding data [38]. The formation of principles and standards within the framework of various contract criteria for data sharing is considered to encourage companies to share data. In particular, a common course of action can be established with minimum methods, such as determining standard rules and licensing in data-sharing contracts.

3.2 Collection of Data in Non-Profit Structures The data in the current structure is mostly shared in bilateral contract agreements. In order to improve data sharing between companies, there should be cooperation between companies with effective power from the past and newly established companies in the market. However, although this situation is a sharing that will accelerate social development, it will negatively affect well-established companies in inter-company competition. For this reason, data from non-profit, transparent, and accountable units can create an anonymous ecosystem. This will enable the data to be recovered from company monopolies. Because considering that data is a great power and companies need data at every stage of innovation and development, a centralized system can be established in which data are shared in line with the agreements on which international law is based. Gaia-X, which is a “European cloud” project with a clear data infrastructure in the European example, is an example of this system [39]. The main purpose of this project is to create a transparent and independent data and infrastructure ecosystem based on open standards and European legislation for business innovation, and since the project is ongoing, it can be structured similarly to the metadata [40].

3.3 Value of Data When Used Commercially In order to share data or build a new business model using data, companies have to know the value of their data. Knowing the value of their own data helps companies measure the benefits and costs associated with their data. A market price is required, especially when data is traded. Which data can be sold for how much will be determined according to the price formation in the market. Different methods are needed to determine its value as the tendency to treat data as a company resource increases. The most common approaches are cost-based, benefit-based, and market-based valuations [19]. However, there are no universal methods or tools for determining the current data value. Therefore, with further research on this subject, there is a need for clear rules and standards.

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4 Conclusion Depending on technological advancements, the Metaverse concept took place in our daily lives as a virtual shared space created with the convergence of virtually developed physical reality. Metaverse environments are still in the development stage. Although studies continue on how the process will work and how to establish the ecosystem, revolutionary changes are expected in many areas when the system completes its development. The most critical element of the Metaverse system is the data. Data is a source for providing many intelligent services, such as artificial intelligence and the Internet of Things. In the explicit sharing of data, the reluctance of the companies holding the data to share them and the security concerns about the disclosure of individuals’ data is the main criteria, and especially in recent years, open source and open data sharing flow in the public sphere have increased even if they are not sufficient. Although the concepts of open source and open data sharing predict the sharing of data, it is difficult to keep non-profit structures in existing metaphorical studies because keeping data requires cost. However, while it is clear that sharing data will greatly contribute to the development of technology and meta-verse universes, it has many security drawbacks. For this reason, by evaluating different approaches, it is expected that sharing the data at least in an anonymous way and remaining based on the blockchain, which is the infrastructure of Bitcoin technology, will solve the basic security concerns. It is expected that three different approaches will appear in terms of data sharing. The first is the determination of common rules and standards. The second is the collection of data in non-profit structures. The third is the completely commercial use of data. In this context, based on today’s existing Metaverse system, it is intended to examine the Metaverse environments that will revolutionize numerous areas together with the concepts of data, open source, open data sharing, and data anonymization and to determine necessary actions in designing the entire system in a most appropriate way in order to respond to security concerns. In the examination, it was determined that the data is a great power and that the most appropriate course of action was the determination of the basic norms related to the concept of the Metaverse based on international cooperation and their functioning based on contracts. Questions such as “who will store the obtained data” and “what will be the security level?” are essential for privacy concerns. Restricting or preventing data sharing based on security will be an obstacle to the technological development of modern humanity. It is also considered that approaches restricting the use of data as a commercial commodity should be adopted as much as possible.

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Metaverse and New Cybersecurity Threats Duygu Saracoglu

Abstract The ultimate implementation of the rapidly evolving Metaverse may differ from today’s vision, but the Metaverse is based on key technologies such as augmented reality (AR), virtual reality (VR), AR cloud, internet of things (IoT), advanced communication technologies (5G and beyond), artificial intelligence, blockchain, and cryptocurrency. These key technologies promise to integrate and harmonize the physical world with the digital world. However, with the rise of the aforementioned key technologies, it can be foreseen that the security field will deepen and open new channels for cybercriminals to target businesses and individuals. Today, cybersecurity is a horizontal technology that affects many different areas of life and various sectors. It is also a critical component of national security and national defense systems. The rapidly digitalizing world, including the Metaverse, serves the growth of the cybersecurity field. Almost all devices, from military equipment to healthcare devices, are becoming digital and interacting with cyberspace; thus the physical layer and the cyber layer converge. In this context, cybersecurity technologies appear as one of the critical technologies at the base of the Metaverse, and it is calculated that the damages to be experienced will be devastating if countries do not focus on the field of cybersecurity within the framework of these rapid developments. With the development of the Metaverse, organizations rush to create metadata, while cybercriminals have opportunities to exploit the vulnerabilities of AR, VR, IoT, blockchain, and cryptocurrency to launch cyber attacks. Thus, organizations exploring metadata storage will need advanced risk assessment features for their infrastructure and connected devices. In this chapter, new cyber threats are compiled and discussed as the key technologies that underpin the Metaverse continue to rise; such as phishing, malware and ransomware, metadata security, Web 3.0 security, avatar hacking, deepfake, NFT spoofing; and cybersecurity for key technologies such as cloud, IoT, AR, VR, wearable technologies and other technologies that may emerge. Keywords Metaverse · Cybersecurity · Cyber threats · Cyber attacks · Web 3.0 security D. Saracoglu (B) TÜB˙ITAK, Tunus Street No:80 06680 Kavaklıdere, Ankara, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_7

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1 Introduction Currently, it has become impossible to imagine our world without the Internet. So much so that the internet, which connects billions of people around the world, has become the backbone of the modern information society. According to the data of the International Telecommunication Union (ITU), the number of internet users worldwide has reached 4.9 billion people in 2021 [1]. As of April 2022, it has been reported that this number has reached 5 billion people globally and 4.7 billion people are social media users [2]. As internet usage continues to increase, the amount of personal information and data available online increases exponentially. It is stated that 200 zettabytes of data will need to be protected by 2025, at least half of which will be stored in the cloud [3]. According to the “Global Cybersecurity Outlook 2022 Report” of the World Economic Forum (WEF), it is stated that in the current situation, 197.6 million e-mails are sent, 695 thousand stories are shared, and 1.6 million dollars in online shopping are made and 69 millions of messages are sent on the Internet in 1 min [4]. By the measures taken within the scope of combating the recently experienced COVID-19 pandemic, the dependency on digital systems has increased, the digital transformation in the sectors has accelerated and the platforms and devices that facilitate this change have increased. In this respect, it is also observed that cyber threats are increasing rapidly [4, 5]. Cyber attacks can take many forms, including identity theft, data breach and/or data theft, malware and ransomware attacks, copyright infringement, and phishing. The costs incurred include not only financial but also damage and destruction of important personal and financial data, loss of productivity, theft of intellectual property, forensic investigation, and reputational damage. Currently, the size of cyber attacks and crimes has increased significantly. For instance, a 50% increase is reported in weekly general attacks on corporate networks in 2021 compared to 2020 [6]. The damage caused by ransomware is estimated to reach $265 billion annually by 2031. While it is reported that institutions and organizations are exposed to a ransomware attack every 11 s in 2021, it is predicted that this rate will be every 2 s in 2031. On the other hand, the global cost of the crypto crime area, which includes cyber attacks and threats against cryptocurrencies, is expected to reach 30 billion dollars in 2025, while it was 17.5 billion dollars in 2021. In total, global losses from cybercrime, which reached 6 trillion dollars in 2021, are expected to increase by 15% and reach 10.5 trillion dollars in 2025 [3]. On the other hand, the “Metaverse”, which has been on the agenda recently and continues to develop rapidly, is defined as a common virtual open space created by the convergence of virtually enhanced physical and digital realities. It is physically permanent and provides enhanced immersive experiences. The ultimate application of the Metaverse may be different from today’s vision; but it is envisioned to be based on key technologies such as augmented reality (AR), virtual reality (VR), internet of things (IoT), advanced communication technologies (5G and beyond), AR cloud, spatial technologies, artificial intelligence (AI), blockchain and cryptocurrency [7– 9]. In this context, the “Metaverse” is also described as a new internet age [10].

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Recent global analyzes show that the Metaverse and related technologies are also included in terms of strategic and key technologies in addition to cybersecurity. In the same analysis, the most emphasized area, as one of the biggest and most important risks that will affect the Metaverse and its users, is stated as cybersecurity and privacy. It is stated that many steps have been taken to protect the privacy and security of users within the scope of current Metaverse platforms, by applying advanced blockchain technologies as well as biometric authentication using cryptography and encryption. However, it is also emphasized that the battle against cybercrime will maintain its importance, because cyber attacks and threats include increasingly complex and rapidly advancing techniques. For example, according to WEF’s “Global Cybersecurity Outlook 2022 Report,” it is stated that automation, AI, machine learning, and remote/hybrid working environments and virtual platforms will have a great impact on the transformation of the cybersecurity field in the next 2 years [4]. With the development of these key technologies, it can be foreseen that the current cybersecurity and threat field will deepen, new cyber threat elements and attack methods will develop, and new channels will be created for cybercriminals to target businesses and individuals. The cyber layer and the physical layer are converging gradually, ensuring the security of the emerging cyber-physical systems, protecting data ownership and privacy, and supporting the development of relevant cybersecurity technologies that emerge as one of the central policies of countries. In this regard, this chapter is aimed to overview advanced cybersecurity and cyber threat elements that may emerge as the Metaverse and related key technologies continue to develop; such as new phishing, malware, ransomware attack methods, metadata security, Web 3.0 security, avatar hacking, deep fake, blockchain and NFT fraud. As well as cyber threats regarding key technologies such as cloud, IoT, AR/VR, and wearable technologies. For this purpose, first of all, a bibliometric search was carried out using the relevant keywords on the SCOPUS and IEEE Xplore databases. As a result, a limited number of publications were accessed and the relevant publications were included in the chapter. In addition, a bibliometric analysis based on publication year data was made and a keyword co-occurrence mapping is obtained via the VOSviewer. According to this analysis, it is seen that, while the scope of “Metaverse” is associated with the virtual world (and mostly the “second life” platform) between 2010 and 2015, it is associated with AR/VR and multiple experience technologies for 2020 and beyond. However, in the aforementioned analysis, a focus on cybersecurity was not significant. On the other hand, in a different literature review study on the Metaverse, it is emphasized that privacy and security should be embedded in the Metaverse from the very beginning, and privacy and security are given among the ten main concepts of the Metaverse [11]. In view of the limited academic studies and the coverage of more current issues, this chapter primarily covers the current global trends regarding the Metaverse and cybersecurity, respectively. Moreover, it is aimed to evaluate the Metaverse from a cybersecurity and new cyber threats perspective. While within the scope of the chapter, related topics such as data security and privacy and blockchain are also included, however, the details are not covered since there are separate chapters for the aforementioned subjects.

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2 Current Global Trends When the global IT sector in 2021 is evaluated, it is seen that the global market size has reached the level of 4.3 trillion dollars with a growth of 13% compared to the previous year. On the other hand, cybersecurity and data privacy and Metaverse technologies (digital and augmented reality) are specified as prominent technologies, as well as 5G and fiber internet, cloud computing, AI (decision intelligence, deep learning), blockchain (tokenization, non-fungible tokens—NFT) and IoT technologies. The intersection and convergence of the specified technologies, and the increase in sectoral application potentials day by day are among the trends that are especially emphasized. In addition, with the increasing focus on emerging technologies, the global IT sector market size is expected to reach 4.4 trillion dollars in 2022 with a growth of 4% and to reach a size of 5.6 trillion dollars in 2026 with an annual growth of 6.1% [9]. Taking into account the developmental stages of the Metaverse, it is still in the early stages of its development (Fig. 1). It is considered that a great potential has emerged with the spread of emerging technologies such as advanced communication technologies, digital reality, artificial intelligence, and blockchain. The main sectors that are evaluated as having high market opportunities are stated as gaming, tourism, education, e-commerce, real estate market, entertainment, arts and sports, media and advertising, and software and application development sectors. The global revenue opportunities available from the Metaverse are estimated to reach $800 billion by 2024 [9]. Due to the increasing and sophisticated methods of cyber attacks, cybersecurity, and data privacy remains a growing concern at all scales. In fact, it is estimated that data breach cases worldwide in 2021 exceeded $40 billion. In 2021, the cost

Fig. 1 Developmental stages of the metaverse (Deloitte Analysis) [9]

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of data breaches rose from $3.86 million to $4.24 million, reaching the historical high of the reported 17 years. On the other hand, while global information security and risk management expenditures were realized as 133 billion dollars in 2021, it is expected to reach 223 billion dollars in 2026. In addition, according to the “2021 Future of Cyber Survey” prepared by Deloitte, the most important competencies to be acquired within 3 years with the new technologies adopted by the institutions were the areas of improved corporate cybersecurity and data privacy. With the increasing digitalization and the development of cyber-physical systems, the inability to provide effective border protection (unauthorized movements in critical systems and the inability to detect them), access to critical systems with malicious and ransomware, inadequacy of identity, access and data management, identity and data verification and privacy violations are considered as great risks [9]. According to WEF’s “Global Cybersecurity Outlook 2022 Report,” the cyber attack methods that institutions and organizations are most concerned about are ransomware, social engineering, and malicious insider actions. While, the cyber attacks those cybersecurity leaders are most concerned about are infrastructure collapses due to cyber attacks, identity theft, and ransomware [4]. If we evaluate Fig. 1, that is, in terms of the development stages of the Metaverse, it can be stated that critical cyber threats have already emerged in the early period of the Metaverse between 2021–2030. It should be emphasized that, first and most, cybersecurity is an area where the human factor, that is, social engineering, is at the forefront as much as it is technology-oriented. According to IBM’s “Cybersecurity Intelligence Report,” the human factor has the greatest impact on security vulnerabilities with a rate of 95% [12]. In the current situation, although advanced cyber attack and threat methods are technology-based, the biggest security vulnerabilities are again due to the human factor. It would not be wrong to say that the human factor will become even more important when we foresee that the convergence of the physical layer and the cyber layer will reach the highest level in the promised world of the Metaverse. One of the most important features brought by the Metaverse is the use of the internet through three-dimensional avatars and created digital identities. Already, the use of existing video conferencing programs or social media applications in the Metaverse through three-dimensional avatars in terms of holding business meetings is a subject that has been studied. In this context, avatar hacking or digital identity theft are cyber threats that may occur. In addition, considering that there will be physical interaction, threats may have not only virtual but also physical consequences. On the other hand, the increase in advanced communication technologies, digital infrastructure, and connected devices also poses significant cyber threats. Connectivity has become a must and a must for every new product and system, including smart devices and systems, vehicles, medical devices, and industrial and telecommunications equipment. It is calculated that the number of connected objects will reach 16.4 billion by 2025 and the expenses of IoT technologies will create a market of 1.1 trillion dollars in 2023. It is predicted that the amount of data transferred over the IoT will be 79.4 zettabytes in 2025 [9]. Therefore, the security of currently connected devices or the IoT is a critical issue that cannot be ignored. Considering that a multisectoral infrastructure will be formed in the Metaverse; cybersecurity will continue to

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maintain its importance in terms of critical infrastructure sectors (electronic communication, energy, finance and trade, transportation, water management, critical public services), which are currently being formed by digital infrastructures, the IoT and cloud systems. On the other hand, as can be seen in Fig. 2a, six topics stand out according to the dynamic mapping of the Metaverse area by “WEF Strategic Intelligence” [13]. These topics are foundational elements of the Metaverse, the origins of the Metaverse, working in the Metaverse, gaming and the Metaverse, entertainment, and commerce in the Metaverse, and setting the rules of the Metaverse. When we look at the foundational elements of the Metaverse; cybersecurity, blockchain, AR/VR, and computing technologies of the future come to the fore in terms of technology. When evaluated in terms of cybersecurity technologies, it is seen that it is among the foundational elements of the Metaverse, but it is also directly related to the game and work titles in the Metaverse. It is possible to evaluate separately mentioned blockchain technologies in relation to cybersecurity. In this context, it is seen that blockchain technologies are not only one of the main components of the Metaverse but also directly related to the titles of games, entertainment, and commerce in the Metaverse. Blockchain technology is currently widely used in the financial services, retail, logistics, education, media, and energy sectors, as it has an open and distributed design that allows real-time and simultaneous transactions and ensures that the stored data cannot be changed. According to the distribution of global usage areas of blockchain technologies, secure information exchange, digital money, asset tracking and management and digital identity applications come to the fore. According to the “2021 Global Blockchain Research” conducted by Deloitte, 76% of the participants predict that digital assets will replace currencies in the next 5–10 years and physical money will not be used [9]. One of the most widely used applications within the scope of blockchain today is NFT. NFT is a type of token that is uniquely identified on the blockchain technology of assets that is unique and impossible to create. It has applications across a wide range of industries to create verifiable digital records of ownership, authenticity, traceability, and security. When evaluated in terms of the Metaverse, it is stated that the application areas of NFTs and therefore blockchain will be wider. Prominent application areas are crypto-digital artworks and collections, AR/VR environments and games, various investment instruments (valuable goods, vehicles, and real estate), intellectual property rights, licenses, and financial documents [9]. In Fig. 2b, dynamic mapping of the “WEF Strategic Intelligence” for cybersecurity area is given [13]. There are eight topics; cybersecurity skills gap, cyber diplomacy and international security, critical infrastructure and cyber resilience, cyber risk governance, cybersecurity and new technologies, cyber and supply chain risk, cybercrime, cybersecurity, and legislation. From the technological dimension, critical infrastructures and cyber resilience, as well as cybersecurity and new technologies, stand out. As new technologies the following are specified; digital identity, IoT, digital transformation of business, the fourth industrial revolution, internet governance, computing technologies of the future, AI, supply chain, consumption technologies of the future, blockchain, and banking and capital markets, international

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Fig. 2 WEF strategic intelligence—the metaverse and cybersecurity [13]

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security, nuclear security, transportation of the future technologies are associated with smart cities, digital communication, infrastructure, and electricity networks. The latest global trend analyzes show that, cybersecurity and security vulnerabilities are considered one of the most important economic and technological threats on a global scale for the next decade [5, 14–17]. For example, cybersecurity failure and vulnerabilities come to the fore from the technological risks dimension in the analysis of economic, environmental, geopolitical, societal, and technological global risks that are considered to have the highest impact and the highest probability in the next 10 years in the WEF Global Risk Report 2021 [16]. In the 2022 version of the same report, cybersecurity vulnerabilities continue to be among the risks with the highest impact and the highest probability in the next 2 years and 2–5 years [5]. The Global Risk Report 2022 also includes emphasis on cybersecurity vulnerabilities related to the Metaverse. It is stated that in the near future, with the increase of interconnectedness and technology convergence, the construction of the new blockchain-based internet, namely the “Metaverse”, will take place. In this context, it is stated that users will encounter an environment characterized by decentralized structure where security vulnerabilities and cyber threats become more complex [5]. On the other hand, the Metaverse has become one of the highlighted areas along with cybersecurity in current global technological trend analyzes. For example, according to the 2022 ranking of the top ten technological trend analysis prepared annually by KPMG, Metaverse, and cybersecurity technologies were evaluated among the ten most influential technology trends that have the power to shape industries and business models [17]. According to the aforementioned analysis, forwardthinking businesses have begun to take part in early-stage Metaverse platforms where users interact with each other and their surroundings using avatars. Many businesses have even enabled the ownership of digital assets and public trading with NFTs via blockchain. Although the Metaverse and related critical technologies are still developing, it is stated that many businesses are already undergoing a radical transformation. For this reason, it is emphasized that the relevant issues should be covered with education as a first step in order to raise awareness to the rapid developments mentioned and to absorb the possibilities. Likewise, it is emphasized that the rate of development of cyber threats has increased with the COVID-19 pandemic and will continue to increase its importance and risks with the development of technologies related to the Metaverse. Currently, businesses and countries have to fight not only with individual cyber attackers but also with infrastructure-supported organizations; which is called “hacking as a service—HaaS” [17]. In addition, according to KPMG’s United States-based “Technology Trends Index” as of July 2022, digital payment (especially mobile payment technologies), speech analysis technologies and cybersecurity technologies are emerging technology trends due to their impact on the key sectors [18]. On the other hand, in the 2022 report of Gartner’s annual analysis, which identifies the most critical and strategic technology trends for businesses, cybersecurity mesh is emphasized [19]. Cybersecurity mesh is defined as an architectural structure

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that is flexible and scalable, widely distributed, and integrating different cybersecurity services. The cybersecurity mesh provides interoperability of the best and independent cybersecurity solutions for increasing and complex cyber threats while bringing control points closer to protected digital assets. Therefore, it can be quick and reliable verifying identity, data, scopes, and compliance with security protocols in cloud and non-cloud environments. When we look at the other strategic and key technology trends determined according to the same report, it is striking that they are closely related to both the cybersecurity and the Metaverse. These are data fabric, privacy-enhancing computation (PEC), cloud-native platforms, composable applications, decision intelligence, hyperautomation, AI engineering and generative AI, distributed enterprises, total experience (or multiple experience technologies), and autonomous systems. In addition to the cybersecurity mesh, brief examples of strategic and key technology trends that can be directly associated with the Metaverse and that stand out in terms of cybersecurity can be given. Data fabric, which is the first of these, is stated as an architecture that is required in many areas, including accelerated digitalization and data production, and facilitates the use of data where it is needed by providing fast and flexible integration of data. A data fabric uses continuous analytics on existing, discoverable, and inferred metadata assets to support the design, distribution, and use of integrated and reusable data across all environments, including hybrid and multi-cloud platforms. In this context, autonomous data management, dynamic data integration, AL, and machine learning-based active metadata automation are the important factors. Besides PEC, another one of the other critical technological trends, advanced data security (cryptography and encryption, data classification, data leakage/loss prevention) methods will need to be applied. PEC is also defined as a way for parties to derive value from information by protecting the privacy of themselves or other datasets. While the data used with PEC is protected, the confidentiality of data security measures is also protected. Gartner predicts that by 2025, half of large organizations will implement PEC to process data in untrusted environments and multilateral data analytics use cases. Cloud-native platforms are seen as another critical technological trend. Cloudbased applications provide sharing of services such as server, storage, and database with an internet-based network. Thus, it automates infrastructure provisioning and distributed configuration by dynamically allocating resources at deployment time according to the needs of projects. Gartner states that more than 85% of companies will adopt cloud-based platforms by 2025. In this context, methods will need to be implemented to protect data, applications, and infrastructure services for cloud security, covering a range of policies, controls, and technologies and their interoperability. As another critical technology, generative AI should also be emphasized. Generative AI is stated as a new and realistic content creation technology using existing text, audio files, or images. An example of its most prominent applications is deep fake technology, which uses private data and enables the creation of realistic visual and audio content, which can be described as deep learning and synthetic content [20]. In this context, the use of AI is encountered in data privacy violations, data leaks, phishing attacks and fraud, avatar hacking, and cyber attacks, especially ransomware.

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In addition, according to Gartner’s “2021–2023 Emerging Technology Roadmap,” using the strategies of 437 large IT sector global companies, 111 technologies are classified as being of high importance in terms of investment and being implemented in 2021 and 2022 according to the size of the implementation risk and in the pilot phase. The topics defined are network, security, digital work environment, IT automation, storage, database, computing infrastructure, and platform services. In this study, the key technologies of the Metaverse are predominantly AR/VR, AI, automation, cloud, blockchain, and advanced communication technologies. Under the security topic, especially endpoint security, cloud security,1 security orchestration, automation and response (SOAR), and dynamic and static application security testing are among the trends that are given high importance. Zero trust network access, which was shown to be in the pilot phase, stands out as a technology that is both highly important and highly risky in implementation [21]. Finally, besides cybersecurity mesh, the prominent cybersecurity trends for 2022 and beyond are given as, the expansion of the attack surface with the increase of cyber-physical systems, the defense of identity systems in order to access identity and private information and prevent malicious use, especially in software supply chains. Also, cyber attack risks on digital supply chains, vendor consolidation that combines package solutions and security operations on a single platform, distributed decision mechanisms in terms of fast and agile function against cyber threats and attacks, culture transformation, and holistic behavior training beyond awareness to reduce the human factor, which is of course at the center of most data breaches [22]. Likewise, when the five most prominent cyber threats are evaluated in 2022, identity theft or fraud increased by 250% compared to the previous year, cryptojacking or fraud increased by 600% compared to the previous year, and botnet usage in cyber attacks or threats increased by 31%. It is stated that phishing attacks increased by 33%, and remote command execution vulnerabilities doubled compared to the previous year [23]. In the next section, the Metaverse is viewed from a cybersecurity perspective, and cybersecurity threats are discussed.

3 The Metaverse from Cybersecurity Perspective The Metaverse operates with the simultaneous development, functionality, and interoperability of many key technologies such as AR/VR, cloud, IoT, AI, and blockchain; and offers a unique economy operating with Web 3.0, cryptocurrencies, and NFTs. With all these features, the user can create an avatar and access thousands of virtual worlds with physical equivalents. In these worlds, the user can play games, work, go to health institutions, benefit from diagnostic and treatment methods, study or teach in higher education, even in military fields with real-world experience, shop, and trade, buy art or real estate assets, participate in different social events, use social 1

Including, Secure Access Service Edge – SASE.

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media in 3D and advanced interaction. In fact, Gartner predicts that by 2026, 25% of the digital population will spend at least 1 h a day using these features in the Metaverse [10, 24–26]. Therefore, although it is stated that the Metaverse will be at an early stage between 2021 and 2030, it is already facing great digital challenges; the most important of which are cybersecurity and privacy concerns that can create great threats, financial and non-financial losses. While a crypto-based economy predicts trillion-dollar opportunities for content creators and companies to create their Metaverse worlds, the Metaverse remains a major target for cyber attackers looking to loot its ability to store, record, and distribute data. As the attack surface expands with the use of AR/VR and wearable technologies and devices as well as mobile communication technologies and the size of the data collected, it can be predicted that cyber attacks will increase. Moreover, new methods are developing rapidly. On the other hand, since interoperability is one of the basic concepts of the Metaverse, it is necessary to ensure that different servers can work together but securely [11, 26, 27]. Undoubtedly, cybercrime and cybersecurity methods evolve together; however, cybersecurity, metadata security, and privacy issues will become even more important in the Metaverse [27, 28]. Thus, new cyber threats are anticipated to emerge as well as existing challenges. One of the important issues is that the Metaverse companies being targeted. For example, in 2021, the Metaverse companies were exposed to 80% more bot attacks and 40% more human-factor attacks than other companies were. It is stated that Metaverse companies should attach great importance to cybersecurity and make large investments at every stage (login, registration, in-platform actions) in order to protect digital identities [27, 29]. Another important issue is the emergence of a new dimension of cyber warfare using Metaverse platforms [30]. Cyber threats that may arise in the use of the Metaverse can be evaluated under the headings of identity, data, privacy, network, economy, physical/social effects, and governance. One of the proposed taxonomies in terms of cyber threats to the Metaverse is given in Fig. 3 [31]. This section specifically covers cybersecurity threats related to identity, data, privacy, and network. New cybersecurity threats and attack methods may occur due to the existing infrastructure and emerging key technologies, as well as phishing, malware and ransomware, unauthorized identity access, and data leaks. A few of them can be gathered under topics such as metadata security, Web 3.0 security, avatar hacking, blockchain security, and NFT fraud. There may also be attacks on emerging technologies that form the basis of the Metaverse. In Fig. 4, the main components of the Metaverse and the cyber threat elements and methods that may arise are given. Other related but general titles are also indicated in the figure. It can be predicted that the given titles will create cyber threats against all components of the Metaverse and will emerge in relation to each other. Therefore, no special pairings were made. In this context, cyber threat elements that will emerge or develop with the Metaverse are given below.

2

UGC: User-Generated Content; SpoF: Single Point of Failure; DDoS: Distrubuted Denial of Service; Sybil: Fake Identity Attacks.

Fig. 3 Taxonomy of cyber threats in the metaverse [31]2

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Fig. 4 The metaverse elements and cybersecurity and cyber threats [7] (Edited by the author)

3.1 Featured and New Cyber Security Threats for the Metaverse Phishing Attacks: As aforementioned, the human factor has the greatest impact on security vulnerabilities [12]. Looking at the “Cyber Security Statistics and Malware Trends in 2022” updated as of July 2022, it is seen that phishing attacks are by far the most frequently used attack method with the highest number of victims [23]. Although awareness can be raised with education on issues such as social engineering, phishing, and legislation, the field of cybersecurity and threats continue to develop and cause great financial and non-financial losses. Cyber attackers can access confidential personal, financial, and corporate information with sophisticated and specialized phishing methods. So much so, that phishing attacks and social engineering are seen as the most difficult cyber threats to solve [32]. In addition, phishing attacks can be carried out not only through e-mails but also via sms/text messages (smishing) or telephone, voice mail, robocall, or fake call and voice call technology over the internet (vishing). Also, attacks at Domain Name Service (DNS) level can be carried out by phishing techniques, not only by obtaining personal, financial, and corporate data but also by installing malicious software on people’s devices in a way that will ensure continuity and cause much greater damage and financial losses (IP spoofing, DNS hijacking, DNS cache poisoning (spoofing or cache poisoning). In this context, it is possible to redirect to sites or applications that appear to be legal and safe, even belonging to known institutions, but whose purpose is actually fraudulent (pharming).

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With the development of the Metaverse, it is predicted that cybercriminals will develop innovative social engineering techniques and become more aggressive, both with the expansion of the attack surface and the combination of other emerging technologies. Relatedly, the most widely used phishing technique is the use of wellknown brands or institutions. For example, currently, cyber attackers using corporate identity with robocalls can seize personal data and commit fraud with personal and financial information obtained from institutions, such as banks. It should not be overlooked that the Metaverse platforms are also suitable environments in this context [8, 10]. Recently, the accounts of seventeen users of an NFT site were stolen by a phishing attack due to the vulnerability of the newly released smart contract of the platform, resulting in a financial loss of $1.7 million [31, 33]. Cyber attackers copied the newly released smart contract and the site’s announcement e-mail and forwarded it to users. This way they stole the users’ NFTs by taking their digital signatures, thus user information, and verifying them by the site in order to transfer the NFTs of the users from the old contract to the new contract by directing them to the fake site that seems legitimate and safe within the scope of e-mail [33]. On the other hand, phishing attacks can be carried out in combination with emerging techniques such as generative AI or deep fake. In this context, a report has been published by the FBI in March 2021, that draws attention to the cyber attacks carried out by creating synthetic content and that such attacks will increase in the coming period [34]. For example, phishing attacks can be carried out by processing the voices of people we know (family, friends, or managers) instead of a person we do not know (someone who introduces himself as corporate personnel) with deep fake technology. In the report in question, it is emphasized that although deep fake phishing attacks are not given enough attention yet, they have already caused serious losses. For example, in 2020, a bank manager in Hong Kong authorized a $35 million bank transfer, after a phone call with a company manager he knew, while not knowing that the request came from cyber attackers using deep fake technology. In the Metaverse, deep fake phishing attacks by producing synthetic audio and visual content is an important cyber threat. One of the prominent threats in this context is that access to cyber attack programs and technology has become easier or that such cyber attacks are offered as a service over the dark web. Deep fake technology, social engineering, and identity theft are also covered within the scope of “Avatar Hacking.” Malware and Ransomware Attacks: Malware and ransomware attacks are no longer carried out by isolated cybercriminals, but by cyber-enterprises (or cyber-gangs) that consist of the tactics, information, and infrastructure cooperation of cybercriminals. Therefore, as security as a service and cybersecurity insurance are spreading, the concept of ransomware as a service (RaaS) is also developing rapidly. In this context, in addition to the dark web, messaging programs are also used on the internet in terms of cooperation and the cybercrime network is expanding. Currently, the FBI is tracking more than a hundred ransomware cyber gangs [34].

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In 2021, the most widely used ransomware attack methods were CONTI, REvil, Ryuk, and DarkSide (RaaS), which work to demand ransom for data encryption and decryption; and advanced targeted LockBit 2.0, which blocks access to users’ computers and servers. Phishing attacks, remote access protocol vulnerabilities, vulnerability exploitation, and social engineering methods were used most commonly via e-mail. The most targeted sectors were financial and commercial services, especially health, banks and insurance, critical manufacturing and supply chain, utilities, and energy systems. Thus, billions of dollars are lost from organized cyber attacks using malware and ransomware. Loss of reputation and loss of commercial and personal data in such attacks increase the size of the damage. Currently, the biggest data losses are due to phishing and ransomware attacks. For example, the total average cost of ransomware-related data leaks is $4.6 million [23]. Due to the high profits gained on the Metaverse platforms, it is predicted that cybercrime in this scope will increase [8, 34]. On the other hand, it is emphasized that NFTs are very vulnerable to ransomware attacks as well as phishing attacks [31]. Moreover, since the Metaverse will collect much more personal data in bibliometric format thanks to AR/VR devices and wearable technologies, it is predicted that cybersecurity vulnerabilities against malware and ransomware will increase exponentially [35, 36]. Metadata Security: It is stated that the 3D environment of the Metaverse facilitates the effective use of engineering methods, but data security is becoming a more sensitive point and security vulnerabilities are increasing [10]. For example, it is calculated that a 20min activity with VR glasses produces approximately 2 million data points from an individual’s body language. This data includes head and hand movements, facial expressions, and behavioral characteristics related to physical and mental states. With such devices and other key technologies to be used in the Metaverse, shopping, and commerce in the Metaverse will be ensured, and this will cause the devices to collect more personal and financial data [36]. The Metaverse environment experience is developed to enable communication, trust, and exchange between users. However, it builds on location, product quality, product reviews, user information, and verification of third-party trusted data. It is predicted that data validation will be even more difficult in the Metaverse environment. Currently, there is no security and privacy legislation for the Metaverse. The personalized and augmented experiences that the Metaverse offers require the involvement of private data in terms of data collection, which users are often unaware of what kind of data they are providing. Depending on the region or the country, regulations such as GDPR to protect ownership rights and personal information are insufficient for country/region-independent virtual experiences [11, 31, 32, 37]. On the other hand, as mentioned in the previous sections, data exists as a network dependent on other data and between other data and turns into a contextualized fabric (data fabric). From this perspective, different Metaverse platforms where data will be created as social and industrial Metaverse are also defined. The industrial Metaverse is defined as an environment where human–machine-rich interactions

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will synchronize both bi-directionally and in real-time, fully simulating reality in a high-fidelity closed feedback process. The definition of simulating reality in a real-time, high-quality, closed feedback loop process is the definition of the “Digital Twin” that the industrial Metaverse will make possible. Although currently only at the conceptual stage, the industrial Metaverse is projected to represent a leap forward in terms of the digital transformation of industry or increasing the economic added value of data. As aforementioned, Gartner states that data fabric is the foundation of the modern data management platform, enabling increased data integration and sharing among heterogeneous data sources. Relying on traditional integration paradigms that involve moving data and writing code is the primary reason data scientists and data engineers spend almost 80% of their time discussing data before any analytics are performed. It is estimated that by 2024, deployments of data fabric will quadruple efficiency in data use while halving human-driven data management tasks [19, 38]. Metadata security is also covered within the scope of “Web 3.0 Security.“ Web 3.0 Security: In the early 2000s, it is stated that Web 2.0 pioneered a new era of interactive websites and web applications, and user-generated content. On the other hand, data breaches, access and authentication attacks, and social engineering have defined Web 2.0’s cyber threat risk landscape [39]. Web 3.0, which forms the infrastructure of the Metaverse, is defined as an internet version where all data is machine-readable, together with the rapid developments in AI and machine learning. Every webpage has semantic metadata that describes the meaning of the page’s elements. Thus, semantic metadata works as a linked database; search queries take advantage of machine readability to provide much more accurate and contextually informed search results. While Web 2.0 search results are based on keywords regardless of context and meaning, in Web 3.0 all web data can be presented with context and meaning analysis. As decentralization has become widespread with the effect of blockchain technologies, the definition of Web 3.0 has evolved to include this feature; In addition to the machine-readable and interpretable data, one of the fundamental principles of the new vision of the Internet has been “distributed networking.” In Web 3.0, websites and applications run on public blockchain, and users will be able to produce and control content without the need for a central gateway protector, unlike the current situation. From this point, an enviroenment with an alternative identity-based and decentralized trust understanding will form to zero trust. On the other hand, it is stated that advanced spam, social engineering, and cyber threats related to identity access and data verification will occur with malware, ransomware, and phishing methods. Relatedly, advanced spam processed with AI creates a cyber threat in terms of directing users for different purposes. Again, it is predicted that social engineering attacks will be dominating Web 3.0 as well. In addition, the concept of self-owned identity and infrastructure is developing in the Metaverse, where users can take control of their own digital identities. However, in this context, insecure authentication mechanisms can create vulnerabilities that can lead to digital identity theft. For example, cyber attackers can aggregate sensitive information about a user from

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the same identifier used for a particular user in all their interactions with a particular website or application. Another prominent threat is Web 3.0 cybersquatting, that is, illegal domain registration or use. However, in Web 3.0, cyber attacks are based on Ethereum Name Service (ENS) instead of DNS. ENS works similarly to DNS and can be registered like DNS with extensions like.eth or.nft using known brands. In this way, users or transactions performed on a different “legal” website can be directed to a complex crypto wallet address [40–42]. Avatar Hacking: Within the scope of identity and data access and verification, one of the most important cyber threats brought by the Metaverse is avatar hacking as well as identity theft. Metaverse users’ identities or accounts can be stolen and their avatars hijacked, and captured avatars can be used for cyber attacks. It is stated that one of the most common difficulties that can be encountered in the Metaverse is that the identity of users or the users or brands they interact with will always be questionable [37, 43, 44]. On the other hand, with the development of AR/VR and wearable technologies, it can be thought that the attacks experienced will have an impact on the physical layer as the increasing convergence of the physical layer and the cyber layer. For example, according to an event reported in 2022, a user’s avatar was physically attacked by other users’ avatars on a Metaverse platform where social and private events were organized, and the victim was able to feel active due to the technology used [45, 46]. In the aforementioned incident, although the victim turned off the “distance module” in the avatar controls at the request of the attackers, it can be thought that attacks against such protection modules can be carried out in avatar hacking. Thus, cyber threats can involve social engineering as well as malware attacks against avatars and digital identities. Moreover, avatars can be made to perform operations beyond the control of the person, as well as bad experiences can be felt by the person. After the incident was reported, it was revealed that more users on the same platform had similar bad experiences. It is also stated that incidents such as violence and racism are also encountered. As mentioned, although blockchain and biometricbased authentication methods are currently used, risks and threats to privacy also arise. One of the different cyber threats could be the use of deep fake technology. Avatars can be produced realistically as sound and image. Furthermore, AR/VR and 3D cameras control the position of virtual cameras with motion sensors. Cyber attackers can access all recorded images and forms of control and thus can capture all personal, biometric, and financial data. There may be situations that require much more attention for children as well as for adult users. In this context, the applicability of NFT to avatars in terms of image and sound (for example, non-fungible voice) has been one of the solutions that is considered recently [47, 48] Blockchain security and possible threats are issues that need to be evaluated separately. For example, advanced fake identity attacks (Sybil) and 51% of attacks can be performed against avatars. The details of this subject are covered within the scope of “Blockchain Security and NFT Fraud.”

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Blockchain Security and Non-Fungible Token (NFT) Fraud: Although blockchain is a technology that strengthens cybersecurity and is important in terms of cybersecurity, it is stated that blockchain-related fraud and cyber threats will largely occur in Metaverse platforms [10, 49]. Depending on the application of the technology, blockchain cyber threats may arise. In terms of participation and data access capabilities, blockchain networks can have a variety of implications. There are two types of tagging for blockchain networks; can be private or public, depending on the privileges required for membership. On the other hand, the ways in which participants gain access to the network are governed by whether the blockchain network is permissioned or unauthorized. In this regard, the five prominent cyber threats to blockchain technologies are given as; 51% attacks (attackers take the control of the system due to more than half of the cryptographic information), phishing attacks, routing attacks, blockchain endpoint vulnerabilities, and fake identity (Sybil) attacks [50]. In a fake identity attack, attackers can create a large number of fake network nodes and disrupt the transactions of the blockchain, thus performing a massive 51% attack. As the Metaverse economy is built on blockchain and NFT, it is predicted that NFT fraud will increase [10]. One of the methods in NFT fraud is the “NFT minting” process, which causes an increase in the NFT price value that is available for sale. For example, artworks that are digitally tracked and verified over the open distributed ledger Ethereum can be exchanged with copies by cybercriminals who present themselves as legal verifiers just like in the real art world [37, 51]. Likewise, as described in the “Web 3.0 Security” section, ENS-based phishing, malware or ransomware attacks can also be carried out. Cloud, Internet of Things, AR/VR, and Wearable Technologies Security: Cyber threats to technologies, infrastructure, and devices that are foundations of the Metaverse can cause great damage by using multiple cyber attack methods. In the Metaverse, 5G and beyond technologies, will create the communication infrastructure of real and virtual worlds and multiple Metaverses with software-defined networking, cloud and edge computing, IoT, and widespread network access. Therefore, methods such as Denial of Service (DoS) and Distributed Denial of Service (DDoS) attacks, which currently pose a threat to network and communication infrastructure security, will also apply to the Metaverse [31]. Metaverse works by connecting multiple technologies that increase data sharing like never before. Therefore, a large increase in the attack surface is envisioned [10] (SOCradar, 2022). Therefore, it is also necessary to emphasize that the technologies mentioned in the Metaverse will have the highest level of human interaction in order to understand the extent of cyber threats as aforementioned. Today, cloud-based systems and connected devices are used frequently in every sector and in our daily lives. It is predicted that by 2025, the data stored in the cloud will reach 100 zettabytes and the number of connected devices will reach 75 billion [3]. Connected devices increase businesses’ cyber attack risks by 300%; 5200 cyber attacks are carried out monthly on connected devices [23, 52]. Connected

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devices should be considered alongside operational technologies (OT). In cyber attacks against OTs, ransomware attacks are the ones with the highest rate, thus causing great losses [12]. Furthermore, it is predicted that by 2025, cyber attackers will be able to use OTs as weapons, causing loss of life [53]. A fundamental point that creates cyber threats is the delay in the creation of cyber security standards and legislation for these systems and devices [51]. For example in terms of the health sector, the Internet of Medical Devices is radically changing the sector, but also widening the attack surface and vulnerabilities for cybercriminals. Global healthcare cybersecurity spending is expected to reach $27 billion in 2025. In this context, cyber threats such as zero-day vulnerabilities that can remove endpoint and remote access control are emerging; which are highly complex threats to detect until the attack occurs [54]. Moreover, the Metaverse is experienced with AR/VR and wearable technologies that collect biometric and sensitive data. With the use of these devices, new methods are emerging for data leaks and malware attacks. Avatar hacking and digital identity theft can occur with location spoofing or device manipulation. On the other hand, it is thought that cyber threats will increase as access to the specified hardware and technology becomes easier and the cost decreases. From this point, one of the biggest disadvantages is that new technologies do not include cybersecurity solutions [10, 37, 45]. Lastly, there are several cyber threats emerging in terms of VR security. Identity security, the need of reliance for privacy or financial transactions, definition of responsibles and accountables in case of violations, difficulty of identity verification, no regulation in terms of privacy, advertising (ad feeds), and spam are stated among these cyber treats. Also, environments that are not user-controllable, known and privileged accounts being the target of attackers, avatar hacking, and espionage, and vulnerabilities in the access point of devices are emphasized. In terms of AR security, attention is also drawn to data integrity and physical security [37]. One of the worrying issues is stated as AR/VR and wearable technologies pose threats in cyber warfare and cyber terrorism [55].

4 Conclusion In this chapter, rather than creating a taxonomy, it is aimed to present an integrated approach and draw attention to the cybersecurity of the Metaverse by presenting the current and potential cybersecurity threats that will arise in the Metaverse. The bibliometric analysis performed on the Metaverse stated that the focus on cybersecurity was insignificant. However, when evaluated in terms of different taxonomy studies and current trends included in this chapter, it is certain that cybersecurity and privacy issues are one of the dimensions that form the foundations of the Metaverse. It is imperative that the Metaverse infrastructure is developed with an architecture in which cybersecurity and privacy dimensions are embedded. The

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fact that there are limited academic studies on this matter also shows that this field is open for improvement and further studies. In this chapter, firstly, current global trends regarding the Metaverse and cybersecurity are given. Then, explanations and evaluations about the Metaverse from a cybersecurity perspective and new cyber threats are shared. In this context, phishing attacks, malicious and ransomware attacks, metadata security, Web 3.0 security, avatar hacking, blockchain security, and NFT fraud, as well as the security of cloud, IoT, AR/VR, and wearable technologies are evaluated separately and in relation to each other. In light of all these evaluations, it has been observed that although the Metaverse is at an early stage in terms of development stages between 2021 and 2030, it is already the focus of cyber attackers and new cyber threats have emerged in addition to existing cyber attack methods. It turns out that the most critical point is still the human factor and social engineering. One of the main points that create cyber threats is the delays in the preparation of cybersecurity standards and legislation for the Metaverse. In addition to the development of advanced cybersecurity solutions, such as cybersecurity mesh for the secure use of the Metaverse, other preventions can be given as; defining the rights, responsibilities, and accountability ownerships in the Metaverse, developing legislation on these technologies, developing age-appropriate and especially standards for child protection. As well as, increasing protections against phishing attacks, malware, and ransomware, strengthening identity and verification standards, development of NFT-like solutions for synthetic content/deepfake technology, supervision of cybersecurity standards, the definition and implementation of criminal sanctions for cybercrimes, and most importantly, the awareness of cyber threats should be increased at all levels.

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Data Privacy and Security in the Metaverse Tuba Parlar

Abstract Metaverse is an abstract concept that transforms our physical world into a digital environment. As the Metaverse expands and gains widespread attention from users, privacy and security issues come to the forefront. An increase in the number of users means a large amount of personal data is being collected about users. Metaverse data includes biometric information, which consists of users’ physiological responses, facial expressions, voice tones, and vital characteristics. Artificial intelligence methods with biometric data raise concerns about data privacy and security. Limitations are required to be put on the type, amount of collected personal data, and how it will be shared with third parties. The use of wearable technologies also increases the effects of existing threats in the virtual world through new methods. Current security measures are insufficient for Metaverse applications. In this chapter, the threats and challenges faced in terms of data privacy and security in Metaverse applications are introduced, and methods developed as solutions to these fundamental problems are examined. Keywords Blockchain · Cybersecurity · Metaverse · Data privacy · Identity privacy · Security

1 Introduction In 2021, Mark Zuckerberg announced that they changed the name of Facebook to Meta, saying, “We believe that the Metaverse can enable better social experiences than anything that exists today, and we will dedicate our energy to helping achieve its potential” [1]. Considering Facebook’s history, the large amount of sensitive data collected in Metaverse raises privacy and security concerns [2]. It is thought that Metaverse will be the new version of the Internet, Internet 3.0, that is, Web 3, and it will become a 300-billion-dollar industry. To gain insights into the Metaverse, 300 developers based in the US were surveyed to understand the T. Parlar (B) Hatay Mustafa Kemal University, Antakya, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_8

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Data Privacy and Security Ecosystem Interoperability Disinformation and Hate Speech Community Building Accessible Tools for Developers Monetization Creating a Currency and Payments Ecosystem Identifying Users Lackluster Hardware

Fig. 1 The most significant challenges facing the Metaverse [3]

Metaverse opportunities for developers to build new dynamics. The survey results indicate that 33% of the participants thought that data privacy and security are the primary challenges the Metaverse must address (Fig. 1). The Metaverse combines virtual reality (VR) and augmented reality (AR) with touch-based and wearable technology to provide a transition from the real world to a much more immersive digital world. However, this also presents certain risks to the users. The Metaverse not only creates a digital replica of the real world but also enables access to virtual spaces that would be impossible to experience in reality. In providing this with the help of advanced technologies, it monitors all user interactions and records the resulting data. In many instances, Metaverse users accepting to benefit from all these smart technological devices, are exposed to risk from a data security and confidentiality standpoint, possibly while knowing that there exist some risks but not realizing to what extent [4]. The Metaverse is a digital world where users can access various applications, but due to the large amount and sensitive nature of data that is collected in this environment, it is necessary to be more cautious about possible attacks. Basic measures to protect against these attacks include user identity verifications to secure data transmission. In the digital world, requiring authentication at every stage of accessing applications is very important in terms of ensuring the integrity and therefore security of the environment. In this context, requesting passwords and authentications at regular intervals in Metaverse applications is a fundamental approach to protect against attacks. Researchers are currently working on biometric identity verification methods that utilize movements of the body, muscles, and eyes to protect data privacy and security. However, improvements in this area are not easy as studies have to proceed simultaneously at many layers, such as the accuracy of detections, speed,

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and compatibility of devices. The records of countless user activities and interactions continue to be recorded in Metaverse systems. In the Metaverse, where users have their characters and produce sensitive data, it is a much more tempting environment for cybercrimes than traditional data such as user chat content or Internet history. The cybersecurity risks posed by Metaverse technology are causing the emergence of completely new forms of cyberattacks in addition to traditional methods such as phishing, malware, and hacking. Cryptocurrency and NFTs (non-fungible tokens) are widely used and becoming targets of cyberattacks. This highlights the critical importance of data privacy and security in this universe [5]. Today, wearable technologies such as electronic devices that enhance virtual reality allow for tracking of users’ movements in the Metaverse environment and accessing a wide range of data such as physical characteristics, cultural structures, economic conditions, habits, choices, and even personal communication data. This technology can give a lot of insights about people and their preferences, but at the same time, it can also raise concerns about privacy and security. It is important to consider the ethical implications of this technology and how the data collected is used, stored, and protected. The Metaverse, which is growing with technologies such as augmented reality, artificial intelligence, and blockchain, offers a virtual reality for playing games, doing business, and socializing. The virtual economy and financial systems provided by blockchain technology have become the key elements of the Metaverse. Blockchain technology is an architecture based on a distributed ledger structure that enables us to manage user data and digital assets. Nakamoto [6] proposed the Bitcoin cryptocurrency system as a structure based on the blockchain architecture. The innovative aspect of blockchain architecture is that it maintains a distributed ledger in the Internet environment rather than a centralized structure. Blockchain technology aims to provide a robust architecture that is open to development with mechanisms such as hash functions, asymmetric encryption, and consensus algorithms [7, 8]. Blockchain can be defined as a decentralized data ledger in which data is stored in blocks and each block connects to the previous one, forming a chain structure. It can be classified into three categories as public, private, and consortium. The public blockchain architecture is a network structure where anyone can participate without any restrictions. The private blockchain architecture is a permission-based network structure where only authorized users can access the data. The consortium blockchain architecture is a blockchain network in which a specific group of nodes and stakeholders follow the process. Full consensus rules that are determined by the participants in the blockchain system are applied with consensus algorithms. These rules are a fundamental element that determines the consistency and scalability of blockchain ledger. Some measures are necessary to solve the data privacy and security issues in the Metaverse. One of the measures that can be taken in this context is creating multiple avatars. Avatars with different behavior and movement characteristics that are different from the user’s preferences hide the real avatar. Another measure that can be taken in the Metaverse is creating a temporary copy space. Users can move

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without being monitored with the invisible copies of their avatars in these special areas they have created. However, in this method, users benefit from limited use of the main Metaverse resources. When using multiple private copies of the same section simultaneously, techniques that support parallel use should be developed to avoid inconsistencies [9]. In this chapter, first, the digital world created in the Metaverse and the technologies used to exist in this world are discussed in the context of data privacy and security. Then, the measures that can be taken within the framework and the proposed new methods are explored. In conclusion, we discuss that data privacy and security will continue to be a major problem for Metaverse applications in the future.

2 Threats to Data Privacy and Security in the Metaverse The Metaverse’s features such as augmented reality, hyper-spatial-temporality, and sustainability, can create a range of data privacy and security threats. Ometov et al. [10] examined the wireless communication technologies, architectures, data processing methods, and resulting privacy and security issues used in conjunction with wearable technology. Technologies such as augmented reality (AR), virtual reality (VR), and extended reality (XR) devices, as well as the transition to 5G (fifth-generation) networks, bring different communication models, increased need for reliability, lower latency, more mobile scenarios, and stricter privacy and security requirements [11]. In the Metaverse, individuals create their avatars based on how they want to appear in the game, using personal information such as gender and age. All users in Metaverse applications can observe each other’s movements, who they are talking to, and what they are doing, while no one may be aware of being watched. Studies have shown that users tend to display their behavior in the Metaverse similar to their real-life behavior, which increases the magnitude of the danger [5, 9]. Given that the Metaverse is an InternetInternet-based structure, it is also vulnerable to attack types that apply to wired or wireless communication channels. Different network technologies carry different privacy and security risks. These threats generally involve identity privacy or data privacy. Identity privacy threats involve the attacker revealing information about the sender or receiver’s identity, while data privacy threats involve the risk of the data transmitted over the network [11]. For example, single point of failure (SPoF) is an undesirable situation in Metaverse applications that aim for high reliability. It is necessary for the end users to have no interruptions and for the error situation to be resolved in the most secure and fast way. Cloud-based systems provide convenience and cost savings for this purpose [12].

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2.1 Identity Privacy Identity privacy in the Metaverse is a significant threat as the theft of a user’s identity can affect their entire digital life, including their avatars, digital assets, and social relationships [13, 14]. Attackers can steal a user’s personal information, passwords, digital assets, and bank information obtained from a personal device and use it to gain access to a service or system in the Metaverse and commit crimes. A malicious user can also track another user and learn the real-world location. Additionally, a security-compromised virtual reality headset or glasses can be used to monitor the users’ movements [4]. The application of blockchain technology to identity management systems has been a major innovation [15]. Identity data is stored in a blockchain structure using consensus algorithms for authentication in the Metaverse. For users of various virtual world applications, it is very important to provide fast, efficient, and reliable identity verification using blockchain-based identity management systems. There is an increasing focus on the development of blockchain-based identity management systems using biometric data [7].

2.2 Data Privacy In Metaverse applications, a large amount of data collected through various devices about users is vulnerable to threats related to confidentiality, integrity, privacy, and usability. In terms of data integrity, attackers can alter, delete, or imitate the data they obtain [16]. They can tamper with log files and hide evidence. Attackers can also provide misleading messages or false information to the environment. Improperly calibrated wearable sensors can negatively impact the creation of digital twins by producing incorrect and erroneous data [17, 18]. The Metaverse is a decentralized, unlike the real world where there is no central authoritarian control. It is difficult to monitor and protect the information generated by thousands of avatars due to a lack of authority. When creating a user avatar, a large amount of data is collected, including facial expressions, eye and hand movements, speech, and various biometric features such as brain wave patterns, etc. In extended reality devices, motion sensors and cameras can monitor our environment in real time with millimetric accuracy. These devices can collect much more detailed information about the user’s location and surroundings [4]. In Metaverse applications, a high amount of sensitive personal data is transmitted through wired or wireless communication channels. These encrypted sensitive personal data become a target for attackers and can be obtained through various methods [19, 20]. In Metaverse applications, a large amount of user data is stored in a centralized structure for training of these systems. The storage of user personal data in cloud storage systems increases data privacy issues [21]. User data can be illegally obtained through attacks on cloud systems [12, 20]. In addition, in cases where support

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is required from sub-Metaverse service providers, malicious service providers can interfere with access control lists and illegally access user data [22]. One of the threats to data privacy is the creation of a similar profile related to the reality through the collection of digital footprints. Behavioral habits and preferences are recorded by tracking the user’s avatar, resulting in virtual espionage or social engineering attacks [17, 18, 23]. The privacy and security issues that are present for all systems using Internet channels also apply to Metaverse systems. Denial of Service (DoS) attacks and Distributed DoS (DDoS) attacks, which are commonly used to disable server systems, can also threaten the Metaverse environment. In DoS and DDoS attacks, a large number of service requests are sent to the server, causing the system resources to be quickly consumed and the service to be disabled. One of the commonly used methods in these types of attacks is the Sybil attack [24, 25]. Malicious nodes identify themselves as fake identities to other nodes and redirect packets. The large number of packets redirected with fake identities negatively affects network traffic. The general aim of this method is to access and interfere with the server’s operation using a large number of fake identities. The information generated by fake identities negatively affects the security and continuity of the network. These types of attacks make it difficult to operate a blockchain architecture, and also threaten data privacy [7].

3 Precautions for Data Privacy and Security in Metaverse In the Metaverse, secure and effective authentication is a fundamental element. Digital identity includes the user’s personal information, behaviors, and habits and consists of footprints in the digital world. The management of identity systems by a single central authority can lead to a single point of failure (SPoF), which creates risks for data privacy and security [13, 26]. Digital identity management is generally examined in three categories: federated identity management, user-centric identity management, and self-sovereign identity (SSI) identity management. In federated identity management, the user can access the system by authenticating in a single session without the need to open separate sessions in different domains. Federated identity management consists of an identity provider and a service provider. While the identity provider performs the user authentication process, the service provider supplies services to users in the federation. Using a single application across multiple domains not only provides user convenience as well as cost and resource savings [27]. User-centered identity management, which was developed later, is a method where users are at the center of identity processes rather than organizations or institutions. However, the main drawback of this method is that it is a system in which not only the user but also the services and applications are involved. Self-sovereign identity management is a blockchain-based system in which control and authority belong entirely to the user. The decentralized nature of the

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Fig. 2 Development of identity management systems

blockchain architecture allows users to control their own data without the involvement of third parties. This architecture also requires a three-step handshake mechanism: opening a session, verifying the request, and responding [28]. The use of self-sovereign identity management with blockchain architecture is a secure system suitable for the Metaverse structure. In Fig. 2, the evolution of identity management systems is illustrated in terms of data privacy and security over time [7]. In recent years, many researchers have been examining the privacy and security risks associated with wearable technologies, especially with the developments in next-generation wireless networks. The risks associated with constantly collected data by wearable technologies are an area of significant concern [10, 29, 30]. Datta et al. [30] state that smart wearable technological devices contain built-in sensors that provide information about the location, physical activity, and mental health. The embedded sensors in wearable technologies should be able to use personal information about users within the framework of a privacy policy. The General Data Protection Regulation (GDPR) provides a law that aims to protect the privacy of European Union citizens and data security in European Union member countries. GDPR aims to protect users’ basic identity information such as name, address, identity numbers, and private data such as location, IP addresses, cookie data, biometric data, ethnicity data, political opinion data, sexual orientation, health, and genetic data [31]. Recently, researchers are working on effective identification methods that match user’s physiological signals such as ECG (electrocardiography) or PPG (photoplethysmography) with biometric data such as posture, walking, etc. from wearable technology [32–34]. Chen et al. [32] achieved an accuracy of 91% in securely matching a key obtained by a method that creates a real-time key based on users’ movements. There are significant privacy and security risks that occur during device-to-deviceD2D communication of technologies in different domains [35–37]. Shen et al. [36] proposed a Blockchain-Assisted Secure Authentication (BASA) mechanism between different Industrial Internet of Things (IIoT) domains. The BASA mechanism allows a device to be authenticated by devices in different domains without revealing its

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identity information. Chen et al. [38] also proposed a blockchain-based solution to the authentication problem between different domains. Their proposed XAuth system is developed to protect the user’s privacy, composed of three layers: storage, control, and application layer, and uses zero-knowledge proof algorithm. Both research groups have proven the success of the systems they have developed through security analysis. Liu et al. [39] proposed a method that provides spatial and temporal sensitive MinHash-based authentication and access control for wearable devices used to collect biomedical data and proved its accuracy in protecting privacy through GNY [40] logic-based security formal analysis. Digital twins are widely used for the Internet of Things (IoT) or industrial IoT (IIoT) to evaluate the behavior and security of many critical infrastructures. With the use of digital twins, multiple digital scenarios of systems or products can be seen and possible problems or security risks for each scenario can be identified and prevented with necessary measures. Gehrman and Gunnarsson [41] proposed a digital twinbased model to enhance security in industrial automation and control systems. Their proposed digital twin-based security architecture model has achieved very successful results while keeping industrial automation and control systems open to external data sharing and access. Numerous studies have examined that the use of digital twins in conjunction with blockchain architecture has gained critical importance in protecting systems for data privacy and security, especially in industrial environments [17, 18, 23, 42]. Suhail et al. [18] recorded the data obtained from reliable sources by utilizing digital twins in a blockchain architecture to monitor, analyze, and optimize the process. Augmented reality applications combine the real world and the virtual world by enriching real-world locations and objects with digitally created text, graphics, sound, and location information. One of the best examples of augmented reality applications is the game Pokemon Go [43]. This application places non-existent objects in the real world as three-dimensional, animated renderings. Augmented reality applications can be used on a wide range of devices including smartphones continue to spread rapidly, concerns about data privacy also increase [44, 45]. In augmented reality applications, it is possible to access information about the user’s real location, physical behavior and movements, and habits which brings along various security risks. Shang et al. [46] showed that the user’s location can be easily learned and tracked in an augmented reality application, and also the network traffic can be listened.

4 Conclusion and Discussion In the Metaverse, it is becoming increasingly important to have the infrastructure and technology that ensure data privacy and security. Today, privacy and security principles shape Metaverse applications. The ability of wearable technologies to collect audio and visual data can violate the privacy of users and those around them. Therefore, the importance of infrastructure technologies is increasing day by day.

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In the Metaverse, highly sensitive data such as digital footprints of users and users’ real identity, location, habits, behaviors, and biometric and financial data can be collected. A large amount of sensitive data is a target of third parties and attackers. While benefiting from the smart technologies that come with Metaverse applications, data privacy, and security problems are encountered that cannot even be predicted. For this reason, artificial intelligence algorithms and infrastructure technologies are becoming more and more important in the Metaverse. Metaverse applications use large amounts of sensitive data collected from users to train their AI-powered models. The success of creating objects within the applications depends on the realworld data used. It is very important to ensure the security of sensitive data obtained by augmented and virtual reality technologies. Blockchain technologies give users the ability to control their identity and data much more effectively and efficiently against third parties. Although the audit mechanism in blockchain-distributed ledgers supports zeroknowledge data privacy and security, the threat still remains. Users’ ability to switch between different scenes and interaction modes within heterogeneous Metaverse applications creates challenges in terms of rapid service authorization and compatibility controls. Countries are working on legal regulations in this regard. The problem of data privacy and security in the Metaverse is seen as the biggest problem today and will continue to be in the future, and the increasing variety of applications makes the issue more popular.

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Non-fungible Tokens (NFT), Virtual Real Estate and Digital Assets, Cultural and Artistic Works Sebnem Ozdemir

Abstract Working mainly on the Ethereum blockchain, Non-Fungible Tokens (NFTs) are, in their simplest form, digital certificates with unique code and metadata belonging to digital assets. NFTs can be used, traded, gained, or lost in value. Most audiovisual artifacts such as images, sounds, games, videos, digital artworks, and even digital posts (for example, tweets) can be NFT. NFT is not a currency like cryptocurrencies, as the name suggests, they are non-fungible. Any currency (for example, dollar or bitcoin) is the same everywhere in the world (Bitcoin which is belonged to a Bitcoin owner in Turkey, and Bitcoin which is belonged to a Bitcoin owner in America are the same). However, NFTs are digital representations of the asset they represent and are unique. It is often discussed whether NFT is a temporary trend or a new technology that will revolutionize art, culture, and intellectual property rights. Along with these discussions, it is a fact that the NFT market has grown exponentially. NFTs improve the marketing processes of cultural and artistic works, make them more accessible, may eliminate intermediaries, and facilitate traceability. In this study, the development, features, and ecosystem of NFTs, which are becoming popular day by day and an important element of Web 3.0, are examined in detail and tried to provide the reader with a holistic and objective perspective on NFTs. Keywords Non-fungible token · NFT · Virtual real estates · Digital assets · Digital art and culture

1 Introduction For centuries, human beings have been interested in “things” that can be possessed or collected. This desire underlies the existence of museums, exhibitions, auction houses, art, and antique markets, and of course, collectors. Mankind collects, keeps, and stores. The desire to have what is valuable (or what is expected to be valued in the future) is a strong emotion. Many people in the S. Ozdemir (B) Sivas Cumhuriyet University, Sivas, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_9

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world collect certain “things” (although this may seem counterintuitive to many other people). These may include money (numismatics), stamps, cartoon characters, basketball cards, trinkets, Barbie dolls, tin cans, watches, pens, and just about anything imaginable (provided it can be stored). Artworks or antiques are the most common and the most valuable material among all these collections. NFTs, translated as “Non-Fungible Token” or “Qualified Intellectual Deed” in Turkish, are also assets that can be traded, and available for collection, but that can be presented in digital formats, unlike other real collectible materials. At this point, it will be useful to explain the concepts of fungibility and non-fungibility. The fact that an asset is fungible means that it can be easy to be exchanged or traded for something else of the same type and value [1]. For example, a 10 TL banknote can be exchanged for 10 1-TL banknotes. Or a 1 dollar bill can be converted into Turkish Lira according to the real exchange rate. Similarly, a bar of gold or 1 unit of Bitcoin can be converted into any fiat currency. The following example can be given to explain the non-fungibility: Gold bullion is a tradable asset. But a wrought gold necklace is not a tradable asset. Because it is processed (it has workmanship), it may have a brand value or its price may change depending on the environment in which it is offered for sale. Most importantly, while a gold bar can be exchanged for another gold bar or for money, it is not possible to replace the gold necklace with another gold necklace. Similar to this example; it is not possible to exchange a Picasso painting for a Monet painting, or even to exchange it for another Picasso painting. Just like NFTs. Although NFTs cause controversies, especially on their environmental impact (high carbon footprint), money laundering issues, industrial and property rights, taxation, and so on, it is a fact that NFTs have created a huge digital economy. The aim of this study is to provide a general and systematic framework to help people and researchers who want to progress in NFTs quickly understand the progress in this field.

2 NFT: Yesterday, Today (and Tomorrow) NFTs, whose original concept dates back to 2014, are a “unique” and “immutable” unit of data held in a blockchain. Each NFT has a unique identifier, which gives information about the ownership history of the NFT. This data of NFT is visible to every user on the chain. NFTs can be any digital asset. All kinds of collectible digital assets such as sound, music, video, picture, avatar, tickets, sports cards, domain names, etc., can be turned into NFTs (see the figures below). However, not every digital file can be NFT; NFTs must meet a certain standard. For example, Pearson Publishing House has decided to start NFT book sales because digital books have gained popularity, especially among students recently [2]. As seen in this example, it is possible to convert any digital asset to NFT, provided that it meets the standard.

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The first NFT was created on May 3, 2014, by Kevin McCoy minting an unalterable coin called “Quantum,” an octagonal shape with red and blue [3]. NFTs, the first examples of which began to appear under the ERC721 standard on the Ethereum blockchain in 2017, started to be traded with different standards (such as ERC998, ERC1155, Flow-NFT, FA2 (TZIP-12)) in the following years [4]. NFTs became more widely known in 2017 when CrypotKitties, a digital game built on the Ethereum blockchain, was blamed for jamming the Ethereum network and increasing gas prices [3] (Figs. 1 and 2). Cryptocurrencies (such as Bitcoin, Ethereum, or Avax) are the same everywhere in the world (Bitcoin in the hands of a Bitcoin owner in Turkey and Bitcoin in the hands of a Bitcoin owner in America have the same value) and can be exchanged (fungible). However, NFTs cannot be fungible. They are unique, just like works of art. It is also possible to combine an NFT with other NFTs and thus produce a new NFT. It would not be wrong to say that NFTs are valuable because they are unique. It is possible to explain this argument as follows: Leonardo da Vinci’s painting Salvador Mundi is the most valuable painting ever sold at auction, with a value of 450 million dollars [6]. It is possible to find a reproduction of this painting painted by expert painters for around $200 [7], and thousands of reproductions of this painting are sold worldwide each year. This enormous difference between the prices of these reproductions, which are almost identical to the original, and the original painting,

Fig. 1 Artist Pol Lombarte sold his heartbeats as NFT [5]

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Fig. 2 NFT assets [3]

is due to the fact that the original painting is the only one and belongs to a single person. Just like in this example, NFTs are original and unique. Although they can be reproduced like art reproductions (digital commodities can be easily reproduced much faster than physical commodities, by copy-paste method or screenshot), the owner of the original NFT is known and this ownership is witnessed by all users on the blockchain; just like cryptocurrencies (Bitcoin, Ethereum, Avax, etc.). When talking about crypto assets, it may be necessary to distinguish between cryptocurrencies (coins) and tokens. Cryptocurrencies have independent blockchains, while tokens do not have their own blockchain, they benefit from the blockchain technology on which they are traded [8]. In this sense, NFTs are considered tokens.

3 NFT Production Many things that are in digital format can be NFT. These include digital drawings, pictures, photographs, and illustrations. In addition to such digital assets, gifs, videos, sounds, 3D models, tweets, texts (poetry, stories, books), game contents, domain names, game characters, digital event tickets, and similar formats can also be NFT. An NFT should have [9]:

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Main content Name Preview content Description Traits Unlockable content Perks Ongoing royalty Supply External link

To create an NFT, first, it is necessary to create digital content (like a tweet, a digital picture, a video, etc.). The size of the content matters, because the content size should be large enough that there is no loss of resolution when the content is enlarged, however, it should be smaller than the maximum size allowed by the marketplace where the content will be sold. After the content is created, the NFT needs to be given a name. If the NFT is relatively long and detailed content (like a video file), it may be necessary to make previewable content (like a gif) that gives an idea of the NFT. In order for potential buyers to have a more detailed idea of the NFT, it would be useful to provide an explanation of the NFT and its properties (Fig. 3). Unlockable content is content that only the NFT owner can access. For this, the NFT can be password protected so that no one but the password owner can access

Fig. 3 Butterfly sunset queens NFT [10]

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Fig. 4 Starbucks NFT news [12]

the NFT. Perks, on the other hand, are a form of promotion. For example, Starbucks mentioned the perks it will provide to potential buyers in its statement about its new NFT collection [11] (Fig. 4): “Here we plan to take a progressive approach, willing to act fast, experiment, learn and collaborate. We plan to launch our first NFT collection based on coffee art and storytelling later this year. The collection will come with a set of unique experiences and privileges worthy of a genesis NFT collection from Starbucks. And this first collection will form the core digital community and backbone that we hope to build future collections and collaborations from – all built on the same new ecosystem.”

Similarly, The Merge, the most expensive NFT ever sold, promised a surprise for NFT collectors when it reached an audience of 250,000 [13] (Fig. 5). Ongoing royalties provide NFT creators with a commission on every related sale. The NFT creator can use this option at will, however, if the royalty rate is too high, the price of the NFT may become uncompetitive for potential NFT buyers. NFT royalty can typically range between 5 and 10%, and in most NFT marketplaces the creator can choose the royalty percentage; payments are made automatically on each subsequent sale on the secondary market [15]. If we look at the supply characteristic of NFTs; rarity is always valuable, and if it’s an NFT, that supply should be only “1”. Finally, to mention the external link feature of NFTs; an external link (optionally) can be provided where a particular NFT can be viewed in more detail. For example, more detailed information, stories, features, etc., to be conveyed to potential buyers about the NFT in question. If so, such details may be included on a separate web page.

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Fig. 5 Murat Pak’s tweet “The Merge” [14]

3.1 Value of NFT and NFT Ecosystem The NFT ecosystem is a multi-layered ecosystem; a large ecosystem with artists, producers, investors, marketplaces, educators, hardware and software providers, and many more. The NFT ecosystem should not be evaluated only by the number of NFTs bought and sold (as of June 15, 2022, the total number of sales recorded for only 30 days on the Ethereum, Ronin, and Flow blockchains was 20.4 thousand [16]) (Fig. 6). Infrastructure: Blockchain protocols used to restore and transfer NFTs. Gaming: Games using the NFT standard. These include role-playing strategy games, trading card games, or any fun-based gaming experience incorporating NFTs. Metaverse: Parallel digital universes which offer a set of unique experiences to users. Arts and music: Projects featuring famous artists or musicians to generate digital masterpieces. Sports: This features personalities from the world of sports most often connected with real-world players and teams such as Formula 1 teams, football clubs, basketball teams, etc. Collectibles: Project whose primary function is to issue collectible items intended to be collected.

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Fig. 6 NFT ecosystem [17]

Marketplace: Platforms to buy, sell, and auction NFT. Domains: It consists of unique domain names created on the blockchain. Others: NFT Wallet, NFT Defi, NFT-focused fund, and NFT News and Analytics [17]. It would not be wrong to treat NFTs as “collectibles”. As it is known, “rare is valuable”. For this reason, the material value of a work or collection is directly related to its rarity. However, something rare doesn’t always mean that it’s valuable, though [9]. Fortnow and Terry list the factors that affect the value of (traditional) collectibles as follows (pp. 51–52): Proof of Provenance: Provenance relates to the origin of an item. When referring to collectibles, provenance is a record of ownership used as a guide to authenticity or quality. With respect to art, provenance is the documented chain of title from the current owner all the way back to the artist. Historical Significance: The time period in which a collectible was created, or the historical story leading up to its creation, can impact the price of the collectible. Sentiment: The emotional connection between collector and collectible cannot be downplayed either. the collector may pay much higher than the normal value of the artifact. Condition: Obviously, the condition of a collectible matters. collectibles of all kinds are analyzed and graded for their wear and tear. Collection Completion: Owning the entire set or variations of a collectible also plays into the price. The rarer the collectible, the harder it is to complete the set. Therefore, acquiring an entire set of a collectible increases the value of the individual parts. In other words, it makes the collectibles more marketable.

The above points may also apply more or less when it comes to the value of NFTs. However, from a valuation point of view, there are aspects where NFTs are

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more advantageous than traditional works of art. First of all, since NFTs exist on the blockchain, the origin of the work, the original creator of the work and its historical background are completely transparent and accessible. It is very easy to determine who created the work, whether it is original, and who has bought and sold it in the past. In addition, it is very easy to follow the copyrights of the work and the creator of the work to benefit from the copyrights of the work. In the case of NFTs—unlike traditional works of art—it is not possible for the work to wear out, corrode, or be damaged because the work is digital. In addition, the work can easily change hands in seconds. There is no need for long procedures for the work to reach its new owner. It is not possible for the work to be lost; however, the work can be removed by the author on the blockchain. It is not possible to steal or forge the work, and there is no need for an expert opinion on the originality of the work. There are also negative factors that affect the cost and value of NFTs. The first of these is gas fees. Gas fees go to miners (validators) who process transactions on the blockchain network [9], and gas fees depend on the power required to process the transaction and the volume of the network where the transaction takes place (Figs. 7 and 8). Fig. 7 NFT gas fees [18]

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Fig. 8 NFT trade volumes [19]

4 NFT Marketplaces and NFT Trading NFT Marketplaces are a kind of digital art gallery where NFTs are bought and sold, and they are one of the most important factors that make up the NFT ecosystem. The largest of the NFT marketplaces is OpenSea, which was founded on December 20, 2017. OpenSea currently has more than 80 million NFTs, and more than 2 million collections, and OpenSea has reached a volume exceeding 20 billion dollars [5]. OpenSea, a digital gallery, and marketplace, charges buyers a 2.50% commission fee on all transactions and also empowers sellers to charge a set fee for each of their sales [20]. The closest marketplace to OpenSea in terms of the number of users is Rarible. Founded in 2020, Rarible also charges a 2.50% platform service fee like OpenSea. Rarible, unlike OpenSea, also has the unique feature of being operated as a decentralized autonomous organization (DAO); which means that the market is owned and managed by its community. Rarible has its own token (RARI).

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Fig. 9 NFT marketplaces [17]

Foundation, one of the largest NFT marketplaces in terms of market share, is an art-focused marketplace established in 2021. The foundation recruits new users mostly by invitation. Creators at Foundation are charged a 15% fee when their artwork is first sold, while creators receive a permanent 10% royalty on secondary sales [20]. NFT buyers do not pay any fees for the transaction. AtomicMarket is a shared liquidity (shared liquidity means that everything which is listed on one market also shows on all other markets) NFT market smart contract which is used by multiple websites to provide users with the best possible experience [21] (Fig. 9). Since NFTs are located on a blockchain, trading of NFTs can also be done on the blockchain and using crypto money. Cryptocurrency wallets are needed for such trading. There is a lot of software that provides cryptocurrency wallet services. The most well known of these are wallets such as Metamask, Coinbase, Math Wallet, Alpha Wallet, and Trust Wallet. However, unlike physical wallets, purchased NFT is not stored in these wallets. Crypto wallets are a kind of key and give the wallet owner access to their assets on the blockchain. To purchase NFT from NFT marketplaces, the crypto wallet is connected to the NFT marketplace. Purchasing and selling transactions can be done easily after this process. It is also possible to secure NFTs (and other crypto assets) offline. Hardware wallets called “cold wallets” (such as Ledger, Trezor, Keystone, etc.) secure crypto assets offline (Fig. 10). As with physical artworks, NFTs can be created by anyone. However, personal tastes, subjective opinions, and demand are the main determinants of NFT’s value, just as with physical artworks. As of 2022, the most expensive NFT ever sold is Murat Pak’s The Merge. The Merge NFT project has sold over a quarter of a million NFTs, with each NFT ranging in price from $400 to $525, with a total gross of $91.8 million [13, 23] (Fig. 11).

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Fig. 10 Ledger cold wallet [22]

Fig. 11 The Merge NFT [13]

While some NFTs are distributed for free or sold very very cheaply, some NFTs can find buyers for millions of dollars [24]. ● CryptoPunks: A collection of pixelated portraits originally provided for free. ● Beeple: Mike Winkelman, best-selling NFT artist known as Beeple, sold some of his tracks for tens of millions of dollars.

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● Pak Pak (formerly Murat Pak): anonymous digital artist (possibly a team) who created the most expensive NFT ever sold. ● Bored Ape Yacht Club: Portraits and virtual worlds of cartoon monkeys. ● Axie Infinity: The best NFT video game featuring fantasy creatures and items sold as NFTs. ● Crypto Baristas: Cartoon characters drinking coffee whose sales finance a real-life cafe (Figs. 12, 13 and 14).

Fig. 12 CryptoPunks collection [5]

Fig. 13 Beeple collection [5]

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Fig. 14 Bored Ape Yacht club collection [5]

4.1 The Future of NFTs Like blockchain technologies, Web 3.0, Metaverse, etc., NFTs are a hot topic, especially in the last few years. While these technologies and products are “future technologies” for some people, they are a “Ponzi System”, a “balloon”, and a “trend” for others. For example, Bill Gates, one of the richest people in the world, states that he invests in assets that produce tangible products such as farms and factories, and finds NFTs and crypto assets absurd (see the Figure below) (Fig. 15). Although many people like Bill Gates find NFTs illogical, it is also a fact that NFTs are gaining increasing popularity and creating a serious ecosystem, especially in the field of digital art. Most galleries and auction houses are aware of the growing interest in NFTs and therefore have a positive attitude toward NFTs. Top art and auction houses like Sotheby’s and Christie’s sold $230 million in NFTs in 2021 alone (with gross revenues of over $14 billion) [26]. Many art and auction houses, especially Sotheby’s and Christie’s, are working on NFTs. For example, Christie’s has created a web page on NFT called NFT 101 [27] and a 5-day course. Sotheby’s and many other auction houses also create NFT content. In this way, they serve the purpose of both maintaining their awareness in the art market by making a place for themselves in the NFT market, getting a share of the cake, and being among the market makers. As with blockchain technologies and cryptocurrencies, there are still many gray areas in NFTs, such as taxation, money laundering, illegal transactions, copyrights, securities regulations, and so on. In fact, all these legal and regulatory gaps exist not only for digital assets such as NFTs but also for physical assets, but since NFTs are a much more up-to-date and new concept than physical assets, there are already more legal gaps in NFTs. For example, the art trade is a frequently used method of money laundering. Because the amount of money that changes hands in the art trade and the

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Fig. 15 Bill Gates TCClimate speech [25]

identity of the person who bought the work remain anonymous, making art a very convenient tool for money laundering. Just like physical works of art, there can be anonymity in trading NFTs. Unlike physical works of art, the fact that money transfer is made with crypto money and there is no need for physical shipment of the work makes NFT trading a convenient way to launder money. However, just like other money laundering regulations (such as AMLA, FATF, and 5AMLD), various regulations are being worked on for NFTs. Similarly, taxation of NFT trading, protection of industrial and intellectual property rights, trading like other securities, and similar legal regulations are expected to come into force soon.

5 Conclusion More and more players are entering the NFT market, which is a growing market day by day, and the market size is increasing exponentially. Especially artistic content, avatars, game, and sports NFTs seem to be more dominant in the NFT market. NFT can be, in a sense, the easiest way to belong to a community or own a work of art. NTFs make it possible to own a work of art, trade a wide range of assets from very cheap to very expensive, and join a gaming or sports club (relatively effortlessly) without going to a physical auction. It promises decentralized, more effortless, and

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perhaps the freest trade than physical trade, not only for buyers or collectors, but also for artists, producers, and musicians, that is, for every user in the ecosystem. It is currently very difficult to make a precise prediction about the future of NFTs. However, it is a fact that NFTs have a serious and constantly growing market. When it comes to any good or service, it is very difficult to predict the value and price (especially if it is a new technology, product, or service). However, “the price of a good is determined in the market.” The fact that NFTs also have a growing market and that countries and institutions work on regulatory laws seems promising for the future of NFTs.

References 1. Cambridge Dictionary.: Fungible. https://dictionary.cambridge.org/tr (2022) 2. The Verge.: Textbook publisher: NFTs will let us squeeze even more money out of students. https://www.theverge.com (2022) 3. PwC.: Non-Fungible Tokens (NFTs): Legal, tax and accounting considerations you need to know. PricewaterhouseCoopers Limited (2022) 4. NFT STARS.: What are NFT standards and how to choose one? https://docs.nftstars.app (2022) 5. OpenSea. https://opensea.io (2022) 6. Invaluable.: 31 of the Most Expensive Paintings Ever Sold at Auction. https://www.invaluable. com/blog (2019) 7. Handmadepiece.: Christ Salvador Mundi. https://www.handmadepiece.com (2022) 8. Ledger.: Ledger Cold Wallet. https://www.ledger.com/tr (2022) 9. Fortnow, M., Terry, Q.: The NFT Handbook. JohnWiley & Sons, Inc., New Jersey (2022) 10. 5A8EBA.: Butterfly Sunset Queens. https://opensea.io (2022) 11. Starbucks.: We’re creating the digital Third Place. https://stories.starbucks.com (2022) 12. Geekwire.: Starbucks will sell NFTs that enable exclusive experiences and perks for customers. https://www.geekwire.com (2022) 13. Sharma, R.: Pak’s Merge NFTs Sales Cross Quarter Million. https://www.cryptotimes.io (2022) 14. @muratpak.: Something will appear when the mass reaches 250k. https://twitter.com/muratpak/ status/1466847335200219138 (2021) 15. Thune, K.: What Are NFT Royalties & How Do They Work? https://seekingalpha.com (2022) 16. Statista.: Total number of sales involving a non-fungible token (NFT) in the art segment worldwide over the previous 30 days from April 15, 2021 to June 15, 2022, by type. https://www.sta tista.com (2022) 17. Kyros Ventures.: NFT Market Report 2021. https://blog.kyros.ventures/ (2021) 18. NFT Artwork.: Speed up Metamask and Reduce Gas Fees. https://nftartwork.co.uk (2021) 19. Frederick, R.: NFTs 101: Taxes, Risks, and More. https://www.schwab.com (2021) 20. NFT Tech.: A Deep-Dive on NFT Marketplaces. nfttech.com: https://www.nfttech.com (2021) 21. AtomicMarket.: What is Atomic Market? https://atomicmarket.io (2022) 22. Ledger.: Ledger Cold Wallet. Ledger. https://www.ledger.com/tr (2022) 23. Patairya, D.: Life-changing money: the 10 most expensive NFTs sold to date. https://cointeleg raph.com (2022) 24. Rossolillo, N.: Investing in NFT Art. https://www.fool.com (2022) 25. TechCrunch.: Bill Gates tells us what he really thinks of Bored Apes https://twitter.com/Tec hCrunch/status/1536827913852465152?ref_src=twsrc%5Etfw (2022) 26. McAndrew, C.: The Art Market 2022. Schweiz Art Basel and UBS (2022) 27. Christie’s.: NFT 101. https://www.christies.com (2022)

Consumer Behavior, Marketing Approach, Branding, Advertising, and New Opportunities in the Metaverse Areas Kursad Ozkaynar

Abstract Metaverse areas, which have started to enter our lives since 2015, have not become widespread because they have first taken their place in the digital world with only a few start-ups. However, towards the end of 2021, Facebook changed its name and renewed its brand as Meta, and it has gained a place in technology news and the world agenda. Metaverses are not yet as widely used as the internet. However, it has had many advantages over the periods when the internet began to spread. For example, the technologies related to the Metaverse areas are already being used and developed daily. In addition, humanity has accumulated internet culture over the last 40 years. The contributions of this culture to humanity and its positive and negative effects will guide the use of Metaverse areas. Trade and its sub-branches cannot be considered independent of technology. As technological developments have been achieved, progress has been made in trade and naturally in the discipline of marketing, advertising, and other studies. Business sciences can be counted among the social sciences that adapt to technology the fastest. For this reason, the study focuses on the impact of Metaverse fields and connected technologies on business sciences in the future. The main issues that the study addresses are how the understanding of marketing will evolve, the direction of branding studies, and advertising strategies in new media. Although the Metaverse concept belongs to 1992, it is still a new field. Since it is not widespread, not much data or case studies can be analyzed, especially in social sciences. For this reason, the study has been considered an exploratory study that reveals the dimensions of the Metaverse phenomenon in business sciences. In this sense, it is thought that it will contribute to the academic literature. Keywords Metaverse · Consumer behavior · Marketing · Brand · Advertising

K. Ozkaynar (B) Sivas Cumhuriyet University, Sivas, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_10

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1 Introduction The Metaverse is an old, new field with its presence as the concept was introduced. This situation brings with it opportunities and threats in many areas. Especially in practice, it is not easy to establish the infrastructure of a newly started phenomenon in the academic literature. If the subject is closer to the limits of the technical sciences, this difficulty increases for the social sciences. Past experiences, especially with the invention of the Internet, have shown that innovations in information and communication technologies deeply affect social sciences as well as technical sciences and fields. From the first days of the Internet to the present day, the established and common internet culture of the whole world and humanity has been formed. For example, in today’s social sciences literature, many topics include the advantages, disadvantages, and social effects of the Internet, the changes it causes on the economy, its contributions to working life, electronic commerce, digital addiction, and sociopsychological models that have become rich. Of course, there is still work on the Internet and steps to be taken. However, since technology is not in a fixed structure and is constantly advancing, the Internet has also developed and began to evolve in 1992, as Neal Stephenson imagined. In short, the Metaverse, which is tried to be described or expressed as the three-dimensional version of the Internet, is much more than this simple definition. Because new individual and social changes will be brought by new technologies that are likely to be added to all the possibilities of the Internet are waiting for us. In the study, consumer habits and behaviors are expected to change accordingly to these personal and social changes. Marketing understandings of enterprises are expected to position themselves according to the consumer. These changes may occur in branding and advertising issues, and, of course, new business areas and opportunities that all these may bring are discussed.

2 Metaverse Almost every research starts with the conceptual framework. Because determining which concept expresses what in a study is a guide for other researchers. The Metaverse expression, whose invention is old as a word and conceptually new, needs to be defined, and if this is not possible, at least its limits must be determined. In the social sciences, many concepts are not expressed in a single agreed-upon definition. Such a situation is unnecessary and is often cited as a wealth of social sciences. A similar situation applies to the concept of the Metaverse. Although it is described as a threedimensional internet for easy explanation, it was stated above that this expression still needs to meet fully. This is because there are fundamental differences between the Metaverse and the Internet. The most crucial difference is that while there is a discrete life on the Internet, life in the Metaverse is continuous. Ball [1] states that the Metaverse stands out with its feature that “does not reset,” “does not pause,” or “does not end”; it only continues indefinitely. In the Metaverse,

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as in the Internet, the areas belonging to individuals or businesses are increasing daily. This shows that the Metaverse as a single common area is impossible and structured as Metaverse areas. The Internet has also been imagined as a single domain in common, but individuals and businesses have formed their own “pages” or “sites” over time. The pages in question are linked together by various protocols. It is foreseen that a similar structure will be for Metaverse areas and that all Metaverse areas will interact with each other over time. As can be seen from this situation, the Metaverse and Metaverse fields are different expressions. Today, it is seen that this sensitivity needs to be paid attention to in many scientific studies; only the concept of Metaverse is used. In the figure below, the differences between the Internet structure and the Metaverse structure are partially shown. As seen in Fig. 1, in today’s internet world, the companies’ infrastructures that provide domain and hosting services to the sites are compatible. The domain and hosting service received from a service company can be transferred to another company in the following periods. The information on the websites works in harmony with each other. If the information on one site is found on another, it continues to work similarly. However, as seen in Fig. 2, it is difficult to say this for those who are Metaverse today.

Fig. 1 Network structuring of the Internet

Fig. 2 Network structuring of several metaverse areas today

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Two sample companies have been taken here. These companies currently offer the infrastructure service of the Metaverse areas. The main problems here are; first, it is still being determined which technological rules the companies hosted in the company will communicate with each other. For example, it is currently being determined whether a person who buys products from company A in Decetraland can evaluate them in company B. Likewise, it is still being determined whether a person who buys a product/service within Decetraland or an item in a game can use it in companies hosted by Cryptokitties. These and many other problems are currently waiting for answers. It is impossible to talk about a single Metaverse because the unity mentioned above and the unity of action according to the same rules cannot be achieved in the same environment. As can be seen in the figure, Metaverse areas can be mentioned. Making this distinction is an essential step for studying inter-field cooperation issues and resolving problems. The issue will only be solved once the marketing and selling of products or services by companies are limited for the time being, and a few technology enthusiasts will be able to go beyond the actions of consumers. In the next step, the lack or lack of business potential will push businesses to stay away from the subject and wait to form the necessary technologies, internet, and network rules.

3 Metaverse and Businesses Although the Metaverse is a new field for businesses, it is expected that digital marketing rules will be valid on this platform as it will be the evolution of the internet. The rules in question will change, evolve and update themselves to the characteristics of the Metaverse areas. Therefore, it is helpful to examine the phenomena of digital marketing that are expected to change and are not expected to change.

3.1 Digital Marketing in Metaverse Areas Ryan [2] states that marketing is constantly evolving and that there are problems caused by misunderstanding technological developments when they begin to mature. For this reason, he states that having a basic understanding of the past will help to understand the present and shed light on the future. Schmidt and Cohen [3] talk about the importance of technology today and give the example of even the poorest societies being dependent on technology. Ryan [2] draws attention to the ability of technology to create brand-new markets and radically renew existing markets in this process. The situation of even these societies in terms of technology and communication has naturally led businesses to digital marketing has developed in parallel with the development of the internet, and digital marketing has emerged. Çelik [4] treats digital marketing as making brands’ promotional activities

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more effective and comprehensive by using digital technologies on the internet and providing interaction with large masses. With the development of the Internet, digital marketing techniques have also developed at an increasing rate. Thanks to the increase in Metaverse areas, it is predicted that digital marketing will both change and increase in volume. Myers [5] states that with the Metaverse, the boundaries between the virtual and real world are becoming increasingly blurred, and people will begin to spend more time in these areas. Generation Z, in particular, states that businesses that want to stay connected with consumers have started to shift their digital marketing strategies to Metaverse domains and metadata. Although Generation Z is still young and has limited purchasing power, it predicts that their purchasing power will increase over time, and they will communicate more than in real life for social interaction in the Metaverse areas. Goodwin [6] who thinks that the volume of digital marketing will gradually increase in the Metaverse areas, also supports his prediction with the increasing figures in the VR market. Accordingly, it states that the revenue from the global VR industry will be more than $ 12.19 billion by 2024. As it is known, VR and AR technologies are the pioneering technologies for the Metaverse areas today and are the beginning of three-dimensional experiences. The use of these technologies and the increase in trade volume will affect digital marketing in a parallel direction. Twelverays [7] has collected the steps in affecting digital marketing processes under 12 headings. Accordingly, – The Metaverse will change the way marketing agencies meet customers, – It will provide the opportunity to reach younger people, – Outdoor advertisements such as billboards will take their place on digital platforms, – Businesses will be able to be there as soon as the user experiences the experience, – “Storytelling”, which is the basis of marketing, will develop by integrating with experience, – Metadata will gain importance after big data, – Marketing strategies will be revised according to the characteristics of the Metaverse areas, – Digital marketing teams will also have to have a presence in the Metaverse areas, – NFTs will open up new marketing opportunities, – Social media marketing will lose its importance, – Digital marketing teams will compete fiercely to dominate the new field, – Marketing forms will emerge due to new technologies. In an area where digital marketing techniques and methods will change so radically, consumer behaviors are expected to change naturally.

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3.2 Consumer Behavior in Metaverse Areas Ryan [2] draws on data from analysts at the Jupiter Research Company to explain seven primary forms of the proliferation of technology use on consumer behavior. These; include mutual connection, similar technology for everyone, increasing importance filtering, niche integration, the progress of micro-publishing, the increase of producer-consumers, and the removal of borders. With the Internet’s development, consumers’ interaction among themselves has also increased. Consumers who share their satisfaction, complaints, or experiences about the products and services they use have been the primary sources of information for other consumers. It is anticipated that interconnections will increase further in the Metaverse areas. With the help of technologies such as VR or Ar, consumers who increase their mutual connection and interaction will have the chance to see their experience or product features by applying, live and living. The issue of technology being equal for heroes or bringing equal opportunities is open to debate. Because the Internet, which is supposed to bring democracy, transparency, and equality, has not been able to achieve these, some countries have not been able to handle the costs of technology. However, when we consider the Metaverse areas, it is clear that the costs of wearable technologies, virtual reality, and augmented reality technologies are high for the time being. One of the most significant innovations brought by the digital world for consumers is the way they are exposed to advertisements compared to traditional media. On the Internet, consumers can filter and accept ads according to their importance and in line with their wishes. This freedom will likely increase with the Metaverse areas, and the opportunities such as closing, ignoring, and not seeing the ads in the area will provide more freedom to the user. Along with the Metaverse areas, the chance for consumers to share their unique tastes and hobbies spread them, and experience them in the shared experience area with their circle of friends will play an active role in changing consumer behaviors. The Internet has offered excellent opportunities for micro-publishing based on unique content. Metaverse buyers will increase these possibilities, and micropublishers will be present not only with their writings, photos, or videos but also with their avatars or themselves. Producer consumers now guide businesses from the manufacturing stage of the product and even before. The digital world, where individual, customizable products and services come to the fore instead of mass marketing, will move to a new dimension with the increase of Metaverse areas. Here it will be easier and possible to experience prototypes of products. This will make the producer and consumer stand out more. The most significant development to be experienced is that digital marketing is also uninterrupted in a seamless, continuous Metaverse area. It means that boundaries such as time and space for consumers are removed and remain for businesses. Businesses looking for customer satisfaction will have to respond to demands, being in the Metaverse 24/7 like consumers. This will profoundly affect many well-known concepts, such as brand or brand loyalty.

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3.3 Brand in Metaverse Areas Kaputa [8] states that the things that add the most value to companies today are not tangible assets such as hardware and inventory but abstract things such as company reputation, intellectual capital, and brand. Aaker [9] also attaches particular importance to the brand and defines it as a promise to give what the brand symbolizes in an emotional and social sense rather than a simple logo. The brand has become so important today that many sub-headings related to the brand have been the subject of academic studies. Examples of these are titles such as brand value, brand promise, brand trust, brand experience, brand loyalty, brand love, brand identity, brand personality, brand image, brand reputation, brand awareness, brand sensitivity, and brand culture. All of these sub-headings will likely find increasing importance within the Metaverse areas. For example, according to Arslan and Altunı¸sık [10], brand value also contributes to the achievement of the strategic goals of the enterprise. Creating and maintaining customer relationships will be one of the most critical determinants of the future cash flows of businesses. It will be easier for businesses to develop relationships with customers in the Metaverse areas and to create brand value by enriching these relationships with experience. Champniss and Vila [11] state that the lack of relationship with consumers can create uncertainty in consumer perceptions, which will bring about the problem of inertia. Because consumer behavior has become increasingly complex, businesses must constantly check the relationship. Feldwick [12] states that brand owners should ensure that brand communication not only stimulates sales but also increases the brand’s intrinsic value. Rao [13] describes the Metaverse spaces as a terrific opportunity to create meaningful, personalized customer experiences and notes that for customer experience here, organizations need to be active almost constantly. Clark [14] states that brands should take advantage of this opportunity based on the unlimited opportunities of consumers. Examples of endless possibilities include digital twins, avatar looks, digital clothing, virtual real estate, virtual nightclubs, shopping malls, and digital artwork. “In the Metaverse, the possibilities are almost limitless, so even the sky is not the limit,” Clark [14] says that brands that stay away because the Metaverse perceives areas as playgrounds for the time being make mistakes. Many techniques have been developed to enable brands to control themselves in terms of the Metaverse areas today and the future and to make the proper positioning. Since it is one of the most straightforward schemes among them, the brainstorming form developed by Grams [15] is given below (Fig. 3).

Community

TODAY What do they believe in or value?

FUTURE What can they believe in or value?

Enterprise

What is your current claim?

What do you want to be?

Fig. 3 Brand positioning map (Source Grams [15])

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4 Conclusion and Discussion It is unthinkable for researchers interested in social sciences to ignore technological developments. When it comes to social science, sociology, psychology, philosophy, history, and literature quickly come to mind. For this reason, social sciences may seem to be far from technology. However, there is no area that technological developments have not changed, transformed, or developed. Naturally, the effects of technological developments directly affect the social sciences and manifest themselves as the subject of research. Frase [16] states that while social sciences are about distinguishing science fiction from science fiction, social sciences are about describing the world, and science fiction is about predicting the direction in which the world can evolve. However, he states that both are a combination of imagination and empirical research, albeit in different ways. Today, all developments related to the Metaverse are seen as the field of science fiction literature or future science writers beyond the technical sciences. However, developments are happening very quickly, and businesses are rapidly taking their places in the Metaverse and making preparations. The increase in the number of users suggests that there will be much work for social science researchers in the coming days related to the Metaverse. In the same way, threats and opportunities await businesses. As stated in the whole study, it is foreseen that consumer behaviors will change with the Metaverse areas, especially behaviors, and norms will differ due to identityless, genderless, and undefined avatars. However, due to the possibility that brand loyalty will gradually decrease, businesses will likely have to change advertising and other promotion activities, which will bring a new marketing understanding. It will be beneficial for businesses to be more flexible than ever, to closely follow developments and technological changes, and to watch what the younger generations are interested in in the Metaverse. In addition, it is inevitable for them to focus on a value-based marketing approach that attaches importance to consumer satisfaction, to design new advertising forms and strategies for new areas in advance, and to make preparations. Arthur [17] refers to technology as a phenomenon or means that must be used for ends. It evaluates all tools, such as monetary systems, contracts, and payment methods that do not resemble technology within the definition. If we start from the same idea, it will be a competitive advantage for enterprises to closely follow the technologies such as cryptocurrency, artificial intelligence, and blockchain required for the Metaverse areas and to adapt these technologies to the appropriate parts of their business processes. For example, Vigna and Casey [18] emphasize the power of cryptocurrencies while talking about the cost advantages of businesses. Accordingly, cryptocurrencies that do not require centralized registration provide fully verifiable, transparent ownership records, making the exchange possible, and disabling all the expenses required for banks, government agencies, or the centralized system to operate, which is problematic. For this reason, businesses must carefully follow the developments and connected technologies in the Metaverse areas.

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Consumer Behavior in the Metaverse Fatma Irem Konyalioglu

Abstract In a world where all living things have consumer identities, and this varies according to the periods, it is normal for people to have differentiations in their consumer behavior in accordance with the “Metaverse” environment. Consumer behaviors that are unique to the “Metaverse” are expected to vary from sectors, product types, and psychological situations to sociological phenomena. Consumer behavior in the “Metaverse”, which first started in gaming, event management, marketing communications, corporate marketing, architectural products, real estate, and money markets, is becoming increasingly widespread. Cultural heritage marketing, service, and commodity consumption in the health sector, cosmetics, and personal care, jewelry sectors are among the most up-to-date developments. Immersive consumption, content creation, decentralization, and development of behaviors with personalized dimensions are among the prominent aspects. The end of the sustainability debate and the unlimited power of the consumer to determine their behavior by existing in a different universe will be one of the main issues to be emphasized. It is necessary to emphasize the importance of ease, flexibility, and interactive activity as compelling and varied as the positives. Metaverse, along with its features that emphasize the immersive consumption, and uniqueness of each consumer, can develop creativity in consumer behavior, on the other hand, it may harbor the risk of alienation from self-identities. In the “Metaverse” which already emphasizes enjoyment, pleasure, speed, and agility, a preparation for some forward-looking hazards will enhance validity, value, meaning, and the benefits of the context. Keywords Metaverse · Consumer behavior · Mixed reality marketing · Virtual marketing · Experiential marketing

F. I. Konyalioglu (B) Izmir Demokrasi University, Izmir, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_11

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1 Introduction Everyone thinks about changing the world but no one thinks of changing himself. Lev TOLSTOY

All living things have a consumer role from the first moment of life, and this property diversifies throughout the flow of being. Humans, animals, plants, and every living organism consume many different kinds of things in various styles. Human consumer behavior starts at the moment of conception, and continues by differing, and changing throughout the journey of life. Changing dynamics of consumption have prominent features such as buying behavior, market exchange, and operations. In other words, in the context of marketing science, “Consumer Behavior” is the process by which people move from satisfying their basic needs to feeding the self hedonistically, from adaptations to create innovations to preparation for afterlife are studied in many different fields. After the fundamental changes from exchange to traditional marketing environments based on buying, and selling, there was a period of development that involved production, and proliferation processes of product types. The widespread transformation of selling and the transition to consumer-dominated structures after increasing its power of influence can summarize the processes of change in consumer behavior until the end of the twentieth century [1]. The transition to online environments by the last quarter of the twentieth century, contains key steps in the transformation of consumer behaviors today, and tomorrow. Digital media experiences strengthened with the first search engines “Altavista” and “Navigator”, “Second Life” to meet the expectation of transition to different realms in the twenty-first century, and the use of “Avatar” with symbolic elements have been the precursors of other steps that have followed [2, 3]. Digital environments becoming a part of daily life, accelerating interactive communication processes, and the transition to mobile usage have increased the speed of change in consumer behavior. “Web 3.0, Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), Cloud Computing, Virtual Reality Applications (Virtual Reality-VR), Augmented Reality (AR), Mixed Reality (MR), and Extended Reality (Extended Reality-XR)” have enabled consumer behavior in the “Metaverse” [4]. Environments, and applications that were developed step by step, each structure complementing each other, and made available to the consumer, have brought the times when “The customer is the beneficiary”. As a result, it has enabled people to experience consumer behavior in the “Metaverse”, which the consumer experiences by interacting, developing relationships, authenticity, and being included in the environments with the processes experienced. As a result, it has enabled consumer behavior in the “Metaverse”, which the consumer experiences by interacting, developing relationships, authenticity, and being included in the environments with the processes [5]. The “Metaverse” has entered the life of the consumer and rapidly expanded in a multidimensional way by continuous development. Communication, and information technology products may be replaced by other products, and media, just as the dialup phones, and cassette players of the past have outlived their useful life, and are

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no longer in the market today. It is an alternative world that replaces many different structures in the “Metaverse”, and offers a holistic way for consumers to experience, and access behaviors that they experience in separate places, and conditions [4, 6, 7]. The “Metaverse”, which has been signaling its future with different movies when it has not yet come to life, may not be surprising if it is interpreted as the “Matrix” brought to life. It is a holistic experience of the combination of the abstract, and the concrete, the virtual, and the real, as in the movies “Iron Man”, “Minority Report”, and “Avatar”. The fact that it has such features has led to the birth of “Mixed Reality Marketing”, which includes virtual, and experiential marketing [8, 9]. The phenomenon of consumer behavior in the “Metaverse” has taken its place in business, art, science, entertainment, and daily life, with remote access, the ability to gather different parts of the world in one environment at once, especially the pandemic process that has been experienced, eliminating country borders, places, and conventional patterns. In order to comprehend the current position, it will be possible to first understand consumer behavior and then to know the “Metaverse” experiences, and the situations for tomorrow.

2 Consumer Behavior and Development It is possible to summarize the behaviors of people individually or in groups in various ways, mainly for life sustainability and to meet their needs, as “Consumer Behavior” [10]. When consumer behavior is discussed within the scope of marketing, some definitions encountered can clarify the conceptual perception. For example, the American Marketing Association has defined consumer behavior as “The dynamic interplay of affect and cognition, the experience of the environment, and the exchange of the elements of life” [11]. According to Babin, and his team, consumer behavior can be defined as “Peoples’ value-seeking actions in order to identify, and satisfy their needs” [1]. The need, and desire for products, which are divided into two as goods, and services, for different reasons, the decision to reach them, the action to buy them, and the processes afterward can be stated as consumer behavior flow as shown in Fig. 1 [4]. Consumers, who play a critical role in marketing, have been studied to date of “Metaverse” environment, concepts, and approaches, can be adapted to any situation. Everything starts with the consumer recognizing their needs, having desires, in short, remembering the problem. When we look at the concepts and approaches in today’s “Metaverse”, we see situations that can be adapted to any situation. It all starts with the consumer recognizing their needs, having wants, in short, remembering the problem. The next course of action is to look for ways to meet what has been noticed. Consumers make decisions to purchase by evaluating what is accessible, and available, then buying behavior takes place. The final step in the consumer behavior process is the disposal phase, which is the link to the circular economy [10]. Psychological variables are particularly effective in the realization of the consumer behavior process. The stages of perception, learning, and motivation develop action

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Consumer Buying Behavior Process Remember the problem Search for information Evaluate alternatives Purchase decision Buying action Disposal of products

Fig. 1 Consumer buying behavior process [10]

Emotional State Environmental Stimulus

Pleasure Stimulation

Approach or avoidance behavior

Compulsion

Fig. 2 Mehrabian Russel model [11]

through the interaction of human emotional, and cognitive structures. Consumers’ value systems and attitudes are structured with the effects of environmental, social, economic, cultural, demographic, and related variables (reference groups, family, etc.). The action is realized with the flow in the “Mehrabian Russel Model” shown in Fig. 2 [11]. The holistic experience of what has been mentioned allows for similar behaviors to be presented, albeit in different settings. Consumer behavior can be experienced with vital elements, which are primary motives, or with hedonistic variables, which are secondary motives. Emotions and cognition determine behavior at different levels according to the situation. While the consumer can engage in purchasing behavior as a result of high involvement, detailed research, questioning the data obtained, and comparative evaluations, they can also purchase by making a quick decision in a reactive manner as impulse buying. Consumer behaviors that consumers experience differently from each other can be listed as follows [12]: ● ● ● ● ●

Addictive consumption; Compulsive consumption; Hedonic consumption; Consumption realized through significations; Consumption under the influence of religion and belief systems;

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● Consumption, which can vary across individuals (as niche market consumption patterns); ● Virtual consumption. The types and processes of consumer behavior are also diversifying with the changes in the world, and every step outlined from the past to the present is continued with adaptations. Consumer behavior types can be handled differently, and integrated with each other in changing consumption environments. For example, in the “Metaverse”, the consumer may experience virtual consumption behavior as addiction, obsession, and hedonism as a result of the environment.

3 Consumer Behavior and Metaverse Digital, mobile, and virtual markets have been added to traditional marketplace. Therefore, consumption patterns have been transformed, and consumer behaviors in the “Metaverse”, which have been generated as the combination of reality, and virtuality. When we look at the evolution of consumer behavior over time, it is possible to find traces of incremental change in the “Metaverse”, and the impact of consumer behavior from each period and process. Consumer behavior, conceptualized in traditional marketing environments, has changed in the context of its dynamic structure with the differences experienced over time. Today’s consumer has begun to configure new adaptations of consumer behavior in the “Metaverse” where are immersive virtual environments, and their multiple components existed. We can list a few critical steps among the adaptations that take place with the dynamism of consumer behavior [13]: ● ● ● ● ● ●

Interaction; Participation; Developing relationship; Creativity; Immersion; Fictionalization.

In order to synthesize the variables of daily life, and virtuality to have an effective consumer experience in the “Metaverse”, the requirements other than the infrastructure in the software, and service whole can be expressed as follows [14, 15]: ● ● ● ● ●

Face-to-Face Technology; Motion Control; Tactile gloves; Holograms; Immersive Technology.

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It can be said that the phenomenon of communication, which is constantly changing, has evolved much more significantly with the “Metaverse” as can be seen in all the processes mentioned above. Consumers experience the communication steps that take place in real life with “Avatars” through voice, facial expressions, body postures (head-arm-leg postures), gaze, skin features, clothing style, style, and accessories [16, 17]. These changes are part of the whole “Experiential Marketing” process. In the “Metaverse”, experiential, relational, sensory, digital, mobile, and content marketing should be realized in integration with virtual marketing strategies in order to connect consumers to products, brands, and businesses to successfully maintain customer relationship management, and loyalty processes [18, 19]. In particular, the effective experience of products, and brands with the consumer’s own unique content, and participation in the existing processes enables the evaluation of consumer behavior in the “Metaverse” in relation to innovation management. Innovation management, which is required for the effective continuation of all processes related to marketing today, is important on the basis of consumer behavior, business management, and entrepreneurship, both in the “Metaverse”, and in its entirety. The realization of innovation management as mentioned, going beyond the usual purchasing environments, and behavior will shape the concept of “Meta-Consumer” [20, 21]. The “Metaverse” has an element that strengthens the consumer’s participation, the effectiveness of the experience, and creativity with the “Avatar”. “Avatars”, which can be defined as virtual characters, allow the consumer to behave and experience the “Metaverse” in which they are immersed, actively participating, and taking part, as if they were concrete in the abstract. Consuming with the “Avatar” that each consumer has determined or prepared for herself/himself, living as existing in the flow of another world from the world life, can be considered as the “Meta” state of the consumer [16]. Such a feature will be decisive for many consumers in their preferences, engagement, and behavior. It happens to people who have not lived their lives in a way that fulfills and completes them. They want their children to experience what they cannot do themselves. The “Metaverse” will enable consumers to experience such projection by allowing them to experience themselves through their own avatars. The determinants of the increase in the consumers’ active and widespread participation in the “Metaverse” can be pointed out as follows [22, 23]: ● ● ● ● ●

Technological advancements; Increase of investors; Facilitating the accessibility of infrastructures for both investors and consumers; Managing perception through communication processes; Diversification of variables motivating investment, and participation (a kind of “Think and Live” or “Imagine and Live” environment in the context of creativity).

In today’s world, where everything is accessible with two hand gestures or even eye movements, the “Metaverse” attracts a great deal of attention in order to solve the psychological needs of individuals who are left to themselves, and become lonely.

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Personality, and the self, two of the main elements that need to be addressed when talking about consumer behavior, play a major role in understanding the effectiveness, prevalence, and development of the “Metaverse”. While “Personality” is harbored by the impact of life’s variables on the consumers’ genetic heritage, “Self” can contain traces from every environment, and person experienced, known, influenced, and participated in, like a snowball. The self is constructed through experiences, environments, age, social network, family, health status, and multiple variables [14, 24]. This is why one may find that the way how dressed when she/he was a young adult consumer changes in middle age. The distance between one’s self in young adulthood, and one’s ideal self may be the answer to explain such a change. In line with the disappearance of this distance in the middle age periods, and its completion in the process of self-construction, it can be experienced that clarity is achieved in consumer behavior with preferences that will experience sustainability in the future. The self, which is dynamic, and characterized by certain variability, may be of particular importance for those who are consumers in the “Metaverse”. In the “Metaverse” environment, wants, and needs can be fulfilled in dimensions of uniqueness that are personalized, and genuine, where they can take on the ideal self or feed the self in a way that every consumer may need. The experience of creativity, participation, involvement, interaction, hedonism, and reciprocity in the “Metaverse” will be useful in explaining the commitment, loyalty, and even addiction that can occur in consumer behavior with the influence of the self [16, 24]. Metaverse usage will be widespread as another world that serves satisfaction and ownership If consumers fulfill their personal needs in a self-nurturing way from everywhere. While effective, widespread use of immersion in the “Metaverse”, which is becoming more and more easily accessible in today’s world, will provide advantages, it may also cause both individual and social problems in different dimensions. For example, the proliferation, and impact of consumer behavior in the “Metaverse”, and the developed competencies that will coordinate changes and differentiations. Consumers’ attitudes and value systems will be transformed by what happens in the Metaverse [25]. It may be useful to study all kinds of preventive elements in psychological, sociological, philosophical, economic, anthropological, ethnographic, and consumer-related fields, and to take measures for potentially problematic stages.

3.1 Consumer Decision-Making Process and Metaverse Consumers experience behavioral steps in the “Metaverse” that can change much faster, more effectively, and just as quickly as traditional marketing environments. Steps that should be particularly emphasized, and considered for existing processes [4, 6, 24]: ● Arousal effect (design); ● Users’ immersion; ● Reciprocity (To be able to see results);

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● Reflection of being; ● Effective living of uniqueness (especially with the ownership of all products worked with NFT). When the behaviors in the “Metaverse” are examined according to the decisionmaking systems of the consumer, both the stimulus-consumer-action flow in the “Mehrabian Russel Model”, and the effective functioning of the dual system model (DSM) of decision-making (Impulsive System/System I and Reflective (KnowledgeBased) System/System II) can be emphasized [26]. In one of these models, there is process development through interaction, and in the other, there is consumer decisionmaking through the processing of interaction in the emotional and cognitive dimensions. The synthesis of the virtual and the real is experienced holistically in the “Metaverse”, as a combination of two models of cognition, and emotional interaction in the development of the consumers’ behavior, which is formed by their immersion, and experience in each situation. The realization of evaluations through the involvement of the consumer decision-making process creates the act of decision-making with the synthesis of both decision-making structures. Those who strategically consider these systems in the “Metaverse” include businesses from many different sectors, brands, governments, non-governmental organizations, and all stakeholders that address the consumer. The quantity, size, characteristics, and scope of these stakeholders are expected to be experienced by 2040 in all areas from judiciary to inspection, from private life to exhibitions. Consumers will be increasingly involved in both hedonistic and utilitarian shopping as they exhibit behaviors in line with their experiences in the “Metaverse”. Inclusion in the “Metaverse” will increase market shares in multiple ways, with derivatives of scopes, and concepts of consumer behavior. If consumer purchase modeling is done in the “Metaverse” (e.g., Meta Consumer Purchase Model) [27, 28]: ● ● ● ● ● ●

Audio, video, and tactile motion sensitivity; “Emotion Profile Index” linked; Wearable technology; Psychologically, through embodiment, and interaction; Multisensory technology needs to be studied holistically; It is realized through enjoyment (having fun).

3.2 Consumer Behavior, Metaverse, and Constraints The appeal of the “Metaverse” to the consumer, motivators for immersion, benefits, affirmations, levels of impact, and changes that may be encountered need to be addressed as well as the opposite. It may be possible to mention preventive, and remedial processes for some of the problems that can be listed as trust, perception, and self-confusion [13]. Existence in a world other than the ordinary flow of life, and the realization of situations that may be difficult to predict with the power of creativity,

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and without limits may cause confusion of perception in the consumer. In all circumstances, it is necessary to try to make it clear to the consumer “Which is real?” and “Which is Metaverse?” [29, 30]. If such a realization is not achieved, the problem of consumers’ “Isolation from Real Life” may be inevitable. The possibility of addiction to the “Metaverse” by the consumer, who can experience the phenomenon of the original, and even the unique (one-of-a-kind) in a highly hedonistic dimension by entering into, possessing, and thus actually experiencing it, is another of the risks that may occur. In particular, it is necessary to manage the consumer behavior process in the “Metaverse” with preventive, and protective strategies for those whose ego, and personality structure are suitable for such situations.

3.3 Consumer Behavior, Industries, and Metaverse Consumer behaviors in the “Metaverse” can be diversified according to the sectors, and products in which the consumer will search for products, and services, encounter, evaluate, make the purchase decision, buy, and experience the disposal processes after consumption. These can range from experiencing surgical processes, medical education, and physical therapy, all kinds of legal processes, space studies, underground research, touristic travel, and accommodation for business, archaeological excavations, auctions, multidimensional scientific research, and consumer behaviors related to private life [30]. The “Metaverse” can vary according to the consumer to be addressed. Market leaders in each field, companies at the forefront of innovation development, and consumers in a wide range of fields, from land to gaming, from fashion design to graphic design. A few examples of “Metaverse” that diversify with their features for the sectors they host [31]: ● “Sandbox” for developing games, and trading crypto assets (SAND) in the gaming market; ● “Decentraland” with its own cryptocurrency (MANA) for investing, realizing land sales, and valuing crypto assets; ● Working with NFT (Non-Fungible Tokens), and ENJIN (ENJ) with the gaming market, and various applications; ● Graphics and multidimensional design work with the development of Render Render (RNDR); ● Wilder World (WILD) created with five-dimensional graphic design; ● GoArt with the “Move to Earn” concept seen in Fig. 3, which allows for the study of apparel, retail, and similar shopping, artistic and cultural environments [32]; ● “Metahero” in fashion design; ● It can be exemplified as OVR, which is at the forefront with the firsts in land sales with blockchain technology.

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Fig. 3 “Move to earn” “GoArt” [32]

Consumers can experience decentralization and uniqueness in the “Metaverse” as a whole blockchain, as an NFT, and with crypto assets (SAND, MANA, ENJ, etc.) differentiated according to the “Metaverse” (shown in Fig. 4), buying, selling, asset management, business management, and multiple adaptations of ordinary life [33]. It is possible to evaluate “Metaverse” consumer behavior in the context of sectors. Globally, the sectors that stand out with “Metaverse” developments, and investments are retailing, fashion, consumer goods market, education, technology products market, automotive, healthcare, media-events-sports, advertising, and luxury consumption markets [35]. It is possible to examine “Metaverse” investments targeting corporate, and individual consumers in terms of consumer behavior in different sectors.

Fig. 4 Crypto assets traded on the metaverse market [34]

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3.4 Consumer Behavior in the Information, and Communication Technologies Sector and Metaverse Products for corporate, and individual consumers are offered for the “Metaverse” in the market of technology products in the form of hardware, software products, and services in the field of information and communication technologies (ICT). In this way, it is possible to reach and serve the target consumer through multiple, and integrated stakeholders. One of the most basic forms of consumer behavior in the “Metaverse” is to produce content, and to ensure market mobility with products that will enable the production of content. Industry innovations, and regulations that allow the consumer to immerse themselves in the “Metaverse”, the environment, the transactions, and the myriad of experiences are critical. The sector, which started with innovation management, and where differences exist with continuous developments, is strengthened with the leadership of world giant companies. “Meta”, which develops Facebook, Instagram, Whatsapp, and many other applications, Microsoft, Apple, Alphabet-Google, Amazon, Gamma, and many other companies enable consumers to experience the virtual, and the real together, and produce content from wearable technology, gaming, social media providers, sponsorship relationships that enable inclusion in the “Metaverse” [36, 37]. The development, and consumption of infrastructure, interfaces, wearable technology products, and services for the “Metaverse” is taking place in the ICT market, with continuous transformations. These products can be presented as the artwork market with NFT, entertainment-show-game sector elements with avatars (e.g., Bella HADID-CY-B3LLA, Fig. 5), stock, and money market movements, real estate exchange, multiple different dimensions of education from vocational to academic level, examination–diagnosis–treatment stages in the health sector, and products-services for tourism where creativity, immersion, and effectiveness of experience are of great importance [38, 39].

3.5 Apparel, Fashion, Retail Sector, and Consumer Behavior in Metaverse In the “Metaverse”, for the apparel, fashion, and retail sectors, the consumer can make a purchase decision both instantly, reactively, and with a high level of involvement. In terms of evaluating time, place, and product suitability, consumers can experience developments by acting advantageously in the “Metaverse” by rapidly catching the changes in the purchasing processes of apparel and fashion sector. Consumers can experience developments by acting advantageously in the “Metaverse” by rapidly catching up with the changes in the purchasing processes of apparel and fashion sector in order to benefit from the opportunity to utilize time, place, and product fit. Leading businesses and brands in the sector manage their market position, market segment preferences, and brand-related processes in line with developments in the “Metaverse”, which continuously increases the access capacity of their target consumers.

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Fig. 5 Avatar of Bella HADID-CY-B3LLA [40]

Customer profiles, and consumer behavior in the “Metaverse” enable differentiation through agility, dynamism, and innovation in strategic marketing management [41]. Damat Tween brand, which carries out its market activities in the apparel, fashion, and retail sectors for men with its Turkish oak, opened its “Metaverse” store with the 2022–2023 Winter Season (Fig. 6), while Kı˘gılı brand announced through the press that it will open its first “Metaverse” fashion shows in the fall of 2022, and the store opening in December 2022 [42]. Other examples from around the world can be mentioned in turn. Gucci, Dolce&Gabbana, H&M, Zara, Adidas, and Nike are some of the well-known global apparel brands that continue their marketing activities in the “Metaverse”. Nike has seven registered apps in the “Metaverse” (sneakers designed for daily use with sports shoe features) to sell virtual sneakers and sportswear [43].

3.6 Automotive Sector and Consumer Behavior in Metaverse Implementation of Metaverse in the automotive sector, artificial intelligence applications, augmented reality, internet of things, cloud computing systems, and virtual marketing strategies offer multiple experiences to the consumers from production, shopping, and driving to investment transformation. The sector, where digital, virtual,

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Fig. 6 Damat tween metaverse store [42]

mobile, and remote access structures have been experienced until today, is strengthening its impact by covering projects ranging from Hyundai’s “Meta Mobility” to BMW’s research, and development processes [44].

4 Conclusion and Discussion Our lives, which we continue with each breath changed from the previous one, continue with differentiations in every environment, condition, understanding, concept, and scope. We live by participating in many environments, feeling a sense of belonging, and being integrated with countless phenomena that embody elements of us. Lifestyles are constantly changing from yesterday to today, and differentiation is happening much faster with digitalization. Ordinary life flows have been digitized since the millennium, especially after the pandemic. Different experiences are realized by creating content, participating in flows, creating processes, and of course feeling, and touching. In the transformed state, we re-exist in another world with another identity by being able to live in five dimensions what we used to see in two dimensions. This new world, called the “Metaverse”, can change the identity as a consumer, while transforming the understanding and behavior of consumption. The “Metaverse”, which is rapidly increasing its effectiveness today, has its own rules, its own identities, infrastructure, balances, and regulations. It’s a transformation of a lot of real-world phenomena. In the “Metaverse”, where consumer accessibility will become even easier in the coming years, and investments will become widespread both sectorally, and globally, differentiations in consumer behavior are now among the priorities. Developments will diversify into new markets, businesses, professions, understandings, concepts, attitudes, values, and even cultures. The “Metaverse” can be experienced with every action from an auction sale (with its unique, NFT features, where security is at the highest level, managed with blockchain and

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easy accessibility) to a sports event, from donation organization to cultural heritage marketing, from financial market activities carried out by evaluating crypto assets to providing training, and consultancy services in the professional field. “Metaverse” will gradually, and with its innovation dimension, it will make its presence in our lives much more effective, competent, and widespread. It will soon be possible to discuss the addition of new developments, saying that the “Metaverse” can be seen as a phenomenon of the next twenty years, which would be appropriate if the slogan “Imagine and Create Life” were developed.

References 1. Babin, B.J., Harris, E.G., Murray, K.B.: Consumer Behavior, 2nd Canadian edn. Nelson Education (2017) 2. Chaffey, D.: Digital business and e-Commerce Management, Strategy, Implementation and Practice, 6th edn. Pearson (2015) 3. Rose, F.: How Madison Avenue Is Wasting Millions on a Deserted Second Life. https://www. wired.com/2007/07/ff-sheep/ 4. Shen, B., Tan, W., Guo, J., Zhao, L., Qin, P.: How to promote user purchase in Metaverse? A systematic literature review on consumer behavior research and virtual commerce application design. Appl. Sci. 11(23), 11087, 1–29 (2021) 5. Cummings, J.J., Bailenson, J.N.: How immersive is enough? A Meta-analysis of the effect of immersive technology on user presence. Media Psychol. 19, 272–309 (2015) 6. Davis, W.J.: Metaverse explained for beginners (2021) 7. Huang, J., Sun, P., Zhang, W.: Analysis of the future prospects for the Metaverse. In: 7th International Conference on Financial Innovation and Economic Development ICFIED, pp. 1899–1904. Atlantis Press (2022) 8. Nevelsteen, K.J.: Virtual world, defined from a technological perspective and applied to video games, mixed reality, and the Metaverse. Comput. Animat. Virtual worlds 29(1), e1752, 1–22 (2018) 9. Sonvilla-Weiss, S.: Invisible. Springer, Wien, NewYork (2009) 10. Solomon, M., White, K., Darren, W.D.: Consumer Behavior, 7th Canadian edn. Pearson (2017) 11. Peter, J.P., Olson, J.C.: Consumer Behavior and Marketing Strategy. Mc Graw-Hill (2010) 12. Konyalıo˘glu, F.I., Sekerkaya, ¸ A.: Experimental research of consumers impulse buying behavior at the time and product quantity scarcity condition by the pscyhological reaction theory. Isletme Arastırmaları Dergisi 12(4), 3518–3538 (2020). https://doi.org/10.20491/isarder.2020.1056 13. Han, D.I.D., Bergs, Y., Moorhouse, N.: Virtual reality consumer experience escapes: preparing for the Metaverse, pp 1–16. Virtual Reality (2022) 14. Dozio, N., Marcolin, F., Scurati, G.W., Ulrich, L., Nonis, F., Vezzetti, E., Ferrise, F.: A design methodology for affective virtual reality. Int. J. Hum. Comput. Stud. 162, 102791 (2022) 15. Xu, M., Ng, W.C., Lim, W.Y.B., Kang, J., Xiong, Z., Niyato, D., Miao, C.: A full dive into realizing the edge-enabled Metaverse: visions, enabling technologies, and challenges. IEEE Commun. Surv. Tutor. 1–46 (2022) 16. Kozinets, R.V., Kedzior, R.I.: Avatar: auto-netnographic research in virtual worlds. In: Virtual Social Identity and Consumer Behavior, pp 3–19 Routledge (2014) 17. Papagiannidis, S., Bourlakis, M.A.: Staging the new retail drama: at a Metaverse near you! J. Virtual Worlds Res. 2(5), 425–446 (2010) 18. Devaney, P.: Where credit’s due? Brand Strateg. 212, 14–15 (2007) 19. Kozinets, R.V.: Immersive netnography: a novel method for service experience research in virtual reality, augmented reality and Metaverse contexts. J. Serv. Manag. 21(10), 100–125 (2022)

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20. Chummee, P.: The determinants of product innovation and marketing innovation effecting to the innovation performance. Turk. J. Comput. Math. Educ. 13(2), 1–6 (2022) 21. Lee, J., Kwon, K.H.: The future value and direction of cosmetics in the era of Metaverse. J. Cosmet. Dermatol. 21(10), 4176–4183 (2022) 22. Qin, Y.: Investment potential analysis on Chinese stock market in Metaverse-take VR industry as a sample. In: 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022), pp. 1001–1007, Atlantis Press (2022) 23. Stock, B.: Metaverse. Blockchain NFT Academy (2022) 24. El Kamel, L.: For a better exploration of Metaverses as consumer experiences. In: Wood N.T., Solomon, M. (eds.) Virtual Social Identity and Consumer Behavior, pp. 20–40. Routledge (2014) 25. Dil, T.Ö.: We Discussed the New Models in Metaverse. Hürriyet. https://www.hurriyet.com. tr/ekonomi/yeni-modelleri-Metaversete-konustuk-42035717 26. Petit, O., Velasco, C., Wang, Q.J., Spence, C.J.: Consumer consciousness in multisensory extended reality. Front. Psychol. 13 (2022) 27. Bayram, A.: Metaleisure: leisure time habits to be changed with Metaverse. J. Metaverse 2(1), 1–7 (2022) 28. Park, S.M., Kim, Y.G.A.: Metaverse: taxonomy, components, applications, and open challenges. IEEE Access 10, 4209–4251 (2022) 29. Cowan, K., Ketron, S.: Prioritizing marketing research in virtual reality: development of an immersion/fantasy typology. Eur. J. Mark. 53(8), 1585–1611 (2019) 30. Van der Merwe, D.: The Metaverse as virtual heterotopia. In: 3rd World Conference on Research in Social Sciences, pp. 22–24 (2021) 31. Blake, F.: Advanced strategies for ınvesting in the Metaverse (2022) 32. GoArt Metaverse: Time Gate in Your Pocket: NTV. https://www.ntv.com.tr/teknoloji/goartMetaverse-cebinizdeki-zaman-kapisi,POa_8Lklq0SNFI1HUsl8Ww 33. Sivasankar, G.A.: Study of blockchain technology, ai and digital networking in Metaverse (2022) 34. Largest Metaverse DeFi Tokens, Market Cap. https://coinmarketcap.com/tr/view/Metaverse/ 35. Kang, H.R.: A case study on Metaverse marketing of jewelry brand. J. Digit. Converg. 20(1), 285–291 (2022) 36. Isaac, M. ve Frenkel, S.: Mark Zuckerberg Prepares Meta Employees for a Tougher 2022. New York Times https://www.nytimes.com/2022/07/01/technology/meta-facebook-mark-zuc kerberg.html 37. Meta, Apple, Alphabet, and Microsoft Will Take the Metaverse to the Next Level, The Software Report. https://www.thesoftwarereport.com/in-2022-meta-apple-alphabet-and-microsoft-willtake-the-Metaverse-to-the-next-level/ 38. Liu, P.J., Inman, J.J., Li, B., Wong, C.A., Yang, N.: Consumer health in the digital age. J. Assoc. Consum. Res. 7(2), 198–209 (2022) 39. The Metaverse Overview Vision, Technology, and Tactics, Deloitte. https://www2.deloitte. com/cn/en/pages/technology-media-and-telecommunications/articles/Metaverse-report.html 40. Frank, A.: Bella Hadid Arrives in the Metaverse with a New Line of NFTs, Vogue. https:// www.vogue.com/article/bella-hadid-nft-Metaverse-interview 41. Karadeniz, Y.: Online Shopping Starts at Metaverse. Dünya Gazetesi. https://www.dunya.com/ sektorler/perakende/Metaversete-online-alisveris-donemi-basliyor-haberi-661634 42. Yıldız, G.: Damat Tween Shares First Images from Metaverse Store. https://www.aa.com.tr/tr/ sirkethaberleri/hizmet/damat-tween-Metaverse-magazadan-ilk-goruntuleri-paylasti/673755 43. Kaya, B.S.: Is the Consumer Ready for the Metaverse? Marketing Türkiye. https://www.mar ketingturkiye.com.tr/haberler/Metaverse-tuketici-arastirma/ 44. ˙Içözü, T.: Metamobility: Boston Dynamics Robotları Metaverse ile birle¸siyor, Webrazzi. https:// webrazzi.com/2022/01/05/hyundai-metamobiliy

The New Economic Models of Metaverse and Its Implications in International Financial Markets Mehmet Sahiner

Abstract In recent years, the term “Metaverse” has gained popularity and attracted researchers and professionals from all around the world due to its rapid adaptation to emerging technologies, such as Web 3.0, virtual reality, and non-fungible tokens (NFTs). Additionally, the Metaverse has not only been integrated with the Decentralized Finance (DeFi) systems to exchange money but also been used to make insurance policies and secure loans, as well as to invest in various financial instruments such as funds and bonds. According to the forecasts of Goldman Sachs, the Metaverse system is expected to reach a US $8 trillion volume in the coming years due to its growing integration with the core functions of the traditional banking system. However, the development of the Metaverse itself is still in the early phases, and the potential risk exposure for the global financial system remains unknown. Therefore, this study seeks to identify the impacts of the Metaverse on the international financial system by focusing on its innovations and opportunities, as well as providing a macro framework for its ecosystem. The present study further analyses the economic advantages and disadvantages of building a blockchain-based decentralized Metaverse. This work is one of the first studies about Metaverse finance and thus offers important implications for financial literature. The findings of the study include valuable information for academics, investors, and policymakers in terms of potential financial and economic risks that the Metaverse may present. Keywords Metaverse · Finance · Blockchain · Economy · NFT

1 Introduction “Today we are seen as a social media company, but in our DNA we are a company that builds technology to connect people, and the Metaverse is the next frontier, just like social networking was when we got started.” Meta CEO Mark Zuckerberg. M. Sahiner (B) Nottingham Trent University, Nottingham, UK e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_12

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Since the social media company Facebook rebranded itself as Meta in October 2021, the Metaverse has received great attention from the media and wider society, including academia and industry. Multinational technology corporations such as Microsoft, Amazon, and Tencent took similar steps to extend their investments into the Metaverse. Meta also declared that the company will be investing in the establishment of a Metaverse innovation hub in Spain to accelerate the next stage of digital transformation and Metaverse adoption [18]. The Metaverse ecosystem has already started to be seen as one of the greatest technologies of the near future with this wide range of investments from big firms, in addition to its adoption in various sectors, including fintech ventures, video game industry, social media platforms, and even government operations. The Metaverse concept actually dates back much earlier than is generally thought. The American writer Neal Stephenson was the first person to mention the term “Metaverse” in his science-fiction novel Snow Crash in 1992 [11]. Since then, the terminology and fundamental ideology of the Metaverse have been used especially in movies and games. Yet, the creation and generalization of the Metaverse ecosystem only became possible with the development of blockchain systems, advancements in the Internet of Things (IoT), and cloud platforms such as Augmented Reality (AR) and Virtual Reality (VR). For example, the Japan Times magazine published an article in February 2022 featuring the story of Dominic Lumabi, a 26-year-old gamer from Manila, who lost his job at a marketing company during the COVID-19 pandemic.1 In the midst of financial uncertainties and the reduced likelihood of new job opportunities, Lumabi discovered a play-to-earn (P2E) game in the blockchain Metaverse called “Axie Infinity”. He started to play the game on his home computer for 2 h daily, earning himself around 10,000 Philippine pesos ($200) per month, which is nearly half of what he made at his previous full-time job by working ninehour shifts. Lumabi is just one of the thousands who have recently discovered the fruitful Metaverse ecosystem via the Axie Infinity play-to-earn game [2].2 This is just one example that introduces the income scheme of the blockchain ecosystem and the potential economic opportunities of Metaverse technology. In 2021, the market capitalization of Metaverse projects was estimated at around 210 billion USD, and it is projected that this market size will bounce up to 715 billion USD by 2027 [3]. However, even this projected forecast about the Metaverse ecosystem, which is almost equal to the gross domestic product (GDP) of Turkey, is modest compared to its multi-trillion-dollar potential future [13]. As mentioned above, the Metaverse ecosystem offers opportunities, especially for those in underdeveloped and developing countries, and therefore everyone from international corporations to governmental organizations may develop investment plans to adapt this strategic 1

France24, “Life-changing’ or scam? Axie Infinity helps Philippines’ poor earn,” Japan Times, February 16, 2022, https://www.japantimes.co.jp/news/2022/02/16/asia-pacific/axie-infinity-philip pines-poor-earn/ (Accessed on June 17, 2022). 2 As of December 2021, Axie Infinity has 3 million daily active users, earning average of 150– 200 SLP (about $45–$55) per day, equivalent to $1,600 a month. Erina Azmi, “CoinGecko Axie Infinity Survey 2021,” CoinGecko, July 26, 2021, https://www.coingecko.com/buzz/coingeckoaxie-infinity-survey-2021 (Accessed on June 21, 2022).

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transformation and expand further. For example, the Republic of Barbados, a tiny Caribbean island country in Central America, has already established an embassy in Decentraland, which is the first Metaverse to be built on the blockchain. This is an important milestone: the first time in history that an independent state purchased “land” in the Metaverse and opened an official embassy, which is an important sign in terms of the possible future trajectory of international relations. The Metaverse world is expected to cause the biggest transformation in economic systems and financial services. The trade of virtual real estate, the exchange of financial instruments such as bonds and funds, and even the issuance of insurance policies will be possible using digital money. Banks and fintech companies are already developing business strategies to integrate with the Metaverse ecosystem to provide their services. Additionally, some international banks, such as JP. Morgan and Bank of America have already started trials in the Metaverse to improve the service quality of customer relations and provide more personalized customer experiences. In this study, we will discuss the current state of the Metaverse, the innovations in economic activities that blockchain and artificial intelligence have brought with Metaverse integration, and the future outlook of finance in the Metaverse world.

2 The Metaverse Economy One of the core fundamentals of the Metaverse is the new form of economy it has introduced to wider society. More specifically, Metaverse platforms make it possible to experience many real-world activities, from buying and selling cars to shopping for clothes. Figure 1 compares the traditional economic system and the Metaverse economy, showing four essential elements that identify the latter: Digital creation, digital assets, digital market and digital currency. Digital creation is the key component of the Metaverse concept, which allows its economic activities to function similar to the physical world. However, in the Metaverse ecosystem, the status of these economic activities is strongly tied to the quantity and quality of creators and participants. Therefore, to run these activities effectively and efficiently, developing an interactive interface that supports a more personalized experience will be critical for Metaverse platforms in the long term [24]. Digital assets are all items that are part of the trade and business in the Metaverse economy. These digital assets are encrypted on the blockchain system and require verification. NFTs, land, and avatar clothing equipment are considered some of the most important digital assets in the Metaverse ecosystem. For example, Nike, one of the biggest footwear companies in the world, announced that it sold a pair of virtual sneakers as an NFT in the Metaverse for 186,000 USD in April 2022. This is a positive sign that multinational companies operating in the physical world are increasingly becoming part of the Metaverse ecosystem, which is expected to increase competition and its overall quality.

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Fig. 1 Conventional economy versus Metaverse economy [20]

The Digital market is the core of the Metaverse, where characters can participate in business activities and generate income as in the physical world. However, tradable assets in the Metaverse pool are expected to be different from those in other digital platforms and the real world due to their fast-paced environment. The study of [7] revealed that artificial intelligence and machine learning have enabled a more automated, fast, and functional Metaverse ecosystem, which is likely to transform financial activities in the near future. For instance, users can easily trade and manage their virtual assets on the Decentraland marketplace, which is one of the open-world Metaverses similar to real-world markets [8]. Digital currency involves any form of cryptocurrency or payment that ensures all mentioned transactions above. There are limitations to using physical world currencies on Metaverse platforms due to the legal regulatory framework and transfer costs. Besides, fiat currencies are backed by governments or some other physical assets such as gold and silver, while Metaverse platforms use blockchain-based digital currencies. There is an ongoing policy debate surrounding the application of digital money: whether Metaverse currencies will be centralized and issued by companies like Meta, Roblox, etc., or fully decentralised on blockchain. Yet, the consensus for both possible cases is that the digital currencies will be fully integrated and convertible to the fiat versions. Adam Smith, who is known as the father and founder of contemporary economics, states in his book The Wealth of Nations that the economic chain in the physical world is based on the scarcity of natural resources and individuals’ pursuit of selfish interests [19]. However, the players in the Metaverse are formed of individuals who are rational and favour common sense. In addition, the Metaverse community expresses their feelings with happiness and success, which is due to the lack of the industrial revolution in the virtual world that humankind went through in the real world over centuries. Therefore, in the Metaverse ecosystem, business activities are built on simple economic norms. For example, in the Metaverse economy, the value of

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digital currencies comes from digital social activities, compared to the value of fiat currencies which are backed by precious metals in the physical world. The fundamental differences between the conventional and Metaverse economies can be summarized as follows: ● In the conventional economy, the value of an asset is not determined by the identity of the labor, while in the Metaverse economy, the value of assets is measured by their digital certificate. ● In the real-world economy, the marginal value of the production declines over time, while, in the Metaverse economy, it increases incrementally. ● Similarly, the marginal cost of products will be lower for each additional unit in the Metaverse. ● Transaction costs in the Metaverse economy are almost zero (no costs for frequent transactions), while we bear high transaction costs in the conventional economy. It should also be noted that, at present, the Metaverse ecosystem is still in the initial stage and subjects such as digital currencies, inclusive finance, and the sharing economy are in the test phase. The Metaverse economy could be more systematic and secure in the future with the ongoing advancements of key technologies such as artificial intelligence and blockchain. For further discussion on Metaverse technology, see [15] and [14].

3 The Role of Blockchain Technology in the Metaverse Economy Since the Metaverse can be considered a reflection of the physical world, one can expect a similar economic system. One of the fundamental differences between the two worlds is the trade of digital assets; in the Metaverse, blockchain is the key enabling technology for a more efficient and secure transaction process. We discuss the key topics in the labelled sections below to highlight the importance and opportunities of blockchain in the Metaverse ecosystem. Data privacy and security: Users of the Metaverse should expect that all their personal and sensitive information is collected during registration to enable a more personalized and interactive experience. The platforms and applications require this information to improve their services and offer a more customized system. If this sensitive information is leaked to the wrong people, users can suffer serious problems in the real world. In this regard, blockchain technology enables identity verification, access control, data privacy, and security of information by verifying each block of chain in the system. More importantly, blockchain enhances security by using asymmetric key cryptography and hash functions to guarantee data privacy on the Metaverse platforms. Quality of data: Metaverse platforms collect data from all applications in the ecosystem, from entertainment to gaming and financial companies to healthcare

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services. The artificial intelligence algorithms evolve through this information feed and make critical decisions to improve the Metaverse. The creation and development of digital assets are entirely tied to the quality of this information flow with the physical world. Thus, one of the main advantages of the blockchain-based Metaverse is the authentication and supervision of this information flow by different users. Undoubtedly, this will enhance the quality of data for all parties in the ecosystem. Financial system: Blockchain is considered to be a key enabling technology, with its anti-tampering, transparent, and decentralized fundamentals and ability to support the financial system inside the Metaverse. It is important to securely process the massive amounts of rapid-fire financial transactions in the Metaverse with the efficiency and privacy of blockchain [12]. Therefore, blockchain technology is the most suitable candidate to fulfil a wide range of economic activities in the Metaverse. Smart contracts: Blockchain inherently enables automated, programmable, and transparent smart contracts between peers without the need for third parties, which increases the security of business transactions. If the Metaverse economy can be built on the blockchain rather than a centralized financial system, certain illegal activities in the physical world, such as money laundering and corruption, will be significantly reduced as a result of smart contracts. This will further pave the way for traceable and verifiable financial, social, and gaming industries for broader societies. NFTs: NFTs (non-fungible tokens) have key features such as novelty, indivisibility, scarcity, and interoperability, which give them an identity and make them tradable as a whole. In the Metaverse ecosystem, NFTs are classified as digital assets and are the subject of business activities with their ownership certificates. For example, Gucci, one of the largest fashion companies in the world with a multi-billion dollar revenue, has collaborated with well-known NFT artists to release unique curated artworks in the Metaverse [5]. For further information, see: [16].

4 Business Opportunities in the Metaverse One of the most promising features of the Metaverse is its ecosystem, where people from both emerging and developed economies can interact and conduct business activities. In the physical world, the internet has already enabled people from all around the world to access goods and services. For example, individuals who reside in low-income countries can be employed by multinational corporations from developed countries and provide online services without the need for relocation. Metaverse platforms enhance these opportunities with their augmented reality (AR) and virtual reality (VR) integrations, providing cost-effective access with higher quality in all sectors, including both education and financial services. The Metaverse especially introduces promising innovations for financial services. Banks and fintech companies have already started transforming their services with the emergence of cryptocurrencies and NFTs. Since the adaptation of companies is more rapid and effective to the emerging technologies in the Metaverse compared to the real world, there will be disruptive innovations in the near future from personal banking

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to corporate finance [1]. The study of [10] reveals that the Metaverse ecosystem is expected to become an 8 trillion USD industry in the near future, which is larger than the GDP of today’s third largest economy. Furthermore, Citibank estimates that the Metaverse could generate a revenue of 8–13 trillion USD by 2030 with its inclusive economy and wide business opportunities [6]. Undoubtedly, this massive potential attracts many corporations from all around the world. American Express, one of the largest financial companies in the world, has reportedly filed a trademark application to register its name, logo, and slogans for a range of banking services in the Metaverse [9]. Likewise, Thailand’s Siam Commercial Bank (SCB) announced the launch of its first virtual headquarters on the Sandbox platform, which is a blockchain-based Web 3.0 Metaverse. The international banking giants HSBC and JP Morgan Chase have also signalled that they will enter Metaverse banking to connect with customers and business partners [17]. We should also mention the role of the COVID-19 pandemic which has catalysed the ongoing migration into the Metaverse. Even individuals and companies who are reluctant about the idea of digitalization have been forced to conduct their meetings online after the pandemic. Although cloud-based software systems like Microsoft Teams and Zoom allow video conferencing and online meetings, the Metaverse pairs virtual meetings with the integration of augmented reality technology, which takes social interaction to the next level. For example, South Korea’s Hana Bank has reportedly set up a virtual branch for banking services on one of the blockchain-based Metaverse platforms and started internal training for employees in their Metaverse education centre. The new entry-level employees have been given their completion certificates and started to provide personalized customer service, from online banking to financial investment products. In addition, Bank of America, one of the leading international financial companies in personal and investment banking, introduced a virtual reality training hub across its 4,300 financial centres nationwide, working to adapt its employees to virtual banking. Similarly, BNP Paribas and the Bank of Kuwait, which are two of the largest financial services companies in France and Kuwait, respectively, announced the launch of VR-based branches to enable digital transactions in the Metaverse [1].

5 Conclusion and Discussion In this study, the transformative innovations and varied applications of the Metaverse ecosystem are explained in detail, along with several practical implications. The present research reveals that there is intense competition between institutional companies to take part in the multi-trillion dollar Metaverse economy which is anticipated in the near future. As [4] state, the next transformation in financial services will rise within the Metaverse, and the digital economy will be part of daily life. However, there is also clearly considerable room for improvement. In this regard, [22] and [23] discuss that the Metaverse might be an illusion, with a potential for fraud due to its unknown threats and unstable business activities. Indeed, such claims

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can be supported by financial speculation and extreme volatility among meta-coins, which damages wider investor trust. On the other hand, the current financial system in the physical world is shaped as a consequence of countless crises and policy reforms. Even with improvements in technology and the banking sector, the present state of the financial system is very fragile and devastating crises occur almost every 10 years. Since this is the case, it would be naïve to expect a perfect Metaverse system in its current form. As happens with every new technology, there are drawbacks and areas that require further improvement for a better ecosystem. However, we should not forget that the Metaverse is the best candidate to effectively integrate with Web 3.0, blockchain, artificial intelligence, and cryptocurrencies. There are four critical advantages of Metaverse transition, especially for banks and fintech companies: ● Pioneering the future: If companies had known that the internet would change the world in the 1990s, they would have started investing much earlier. Similarly, the Metaverse presents a great opportunity for financial organizations to design the future of financial services by being part of the ongoing transformation. ● Branding: Although it is unrealistic to assume that the future of banking will lie fully in the Metaverse, it is also a reality that the banks with Metaverse branches will be ahead of others. As mentioned above, HSBC has already built a branch in the Sandbox Metaverse, while JP Morgan has started an initiative in Decentraland Metaverse. This is a powerful sign that multinational financial services companies will be part of the digital world in the future. ● Customer-oriented innovations: In recent years, especially since the pandemic, banks with a large number of physical branches have either shrunk or evaporated. The main reason for this change is the advancements of information technology and digital banking. But still, some banks would prefer to continue offering personalized customer services. The Metaverse both allows for a high level of personalization to customer services and offers important opportunities for banks by creating new models for interactions in the virtual world. ● Digital currencies: One of the most essential parts of the digital world is cryptocurrency, without a doubt. Today, almost all establishments in the Metaverse conduct businesses by using digital currencies, and it is expected that this trend will continue due to their key features. This work has comprehensively investigated and discussed the present state of the Metaverse and its possible future transformation, as well as the practical implications in the finance domain. The critical role of blockchain technology in the development of the Metaverse is also detailed in the paper, from a theoretical framework to real-world examples. While the banking and financial service sectors are increasingly advancing, the Metaverse offers new opportunities for the broader industry. In this regard, it is anticipated that the financial markets will be strengthened with blockchain-based Metaverse applications including digital currencies and NFTs. Moreover, there are potential opportunities in the Metaverse for payment systems,

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personal and institutional credit applications, real estate businesses, and financial investments, although they still require further development. The Metaverse is rapidly becoming an essential part of our daily lives. Although firms and managers continue to question its role from a corporate point of view, it is generally accepted that this disruptive technology surrounded by blockchain and artificial intelligence will be vital for a wide range of industries in the near future. Therefore, the largest software companies in the world, such as Microsoft, Meta, Nvidia, and Alphabet, and the biggest financial services companies that open credit lines to governments, such as Bank of America, Citi, JP Morgan, and HSBC, have started to invest in the Metaverse. The risks and deficiencies of the Metaverse in its present state should also be taken into consideration. One of the most important drawbacks to accessing the Metaverse is the advanced technical requirements and gadgets, such as VR sets and blockchain platforms, which are still not widely accessible especially in low-income countries. It will take some time for people who live in the developing economies of Latin America, Africa, and Asia to access these technologies. Additionally, the Metaverse requires high-speed internet, which is still an issue for many countries. Until these technological infrastructures have been set up, accessing the Metaverse will be problematic for the majority of the world’s population. In addition, users and investors are still not convinced of the Metaverse’s level of data security and privacy, a topic which should be carefully studied. It is critically important to satisfy participants on the subjects of data protection, especially sensitive personal information and payment details. In this regard, the blockchain-based peer-to-peer (P2P) payment system is expected to be crucial to building trust within the Metaverse. To sum up, the growing interest in the Metaverse will continue and even take a more central role in our lives in the coming years with the innovations in emerging technologies. This study reveals that one of the most disruptive innovations is expected to take place within banking and financial services, as detailed above. The Metaverse is full of opportunities, which brings a fresh breath to the world of finance with digital currencies, payment systems, NFTs, and digital banking. With the increasing number of applications and innovations, it is expected that the data pool and literature will continue to grow in the following years. Therefore, studies in this field should be taken into consideration, especially for the private sector and policymakers, to build a more transparent, fair, and accountable Metaverse.

References 1. Agirman, E., Barakali, O.C.: Finans ve finansal hizmetlerin gelece˘gi: metaverse. Avrasya Sos. Ve Ekon. Ara¸stırmaları Derg. 9(2), 329–346 (2022) 2. Azmi, E.: CoinGecko Axie Infinity Survey 2021 CoinGecko, July 26, 2021, https://www.coi ngecko.com/buzz/coingecko-axie-infinity-survey-2021 (2021). Accessed on 21 June, 2022 3. B.E.R.: Brand essence research. metaverse industry based on region, And segment forecasts, 2021–2027, Published January 2022, https://brandessenceresearch.com/technology-andmedia/Metaverse-market-size (2022). Accessed on 21 June, 2022

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4. Bao, H., Roubaud, D.: Non-Fungible token: a systematic review and research agenda. J. Risk Financ. Manag. 15(5), 215 (2022) 5. Bingol, V.: Gucci Case Study: How NFTs are Revolutionizing the Fashion Industry. https://440 industries.com/gucci-case-study-how-nfts-a1re-revolutionizing-the-fashion-industry/ (2021). Accessed on 30 June, 2022 6. Citi, G. P. S. Metaverse, Money: Decrypting the future. Citi ICG. (2022-0303) 2022-10-08. https://icg.citi.com/icghome/what-we-think/citigps/insights/Metaverse-andmoney_20220330 Accessed on 2 July, 2022 7. Cliff, D., Rollins, M.: Methods matter: A trading agent with no intelligence routinely outperforms ai-based traders. In 2020 IEEE Symposium Series on Computational Intelligence (SSCI) (pp. 392–399). IEEE. (2020) 8. Decentraland. https://market.decentraland.org/ (2022). Accessed on 25 June, 2022 9. Finextra. Amex Files Metaverse-Related Trademark Applications. News. https://www. finextra.com/newsarticle/39878/amex-files-Metaverse-related-trademark-applications (2022). Accessed on 29 June, 2022 10. Helms, K.: NEWS. https://news.bitcoin.com/goldman-sachs-Metaverse-8-trillion-opportunity. (2022) Accessed on 30 June, 2022 11. Joshua, J.: Information bodies: computational anxiety in Neal Stephenson’s snow crash. Interdiscip. Lit. Stud. 19(1), 17–47 (2017) 12. Kim, T., Kim, S.: Digital Transformation, Business Model and Metaverse. J. Digit. Converg. 19(11), 215–224 (2021) 13. Knight, Robert.: Metaverse Economy Could Value up to US30 Trillion within Next Decade, November 12, 2021, https://beincrypto.com/Metaverse-economy-could-value-30-trillion-inadecade/ (2021). Accessed on 21 June, 2022 14. Liu, X. Y., Rui, J., Gao, J., Yang, L., Yang, H., Wang, Z., Guo, J.: FinRL-Meta: A universe of near-real market environments for data-driven deep reinforcement learning in quantitative finance. arXiv preprint arXiv:2112.06753. (2021v) 15. Liu, X. Y., Yang, H., Gao, J., Wang, C. D.: FinRL: Deep reinforcement learning framework to automate trading in quantitative finance. In Proceedings of the Second ACM International Conference on AI in Finance (pp. 1–9) (2021a) 16. Nadini, M., Alessandretti, L., Di Giacinto, F., Martino, M., Aiello, L.M., Baronchelli, A.: Mapping the NFT revolution: market trends, trade networks, and visual features. Sci. Rep. 11(1), 1–11 (2021) 17. Neagle, S.. JP Morgan Is The First Major Bank To Join The Metaverse – Here’s Why. Finance Monthly. Retrieved from https://www.finance-monthly.com/2022/03/jpmorgan-is-thefirst-major-bank-to-join-the-Metaverse-heres-why. (2022). Accessed on 21 June, 2022 18. Olivan, J.: Investing in people and infrastructure to support innovation in spain. Meta report (2022) 19. Smith, A.: The Wealth of Nations: An inquiry into the nature and causes of the Wealth of Nations. Harriman House Limited (2010) 20. Theflaticon.: Flaticon, the largest database of free vector icons. Flaticon (2022). https://www. flaticon.com 21. Times, J.: Japan Times. Life-changing’ or scam? Axie Infinity helps Philippines’ poor earn https://www.japantimes.co.jp/news/2022/02/16/asia-pacific/axie-infinity-philippines-poorearn/ (2022) Accessed on 17 Jıune, 2022 22. Mitrushchenkova, A.N.: Personal identity in the metaverse: challenges and risks. Kutafin Law Review 9(4), 793–817 (2023) 23. Smaili, N., de Rancourt-Raymond, A.: (2022) Metaverse: welcome to the new fraud marketplace. J. Financ. Crime, (ahead-of-print) 24. Rymaszewski, M., Au, W. J., Wallace, M., Winters, C., Ondrejka, C., Batstone-Cunningham, B: Second life: The official guide. John Wiley & Sons (2007)

Gamification in Metaverse Nur Meric Afacan

Abstract The Metaverse is the “virtual universe” or “external universe” that individuals can experience without physically leaving their current location and without any physical action. The Metaverse experienced through various virtual reality devices, is also defined as a cognitive universe. It acts as a parallel to real life and aims to create a virtual public space. The decentralization of the universe, the creation of new universes and the possibility of transition between universes at the same time explain why the Metaverse is defined as a public space. In this field, individuals exist through their avatars. It is envisaged that they will be able to perform daily life activities such as going to concerts, participating in art organizations, giving and receiving education, and shopping. Activities such as attending a concert, meeting in a field, playing games, and chatting together were carried out in already existing Metaverses such as Roblox and Second Life. Each of the steps taken during the formation of the Metaverse blockchain, cryptocurrencies, NFT, and virtual and augmented reality studies form parts of the universe. Gamification is a method of digital learning and problem-solving that is frequently used in academic studies. It is a way of improving individuals’ problem-solving skills and approaches to problems by making use of animations, visual and auditory elements such as music and sound effects, and concise narration. Gamification supports individuals to enjoy problem-solving, to come up with creative ideas, and to develop perspectives with different methodologies. Metaverse has turned into an inevitable public space, thanks to the ability of individuals who would not be together under normal conditions due to problems such as physical borders, time, country, and language, to be included in the same virtual environment and work together. Individuals will be able to act together and find solutions to problems together through the By using gamification, individuals can come together more easily and it also creates an active, user experience-focused work environment. Gamification, which was introduced as a method of learning and problem-solving, uses game design principles to increase motivation in non-game contexts. In gamification methodology, in which game thinking and game mechanics are used, users are encouraged to solve problems. In the Metaverse, it can be mentioned that supporting the gamification method with animations increases the user experience and makes N. M. Afacan (B) Izmir Kavram Vocational School, ˙Izmir, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_13

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the learning processes of the individuals enjoyable and makes them memorable. In this section, the steps taken toward visuality in the Metaverse and gamification itself are mentioned. Keywords Gamification · Metaverse · Digital age · New reality

1 Introduction What is known as play today was different action yesterday, and what we know as play today may look different tomorrow [1].

In the digital age, the concept of Metaverse offers users a new reality. By opening the door to new business opportunities and enabling different collaborations, Gamification creates an infrastructure and opportunities for cultural and intellectual production and is a cyber social platform where new technologies are developed and integrated in a cohesive manner. The Metaverse universe, which has started to take its first steps, is a universe that allows creating virtual communities, although it has primarily come up with the concepts of trade and entertainment. Users were allowed to navigate the universe individually through their avatars, which they designed using their personal appearance features. When entering the Metaverse users interact with others through their avatars. It has become possible for users to get to know each other, chat, and act as a community. Metaverse aims to enable thematically interconnected inclusive experiences. Qualified Intellectual Deed (Non-Fungible Tokens) briefly NFT is a kind of crypto money developed on the blockchain in order to create, own, and monetize decentralized assets. Although the Metaverse does not consist of a single universe, new universes are being produced on the world and studies are continuing to expand the existing universes. Blockchains, which we can also call individual nodes around the world, connect Metaverse universes. It works on a decentralized network, as no specific platform is required to access any digital space. With the decentralized network system, it is possible to create a three-dimensional virtual space in which all people of this universe contribute and own together. The interconnected Metaverse and blockchain enable users to play games and earn Money in the Metaverse by taking advantage of the data hosting, transactions, and processing of currencies in the virtual network. Users obtain cryptocurrency as they can circulate in both universes from the tasks or jobs they perform in the games they play. Some of the technologies whose development accelerated with the Metaverse are Augmented Reality (AR), Mixed Reality (MR), and Virtual Reality (VR) technologies. With these technologies, players are provided with a virtual reality experience, and they are asked to be permanent in the Metaverse development continues on more realistic visuals and sounds, no connection problems, and experiences such as touch and movement.

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2 Conceptual Gamification Kevin Werbach [2] explains gamification as the use of game elements and game design concepts in non-game areas [2]. The concept of gamification, which was first used in 2008, came to the fore again in 2010. Expressions used similarly to the concept of gamification are productivity games, surveillance entertainment, funware, playful design, behavioral games, game layer, and applied gaming. However, gamification is a widely used and accepted definition [3]. It is seen that the different context of gamification has different definitions according to the field of study and situations in which it is used. However, the common point of the definitions is that it is a system based on increasing the motivation of people. It is aimed to increase the desire of people to be involved in the process and to be a partner in the solution by making the process attractive [4]. The use of game design principles in situations outside the context of the game is the accepted general definition of the concept of gamification in the literature [3]. Within the concept of gamification, there are concepts that are very similar to each other but have certain differences when examined in detail. While gamification is the use of game philosophy in situations outside the game context, game-based learning provides hidden or open learning within a game environment. The term “game”, which is explained with two different expressions as “play” and “game” in English, comes from the Greek terms “paidia” and “ludus”. “Paidia” (playfulness) refers to the observable and behavioral part of the game concept. The word “ludus” (gamefulness) describes the qualitative features of the concept of game [5]. The concept of gamification entered the Western literature with Nick Peelling, a computer programmer born in 1964. Nick Peeling explains gamification as communicating with users for problem-solving in the context of the game by using game mechanics [6]. The concept of gamification includes game elements, design techniques, and non-game areas. The historical development of games and the opportunities that have arisen have formed the basis of this concept. It uses a system based on game philosophy as a tool for commercial or different goals. Although the roots of the concept of gamification go back to the idea of games in general, the elements of gamification are mostly inspired by digital games. Therefore, the gamification approach naturally has a structure that can be easily integrated into the e-learning process. The fact that e-learning environments have a structure that can analyze the development process of the learner and provide instant feedback automatically, and that they are designed in digital environments such as digital games appear as suitable channels for gamification applications [5].

Gabe Zichermann explains the concept of gamification with the term “funware” in his book Game-Based Marketing. He defines the placement of points, badges, levels, quest, and achievements in the game industry into real-life experience as gamification [6].

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2.1 Gamification Model Werbach and Hunter study/analyze gamification under three separate layers: dynamics, mechanism, and components. In this model, the game design process starts with the selection of the basic dynamics for the needs. It continues with the determination of the mechanisms and the components related to the mechanisms according to the selected dynamics [2]. Dynamics; Gamification dynamics are the basic principles found in traditional games and forming gamification design. These principles are: ● Constraints/Limitations: It is related to the freedom of the player. It is present in every game and defines the limits. ● Emotions: Different emotions can be experienced in the game. The pleasure and experience that emerges as a result of winning or losing ensures that the player stays in the game and continues. Fun and enjoyment are at the forefront. ● Narrations: It ensures that the game is in a certain flow and that this flow is experienced by the player with its narrative features. Similar to the scenario, it can be clear and explanatory. ● Progression: It shows the progress and level of the player in the game. ● Relationships: It is possible for players to interact with each other in the game. These can be real players as well as virtual characters in the game. It is the interaction between teammates, opponents, real friends, virtual characters, and players. Gamification can direct the player in the desired direction in the game. It adds a feel to the game process and defines more specific actions. ● Challenge: Each game has a purpose and a story. The game system also determines the goals and objectives that must be done for the player to win the game and pass the level. ● Chance factor: The game process allows the player to progress with his abilities, at the same time the luck factor comes into play for the player to progress. ● Cooperation and competition: In game processes where winning and losing are priority, players cooperate with other players or compete with their opponents in order to win. ● Feedback: The feedback that informs the players about their situation during the game reinforces the sense of progress. It keeps the player in the game with feedbacks such as when they should do the right move to win the game, where they should walk when they get lost in the game, and whether they are in danger. ● Resource allocation: Certain resources must be collected in order to achieve or win the goal of the game. The player approaches his goal step by step by collecting these resources throughout the game process. ● Rewards: Rewards that are an indicator of the player’s “success”. It is divided into four main categories as status, access, power, or inventory. The awards are related to sustainability and are expected to be given at regular intervals to ensure that they do not lose their impact.

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● Transactions: It is the process of buying, selling, or bartering with other players or virtual characters during the game process. ● Turns: In traditional games, the player has to wait for his next turn to play the game. With this mechanism that progresses in real time in digital games, every player can be involved in the game. ● Win conditions: Shows the player’s winning status, rank, and way. There may be only one winner in the game, or there may be situations that vary by point ranking method. It can be used alone or more than one component can be associated with a single gamification mechanism. ● Achievements: These are the rewards that the player receives for certain tasks that must be fulfilled in the game. ● Avatar: It is the two-dimensional or three-dimensional visual representation of the game character of the player in the virtual environment. ● Badges: These are the representative items that the player acquires as a result of achievements or completed tasks during the game process in order to enable the player to progress. ● Boss fights: These are the challenges that must be overcome in order to pass to the next level in games based on leveling up. It is more challenging than other challenges and may require several repetitions. ● Collections: These are the items collected in the game such as badges, stuffs, clothes, weapons, and special powers. ● Combat: It refers to the struggle to defeat the opponent. ● Content unlocking: During the step-by-step game process, the player must meet certain prerequisites to access or unlock certain content. In this way, he will be able to reach the next story of the game and move toward the goal. ● Gifting: It is the objects such as virtual currency, weapons, clothes, and food that the players give each other for free in the game. ● Leaderboards: It is the list where players are placed as a result of instantaneously changing scores in multiplayer and online games. ● Levels: It is the component that shows the current game level of the player. As the player progresses, the level increases and the game becomes more and more difficult. ● Points: Each action of the player affects the points he will collect. Through these points, his level in the game increases. ● Quests: These are the components that are expected to be done in the game and that provide certain gains when done correctly. ● Social graphs: These are social networks that allow interaction with other players during online games. ● Teams: Games can be played alone or through teams. Players work as a team to achieve the same goal. ● Virtual goods: These are virtual objects that can be collected and used in the game [2].

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Reeves (2013) states that multiplayer online games and virtual worlds affect the work environment. He explains that these games are based on ten key features: ● ● ● ● ● ● ● ● ● ●

Self-representation through avatars Three-dimensional environments Narrative context Feedback Reputation, ranks, and levels Virtual markets and economies Determined and implemented rules Teams Communication systems that can be reconfigured by the participants Time pressure [7].

Deterding [8] defines gamification as the use of game design elements in non-game contexts and explains gamification with four components: ● Game: It is the product that has game design elements other than game interaction. ● Element: It refers to certain rules that the game has. ● Non-game context: It is the presentation of a content other than the entertainment purpose expected from the games. ● Design: It is the use of non-game technologies [8]. Kevin Werbach [2] constructs what he calls the PBL Triad for gamification approaches: ● Points: During the game process, the player earns points when he performs certain steps. Increasing points indicate that the players are making progress and encourage the player to continue. The player who wants to advance in the score ranking follows the steps and continues the game. ● Badges: Every achievement of the player is proven by the game system with badges. ● Leaderboards: In multiplayer online games, players determine their level relative to other players through scoreboards. Gamification aims to strengthen the connection with the user. Through these connections, different emotional connections emerge. The purpose of gamification is not to produce games. With the use of gamification elements, it is aimed to ease the realization of any action and increase the efficiency. Gamification in non-game contexts helps internalize users’ extrinsic motivations. It provides feedback and rewards to increase the user experience and enable the user to be a part of the situation. It allows the user to demonstrate their problem-solving abilities with gamified processes and to develop together with teamwork. Gamification can be used in different definitions, including different concepts in game research and other disciplines. There are various definitions that can also state a process, action, state, or result. In English, it is expressed with names such as gamification, ludification, or playification [9]. The concept is used as an umbrella

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term in game research. Game design elements can be handled in different categories by different researchers in game research. A game is a rule-based system with variable and quantitative outcomes, where different outcomes are given different values. The actor makes an effort to influence the result, is emotionally attached to the result. The results of the playing activity can be negotiated [10].

Hunicke et al. (2004) defined game esthetics as the dynamics revealed by game mechanics and their perception by the player. Game mechanics refer to certain elements of a game, both in terms of data representation and algorithms. Game dynamics involve the run-time and behavior of mechanics acting on game input, as well as the activity of each element over time. Game aesthetics refer to the emotional responses of the player when interacting with the game system [11]. Jarvinen [12] categorized the game elements found in the games. According to Jarvinen, there are nine main game categories. Game components refer to the resources used in a game, such as stamps, dice, vehicles, balls, and characters. The environment is the playground. The ruleset refers to the objectives and, accordingly, the rules-compliant procedures. Game mechanics are actions that players can take to win. The theme is the subject element that will function as a metaphor for the game system and ruleset. Information is the given data such as points, time, limit, and hints to be reported to the players. The interface is the screen that provides the opportunity to interact with the game elements when there is no possibility of direct physical contact. Players control the game mechanics as an element. The context determines where, when, and why the play takes place [12]. Within the context of gamification, the concept of serious games includes games that are designed for purposes such as education, training, and simulations. Serious games can be found in military, education, healthcare, and business contexts. Serious games also require consideration of factors such as playability, procedurality, and the conveyance of information during play when presenting educational materials. It is important that the material being conveyed is integrated into the game as a whole and not just presented as discrete audio, visual, and textual elements, but also through the meanings that are revealed through the process of playing the game [9].

2.2 Player Types The players involved in game design are of different types of players at different rates [13]. Divided the types of players into four types: ● Achievers: These are the types of players who focus on performing well. The aim in the game is not just to achieve the goal or win the game. Its reward is players who care about successful completion of missions and leaderboards. ● Socializers: It is the type of player who likes to interact with other players in the game and prefers games that require cooperation and teamwork.

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● Explorers: It is the type of player who interacts with the game world within the game. They try to discover new ways and methods by focusing on solving the secrets promised by the game world and finding answers to puzzles. ● Killers: These are the types of players who are in a fight against other players in the game. They prioritize winning and like to showcase their success [13].

3 Gamification Design The gamification design model involves setting goals, determining desired behaviors, identifying player types, determining activity cycles, incorporating elements of entertainment, and using appropriate tools. These processes are explained in more detail below: Define Business Objectives. It is the determination of where, why, and for which purposes gamification will be used. These goals are specific and performance-based goals. All potential targets must be listed in a clear, precise, and understandable manner before the targets are fully determined, and the most appropriate targets for the system should be selected from these potential targets. Delineate Target Behaviors. At this stage, what behaviors are expected from the participants in the system and how these behaviors are evaluated are determined at this stage. Expected behaviors should be concrete, specific and lead to the achievement of the goals set in the first step. Once the behavior is fulfilled, it should be translated into a measurable outcome with points, badges, or other items. Describe Your Players. One of the most important steps to achieve a positive result in a system where gamification will be applied is to consider player types. It is necessary to know the characteristics of the audience to which gamification will be applied and to analyze which types of players, what can motivate or demotivate, and activities should be determined accordingly. If the same structure is to be used for a large audience and a group with different characteristics, it can lead to a better result if that structure can be changed in accordance with the applied audience. Devise Activity Cycles. Activity cycles consist of two cycles at the micro (loyalty cycle) and macro level (progress cycle). In the micro-cycle, it is determined what the participants will do in the system, why they will do it, and how they will respond as a result of what they do from the system. With this cycle, the participant focuses on the target with a source of motivation, realizes the target, and receives feedback. This feedback initiates a new motivation process and allows new actions to take place. Other participants who observe this process can also initiate an action. Activities with a similar process performed by the participants at the micro level can make the situation boring. In this case, macro-level activities come into play. In the macrocycle, the focus is on creating a positive impact on the motivation level of the participants in the long run, by providing the participants with information about where they are in the total progress, what they have gained, and what they can gain totally new. Don’t Forget Fun. Entertainment, which is the basis of gamification, should be taken into account in every part of the system, except in the areas where the person

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interacts the most. The fact that the system provides an entertaining environment will allow the user to return to the system. Deploy The Appropriate. It is the final decision stage of the technology suitable for the developed system, the dynamic, mechanical, and components to be used. In this step, the goals and desired behaviors identified in the gamification process are translated into a system design, the player types are defined, the activity cycle is structured, and the appropriate tools and features for adding elements of entertainment are chosen. The implementation phase of the gamification process can then begin [20]. Mihaly Csikszentmihalyi has expressed a special kind of happiness that he calls flow. Flow theory describes the pleasure users get while playing games. It is expressed as flow that the person is lost in the moment, exhibiting intense concentration, reduced interest in the environment, and not perceiving the time flow. There are seven terms that Csikszentmihalyi uses to describe the flow state. It is possible to evaluate these conditions in terms of game designs [14]. Clear Goals. It refers to that the goal’s easy-to-understand to the players. To achieve this goal, there may be a period in which the player learns what to do in the game. It is possible to facilitate this process with instructional sections, interdepartmental story transfer, and explanatory interface designs. Immediate feedback. The player must be able to instantly see the result of every action during the game and be aware of the dangers. The player should receive instant feedback about his situation in the game and should be able to manage the game. Challenges matching skills. It is expected that the game levels will get harder as the game progresses and the game is learned. The player expects a game model that challenges him more and more as he progresses. Episodes that may be too low or too high for the player’s skill will cause the player’s interest to fluctuate. Deep concentration. It is the player’s full attention to the task to be done. While some missions may need more attention in the game, in some cases the player should feel easy. A feeling of control. During the game, the player must not lose his sense of control. He should be aware that he is in control at the levels he progresses step by step and he is progressing by learning. Difficult controls or challenging movements can discourage players and cause them to give up on the game. The sense of time is altered. It is the situation where the player can enter the flow. It is the fact that he forgets how time passes during the game and immerses himself in the game world. The activity is intrinsically rewarding. It’s worth doing yourself. As the game is experienced, it rewards the player [6]. Each game has a different world and narrative language for the players. Players do not play games for a single reason, and not all games are played for the same reason. Lazzaro (2004) states that people do not play the game just because it is a game. Adrenaline provides different pleasures to all kinds of players in the adventure and challenge game system. It is possible to talk about four basic types of entertainment that activate the emotions of the players. These types of entertainment are hard fun, easy fun, serious fun, and social fun.

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Easy fun (Novelty): Associated with creative thinking, role-playing, and a sense of curiosity arising from exploration. Hard fun (Challenge): It is about the pride and sense of winning that comes from accomplishing a difficult goal. Social fun (Friendship): Associated with the sense of fun that comes from collaborating or competing. Serious fun (Meaning): It’s about the feeling of excitement that comes from changing the player or the player’s world [15].

3.1 Examples of Gamification in Metaverse 3.1.1

Roblox

Developed by Roblox Corporation, Roblox is an online gaming platform and game creation system. In this system, users can create their own games. They can also play games created by other users. Roblox is free to play and in-game purchases are made with a cryptocurrency called “Robux”. One-time purchasables called Game Passes and user-created content with multiple-time purchasables named Developer Products or solely products are used in-game transactions in Roblox. A certain percentage of the revenue is shared between users who are also developers and Roblox Corporation. Roblox Studio, provided by Roblox Corporation in-house, allows users to develop their own games. 20 million games are produced annually and most of these games are developed by children. In this way, it is ensured that children develop themselves in game design and improve their coding skills [16]. Roblox is one of the first steps taken in the Metaverse field, as it has a universe of its own and hundreds of different games. It is a universe where players showcase their creativity and experiment with other players’ ideas. It is also used as an online social platform. The fact that players can program their own games and invite other people to their games allows the Roblox universe to expand every day. Children are taught coding from a young age through Roblox Studio (Fig. 1).

Fig. 1 Roblox game [17]

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CryptoKitties

Developed by Canadian studio Dapper Labs in 2017, CyrptoKitties is an NFT-based gamification application running on the Ethereum network. It was developed to spread blockchain technology and increase usage. The gamified decentralized application, CyrptoKitties, which is called “dApp” (Decentralized Application) for short, works with the purchase, sale, and reproduction of virtual cats. In this game, users can buy, breed, trade, and sell virtual cats. Cats have 12 various attributes such as fur, eye shape, mouth, pattern, eye color, and environment. These attributes are called Cattributes. Genetic algorithm is created through combinations of attributes (Fig. 2). Each CyrptoKitties is unique and it is the Genetic Algorithm that provides this uniqueness. Each cat is represented on the blockchain by an immutable NFT. The ERC-721 token standard is used. It is built on the Ethereum blockchain and is immutable (Fig. 3). CryptoKitties do not have any permanent gender. They have genders called Sire (male) and Dame (female) and they differ depending on how they feel that day. When mating occurs, a unique new CyrptoKitty is created by smart contract. Valuable matings occur through rare CyrptoKitty. Rare NFTs resulting from valuable matings

Fig. 2 CryptoKitties metaverse game [18]

Fig. 3 CryptoKitties metaverse game [18]

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Fig. 4 CryptoKitties metaverse game [18]

mediate the price increase. Only a Dame, a person who has a mother cat, also has Kitty to be born. A breeding fee can be charged from the Dame owner only when owning a Sire, or male cat. When cats called Gen-3 and Gen-4 are mated, a Gen5 cat is obtained. When two Gen-4 cats are mated, a Gen-4 cat is obtained. As a successful example of gamified decentralized applications, CyrptoKitties is very important in terms of supporting the use of blockchain and showing these processes with a gamified system (Fig. 4). Johan Huizinga, in his book Homo Ludens, defined the concept of game and playing games as follows: It is a free activity that is consciously far from ‘everyday life’ and ‘without reason’ but at the same time involves the player quite intensely (inclusion). This activity is not about any materialistic interest, making a profit. Within the framework of certain rules, it continues within the limits of time and space. This activity supports socialization and social grouping [19].

According to Huizinga’s definition, play must be something done consciously, it must be without reason, it must be included, it must be a free activity, and it must have rules and promote socialization. At the same time, there are six asic factors that make up a game: ● ● ● ● ●

Rules Goals and Purposes Conclusion and Feedback Struggle Interaction Considering CryptoKitties based on these explanations;

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● It can be fun for some people. ● It has rules such as the need for 2 cats for mating, the generation of the cat resulting from mating is a higher level. ● There are no specific goals to win the game. ● The result is uncertain. ● No specific challenge area is presented. ● There is interaction between players and between technology and the player. ● It has a system based on cats. ● It is done consciously. ● Not without reason; The main purpose for the user is to earn money/crypto money does not fit the definition of the game. ● It gives a feeling of inclusion. ● It is a free activity. ● It supports socialization. CryptoKitties has no specific goal. It offers no struggle and its end is uncertain. Therefore, it is not defined as a “game”. It is a successful decentralized app, that is, gamified decentralized application [18].

3.1.3

MetaBlox

MetaBlox is a Web 3.0 platform where users can have representations of real-world places as NFTs. Virtual lands in MetaBlox are powered by real-life memories. It allows users to purchase the places where their important memories take place and to direct the memories to that area. It also makes it possible for memories to live forever through blockchain. The main purpose of MetaBlox is to help people hold their memories, stay connected to their real-world location, and allow memories to live on for generations. By clicking on a virtual land, the memory slots of individuals can be accessed. It is Block 4534 in San Francisco, which is put up for sale as NFT. The “gamification loop” seen below was designed by Yu-kai Chou, the founder of the system, in order to purchase, rent a place or write a memory about it here (Fig. 5). It is impossible to store all photos on MetaBlox, it only accepts a limited number of NFTs. Users can add a limited number of photos to which they can transfer their value. To extend MetaBlox, where gamification design is used, it is designed that there will be three types of neighbors who will use MetaBlox: Nostalgic neighbors, museum directors, and real estate kings. It is possible to define nostalgic neighbors as users looking for meaning on MetaBlox. They are individuals who have memories in or near the community, and they want to preserve those memories on the blockchain forever. The museum director creates a narrative, story, and esthetic with his collections. Users can collect NFTs on Pinterest boards, comics on MetaBlox or Opensea. For example, the museum director can purchase a large number of Blox in a community and collect memories from people who have lived there or traveled to that place as tourists. The real estate tycoon, who is envisioned as another neighbor, is the user who try to buy the most valuable places and as many Blox as possible.

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Fig. 5 MetaBlox metaverse game [18]

Blox on MetaBlox can be purchased as NFT. In order to make purchases, the user must use ETH, MATIC, and USDT cryptocurrencies. Blox is stored as NFT in the person’s crypto wallet. Memories are also uploaded to Blox via certain photos and videos uploaded to the system [21] (Fig. 6).

Fig. 6 MetaBlox metaverse game [18]

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4 Conclusion Gamification exists in every moment of our lives. Fulfilling certain tasks in daily life is a phenomenon that we encounter at every moment, such as the rewards we set for ourselves, the documents we earn as a result of our achievements, feedback from third parties, teamwork, and reward-punishment systems. In a system designed using gamification, it is seen that the motivation of users to use the system increases. In this way, more entertaining and attractive experiences can be reached out to the users. Gamification philosophy, which is also seen with successful examples in the Metaverse world, has many advantages in attracting, motivating users, maintaining loyalty, and changing behavior. The use of game rules in non-game areas enables individuals to take pleasure from the action, exhibit a competitive attitude, and stay in the flow. As a result, gamification is a phenomenon that has found its place in many areas in today’s world. Metaverse enables the creation of virtual communities as well as business and entertainment. It is described as a new generation internet and cyberspace “digital big bang” that includes three-dimensional virtual space where users can interact with their avatars. Metaverse aims to enable thematically interconnected inclusive experiences. Application examples such as Roblox, CyrptoKitties, and MetaBlox in the Metaverse, while adapting people to the system, additionally support their existence in the universe and motivate them to reproduce this universe. Through open codes, it is possible to list the advantages like applications that support the education process of the person, socialization, the use and spread of new technologies, and the expansion of the universe as a decentralized structure. In today’s world, where we see the foundations of Web 3.0 being laid, technology is rapidly advancing and every moment is digitized, every step taken in the Metaverse will be very valuable and unique.

References 1. Poltronieri, F.A.: Communicology, apparatus, and Post-history: vilém flusser’s concepts applied to video games and gamification. Meson press, In Rethinking Gamification (2014) 2. Werbach, K., Hunter, D.: For the Win: How game thinking can revolutionize your business. Whart. Digit. Press. (2012) 3. Deterding, S., Dixon, D., Khaled, R., Nacke, L.: From game desing elements to gamefulness: Defining “Gamification”.In: Proceedings of the 15th International Academic MindTrek Conference: Envisioning Future Media Environments. New York: ACM. S. 9–15 (2011) 4. Xu, Y.: Literature review on web application gamification and analytics. CSDL Tech. Rep. 11–05. https://lutpub.lut.fi/bitstream/handle/10024/117865/DESIGNING%20GAMIFIC ATION%20FOR%20COLLABORATIVE%20LEARNING%20IN%20GROUP%20WORK. pdf?isAllowed=y&sequence=2. [20.07.2022] (2011) 5. Bozkurt, A., Kumtepe, E. Oyunla¸stırma, Oyun Felsefesi ve E˘gitim: Gamification. Akademik Bili¸sim, 5–7 Subat ¸ 2014, Mersin Univ., Mersin (2014) 6. Bayraktar, Ö.: Bir ˙Ileti¸sim modeli olarak oyunla¸stırma. Maltepe Univ. Inst. Soc. Sci., Unpublished Masters Thesis, ˙Istanbul (2014) 7. Reeves, B.: Total engagement: How games and virtual worlds are changing the way people work and Bus. Compete. Harv. Bus. Press. (2013)

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8. Deterding, S., Sicart, M., Nacke, L., O’Hara, K., Dixon, D.: Gamification. Using Game-Design elements in Non-Gaming contexts. In Part 2-Proceedings of the 2011 Annual Conference Extended Abstracts on Human Factors in Computing Systems. S. 2425–2428. ACM (2011) 9. Demirba¸s, Y. Bilgisayar Oyunları ve Gerçeklik ˙Ili¸skisi Çerçevesinde Oyunla¸stırma ve Alternatifleri. Marmara University, Inst. Soc. Sci., Unpublished PhD Thesis, ˙Istanbul (2014). 10. Juul, J. Half-Real. MIT Press (2005) 11. Hunicke, R., Leblanc, M., Zubek, R. MDA: a formal approach to game design and game research. Proceedings of the Challenges i Games AI Workshop, Ninet. Natl. Conf. Artif. Intell.. S. 1–5 (2004) 12. Jarvinen, A.: Games without frontiers: Theories and methods for game studies and design. Dr.A Tezi. Univ. Tamp., Finland (2008) 13. Bartle, R.: Hearts. Clubs, Diamonds, Spades: Players Who Suit MUDs, J. MUD Res. 1(1), 19 (1996) 14. Csikszentmihalyi, M.: Flow: The psychology of optimal experience: steps toward enhancing the quality of life. Harper Collins Publ., New York (1991) 15. Lazzaro, N.: Why we play games: four keys to more emotions without story. player experience research and design for mass market interactive entertainments, XEO Design Inc. https://www. xeodesign.com/xeodesign_whyweplaygames.pdf. [21.07.2022] (2004) 16. Digitaltrends.com. what is roblox?. https://www.digitaltrends.com/gaming/what-is-roblox/. [18.07.2022] (2020) 17. Gamehag.com. Roblox. https://gamehag.com/games/roblox [06.08.2022] (2022) 18. Oyunlastirma.co. Gamefed Türkiye metaverse Ekibi Yazıyor: CryptoKitties’in Oyunla¸stırma Penceresinden ˙Incelenmesi. https://www.oyunlastirma.co/Metaverse/gamfed-turkiye-Metave rse-ekibi-yaziyor-cryptokitties-oyunlastirma-penceresinden-incelemesi/. [17.07.2022] (2022) 19. Huizinga, J.: Homo Ludens. ˙Istanbul: Ayrıntı Yayınları (2013) 20. Kocaa˘ga, B.: Oyunla¸stırma ˙Ilkeleri temelinde Bir Çevrimiçi Oyunla¸stırma Platformunun Sınıf ˙Içi Uygulamalara Yönelik Olarak Geli¸stirilmesi. Yıldız Teknik University, Inst. Nat. Sci., Unpublished Masters Thesis, ˙Istanbul (2017) 21. Yukaichou.com. Gamification and behavioral design. https://yukaichou.com/nft/my-gamifiednft-project-metablox-just-launched-reservations-open/. [17.07.2022] (2022)

Evaluation of the Metaverse Universe in Light of Psychology and Sociology Atiye Pinar Zumrut

Abstract The concept of Metaverse has become a popular field in today’s digital world, which is both intriguing in large circles, and where considerable research and developments are being performed and followed Metaverse, which heralds the transition from Web 2.0 to Web 3.0, includes many new technologies such as augmented reality, virtual reality, mixed reality, and NFTs. Simply, the Metaverse can be thought of as a “virtual twin” of the world we live in at abstract level. This twin world offers many services to its users, such as economic, cultural, and communication systems, akin to those found in our own reality. The most significant difference is that in the Metaverse universe, individuals form their own avatar according to their preferences and perform their interpersonal and social relations through it. The fact that the Metaverse universe allows us to differentiate the self-presentation in shape allows users to experience desired emotions such as feeling more valuable, being approved by society, and being able to socialize according to their wishes. In addition, by means of avatars, individuals form a digital realm that allows them to realize new socialization processes in terms of their own status, socioeconomic class, identity, and image. The fact that users have the opportunity to experience anything they have in the physical world in a way that is close to reality in the Metaverse also provides many effects in the field of psychology such as grief, crisis, trauma processes, interpersonal relationships, changes in self-perception and self-esteem, real-life and virtual life balance, close relationship experiences. In sociological terms, Metaverse can be evaluated in terms of various criteria such as socialization processes, globalization, and class. Within the scope of all these reasons, in this section, it is aimed to examine the paradigm shifts that the concept of the Metaverse, which has revolutionized many fields, has revealed in terms of psychology and sociology sciences. Keywords Metaverse · Psychology · Sociology · Digital addiction

A. P. Zumrut (B) Ministry of Youth and Sports, Ankara, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_14

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1 Introduction Throughout its existence, humanity consistently introduced various inventions and experiences, bringing forth innovation to its world. However, innovations have not always been welcomed. For example, while the discovery of the printing house sparked the Renaissance and Reform movements in Europe, some events that developed afterward undermined the authority of the church. Although knowledge has been liberated from the yoke of the church and the books published have enabled large masses to be informed over time, it has still been dominated by other powers up until today. With the rapid technological developments today, the use of computers, smartphones, the internet, and social media has increased significantly, and this has led to increased circulation of information on a global scale. Thus, the events and innovations in the world have been instantly viewed on our screens making it easier for us to stay informed. Instead of going to the library, people have started to use online databases (Scholar, Web of Science, Scopus, PubMed, Ulakbim, etc.) to access resources, and they have begun to play online games, use friendship sites as a solution for loneliness, and share posts on social media accounts such as TikTok and Instagram to satisfy different emotions. Nowadays, the “Metaverse”, which is the newest technology area, offers favorable opportunities for some individuals in terms of functionality, simultaneously presenting disadvantages for others. Undoubtedly, alongside the beneficial aspects brought by the relevant advancements, there exist unfavorable aspects as well. This situation changes depending on the intention of individuals to use these innovations. For this reason, innovations cannot be definitively labeled as either good or bad. Although the Internet is generally regarded as a facilitator of convenience in our daily lives easier, it can have a detrimental impact on individuals or families who struggle with issues such as addiction. The same goes for the Metaverse. While reaching clear information about the purpose of using Metaverse and the short duration of use increase its advantages, entering an unknown area or spending too much time in this area may cause undesirable situations.

2 Metaverse and Anticipations from the Future The term Metaverse is a compound word that results from the amalgamation of “meta”, which means being beyond border, and “universe” Therefore, Metaverse refers to a conceptual and virtual environment that is different from the physical world we live in. The concept of Metaverse was first mentioned in a science-fiction novel titled Snow Crash published in 1992. In the book, author Neal Stephenson speculated on what the internet might look like in the future. In the book, a virtual world called “Metaverse” is mentioned, where users communicate with each other

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through digital avatars [1]. It received a lot of criticism for being exaggerated in those years [2]. The different side of Metaverse from social media and the internet is that it aims to bring virtual and three-dimensional visuals to the fore, and thus enables a step into a new world in which the real and virtual worlds are intertwined. Metaverse, when defined through familiar applications, is a virtual world where applications such as Second Life (virtual world), Pokémon Go (augmented reality applications), Minecraft (computer games that you can format), and Zoom (teleconferencing applications) can work in sync with each other. The Metaverse is now partitioned into multiple virtual universes. However, this is not the parallel universe to be designed in the future. The future Metaverse is holistic. Some of the closest universes to the Metaverse we have now are Decentraland, where real estate and NFT art can be traded, people can talk, and it has its own currency; Horizon, which aims to play, interact, work, chat; Axie Infinity, which is used for gaming and where crypto money can also be used; the Sandbox, which provides the opportunity to produce content with NFT compatibility and earn money; Roblox, one of the worlds that is highly preferred by children and young people, where unlimited content can be produced, including mini-games and experiences, and that fits the Metaverse in real terms thanks to its VR glasses compatibility; Fortnite, a popular application used for gaming. Through the utilization of applications and games, individuals have the opportunity to partake in shared movies, attend musical performances, and engage in an interactive communication with others [3].

2.1 Examination of Metaverse and Its Possible Effects Within the Context of Avatar, IoT, NFT, AR/VR/MR, and Blockchain This section will focus on the elements of the Metaverse, which are thought to affect human-society relations. It is not within the scope of the subject to examine the working principles of these elements in detail. For this reason, the functionality of these elements and their effects on human life will be emphasized. Today, in the use of Metaverse, various hardware such as a keyboard, joystick, glasses, and camera enable human–computer interaction. The utilization of this equipment enables individuals to perform activities such as controlling their avatars in the virtual world, producing digital content, communicating with others, and generating economic value. Avatars are representatives of individuals’ physical structures in digital environments. There are various options for image designs and arrangements of avatars used in games in digital environments. Although avatars similar to our physical appearance can be made automatically with the current technology, it can be said that the perception of reality formed by avatars in people will increase with the increasing technological infrastructure as time progresses. With the development of technology, the image processing techniques of avatars will reach the competence

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to instantly reflect our movements, gestures, and mimics in the real world through mobile sensors. Thanks to technologies such as Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), Extended Reality (XR), and holograms in the Metaverse universe, people in the real world will be able to organize meetings, do business, go shopping, go to the movies with their avatars in the Metaverse, without leaving their homes. Taking into account the aforementioned occurrences, one may infer that the Metaverse harbors a substantial potential for commercial exchange. Cryptocurrencies have the potential to be highly appropriate for a meta-universe. Cryptocurrencies allow the formation of a digital economy in different types of virtual collections (NFTs). For NFT trading, blockchain technology offers transparent and reliable governance systems. For trading in the Metaverse, there needs a harmonious collaboration between NFT and blockchain technology. Blockchain is also important in terms of storing, processing, and sharing data, working with them in collaboration, and determining their originality in the Metaverse [3]. With AR, physical elements that we perceive in the real world around us are combined with data such as graphics, video, sound, GPS, etc. to provide a real-time, interactive experience [4]. With VR, the existing environment can be copied or this environment can be enriched with elements (3D environments, sound, motion) that will form an imaginary world and give a feeling of reality. MR, mixed reality, provides the interaction of virtual and real worlds with physical and digital objects together in real time [5]. XR, extended reality, refers to all real and virtual combined environments, and human–machine interactions formed by wearable devices used to better feel computer technology and avatars. AR is the term that expresses what is described as VR and MR together. The devices we will use in the future will also be connected to the internet. A Metaverse experience that can work with these devices will allow users to provide more realistic experiences. The state of these objects being connected to the internet is called the Internet of Things (IoT). For example, a virtual universe that works integrated with the air conditioner at home will allow the user to physically experience that heat when the avatar enters a cold or hot environment.

2.2 Psychological and Sociological Aspects of Metaverse People are classified according to their date of birth. There are different forms of these classifications or generation designations. According to the development of communication technologies, they are classified as (1) Radio Generation, (2) Television Generation, (3) Social Media Generation, and (4) Metaverse Generation, while they are classified in some other forms as Silent generation, Baby Boomer, X generation (45 years and above), Y generation (30–45 years old), Z generation (15–30 years old), and Alpha generation (under 15 years old). Although the names of the generations change, their characteristics correspond to each other [6–8]. As the Metaverse becomes an increasingly prevalent concept to enter our lives and it would be appropriate to refer to those born in 2021 and later as the Metaverse Generation [9].

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It can be observed that the manner in which generations interact with technology varies. Generation Z, present-day, and future generations now have come across smartphones, computers, and technologies working with artificial intelligence in their daily lives. The Metaverse generation, which is defined as the ultimate generation according to the development of communication technologies, will be able to experience the Metaverse universe well and will perform many daily life activities in this universe. However, regional or economic disadvantages can make it difficult for people of the same generation to access technology. In this sense, individuals may not benefit from developments such as education, daily life, and communication in the same way. Considering the development studies for Metaverse, it is seen that the number of scenarios of the games has increased, the games are prepared with real-time (in-game characters, objects or environment interactions) characteristics, hologram, and LED screen systems are used in live events concerts and amusement parks, online concert platforms, personalized avatar formation programs, digital interactive shopping areas, digital marketplace working with NFT for the purchase and sale of digital products, make-up sets for avatars, virtual delivery minibuses, vests that increase the sense of touch, land trade are operated and performed and brands have efforts to reach their customers without intermediaries. When we examine the applications known as Metaverse today, it is evident that the vast majority of them revolve around gaming. Universes such as The Sandbox and Decentraland, which are primarily game-oriented, offer prizes in the form of NFTs and cryptocurrencies to their users. It is estimated that 90% of the entire gaming industry will work in this direction in the next 5 years. However, with the further advancement of technology, it is believed that Metaverse can be utilized in various non-gaming areas. In the Metaverse universe, which has begun to manipulate our perception of reality more, although the rates differ according to the age range of people, generally, individuals want to play games for the reasons such as; the desire to dominate, the desire to win, the impulses of achievement-challenge themselves and excitement, activating the curiosity impulses, seeing it as a source of pleasure, reaching a certain goal, gaining social status and the desire to form a team and to participate in teamwork in opposing groups [10, 11]. Digital games provide individuals with new skills, new social bonds, a chance for communication, interaction, and cooperation, being able to socialize remotely, activate the fantasy world, pass their free time with fun, get out of their routine and their own reality, and getting away from stress, anxiety, and responsibilities. However, these opportunities also prepare the ground for some possible problems. Individuals naturally want to continue their lives under their own control, instead of struggling with the flow of life. Especially in young adults and adolescents in younger age groups, inadequacy, low morale, and psychological disorders occur when they become weak in this struggle. So, the solution can be seen as avoiding reality. Individuals may want to obtain the motivation and escape for longer periods of time through digital games that provide more relaxation, avoidance of family pressures, and lower their stress [12–17].

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That computers and the internet and, today, Metaverse have become a part of our daily life and virtual games are increasingly taking place in the lives of every individual, whether child, adolescent, or adult [18]. As a society, on the subject of using Metaverse in various fields, we should be aware of psychological addiction, deprivation, impulse control disorder, eating habits, self, brain, memory, aggression, violence, suicide risk, loneliness, lack of empathy, depression, social phobia, narcissistic and antisocial behaviors. The use of the Internet increases the risk of addiction to these areas, such as internet shopping, social media, online game addiction, and gambling, which currently exist in the Metaverse and will be included more by it in the future. One of the most important elements of this risk is the period of use. As the period of digital use increases, the risk of addiction increases. For conditions that turn into problems related to internet use and playing games, “Gaming Disorder” has been included for the first time under the title of “Non-Substance-Related Disorders” in the International Classification of Diseases-11 (ICD-11) and the Diagnostic and Statistical Manual of Mental Disorders (DSM-5) [19, 20]. Lemmens et al. [21] define digital game addiction as “the excessive and compulsive use of the computer or video games by the person which causes social and/or emotional problems, and the player’s inability to control the excessive use.” In-game addicts, long and intense hours of gaming behavior such as 8–10 h a day and at least 30 h a week can be observed. However, similar behavior patterns are observed with substance addiction symptoms such as loss of personal control over playing games, developing tolerance, reacting angrily to frustration, neglecting responsibility and close relationships, and procrastination to meet basic needs [22]. The increase in digital use affects our psychology and behavior, and mainly our physical situation. Increasing time spent with digital devices and applications causes myopia and eye strain [23, 24]; observations of changes in the context of molecular and neural circuits, neural activities similar to substance addiction in the brain [25]; forgetting to eat, causing Anorexia Nervosa or the development of eating disorders that lead to obesity as a result of consuming unhealthy foods and inactivity [26–28]. The selves of the avatars, which are active individual reflections in the surreal universe, and the real self-interact and become the reflection of each other. The features of the avatar can cause the game to be attractive and preferred, thus increasing the time spent with it as well as the investment (labor–money–time) made in it [12]. Gamers of all ages will find themselves developing a strong addiction to their avatars in the present and future of the Metaverse universe. As an example, the attributes loaded on avatars can be associated and identified with their own selves [29–31]. According to the Game Transfer Phenomena (GTP), the behavior of avatars can affect the real-life behavior of the players [32]. In the environments and conditions that evoke the behaviors of the avatar identity, the individual may cause the involuntary emergence of the self of an avatar. Yee et al. [33] used the term Proteus for avatars to affect people related to the avatar-person interaction. While the term proteus determines the characteristics of avatars, it also describes how avatars’ characteristics change the behavior, thoughts, and perception of people in real life. The results of

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the research revealed that the height and appearance characteristics of avatars have a great impact on their actions in real life [33, 34]. In a study, some users were given tall/big avatars, and some were given shorter avatars. It has been observed that users with tall/big avatars play a more aggressive role than other users. In another study, participants were placed in a virtual environment, then short or tall avatars were randomly distributed. They were then allowed to interact with an ally for about 15 min. Participants given taller avatars were found to communicate more aggressively in face-to-face interactions with other participants. That is, behavioral changes resulting from the virtual environment were transferred to subsequent face-to-face interactions. These studies allow us to see behavioral changes in individuals’ avatar reflections, online gaming communities, and subsequent face-to-face interactions [33]. While the age of playing digital games is decreasing every year, a study has shown that the age of playing such games has decreased to the age of 4–5 [35].In the relevant studies, it has been reported that negative effects increase depending on the duration of use and if digital use takes the majority of daily life, problems such as blood circulation and heart disease, postural disorders, epilepsy attacks, psychomotor developmental disorders, vision problems, headache, exhaustion and sleepiness, obesity, neglect of self-care are observed in children [36, 37]. It has been stated that digital games harm the development of children [38], they cause children to normalize aggressive and violent behaviors [39], increase psychological arousal and aggression [40, 41], decrease positive behaviors [42] addiction [43], being away from school and decrease in academic success [36, 44], weakening of social skills [45], and inadequate and irregular sleep habits [46]. It has also been reported that the interactions of children who spend a lot of time with digital games, their sociability qualities with their friends and family [18, 35, 36] deteriorate; they have problems such as personality disorders, anxiety [47], depression [48, 49], obsessive behaviors [12, 35, 50], psychosomatic disorders [51], and loss of reality and avoidance of reality [36]. For children and adolescents, addiction to playing digital games has been found to be associated with conditions such as lack of innovative thinking, reluctance, deterioration of relations with the environment, hesitation in relationships, superficial human relations, poor academic performance, and excessive pathological symptoms [18]. In addition, it has been determined that prolonged exposure to games with a high level of violence causes lower empathic attitudes and higher aggression acceptability in adolescents and children, and on the contrary, high empathy and low aggression acceptance. Happ and Melzer [52] determined that playing the villain or the hero in a violent game has different effects. Accordingly, playing the villain in a violent game feeds aggressive thoughts compared to the other scenario. Hasan [53], on the other hand, in his study with students aged 14–17, has stated that the time spent on violent games is associated with physical fights and antisocial behaviors. Uncontrolled relationships with digital content and applications cause various mood disorders, generalized anxiety disorder, FOMO (Fear of Missing Out) [54], Netlessphobia (Fear of Being Without the Internet) [55], Sociotelism (PhubbingSmart phone addiction) [56], sleep disorders [9], deterioration in cognitive skills [57],

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in addition to addiction. Çelik et al. [58] reported that excessive use of digital games is associated with the deterioration of relationships, disruptions in work and life balance, addiction, aggressive behaviors, personality changes, high anxiety levels, health problems, psychomotor disorders, and antisocial behaviors. Digitalization and the use of the Metaverse also have very strong interrelationships with social phobia. Anxiety (Phobia, Anxiety) is a constant fear of an object or situation, which is generally seen as irrational, often disproportionate to the real danger, for which a lot of effort is made to avoid it [59]. In social phobia, there is a severe fear of uncertain and unknown situations [60]. There are various factors that cause social anxiety such as hereditary, chemical, biological, physical, psychosocial, and ergonomic reasons [61], social environment, family structure [62], childhood traumas, temperament, and mental state [63]. Relevant studies emphasize that with the increase in social anxiety in the person, there is an increase in internet use [64]. In addition, individuals with high social anxiety develop a belief that they will not experience their real-life fears of being seen as worthless and being disgraced, in the virtual environment. It has been found that individuals prefer digital environments with behaviors such as hiding their identity and minimizing the possibility of negative judgment (single-player games) by the effect of this belief [46, 65]. Social anxiety and digital addiction are processes that worsen one another. In other words, using digital sources intensively can also cause social anxiety [66]. The high preference for virtual environments also causes communication problems within the environment [67]. In individuals who are away from social environments due to digital preoccupations, social skills decrease over time, and problems such as lack of interpersonal communication, social anxiety, and social incompatibility develop [68]. The other factor that is both the cause and the result of playing digital games is “loneliness”. Individuals with a high perception of loneliness tend to play digital games, and individuals who play digital games may feel lonely after a while [69, 70]. If the loneliness level of individuals is high, the time spent on the Internet increases for the purpose of playing online games [71]. As the individual’s perceived loneliness increases, the probability of having depression, aggression, and preferring violent games increases [72]. However, social media and digital games have a positive effect on individuals who experience loneliness without their own preferences [73]. The family factor directly affects the intensity of internet or digital use by adolescents and children. It has been determined in the studies that digital addiction levels of adolescents with negative relationships with their parents increase and their emotional control weakens [74], adolescents use digital games as a way of escaping from stress due to the decrease in perceived social support and acceptance in the family, and that there is a positive relationship between authoritarian attitude and digital game addiction in families [75]. The mechanism of action of digital games is explained by researchers within the factors such as game content, structure, game playing time and points earned from the game, awards, badges, and leaderboards [76]. For this reason, digital games affect individuals in proportion to the time spent playing games, game types, and context. Players, who play games pathologically in a way that they cannot do any

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other activity in daily life, spend noticeably more time on games compared to other players [77, 78]. Undoubtedly, there are positive effects of digital platforms in terms of children, adolescents, families, and society. In the studies where positive effects were observed, positive effects were found to be associated with playing digital games at certain levels in a controlled manner. These studies report that digital games and applications have important functions such as relaxation, emotional discharge, achievement, control, management, and satisfying the desire to make dreams come true. These needs can be met more easily in the virtual environment [18, 35]. As a result of the research studies conducted, it has been found that computer games improve cognitive functions (learning, attention, and development of problemsolving), computer literacy, imagination, focusing skills, visual intelligence, selfconfidence, and decision-making ability in children [35, 44, 68, 79–83]. Active screen time positively affects receptive language skills and science repertoire [84]. In studies conducted in various age ranges, the improvement of skills such as cooperation, sharing, and empathy and effects such as cognitive stimulation, meeting the need for socialization, and reducing stress have also been determined [85–87]. In addition, digital applications that are exposed together with the interaction with the family have a positive effect on children’s language development [88]. Importantly, it should be noted that Metaverse is in virtuality, where everything is felt too intensely. The beneficial aspect of the Internet may be more beneficial, and the negative part may be more harmful. Metaverse can be very useful in trauma treatments of people who have experienced sudden loss (death, divorce), and in various phobias (spider, mouse, snake). At the same time, new risks may arise in terms of close relationships, considering that the Metaverse will take us emotionally one step further in the days when we live in situations such as social media causes marriage and relationships to end very quickly, and the possibility of relationships to be “one click away”. People who act impulsively about shopping may be dissatisfied because they can’t handle what they buy, they may have a virtual shopping disorder and when virtual shopping is done unconsciously, it can cause various economic and family problems. Ethical problems such as the security of the Metaverse shopping system and personal accounts, the protection of originality and accuracy in sharing ideas, cyberbullying, and discrimination should be resolved. Socialization refers to the process of becoming a part of society by internalizing the values, attitudes, behaviors, and skills accepted by it [89, 90]. In this sense, socialization starts from the day we are born and enables us to acquire social identity and personality on the basis of family and immediate environment, through communication and technology. Socialization continues to be shaped by family, society, religious and educational institutions, and new formations that emerge with the development of the society structurally and functionally. Over time, communities have turned into virtual communities, and together with the emergence of media, communication technology, the web, social media, and Metaverse have emerged. All these changes have undoubtedly changed the types and forms of socialization of individuals. Charles Horton Cooley divides socialization into primary and secondary. There are also social, cultural, political, and religious types of socialization [91]. Cooley

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states that in primary socialization, group belonging precedes the self, face-to-face communication, sacrifice, and traditional rules are dominant in relationships and it takes place with groups such as family, spouse, close environment, and close friends. Individuals experience primary socialization in the process in which social values, moral norms, culture, and social rules are taught and prepared through language, from the moment they are born until they start school. Cooley [92] defined secondary socialization as the interactive stage in which an individual, whose social basis has formed, experiences alongside the other members of society. In secondary socialization, if one’s expectations are not met, he/she does not give himself/herself up as in primary socialization but instead replaces the relationship or situation with another. Individuals who cannot learn the rules of socialization in the family and their immediate surroundings and cannot internalize these rules in the primary socialization stage may become alienated, prone to loneliness, unhappy, and have difficulties in meeting their needs [89]. In other words, primary socialization is essential for a healthy society. In secondary socialization, the rational expectations of the individuals are at the forefront. People can change their relationships, job, status, and roles that they are not satisfied with. The individuals who start to play the games existing in the Metaverse universe at an early age and experience various difficulties in the primary and secondary socialization stages may become alienated from their families and surroundings, become lonely because they cannot internalize the social rules, and cannot socialize, and all these can reinforce their digital addiction. Adolescence and childhood are important periods in the acquisition of individual identity. Individuals, especially in adolescence, may feel the need to belong to groups by becoming socialized by discovering their individual identity, feelings, thoughts, behaviors, abilities, and acquisitions. According to the social identity theory, individuals develop social identity together with their belonging to the group. In this way, individuals can distinguish between themselves and others, determine their position in society, adopt their group, form social class awareness, and realize the need for high self-esteem [93, 94]. The need for acceptance experienced in the process of identity acquisition may cause the adolescent to enter risky social environments. Adolescents may think that online environments meet their needs such as being adopted, accepted, and belonging in the group. Thus, the developmental needs of adolescents can be manipulated. Adolescents who have strong relationships with their families and close circles of friends can be quickly avoided harmful digitalism. But otherwise, it will be very dangerous for an adolescent to be more willing in a digital social environment and relationships, to develop harmful habits, and to experience identity in a digital environment, which is risky [95]. In addition, the bodies of the individuals show rapid and intense development during adolescence. For this reason, being in digital life for long periods of time can cause imperfect development and cause people to be unhappy in real life and prefer the digital universe. With the avatar they present themselves in this universe, they can provide self-esteem and group acceptance more easily. In the Metaverse universe, individuals make virtual shopping through their avatars and try to strengthen their self-presentations with personal avatar designs. In addition, the Metaverse has the necessary structures and institutions for socialization similar

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to real life. Religious institutions are transferred virtually to the Metaverse universe, and holy places for Christians and Muslims can also be discovered in this universe [96, 97]. Individuals can have occupations that will provide the necessary space and status for trade in this field. All of these will also have a class aspect in the Metaverse. There will be those who have a certain budget for real life and Metaverse and can spend it, as well as those who do not even know the name of the Metaverse, and those who can only enter the part of the Metaverse that does not require a fee due to their income. Thus, various class separations may occur in the use of the Metaverse. In the future, this class structure may lead to the formation of an elite class by developing applications (with crypto money) such as the avatars of people with certain income levels in an environment where socialization can be made with avatars in the Metaverse, causing more group cohesion and bringing standards that will not allow others to join in. Most importantly, there are regions in the world that do not have the basic level of internet access, let alone the Metaverse state of technology, as it is in the world today. In addition to the disadvantages of Metaverse such as addiction development, it can be said that many other benefits such as education, health, socialization, communication, and awareness raising will be distinctive in this sense.

3 Conclusion and Discussion It has been observed that the Metaverse will have positive and negative impacts in social, developmental, individual, psychological, behavioral, and societal terms as its place in our lives increases, whether as a game or not. It can be predicted that the sense of reality formed by the Metaverse will make the results of previous research more positive, if the relevant results were positive, and make it more negative if they were negative. Family relations are the first environment in which individuals learn to socialize. Good family and close environment relationships protect individuals from various addictions and psychological disorders during their childhood and adolescence period, where their identities are formed. Domestic unrest, mutual loveless, and disrespectful relationships can negatively affect every individual. Trying to solve the problem of lack of communication in the family through digital media may cause children and parents to spend more time in more interactive digital media such as Metaverse. Individuals may develop addiction in this area and family ties may be broken. These families with various problems transfer their problems from family to society, from society to family, and individuals through their children, and cause a cycle. On the other hand, it is thought that with the adoption of Metaverse, it can penetrate more into life. The adoption of Metaverse can be increased by eliminating concerns about privacy, exposure to bullying, environmental awareness, and addiction. This goal can be achieved by increasing and explaining the benefits that the usage area brings to people.

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Today, Metaverse is more focused on games and entertainment. Metaverse will begin to make the boundaries between the real and virtual world invisible through increasingly interactive games. Therefore, the tasks assigned to avatars in games and applications for individuals of all ages, the purpose of the game application, and the opportunities given should be carefully examined. The target audience of the game or application, ease of access, resemblance to real life, online socialization connections, and the physical structures of the avatar representations should also be evaluated as much as possible. Finally, it should be added that digital games containing physical activity can be preferred in order to prevent the health damages of digital addiction, and digital areas such as the Metaverse universe with controlled and conscious use can only bring well-being to individuals.

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Metaverse and Human Rights: Do We Need Metaversal Declaration of Human Rights? Gokce Cobansoy Hizel

Abstract Human rights, which is the legacy of the Enlightenment and one of the best ideas that humanity has come up with, are defined as the rights that all humans have just by virtue of being human, and in the Universal Declaration of Human Rights (UDHR), human rights appear as principles concerning special treatment to the members of certain (human) species. However, although the common definition is in this direction, there is no consensus on the concept of human rights in the doctrine. This confusion on the conceptualization of human rights makes it difficult to evaluate new problems that arise, and as a matter of course, we face human rights violations or rights inflation. It is possible to observe such situations, in terms of developing technologies and economic transformations. The requirements related to human rights, which are set forth in the UDHR with a certain understanding and subsequently intended to be protected by international law instruments, generally take into account the existing situations and technologies at the time of establishment of the relevant instruments. Therefore, the impacts of rapid advancements of new technologies on human rights are tried to be handled through interpretation of existing documents and/or through formation of additional protocols or new principles. On the other hand, since the international instruments impose obligations on the state parties, which bind themselves with these documents, the existing documents are not sufficient to protect human rights within the framework of the economic and technological transformation experienced and the role of the business in this context. Therefore, both different approaches of the concept of human rights, as well as the social, technological and economic transformations that have been experienced, create new problems that need to be solved in the relationship with human rights. In this context, although there is not an obvious definition of Metaverse, the impacts of Metaverse on human rights, which occupies the World agenda nowadays, seem to be frequently questioned in the coming days. Therefore, in this article, Kuçuradi’s perspective on human rights as a foundation to address potential risks associated with the Metaverse concept will be explored, and subsequently potential solutions to arising human rights concerns will be proposed. G. Cobansoy Hizel (B) Turkcell, Istanbul, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_15

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Keywords Human rights · Human dignity · Ethics · Metaverse · Kuçuradi

1 Introduction The starting point of this study is to address the following question with the concept of Metaverse in mind: “If we were to create a new world or living space today, what would we need to make different in this new living space so that the human rights problems experienced so far will have no place in it?” In searching for an answer to this question, it has become necessary to think about some problems related to technology and human rights in both practice and doctrine. Of course, there may be several answers to this question depending on the discipline in which the respondent works or the human rights perspective they espouse. Detailed analyses can well be performed on each of these. However, in the most fundamental sense, it can be concluded that if the existing concepts and different definitions of human rights, or, in Kuçuradi’s terms, the conceptual confusion of human rights [1], were to be transferred to the newly created world (or living space), the outcomes in the new world or living space would not be too different from the existing and current ones. According to Kuçuradi, the lack of clear conceptualization of human rights and the fact that everyone assumes that they have knowledge of this concept has already made the concept of human rights dangerous [1] but when assessing the Metaverse phenomenon in terms of human rights, the first step to be taken should be the adoption of an epistemic understanding of human rights with a clear, not blurry, content. For this reason, this study aims to assess the Metaverse phenomenon on the basis of Kuçuradi’s view of human rights, which posits an epistemological justifiable concept of human rights.

2 Kuçuradi’s View of Human Rights and the Concept of Human Rights as Ethical Principles Article 1 of the UDHR, proclaimed in Resolution 217 A (III) of 10 December 1948 adopted by the United Nations, whose raison d’être is to ensure that the indelible and devastating consequences of the Second World War in human history are not experienced ever again, states the following: “All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood”. It, therefore, makes a very important point that essentially human rights are certain rights that one enjoys by virtue of being a member of a certain species and characterizes how people should treat each other (ethically). However, today, despite this very important designation and all the international documents adopted subsequently, it is possible to see human rights violations all over the world or to witness emerging risks new technologies pose

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to human rights. This suggests that it is necessary to rethink the ongoing conceptual debates in human rights doctrine and practice and to emphasize once again the importance of an accurate and epistemological definition of human rights. This is because a concept that cannot be defined in an accurate and epistemological manner cannot be safeguarded either in physical or virtual (or online) environments. In human rights doctrine, it is possible to observe a diversity of debates relating to the concept of human rights, with varying arguments suggesting that human rights are either a concept to be fought for, one that is talked about but that does not actually exist, one that is linked to being born human, or one that must be deliberated and agreed upon [2]. On the other hand, some authors suggest that there may be a human rights paradigm that may vary depending on the concept of the human being. For example, Baxi argues that what constitutes the idea of the ‘human being’ is constructed and discussed in various ways in ‘spiritual’, ‘religious’, ‘secular-ethical’, ‘scientific’, and ‘political-legal’ discursive traditions, and that the paradigm of human rights will vary according to these ideas of the ‘human’ [3]. As it has been put forward in many studies, human rights, in its simplest definition, are defined as rights that human beings have by virtue of belonging to a certain species, the human species [4–6]. Although this definition seems cogent, it falls short of explaining why human beings should have certain rights only because they are members of a certain species. For this reason, it is sometimes criticized on the grounds that it is based on a metaphysical concept [7]. In order to eliminate such criticisms and to assess human rights in its relationship with the Metaverse through a conceptualization based on the epistemological foundations of human rights, this article will be based on Kuçuradi’s view of human rights, which is based on ontological anthropology. It is precisely at this point that determinations about what human beings are and what conditions and potentialities of existence human beings have as a species gain importance. In Kuçuradi’s view of human rights, the totality of human characteristics and the potentialities that differentiate humans from other living beings provide them with a special place in existence [1]. In other words, what makes us human is the knowledge of these characteristics and potentialities that are found only in humans [7]. These potentialities and their characteristics are rendered visible through human activities and their products [8].

3 Conditions and Potentialities of Human Existence Mengü¸so˘glu states that humans, who had been engaged in science and philosophy for centuries and had been conducting research in every field, turned to themselves and their own problems and phenomena for the first time in the twenty-first century, as if they had just remembered themselves, and made themselves a special branch of philosophy [9]. This is generally regarded as the starting point of anthropological philosophy in general and philosophical anthropology in particular. Accordingly, philosophical anthropology deals with what humans are, their concrete integrity, their existence, their achievements, the principles governing them, their ties with other

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spheres of existence, and the humans themselves [10]. For this reason, Mengü¸so˘glu postulates that the human being, who is not an invention of science, but itself a sphere of existence that takes its place among other existing things with all its deeds, can only be examined by considering it as a whole with its deeds, accomplishments, in short, its phenomena and achievements, and calls this type of approach of philosophical anthropology as ontological anthropology [9]. Kuçuradi, on the other hand, takes ontological anthropology as a starting point and makes a distinction between the phenomena or characteristics that Mengü¸so˘glu states as the conditions of human existence and the potentialities of human beings and develops a distinct concept of human rights [7].

4 Concept of Human Rights Kuçuradi states that human rights are one of the countless human ideas that have been created throughout history [1]. In this context, this idea is defined as ethical principles for the development and realization of human potentialities [8, 11]. The definition of human rights as ethical principles makes clear that these rights can be asserted against everyone and require respect for them from everyone. In other words, according to Kuçuradi, human rights express certain requirements and demands related to every human being; certain requirements and demands related to the recognition and protection of the value of human beings, and the realization and development of human (structural) potentialities. These are such demands and requirements that the protection of these structural features is the aim of the human species and the duty of every human being. This also gives rise to a right for all human beings [1]. In this sense, what enables us to recognize a right as a human right in Kuçuradi’s perspective lies in the knowledge of human potentialities. In other words, if a right expresses the demands and requirements for the development or realization of human potentialities, only then it is possible to call it a fundamental right or human right [12]. Hence, principles of conduct (ethical principles), also referred to as human rights, set the limits to which each member of this species is obliged to adhere in their behavior. This limit also refers to the limit that each person expects and has the right to demand from the other. In Kuçuradi’s view of human rights, human rights are demands to treat and to be treated in a certain way; from the point of view of the state, they are a priori principles for the establishment of social relations, that is, for the derivation of law [1]. Therefore, in Kuçuradi’s concept of human rights, human rights are considered as ethical principles, and the protection of these rights is primarily the duty of each and every individual. In this sense, Kuçuradi’s view of human rights, contrary to conventional wisdom, includes not only the demand for rights but also the duty of each person to protect the value and structural characteristics of the other and to act accordingly. Human rights are derived from the knowledge of the value of some natural human abilities under historical conditions; in other words, they aspire to protect the special place human beings occupy in all of existence [1]. Human rights

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constitute both principles of treatment by others, i.e., explaining how a person should be treated by others regardless of what their natural or random characteristics are, and principles of treating others, i.e., explaining how a person should ethically treat others in public life [1]. When the concept of human rights is viewed in this way, the criticisms that human rights are a product of the West [4], the confusion of human rights violations with the conceptualization of human rights [13], and the views that human rights are rights that can only be acquired through positive legal texts seem to lose their meaning. According to Kuçuradi’s view of human rights, these rights are universal; the universality being valid for each member of the human species by virtue of being a member of the species rather than a geographical determination. In cases where we limit the universality of human rights to a geographical area or reject them on the grounds that they originated in a particular region, it is not possible to defend the protection of these rights in online environments such as the Metaverse, which raises the danger of leading to the harming of human value. Likewise, Kuçuradi argues that human rights constitute a whole, an idea that emanates from the fact that all human phenomena, as far as ontological anthropology is concerned, are addressed in a holistic manner, suggesting an indivisible integrity of existence. Thus viewed, no fundamental right has priority over another [11]. The indivisibility of human rights emphasizes the recognition of opportunities for human beings to live a humane life and, in this context, to realize all their potential. Only in this way will it be possible to protect human dignity and the value of the human being. Similarly, Donnelly emphasizes that in order to protect human dignity, rights should be considered as a whole and states that marking certain rights as fundamental while excluding others would result in the reduction of human dignity to a short or limited list of fundamental rights [5]. Finally, in Kuçuradi’s view of human rights, human rights are inalienable, which emphasizes that just as one’s status as a member of the human species is inalienable, these rights, which are demands for the realization of human potentialities, are also inalienable. As can be seen, Kuçuradi’s concept of human rights provides us with an epistemological benchmark in order to correctly evaluate online or offline environments, the effects of current or future technologies, and each human-related situation we will encounter.

5 Metaverse and Human Rights The Metaverse can be described as three-dimensional spiral digital spheres that enable activities such as working, recreation, trading, and building relationships that we can do in the physical world to also be performed in the virtual environment. In these spheres, people interact through representational graphics of themselves (their avatars) with other people (their avatars). Therefore, in the Metaverse, people exist anonymously or with an alias or with their real identities through their avatars. Unlike

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the online environments currently used, they interact on these virtual platforms by means of virtual reality or augmented reality applications and hardware. In addition, people can also be involved in the development, design, management, or any other stage of these platforms. Platforms that facilitate this interaction include those controlled by private sector actors as well as those supported by private sector actors and distributed autonomous organizations (DAOs). Charamba also draws attention to the fact that we may be at the beginning of a dystopian reality governed by a handful of companies with state-like borders and sovereignty-like authority in the digital world within the Metaverse-human rights nexus, given the dominant position of large technology companies, and emphasizes that we should think again about the suitability of existing frameworks for the protection of human rights for these virtual worlds [14]. Spence questions the importance of events in the virtual realm, given their non-reality, and contends that if ethics involve interpersonal relationships, and these relationships exist within virtual worlds, then ethical rules should apply there too. Furthermore, if individuals engage in virtual relationships voluntarily and with informed consent, then the same ethical standards from the real world should be applied in virtual environments [15]. In this sense, seeing virtual environments as environments that allow people to freely (!) do what they do not or cannot do in the real world, assuming that there will be no ethical rules, does not seem appropriate in terms of an ethics-based human rights approach, since at least one of the parties to the interaction is human. As Tepe rightly suggests, it needs to be questioned whether ‘technologically feasible’ allows ‘actually doing it’ or whether it can provide grounds for doing it [16]. This is a phenomenon that requires us to re-examine our thoughts and conceptions of human rights in the Metaverse. Although many sing the praises of the opportunities that the Metaverse can have for people [17, 18], the possible human rights violations that may be encountered in these virtual environments have made it to the news media from the first days [19]. Cyberbullying and harassment cases, especially against women and children, problems related to the right to privacy and the protection of personal data [20], albeit not specific to the Metaverse, have exposed people to more troubling instances due to the three-dimensional visual (and sometimes tactile) perception of the hardware used in the Metaverse, and have magnified the problems experienced in both physical and online environments [21]. These human rights violations (or risks of violations) may be perpetrated by persons interacting in the Metaverse, by those (natural or legal persons) that develop Metaverse platforms, design their rules or administer them, or by those who benefit from them. However, why are such incidences not prevented despite all international documents, instruments, and international mechanisms on human rights? The most important reason for this is that, as briefly explained above, the concept of human rights is attempted to be explained without an epistemological basis and assessments are made through different human rights paradigms. On the other hand, although today’s human rights instruments are a product of the post-war international human rights regime and an important achievement in terms of sovereign states binding themselves to certain limits and rules [22] their impact in preventing

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the violation of human rights is limited [1].1 The parties to international human rights instruments are the states that limit themselves with these instruments (by signing and ratifying them). Underlying this is the modern idea of human rights as protecting the dignity and autonomy of the individual against the sovereign power [14]. This was right and necessary at the time; however, as a result of the global economic transformation, trade liberalization, the increase and expansion of privatization practices worldwide, and the expansion of markets, the responsibilities of the business world in the context of human rights have started to emerge on the international agenda. Although these economic transformations have taken into account the interests of multinational companies, they have not taken into account the negative effects that may arise from their activities [22]. The corporate responsibility for human rights began in the 1970s, marked by the Ogoni tribe’s fight against Western oil companies in Nigeria and companies opposing the Apartheid regime in South Africa during the 1970s and 1980s. Although some businesses took action during this time [23], the results of these initiatives did not materialize until 2003. The first attempt for binding legal rules was published in 2003 by the UN Sub-Commission on the Promotion and Protection of Human Rights as Draft Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises regarding Human Rights (Draft Norms). However, according to Ramasastry, these norms, which were not negotiated by states, remained more like a document drafted by academic scholars [24]. Subsequently, John Ruggie was appointed as a special rapporteur by UN Secretary-General Kofi Annan in 2005. After nearly 6 years of intensive work by Ruggie, the United Nations Guiding Principles on Business and Human Rights (Guiding Principles) were unanimously adopted and published by the Commission on Human Rights in 2011. The introduction to the Guiding Principles states that they should not be interpreted as creating new international law obligations for states, or as limiting or undermining any legal obligations they may have. The Guiding Principles are based on the three pillars of ‘Protect, Respect, and Remedy’. The first of these pillars imposes an obligation on states to protect against human rights abuses by third parties, including business enterprises, through appropriate policies, regulation, and adjudication. The second imposes an independent corporate responsibility on businesses to respect human rights, which means that business enterprises should act with due diligence to avoid infringing on the rights of others and address adverse impacts with which they are involved. The third emphasizes on the need to make further efforts for greater access by victims to effective remedy, both judicial and non-judicial [22]. The Guiding Principles can be applicable to all states and to all independent businesses regardless of whether they are multinational or not, 1

While the fact that international human rights instruments only address states is one problem, the inadequacy of the instruments in the face of developing technologies, the records of states regarding their sovereign rights, and the contradictions within the instruments themselves can be counted among the reasons for the inadequate functioning of such human rights instruments and mechanisms. Kuçuradi also cites the contradictions in the existing main human rights documents among the reasons for the human rights problems and emphasizes that these documents should be revised in the light of clearer concepts and experiences to date [1].

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their size, location, ownership status, structure, and the business sector in which they operate. In each section, the Guiding Principles firstly lay down the foundational principles, followed by operational principles. The Guiding Principles require all enterprises, regardless of their size, ownership, or sector, to respect human rights in their operations, to take measures to prevent, minimize and eliminate violations of rights that may arise as a result of their operations, to immediately eliminate and remedy any damage, and for states to regulate and monitor this with effective mechanisms. Although the United Nations Guiding Principles on Business and Human Rights are non-binding, they clarify how to apply pre-existing and binding international human rights regulations in business activities [25]. However, the non-binding nature of the Guiding Principles2 is noted as a factor that reduces the impact on the proper implementation of companies’ human rights obligations [26]. Therefore, the Guiding Principles, which clarify how to implement binding international human rights instruments and are themselves non-binding, do not currently provide an effective mechanism for the protection of human rights, even though the steps taken in this regard give us hope for the future. As such, it is argued that it would be an appropriate, albeit utopic, solution for Kuçuradi’s clear and epistemological concept of human rights and the requirements thereof (and therefore the requirements of each individual right) to be laid down in an ethical declaration that is specific to the Metaverse (a Metaversal Declaration of Human Rights) and for such a declaration to be adopted by each person that would like to be part of these newly created spaces (actors, users, and any person that develops, manages, or is involved in one way or another with such platforms and any such persons whose involvement in such platforms has an impact on a person in real life), hence, in other words, for the duty to protect human rights to be firstly imposed on persons. It is argued that this new declaration to be drafted would not eliminate states’ obligations and corporations’ responsibilities with regard to human rights. This Ethical Declaration should be drafted taking into account that violations of human rights are committed by individuals and that their obligations should be protected primarily by individuals, but it should also impose obligations and responsibilities on platform owners and states to protect human rights in the Metaverse. If we want to construct and use the newly created living spaces in such a way as to serve the realization and development of our potentialities as human beings and to have a safe environment in this sense, then it is considered important to draw the boundary that each member of the human species will be obliged to comply with in their behavior and to comply with this boundary.

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In 2011, after the adoption of the Guiding Principles, Ecuador and South Africa took the issue of negotiations for a binding treaty to the United Nations, and after the adoption of this proposal by the United Nations Human Rights Council, an open-ended intergovernmental working group was established and negotiations on a treaty began. These negotiations have been ongoing since 2015 (Wettstein 2020, p. 31).

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6 Conclusion Kuçuradi’s view of human rights, which can be defined as the ethical principles that are necessary for the realization and development of human potentialities, offers us a concept of human rights explicitly based on epistemological grounds. As such, it provides a benchmark with an epistemic basis—a knowledge of human potentialities and value—for the assessment of new and emerging problems of human rights (whether arising from technological development or any other cause). This knowledge base contributes not only to the assessment of emerging problems but also to our understanding of the causes of human rights violations that we encounter every day in the world and to our thinking about solutions. If the need for human rights to be first and foremost protected by humans themselves is disregarded and when we ignore the fact that we harm or may harm the value and potentialities of our species by our own actions, it will not be possible to protect human rights fully and properly, no matter what obligations are imposed on states or companies. It is clear that this should in no way be understood as not imposing obligations on States or companies. The point to emphasize here is that despite all the international human rights instruments signed, ratified, and transposed into domestic law, all the mechanisms set up, and the will on the part of the states and businesses to protect human rights, human rights violations take place all around the world, and in fact in our very lives, and that, actually, we, ourselves, cause human rights violations through our own deeds. In this sense, it is firstly incumbent on persons to manifest the will to agree to create an environment that will enable the continuity of the species and the realization and development of our potentialities. This will should be such that it should oblige companies and even states to comply with it. At this point, however, it should be noted once again that the confusion about the concepts of human rights should be eliminated in favor of conceptualizations based on epistemological grounds. If we consider not fundamental rights but our own interests in the new living spaces to be created, if we demand fundamental rights while at the same time ignoring the fact that this is also a duty, if we put forward different concepts of human rights depending on our own paradigms that are not based on knowledge, then we will not create an environment conducive to the protection of human rights, but a chaotic environment. Therefore, it seems necessary to change our understanding of human rights in the Metaverse phenomenon or in the new living spaces to be created. It, too, is important that ethical principles should be set out for each person, organization, and corporation to adopt to be part of these new living spaces (what such principles would be called is not significant, but their content is).

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Metaverse Governance Mehmet Metin Uzun

Abstract The proliferation of new technologies in the digital landscape presents significant challenges for policymakers and scholars in public policy and administration. The rapid pace of technological development and decentralization of the digital world has resulted in a “pacing problem” between existing regulatory frameworks and the changing technological landscape. This information asymmetry gap complicates public authorities and regulatory bodies to effectively govern and regulate the latest digital revolutions. One such advancement is the Metaverse, which represents the next step in the evolution of the internet from a two-dimensional interaction to a three-dimensional immersive experience. Metaverse enables opportunities for alternative public services such as health, education, and infrastructure. However, it also poses privacy, data protection, interoperability, and cybersecurity risks. This research examines the digitalization of the public sector and the current regulatory gaps in the virtual universe. Besides, the research considers the potential opportunities and threats that Metaverse technology will reveal in the administrative field within the context of “digital era governance” (DEG). Furthermore, the concept of “Metaverse governance” and its various components and research agenda are examined in depth. The research aims to provide a comprehensive understanding of the implications of the Metaverse on public policy and administration and to identify potential solutions to the challenges posed by this technology. Keywords Metaverse · Public administration · Public policy · Digital era governance · Metaverse policy · Metaverse governance

M. M. Uzun (B) University of Exeter, Exeter, UK e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_16

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1 Introduction In recent times, public authorities have faced wicked problems such as COVID-19, climate change, or food insecurity. Politicians and policymakers effectively use and adapt this technology and digital tools to tackle these cataphoric problems. Although sometimes, the technology itself can be a wicked problem. As the next step in the evolution of the Internet from a two-dimensional interaction to a three-dimensional immersive experience, the Metaverse brings new technologies, protocols, and unique risks with it. “Augmented” (AR), “extended” (XR), and virtual reality (VR) technologies, known as components of the Metaverse, have the potential to transform the way users experience, communicate, and work with digitally created content in both physical and virtual spaces. In addition, blockchain technology forms the core components of the Metaverse universe with interoperable NFT assets that can be used in different Metaverse simulations. Users in the NFT-powered Metaverse can own and move digital real estate, clothing, and vehicles between platforms via a crypto wallet. This multifaceted decentralized technology ecosystem has the potential to bring radical changes in economic, political, and social life. The Metaverse, which has founded a new market space opportunity in the entertainment, gaming, and real estate sectors in a short period, offers innovative opportunities for public authorities soon as a digital public policy instrument in the fields of education, health, and urban planning. Moreover, as AR/VR technologies are integrated into many aspects of everyday social life, from the economy to the entertainment sector, and even into many aspects of daily social life, the pressure for laws and regulations to address gaps in the virtual world is growing [1–3]. For instance, normative debates directly related to the legitimacy and authority of the state, such as the legal consequences of the murder of a person’s digital twin or how to tax virtual companies in the Metaverse universe, are frequently discussed in the Metaverse research agenda and literature [3–6]. As the Metaverse technology ecosystem continues to progress, the importance of integrated governance efforts in areas such as privacy, data security, and intellectual property becomes increasingly apparent. This research examines the potential opportunities and challenges that may arise in the governance field as a result of the integration and adaptation of Metaverse technology, specifically within the framework of a Metaverse governance model. The analysis includes an analysis of the integration of Metaverse ecosystems into public administration, as well as the potential use of Metaverse technology in various dimensions of digital governance and Metaverse governance.

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2 Digital Transformation in Government: A Journey from Web 1.0 to Web 3.0 The integration of digital technologies in public administration has been a topic of ongoing discussions among scholars in the field of public administration and public policy [7]. The decision-making process for the provision of public services and implementing policies have undergone a momentous shift due to administrative reform waves that started in the 1980s. Technological transformation is considered a driving force behind these reform movements in public administration [8, 9]. In the past two decades, information and communication technologies have significantly impacted various aspects of policymaking, governance, and service delivery. Before the widespread availability of personal computers and the internet, the primary use of technology in the public sector was limited to the automation of government operations. However, with the lowering in technology costs and the proliferation of telecommunications and network services in the 1990s, the use of communication technologies in governance processes within the public sector has increased, leading to the digitalization of organizational and bureaucratic relationships between public institutions. Additionally, the global proliferation of the internet has enabled the global implementation of public reforms. Since the early 2000s, public policymakers have sought to understand the effects of technological transformations and citizens’ diversifying demands while utilizing information technologies’ capabilities [10]. Information and communication technologies (ICT), including web and social media tools, have led to the digitalization of service and communication channels and improved decision-making and governance in public administration [11]. The concept of electronic government, or e-government, refers to the utilization of information and communication technologies for the provision of information and services to citizens and other stakeholders in public administration, as well as for the performance of political functions and processes such as participation, transparency, and accountability in governance [12]. Implementing e-government practices and policies is a crucial aspect of governance reform efforts, as it aims to connect public networks and databases, enhance the speed and quality of public services, and increase efficiency and effectiveness in governance [13]. The development of an e-government system, which is a dynamic process, can be analyzed through gradual models. Layne and Lee developed a four-stage model for the development of e-government, which is based on integrating e-government applications with other public administration practices, as well as the technical and organizational complexity of these applications. According to this model, the growth of e-government consists of four stages: (1) cataloging, (2) transaction, (3) vertical integration, and (4) horizontal integration [12]. The cataloging and transactional stages refer to the accessibility and legitimacy of online documents and forms, while the integration stages emphasize the integration of systems and functions between different public organizations and public services. E-government applications and services have enabled governments to shift their interactions with citizens to a digital space. These applications facilitate the delivery

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of public services, contribute to improved transparency in the relationship between citizens and the state, and reduce administrative costs [14]. With the advent of Web 1.0 tools, e-government platforms have rapidly evolved into integrated e-service providers, covering a wide range of public institutions and organizations. The second generation of web-based technologies, defined as “Web 2.0” (social media, websites and blogs, and cloud backup systems), have transformed orthodox models of information provision and digital services [15]. Hence, Web 2.0 tools have advanced opportunities for transparency, communication, and collaboration between different stakeholders and inter-governmental capacity. At the same time, integrating Web 2.0 tools into e-government services reduces the information asymmetry between stakeholders. It allows for interactive implementation in delivering primary public services such as education [16]. In recent years, the expansion of internet use, the diversification of social media platforms, and the increasing digitization of business and marketing have had notable outcomes on the evolution of internet-based technologies. Furthermore, the capacity of semantic technologies for categorizing and processing data and growing adoption of digital currency and blockchain technology have led to a more “in-depth” decentralization of the internet. Building upon the existing Web 2.0 and Web 1.0, the next iteration of ICT, referred to as Web 3.0, is envisioned as a spatial or immersive web that will shape the internet’s multi-dimensional future. Web 3.0 illustrates a further vision for the next stage of internet evolution, which is centered on a decentralized online ecosystem based on blockchain technology [17]. This ecosystem comprises various components, including augmented and virtual reality, advanced networking technologies, geolocation, the Internet of Things, sensors, and machine learning techniques. Integrating decentralized Web 3.0 technologies and the semantic web with existing government mechanisms and public authorities and their impact on the delivery of public services remains an area of ongoing research. The current research agenda show differing views on the implications of Web 3.0 tools, with some arguing that they will contribute to the democratization and liberation of the internet, while others suggest that they may further empower technology giants such as Google, Facebook, and Amazon [17, 18]. Data are called the “oil” of our time [19]. One of the critical issues in the emerging internet architecture is undoubtedly the security and storage of big data sets. Datadriven public administration and policymaking models are already being implemented in different modes in Singapore, Germany, and the United Kingdom. Countries are integrating data collected from citizens’ feedback into delivering essential public services such as security, health, and education. Moreover, the security and privacy of these collected data are one of the primary issues on the agenda of these countries in terms of the privacy [20]. Metaverse technology, one of the decentralized technological progresses, is a relatively novel topic of discussion in the field of public administration and policy research. While normative discussions about Web 3.0 are closely related to who will own and control tomorrow’s decentralized and free internet, the Metaverse focuses on how users will experience the internet of the future. Furthermore, Metaverse is a multi-dimensional online environment where people can interact through digital

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avatars and where social media features such as avatar identity and content creation are used. Therefore, Metaverse ecosystem requites additional responsibilities on public authorities and governance mechanisms. Obviously, a safe and fast network infrastructure and 5G internet technology are essential for integration and adaption into the Metaverse ecosystem. First and foremost, governments should maintain and strengthen network infrastructure to integrate with Metaverse technology. According to the current data from the International Telecommunications Union [20], approximately 4.9 billion people worldwide have internet access. This situation generates a massive gap in access to and utilization of technology among countries, resulting in information asymmetries. Similarly, one such concern is the information asymmetry gap between government and big tech firms regarding Metaverse technology. Big tech companies, such as Facebook, Google, and Microsoft, are at the forefront of developing and investing in Metaverse technology. As a result, they possess a comprehensive understanding of the technology and possess a level of influence that enables them to shape its development and usage. In contrast, government agencies, particularly in developing countries, may not have the same level of expertise or resources to fully grasp the ramifications of Metaverse technology and its potential impact on society. Therefore, government required legal and administrative regulations for the unique innovations and applications brought about by Metaverse technology. Existing regulations such as protecting personal data and intellectual property rights cannot keep pace with virtual universe advancements. This situation is conceptualized as the “pacing problem” in literature and points to a discrepancy in tempo and acceleration between emerging technology and current regulations [21]. The difficulty arises from the fact that technology advances exponentially while social, economic, and legal systems change incrementally [22]. Thus, governments should implement flexible and adaptive regulations and policies suitable for the rapidly evaluating technology ecosystem [23]. The interconnected network of virtual worlds has the potential to revolutionize the internet ecosystem; however, it brings with it a range of governance issues related to interoperability, privacy, and security. Governments require multi-dimensional “Metaverse governance” to address the Metaverse problems and manage legal and regulatory gaps. The following section will examine the theoretical background of Metaverse governance in the context of a paradigm shift in public administration and the digital age governance approach.

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3 From New Public Management to Digital Era Governance: Theoretical Background and Recent Approaches Public administration and public policy research agenda have been developing and changing practically and theoretically since the late nineteenth century [24]. Public administration scholars highlight the influence of economic transformation and technological modernization in this shift. The field of public administration has undergone a transformation in response to technological advancements, with a significant impact on the incorporation and utilization of technology within the public sector [24, 25]. The neo-liberal and new right wave in the public administration after the economic stagnation of the 1970s has caused significant changes. In this context, the New Public Management (NPM) approach expresses a paradigm change in public administration based on postmodernism, transparency, and flexibility. There are political, socioeconomic, and technological reasons for developing this paradigmatic change in public administration discipline from the 1980s [26]. For example, Fordism, which is associated with modernism and the production-accumulation process, has turned into a flexible production-accumulation process in the form of post-Fordism with postmodernism [27]. NPM reforms aim to move away from providing services with a traditional bureaucratic structure and towards a “market-oriented” neoliberal approach [28]. Since the 1980s, neoliberal policies have enabled the implementation of NPM reforms in many countries worldwide. The philosophy of managing public administration and state organizations in a market-like approach has been at the center of reform movements in developed countries. The NPM approach is considered as the application of market models to public administration theory and practices. However, since the 1990s, there has been increased criticism of the theoretical and practical aspects of NPM. As an alternative to NPM, the governance approach, which has begun to be discussed in the research agenda of public administration, advocates for multi-stakeholder cooperation against a market-oriented approach [29]. Unlike the traditional bureaucratic management understanding, governance, based on a post-modern perception of cultural unity, offers a model based on “synergy,” “participation,” and “cooperation” among various actors in determining public policies. Indeed, “governance” emerged in the 1990s as a democratic extension of neoliberal discourse based on organizational efficiency and performance-based market-oriented principles and policies in public administration. In this context, governance assumption is founded on “democratization and participation” in public administration [30]. For Kettl [31], governance is a way to define the connections between government and its broader political, social, and administrative environment. Similarly, Weiss [30] has stated that governance “is the sum of the informal and formal values, norms, procedures, and institutions, that help all actors—states, intergovernmental organizations, civil society, transnational corporations, and individuals—to identify, understand, and address trans-boundary problems.” Therefore, the concept of governance, which describes the mutual network among stakeholders, includes civil society organizations, non-profit organizations,

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private entrepreneurs, pressure groups, media, citizens, central and local government structures, and the administration process in decision-making. The widespread use of the internet on a global scale, digital transformation reforms of governments and e-government tools support governance processes. The digitization of public services enables citizens, market mechanisms, civil society organizations, and the state to conduct all types of communication and interaction digitally increasingly. All of these developments are driving forces for the emergence of various contemporary concepts such as “e-government,” “e-democracy,” and “egovernance” [32]. Theoretically, the concept of “e-governance,” which emerges from the hybridization of digitization and governance, expresses network governance that provides coordination among stakeholders [33]. In other words, e-governance can be defined as the use of ICT to encourage the participation of state and non-state actors in public policy processes and to provide cooperation, interaction, and coordination among them. Thus, with the beginning of the “digital age,” a new paradigm has emerged in the public administration and public management discipline center called Digital Age Governance (DEG), which emphasizes the use of digital technologies and data analysis in public administration and policymaking. The “digital era governance” approach obtained to the research agenda by Dunleavy, Margetts, Bastow, and Tinkler [34] argued that the NPM approach and its reforms have brought about some social, economic, and administrative problems. This new paradigm has been shaped around three main characteristics that include “reintegration,” “need-based holism,” and “digitization” [34]. Firstly, the concept of reintegration highlights the central digital integration among institutions that began with the widespread use of ICT in the public sector. The concept of “reintegration” is seen as a countermeasure against the problems caused by the motivation of NPM reforms to decentralize central bureaucratic structures into small institutions/units. The fragmentation of centralized bureaucratic structures and the formation of small-scale institutions due to NPM reforms have caused coordination and communication problems among public organizations. The creation of centralized services to better coordinate information management systems in the public sector has advantages in terms of coordinating within public institutions and between various departments and agencies. Based on this approach, reintegration aims to turn into institutional structures that can collaborate, coordinate, and make quick decisions in line with the e-governance approach. Secondly, the needbased holism approach emphasizes the transition to a citizen, service, and need-based system in public administration rather than the operational efficiencies emphasized in the NPM-driven reforms. Furthermore, it implies the development of inclusive, agile, and coordination mechanisms among management mechanisms as a result of the integration of need-based holism and communication technologies into the public sector [35]. Lastly, digitization has been the main driving force and motivation for the new public administration paradigm associated with the e-government approach. In the DEG context, the digitalization of service delivery has redefined existing public organizational structures and citizen-government relations. Further, it is emphasized that the digitalization of public administration has a transformative impact beyond being complementary to traditional public administration [36].

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Fig. 1 Digital era governance (DEG) waves and components

The digitalization process has not been limited to e-government but has continued to evolve in parallel with developments in Web 2.0 tools. Margetts and Dunleavy have emphasized that a new wave/era of digital governance began in the 2010s. The first wave of digital age governance represented a solution to government modernization and e-government crises and has become the precursor to digital reforms in public administration. Margetts and Dunleavy [37] have also highlighted that a new era will continue to emerge in the DEG context in parallel with the development of ICT-driven technological progress. Similarly, a wave has emerged in digital age governance parallel to the transition from Web 1.0 tools to Web 2.0 tools in the public sector. Indeed, there is a potential for Web 3.0 tools and the Metaverse to start a “new wave” in digital era governance. Figure 1 shows the shift from the e-government paradigm to digital age governance, including historical chronology and components. As discussed in the previous section, Metaverse technology and its elements provide a new set of opportunities for existing e-government mechanisms and public service delivery. However, Web 3.0 tools require a new wave in the public sector and a new governance model. The next section will discuss Metaverse governance with its various dimensions.

4 Metaverse Governance: Concept and Framework The concept of a Metaverse, a virtual universe that exists entirely within a computergenerated environment, presents a plethora of opportunities for innovation and advancement in digital technology. However, it also poses significant challenges in terms of governance, regulation, and ethical considerations. The development and proliferation of the Metaverse raise important questions pertaining to the regulation of virtual spaces and the protection of individuals’ rights and privacy within these digital realms. The need for effective governance and regulation of the Metaverse is

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crucial in ensuring the responsible and ethical use of this technology. Hence, Metaverse in the public sector requires integrated and digital age-compliant governance mechanisms to address opportunities and threats. The Metaverse, as a digital universe comprising of interconnected virtual spaces with their own distinct rules and audiences, presents a diverse and immersive experience for users. However, the interconnected nature of these virtual spaces creates dependencies among them, which may have varying degrees of governance. This diversity of rules in the Metaverse may differ from those in the physical world, raising concerns about the regulation of user behavior and the Metaverse itself. The potential for innovation in the Metaverse is significant, but it also presents challenges related to governance, privacy, and ethical considerations. These include issues such as legal and taxation requirements, money laundering, scams, fraud, piracy, racism, and discrimination, as highlighted by Dwivedi et al. [3]. Despite the limited implementation examples of the Metaverse in the public sector, research has identified challenges such as lack of communication among stakeholders, gaps in legal and administrative regulations, interoperability, and infrastructure deficiencies [4, 38, 39]. Additionally, the components of the Metaverse raise ethical and privacy dilemmas [40]. In this context, “Metaverse governance” encompasses the government’s role in adapting, regulating, and implementing the Metaverse, and creating interactions and dialogue channels among public, private, and civil society stakeholders is crucial. Privacy and personal data protection are among the most crucial issues requiring governance mechanisms in Metaverse technology. Clement [41] has demonstrated that 41% of worldwide Metaverse users express concern regarding privacy and data protection issues. Additionally, in the United States, 55% of internet users have reported concerns about tracking and misusing personal data in the Metaverse. It is well known that Facebook, one of the primary actors in the widespread utilization of Metaverse technology, is a leading company in collecting personal user information through its subsidiary company, Meta. In fact, Facebook’s business model is based on complex advertising that includes a high degree of surveillance and personal data collection, including behavioral targeting [42]. The Metaverse collects a vast amount of personal information that threatens users’ privacy through behavioral learning beyond their habits and choices. According to research conducted by the Stanford Virtual Human Interaction Lab [43], it was estimated that users generate a substantial amount of unique recordings of body language within a relatively short period in a virtual reality environment. Specifically, the study found that users generate “just under 2 million unique recordings of body language” in a single 20-min session in VR. This highlights the capability of VR technology to collect and analyze large amounts of data pertaining to users’ body language, potentially providing valuable insights for various fields such as psychology, human–computer interaction, and communication research. These data are person-specific and highly sensitive, including a combination of various biometric data such as breathing, heart rate, walking, and even eye movements. As such, the primary focus of Metaverse governance should be on data security, privacy, and themes of secrecy. This situation also brings about the need for updates in laws related to the internet, social media,

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and the protection of personal data to address the governance challenges triggered by Metaverse technology. Another dimension of Metaverse governance concerns the developers and implementers of the technology. Through code rules, developers and companies can determine which features to incorporate into the online platform, and they can establish their governance standards and regulations. However, despite the presence of codes, users may circumvent them, potentially engaging in cybercrime activities such as hacking. As a result, developers are responsible not only for the security of the digital network infrastructure of online systems but also for ensuring transparency and accountability. Furthermore, the issue of compatibility and standardization between the Metaverse and the physical world is also considered within the scope of Metaverse governance [44]. This requires a multi-dimensional approach that takes into account the applicability of existing legal and administrative regulations across different companies’ Metaverses, as well as financial activities within the Metaverse. Zagalo and Morgado [45] emphasized that the Metaverse can impact how people’s consciousness of identity changes. This also brings with it several ethical and moral questions. One of the issues discussed within the scope of Metaverse governance is the creation of an ethical Metaverse ecosystem [3, 40, 46]. Ethical Metaverse governance plays an important role in preventing potential threats such as the dissemination of false information and resulting fraud. Additionally, the protection of intellectual property rights is evaluated within the ethical Metaverse governance’s design [44]. Lastly, governance is necessary for the operation and safety of the Metaverse and should ensure that accountability, decision-making rights, and incentives guiding behavior are in place. The Metaverse faces challenges related to the applicability of the rule of law, national laws, and private rulemaking. A distinction should be made between “governance-by-the-Metaverse” and “governance-of-the-Metaverse.” Governance-by-the-Metaverse refers to the rules that are built into the diverse worlds to ensure that users adhere to them, while governance-of-the-Metaverse deals with undesired behaviors and the evolution of the Metaverse. Self-governance and government regulations must also be considered, particularly with regards to privacy concerns [3]. Overall, the implementation of Metaverse governance by public authorities, the coordination of investments and infrastructure, the design of regulatory policies, and the provision of communication among stakeholders raise the issue of “national Metaverse strategies.” For example, in 2021, South Korea announced its goal of becoming a world leader in Metaverse platforms and, in this context, announced national Metaverse policy objectives and investment budgets [47]. Currently, more than 50 countries have published national artificial intelligence (AI) strategy documents. These policy documents provide a normative framework for how public authorities conceptualize AI governance. Additionally, AI strategies, national AI policies, and investments serve as consolidation mechanisms, providing a snapshot of the policy goals and technology investment motivations AI governance. Considering the holistic policy model in these AI strategy documents in the context of Metaverse technology can enhance Metaverse governance capacity. In summary, government has the opportunity to build an inclusive governance model by preparing national Metaverse strategies, which include identifying infrastructure

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and R&D investment targets that are integrated into the Metaverse ecosystem such as blockchain, NFT, and augmented reality, popularizing education and employment policies for the Metaverse, and strengthening inter-stakeholder coordination and network mechanisms. Although the nature of the Metaverse may conflict with the presence of centralized authorities, multi-dimensional governance models are necessary for the beneficial evolution and adaptation of the technology.

5 Conclusion This chapter aims to examine the multi-dimensional Metaverse governance model within the context of public administration and public policy, focusing on the core elements of Metaverse governance. First, digitalization reforms in public administration are analyzed chronologically, including the developments of Web 1.0, Web 2.0, and Web 3.0 within the framework of e-government and digital instruments of the public sector. The theoretical background of the research approaches the integration and adaptation of Metaverse in the public sector from the perspective of DEG theory perspective. Finally, the Metaverse governance model is examined through various components such as inter-stakeholder collaboration, data privacy, interoperability, protection of personal data, developer responsibilities, Metaverse ethics, and implementing national Metaverse strategies. It is clear that the governance of the Metaverse is a complex and multi-layered phenomenon that requires extensive research and analysis to establish effective governance, regulations, and policies. The roles and responsibilities of developers and users must be clearly defined in order to ensure effective management of these virtual environments. The challenge of conflicting values and regulations must also be addressed, particularly those imposed by different countries. Metaverse technology and its innovations have the potential to facilitate the widespread implementation of decentralized autonomous organizations. However, the advancements in decentralized technology put higher pressure on centralized authorities. Therefore, the Metaverse governance framework evaluates the challenges and threats that governments face with Metaverse technology and the potential gains and opportunities to be achieved through effective regulation. The current governance community must take action to coordinate interoperable models for real and virtual interactions and transactions to ensure that the Metaverse remains an open environment. These interoperable models should consider important considerations such as personally identifiable information, digital rights, security and safety, and other expectations in the physical world. Additionally, mandatory enforcement mechanisms should be implemented to reduce risk and uncertainty for users and to promote interoperability within the Metaverse such as code of conduct. As Metaverse technology advances, governments may require national strategies and policies for research, infrastructure, engagement with private sector, and agile regulatory standards. National Metaverse strategies can serve as a complementary component of Metaverse governance by facilitating the planning of investments

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in Metaverse technology, identifying potential privacy risks, implementing measures to address those risks, and promoting transparency and accountability among developers. Furthermore, the Metaverse has the potential to fundamentally alter not only how individuals interact with technology but also how they interact with one another and their environment. The technological and industrial transformations brought about by the Metaverse will significantly impact the governance and policy spheres. To effectively address these impacts, governments must adopt innovation-friendly policies and Metaverse governance mechanism.

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42. Kraus, S., Kanbach, D.K., Krysta, P.M., Steinhoff, M.M., Tomini, N.: Facebook and the creation of the Metaverse: radical business model innovation or incremental transformation? IJEBR 28(9), 52–77 (2022). https://doi.org/10.1108/IJEBR-12-2021-0984 43. Bailenson, J.: Protecting nonverbal data tracked in virtual reality. JAMA Pediatr. (2018). https:// doi.org/10.1001/jamapediatrics.2018.1909 44. Ning, H., et al.: A Survey on Metaverse: The State-of-the-Art, Technologies, Applications, and Challenges (2021) 45. Zagalo, N., Morgado, L., Boa-Ventura, A.: Virtual Worlds and Metaverse Platforms: New Communication and Identity Paradigms. IGI Global, Hershey, PA (2012) 46. Bibri, S.E., Allam, Z.: The Metaverse as a virtual form of data-driven smart cities: the ethics of the hyper-connectivity, datafication, algorithmization, and platformization of urban society. Comput. Urban Sci. 2(1), 22 (2022). https://doi.org/10.1007/s43762-022-00050-1 47. Keane, J.: South Korea is betting on the Metaverse—and it could provide a blueprint for others, CNBC, 30-May-2022. Online. https://www.cnbc.com/2022/05/30/south-koreas-invest ment-in-the-Metaverse-could-provide-a-blueprint.html. Accessed 25 Jan 2023

Citizenship and Citizen Participation in Metaverse Sava¸s Zafer Sahin ¸

Abstract Since the history of humanity met the concept of democracy, the content, applications, and results of the concept have been the subject of discussion. In times when technological possibilities were limited, the behavior of the individual, the transfer of the right of representation for the construction of power, and the participation of citizens in the administration as a part of the balance and control mechanisms in the use of power were the basis of the debates on democracy. However, with the development of technology, in today’s world, the options in front of citizens and the meaning of citizenship began to change. Now, the existence of the individual’s transhumanized existence in interaction with technologies such as artificial intelligence and the internet of things, in the real world and especially in virtual worlds such as the Metaverse, and the combinations that he will create with other individuals and collectivities, are on the verge of gaining the potential to reach an unexpected disruptiveness interactively both in the real world and in the virtual world. Against these, the renewal of the concepts of law, state, and power with a dynamic understanding is closely related to the redefinition of citizenship in the face of formations such as the Metaverse. This chapter will focus on the essential elements of an introductory framework for the future of citizens in this new world through the relationship of political history with disruptive technologies. Keywords Metaverse · Democracy · Citizenship · Citizen participation · State · Technology

1 Introduction Throughout human history, contradictions and conflicts have emerged over time between the order that the state structures shaped by human communities living on a certain piece of land. In the historical process, people have tried to perpetuate the way of life on that land, and these contradictions have resulted in new definitions S. Z. Sahin ¸ (B) Ankara Hacı Bayram Veli University, Ankara, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_17

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of the state and the introduction of a new set of possibilities. On one side of this equation, there is a definition of collectivity based on similarities determined by social history, traditions, language, production, and consumption, and on the other side, there is the state acting within a legal framework that will create areas of rights and freedoms that will keep those who are not part of these social elements together. Political history reveals the important breaking processes of how developments on both sides of the equation were able to create a social balance. The whole story that history tells us is very closely related to how, for hundreds of thousands of years, the potential human relationships provided to us by our biological evolution did not exceed the scale of a small tribe, while in the last 20,000 years, human societies that far exceeded this scale have been able to come together and change the world [1]. As long as the expansion of the social scale has allowed the human mind and social structure to comprehend these large scales and to realize functioning daily life processes, the human population has expanded to the end of ecological limits and has been able to utilize the world’s resources. However, the way humanity, which has reached a resource utilization power that can cause climate change, can prevent its demise seems to be closely related to the limits and impact of human interaction. The significant role of social structures in establishing this historical balance is to create a space where individuals can feel that their existence continues in a symbolic, functional, institutional or virtual way, even if not in reality. Because only in this way can the human spirit’s desire for immortality be restrained in the face of the overwhelming constraints of social structures in the harsh conditions of life. At the beginning of written history, the most important thing that pagan beliefs or monotheistic religions were able to achieve in this sense was to make people believe in the existence of an afterlife or afterlife where they could be represented by a common image. Within the belief systems built by different societies and historical continuities influenced by each other, a space that people can access through religious rituals has emerged, and the clergy has assumed an important role in the organization of this space. With this structure of belief systems, the material conditions for large human communities to live together emerged with the agricultural revolution, and with the first cities, belief systems took a form suitable for social stratification in cities. As urban life developed and cities took over the most important functions of social production, non-religious spheres of power emerged, leading to the emergence of a structure called the state. Later thinkers have argued in different ways that this interaction between belief systems, production, settlement, and power spheres resulted in a social contract after hunter-gatherer communities [2]. The most important condition that these social contracts that regulate the relations between people, state, and society maintain in every society is that people have the belief, albeit in different forms, that their demands, preferences, and desires continue in a space outside their bodies. The belief that the poor, the orphaned, the humble, or the elderly have a state or a community that cares for them and works for them is among the most important sources of hope in life. Accordingly, legal systems transform the rights of the individual and political systems transform the ethical preferences of the individual into a valid form in all areas under state sovereignty. People living within the historicity that defines the conditions of existence of a

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particular state desire and expect to see physical and principled elements of common life in the places where that state rules. Public buildings such as roads, gymnasiums, theaters, capitols, baths, and similar public structures, which are typical elements of Roman cities in the Roman Empire, can be considered an important example of this narrative. In addition, ideological discourses are produced that create the perception that the impact of this structure is permanent, and education and similar instrumental elements are utilized following these discourses. However, it has been demonstrated by thinkers in every period of history that such a structure, even if it has traces of the physical elements of the settlements, cannot create a world in which every individual can truly survive, and that there are winners and losers. What should not be forgotten is that the promise of the Metaverse, which is the subject of this paper, is as old as human history and is based on an unexpectedly older idea of virtuality. In a world where states promise certain rights to the individual through constitutional systems and impose duties in return, a world of thought oscillating between democratic ideals and utopias has emerged on how to realize the demands and freedoms regarding the exercise of these rights. According to this understanding, democratic representation defines the most important form of decision-making in the shaping of large states, cities, and living spaces. Accordingly, individuals organize with the help of intermediary structures in civil society to demand their rights and freedoms, they put forward their demands within the channels of democratic representation, and the representatives of the people work through the state apparatus to fulfill these common demands [3]. However, over the 400-year history of the modern nation-state tradition, it has been seen countless times that despite the continuous increase in the average quality of life, the full realization of this expectation is a dream, and many problems have been encountered, from the tendency of intermediary structures and representatives to abolish democracy to corruption, from the insensitivity of democratic representation to changing social demands to the problems brought by the definition of citizen. It does not seem possible to say that the “crisis of representation” outlined by Habermas in the 1970s has been overcome [4]. In other words, virtuality in the internal organization of human communities can no longer fully function. The past 50 years have, therefore, witnessed intense global social movements, state restructuring, and new approaches to the organization of human relations with the global community. The most important element of the recent period in this sense has been the emerging transformative technologies. While transformative technologies themselves have emerged as a new field of production and regulation, they have also begun to assume a leading role in the transformation of the complex web of relations between state-individual-society-market [5]. Perhaps for the first time in human history, people have begun to have a space of representation that is not virtual and imaginary and does not rely on intermediaries. However, both the market-making and state-dominating attitudes of the large multinational corporations that produce and manage technology and the efforts of the nation-state to maintain its influence on citizens by using new technologies have led to the opening of a new field of biopolitical and techno-political debate in this field. With the developing technological

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possibilities and tools, the traditional state apparatus can be adapted more closely to the needs of the individual. Discussions on known borders, sovereignty, and territorial integrity enter a new era under the influence of technology. In all these debates, a new competition process has begun between the powers that hold the hardware and energy resources, software infrastructure and data management, and that hold algorithm sovereignty. In this competition, new citizenship regimes have started to emerge, oscillating between great opportunities and great constraints for citizens. The common characteristics of these new citizenship regimes are that they are shaped under the influence of a more effective nation-state, new capital accumulation processes at the city-regional level, and global technological developments. At the current stage, new technologies, although they point to great opportunities for citizens, also pose major new challenges. While technology offers citizens the possibility of a democracy without intermediaries, it also creates new tools for intermediaries to consolidate their existence. For example, e-participation practices, of which there are examples in many countries, lack algorithms that can transform the demands of the masses into meaningful policies [6]. All these developments open a debate on citizenship under the influence of technology and state and non-state power centers. The concept of the Metaverse, which is the subject of this book, points to a new field of thinking in this sense. By defining a new space where the individual can exist through his/her senses, this new sphere of existence may lead to the reduction and elimination of technological means of representation, as well as opening up new areas of domination outside the real world, is considered important for discussions on citizenship. How citizens’ rights and freedoms to be human can be determined in these new virtual worlds, whose possibilities, rules, and elements will be determined by a series of new technologies that can shape physical space outside of physical space, are points to be considered. For this reason, this section will discuss the relationship between the Metaverse and citizenship, starting from the debates in the nation-state tradition, and will share some determinations regarding the conceptual framework for the definition of citizenship in the Metaverse. Undoubtedly, this article does not aim to reveal the counterpart of citizenship in a field such as Metaverse, whose content and form are emerging, but rather to raise questions about the basic problems that can be addressed in terms of citizenship and citizen participation in the face of these changes.

2 Digital Citizenship Regimes the Changing Role of the Individual and Technology It can be said that the concept of the state as we know it today is the sovereignty over the homeland, defined as a piece of land inhabited by a nation with a common history, language, and understanding, which was shaped in the seventeenth century, and the constitutional structures that draw the boundaries of this sovereignty. Although this form of state, called the “nation-state”, is questioned in every social event, it is still

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the only and most prominent state apparatus that continues to exist. Although the nation-state, the borders of which were set by the Treaty of Westphalia after the Thirty Years’ War in Europe, has been deeply questioned with philosophical and real criticisms for the last fifty years, it is still the form of state that is targeted by every ethnic group claiming sovereignty and the order that existing states try to make resistant. While the most important topic of discussion in terms of international law and social history over the past 400 years or so has been how the state should hold together ethnicities that fall outside of a distinct ethnic element defined as a “nation”, or spatially contradictory to the regulations imposed by the definition of a nation, more recently, with the influence of technology, the discussion has begun to focus more on new forms of citizenship [7]. However, this does not change the fact that by the end of the twentieth century, the position of nation-states as equals before international law, as envisaged by the Westphalia Treaty, has been called into question. The transfer of part of the sovereignty of nation states to non-state transnational and global international organizations (UN, EU, NATO, NAFTA…), the emergence of illegal international structures, and terrorist organizations (ISIS, Taliban…) [8]. Structures such as GAFAM (Google, Amazon, Facebook/Metaverse, Apple, and Microsoft), formed by large technology companies with global economic impact, taking over important functions previously performed by states such as cartography and citizen monitoring, and decentralizing the concept of citizenship are seen as very important developments in this sense [9]. In the past, when technology was underdeveloped, it was assumed that the private sector or civil society actors would fill the void created in the capitalist system when the state reduced its power to regulate society or the market. In this case, it was seen that the actors that replaced the state could sometimes be at least as monopolistic and coercive as the state. However, it is seen that global big technology companies have the potential to take over the basic functions of the state completely, not by taking the place vacated by the state, but by making markets and opening up social space. Indeed, the fact that this is happening, implicitly or explicitly, has been made clear by authors working in this field. After all, the fact that a technology giant such as Amazon, for example, controls almost an entire market such as trade between individuals and firms, storage, logistics, auctions, and marketing with a constantly evolving algorithm and artificial intelligence applications, leaves only the possibility for states to make national regulations regarding this virtual trade area. In the face of these developments that radically change the known boundaries and functions of the nation-state, the state apparatus is defining new means of control in many areas, from border security to the processing of citizens’ data. In particular, territorial sovereignty is being replaced by functional sovereignty, and over time more and more state functions may be taken over by technological systems. For example, with C2C or B2C service providers, local governments may no longer need to intermediate for housing. Or, a new home-work-life cycle could be established where data-based sharing systems and micro-mobility are preferred over massive expenditures on public transportation systems. With developing technological platforms, market-making technologies create a new structure where the masses that make up supply and demand come together through certain algorithms

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and artificial intelligence applications. The common feature of this structure is that cyber regulations are predominantly effective, not national regulatory legal frameworks. The solution found by nation-states, which are losing ground in the face of these developments, is to restructure themselves with systems that increasingly use new technologies and the emergence of dominant nation-state behaviors based on politically powerful discourses based on ethnonationalism and racism. Nation-states have taken their place in collective memory through historiography as the dominant form of state from the time of their emergence to the present day, while the past regarding the suppression of the statehood demands of local elements and different identities has remained veiled. Moreover, the city-states of the past were organized as spatial entities shaped by certain scales and connected to the capital city under the standardizing influence of the nation-state. However, new technologies are also creating innovative channels for identities and collectivities to come together and organize. The emergence of new scales for the nation-state, both local and transnational, has led to the rescaling of states. One of the important elements of rescaling has been the use of new technological tools as well as the redefinition of the concept of citizenship. This redefinition is not constitutional but rather de facto. Transparency and accountability in many issues that legitimize state sovereignty have become algorithmic issues. For example, the sequence of questions in the university exam, and the mathematical formulas in the issuance of citizenship identification numbers. In the face of these transformations, the definition of citizenship within the nation-state and at different scales is also differentiating. New debates are emerging on the definition and pursuit of the constitutional rights of citizens who are monitored through data collection systems at the nation-state scale and who are expected to be active data providers at the local government and neighborhood level. The emergence of new technological regulatory foci and the reshaping of the rescaled form of the state with the support of technology have led to the emergence of “new digital citizenship” experiences and forms. The COVID-19 pandemic has been a crucial breaking point in the emergence and acceleration of these new digital citizenship experiences. Many bio-political and techno-political surveillance mechanisms and smart city tools, which had already been in place until the pandemic, have had the chance to be put into practice in a very powerful way with the pandemic. On the one hand, central governments have introduced technological tools that restrict citizen freedoms for disease control, while on the other hand, local governments and solidarity mechanisms in urban areas have been able to define new forms of services that are relatively independent of the state by using technological tools [10]. In this period when different states acted with different reflexes, countries such as China tightened practices such as citizenship points to maintain centralized control, while new practices that emphasize citizen freedoms on technology emerged in Europe-based practices. This new citizenship regime, which is partly associated with risk and partly with global public health issues that emerged with the pandemic, is called “pandemic citizenship”. On the other hand, it is argued that a process of rescaling in the spatial gradation of the state around the world, which has been ongoing for the last 30 years, has entered a new phase with the digital transformation, and as a result, a new citizenship regime

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has begun to emerge at the metropolitan or city-regional scale. Accordingly, at the current stage of the neo-liberal system, the existing scales and levels of the state can focus on higher or lower scales, new hybrid state scales emerge, and the sustainability of capital accumulation is ensured as a result of the rescaling of the state [11]. The consolidation and simplification of the administrative functions of large urban areas support data-driven developments that bring together production and living functions in metropolitan areas and urban regions. Citizens’ lifestyles in urban areas, which are shaped under the influence of spatial development processes that flourish with smart city algorithmic development patterns supported by large technology companies, may become increasingly fragile and may lose their freedoms and rights. As big cities and urban centers gain power, nation-states protect their borders with greater strength and begin to control the lives of citizens more tightly. The bio-political aspect of this control is characterized by centralization, while the techno-political aspect is characterized by metropolitanization and local centralization with technologies monopolized by large technology firms. It is here that “liquefied” citizenship regimes are formed, based on the interpretation that citizenship has somehow “liquefied” and tends to take the form of the technological container in which it is placed. In this new world where citizens’ freedoms can be limited and rights losses can occur, another definition of citizenship draws a more positive future scenario in terms of the gains of individuals. In a world where data have become the unit of production and approaches that can be called data-ism have become as widespread as possible [12], the integration of citizens as the main data providers into service processes changes both service processes and the position of citizens. In this new definition of citizenship, which can be called “algorithmic” citizenship, citizenship is associated with the ability to exist in accordance with certain algorithms or to live with certain algorithms. The traditional approaches of complying with laws and regulations and maintaining a socially legitimate way of life have now been replaced by the fulfillment of certain algorithms. A person who cannot fulfill his/her citizenship procedures in a certain order and who cannot share his/her bio-data will face problems in the current digital world. On the other hand, people who have these skills and literacy can have a much easier life and even enjoy unexpected privileges and benefits. Of course, the lack of digital skills between different generations, such as the digital divide, will continue to be an important problem area in this sense, but new technology areas such as the Metaverse point to important possibilities in this sense. As the effects and reactions of the algorithmic, pandemic, and liquefied civic spaces continue to shape our lives, the problems of conventional representative and participatory democratic citizenship practices have begun to be addressed with these new definitions of citizenship. Approaches such as blockchain technologies, eparticipation, and the use of social media platforms about the legitimacy of decisionmaking systems point to the significant transformative potential for representative democracies [13]. On the other hand, how to ensure the influence of new participatory power structures in the realization and oversight of decisions taken within representative democracy remains an important question [14]. Ultimately, the possibilities that radical approaches such as the Metaverse can provide for a new kind of citizenship that will allow citizens to open up innovative and creative living spaces that

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will transform decision-making and implementation processes by being themselves are worth exploring. Ultimately, however, if the Metaverse can enable citizens to contribute to state decision-making more effectively—sensually, emotionally, intellectually, and collectively—then we can talk about “Metaverse” citizenship regimes as a new alternative. However, if the Metaverse points to an uncertain future in which citizens will be disconnected from real-world decision-making processes and will only be able to make decisions in the established Metaverse world, then this also needs to be discussed. To the extent that the unique reality of the Metaverse enables citizens to find a simple and effective channel of representation, it will be able to find legitimate mass acceptance.

3 Metaverse Citizenship and Citizenship in the Metaverse It can be argued that the new technological environments and tools called the Metaverse open up several important areas of debate for world states, democracies, and citizenship. First of all, while it is a well-known fact that Metaverse applications, in which users participate with virtual reality goggles, are still in their infancy and that major technology giants are preparing for significant investments in this field, blockchain, web 3.0. and other technologies that simulate reality and even have the potential to be misused to a certain extent, such as deep fake and unreal engine, have already initiated important debates. It seems possible to address these debates under a few main headings: (1) can the reality that will emerge from the layered system of virtual worlds, software, and hardware that Metaverse technologies will represent deserve a definition of citizenship that will be legally valid and equivalent on its own? (2) How many of the real rights and obligations in all areas where Metaverse technologies are related to the real world can create regulatory practices that will affect virtual reality, and is this possible? (3) Can the Metaverse provide us with functional new tools to overcome the problems of representative and participatory democracy that our real-world citizenship practices face [15]? These questions can be answered primarily through the human rights-related dimensions of Metaverse-related technologies. The augmented and augmented reality technologies that will be used in the Metaverse and the virtual reality goggles that are currently required to access these technologies allow the use of the most basic biometric data of individuals [16]. Beyond this biometric data, it seems possible to record, manipulate and commercialize behavioral and emotional data and interaction in the Metaverse. There are debates about the security of these most intimate aspects of personal data and the definition of the exercise of rights over them as the most fundamental human rights. Accordingly, the most fundamental element of a Metaverse-based understanding of citizenship can be considered as recognizing all sensory, emotional, and biological personal data as fundamental human rights [17]. On the other hand, since how real individuals can be distinguished from algorithms and software in the Metaverse will be critical in preventing inequalities and injustices in the distribution of interests and benefits, it seems that the need for radical

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transparency and accountability should be considered together with security. It is not easy to understand how the interaction of real-world Internet of Things tools and artificial intelligence elements in realities such as the Metaverse can have consequences for humans. What will ultimately determine the outcome is whether the centralized authority of large technology companies or more decentralized distributed structures will be effective in a Metaverse-type environment [18]. There is still a long way to go before a concept of citizenship in the Metaverse with a legal status that is official and accepted by all of humanity. Since nation-state citizenship still constitutes the legal basis for citizenship in the virtual world, citizenship based solely on the Metaverse may have to wait for a new era that is more “liquid” and indistinguishably integrated with the real world or even may not come at all. Each reality may have its natural social structure and sphere of power. Nevertheless, the Metaverse points to some innovative elements in terms of rights, possibilities, and benefits for citizens. First of all, the Metaverse has the potential to provide citizens with blockchain-based decision-making, trade, and interaction opportunities where real intermediaries are reduced. One interesting example of blockchain decisionmaking and politics is the Australian blockchain political party “Flux” (voteflux.org). Promising that all decisions will be made together with voters on the blockchain, it would not be surprising to see such organizations in operation soon. Of course, more stable, low-cost, and reliable blockchain technologies and cryptocurrencies are needed for this. Metaverse citizenships need to enable and universalize the management of digital assets based on ownership, as in the real world. All kinds of assets based on the values created by individuals need to be secured by trusted and protected structures, just like civil registries and land registry offices. Assets here are not only financial records and important information but also all kinds of unique knowledge based on data generated by citizens. NFT technologies can also make it possible for people’s performance in the Metaverse to become an asset itself. On the other hand, although it may seem utopian, since the Metaverse has the potential to move all kinds of work, entertainment, and recreational activities completely to the virtual environment, it can also redefine the relationship of citizenship with all kinds of living spaces. When this level is reached, the doors of truly global citizenship may be opened [19]. Such individuals who have fully adapted to life in the Metaverse, who live their lives with web 3.0. tools, who have completely overcome the concerns of disconnection from real life, and who have adopted the approach of producing and creating their existence entirely within the Metaverse are called “metazen”, which is a combination of the English words, “citizen”, and “Metaverse”. However, how this incredibly complex possible new world will be governed is a matter of serious debate and seems to be determined by the interaction of the evolution of technology and the regulatory mechanisms that will establish systematics in this regard. If citizenship is conceived in terms of the interaction between the Metaverse and the real world, the situation becomes more complex, but a more realistic scenario can emerge. First and foremost, if citizenship is seen as the interaction of the individual and the state and certain vital service areas, the Metaverse can open up a world of limitless possibilities. From health to education, from social services to culture and the arts, it seems that services that are insufficient with current technological

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capabilities can be improved through the Metaverse [20]. However, this issue may not be so simple. Recent research on the Metaverse shows that new research and approaches need to be developed in the functioning of an incredible number of state-related sectors [21]. On the other hand, citizenship is not only about receiving services but also about interacting with other citizens and the right to democratic organization. In this sense, it can be recalled that in the recent past, social media and other technological tools have created echo chambers of small communities of people living in similar worlds rather than in favor of the common good and common virtues of humanity. Or societies and settlements may prefer widely accepted populist preferences and mediocrity over more advanced, deep, and subtle human goods. And if the Metaverse becomes a tool to reinforce the spheres of domination of people’s anti-immigrant and racist, corrupt, and exploitative ways of thinking, its impact may not only be limited to its power to generate public opinion but may also lead to a new world where social inequalities increase dramatically [22]. To prevent this, technologies that will enable the emergence of open and transparent democratic grassroots organizations and tools that can enhance sensory sensitivities and foster empathy need to be defined in the Metaverse [23]. In this case, a new form of citizen participation where citizens can use the identity between the real world and the Metaverse to expand the channels of decision-making and citizen participation to the fullest extent possible, ultimately leading to absolute citizen control, may also be possible. A serious problem here is that in the world of the past, democracy and the different practices of life were strictly separated. This problem can be overcome if, with the help of technology, people’s natural ways of living in the Metaverse can be transformed into decision-making and citizen interaction as democratic choices in a seamless flow. For example, if the tendencies of other citizens using an application where a citizen receives a common service in the Metaverse can be made available to the citizens who will make decisions, the integrity of the decision-making process can be directly achieved in defining the service process in general. However, there are still ontological, scalar, and ethical issues to be resolved here. Perhaps the most important thing to consider here is inclusiveness in the transitions between the real world and the Metaverse, and creating a culture that will choose the more efficient and virtuous path when options such as substituting one for the other arise. However, this requires technological barriers to remain for all segments of society. In light of these discussions, it is envisaged that the following benefits can be achieved from the citizenship perspective in terms of democratic representation and participatory democracy with the Metaverse: ● Creating a more effective and efficient life experience by creating an experience space that surrounds the users. ● A more realistic and effective understanding of real-life issues, resulting in more motivated citizen participation. ● Increased empathy for the problems of others and consequent progress in the acceptance of diversity.

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● Exploring possibilities for gathering and coming together where differences in language, culture, and understanding are minimized. ● The potential for the creation of fully participatory virtual spaces and the support of the practices of publicizing these spaces to the practices of publicizing in real life. ● Generating dynamics in the virtual world that will reshape real-world processes and algorithms by increasing interaction between citizens. ● The circulation of new tools with high emotional effects that can organize the masses at the grassroots level in the face of state policies restricting rights and freedoms. ● The potential for new opportunities to strengthen the relevance of decentralized decision-making to real life in the face of the domination of big tech companies.

4 Conclusion and Discussion In a relatively short period of known written history, people have been included in a higher definition of citizenship, which can be defined as belonging to a certain state and social order and living following the rules of their free will. To the extent that people’s expectations from the constitutional system as citizens could be realized, being a citizen continued to carry a meaning above all other identities. However, to put it in software terminology, we are now in a period where this way of life, which does not allow for changing the source code, has started to change through hardware replacement and software updates. Today, when the regulatory functions of the state are transformed and transferred to the market-making technologies of large technology companies, citizenship can point to both a new world of possibilities and the possibility of a new disaster scenario in which rights and freedoms may be restricted. The Metaverse and the technological tools it represents, as a new interface through which people can exist sensually, emotionally, intellectually, and even physically, in this sense define certain new opportunities for the concept of citizenship to continue to be updated in the new century. These opportunities range from the possibility of global citizenship to slavery to certain algorithms. However, several vital questions need to be answered for these opportunities to be utilized by humanity and individuals. One of the most important questions is whether there is a philosophical framework that can make sense of and sustain the relations between the Metaverse and the real world in terms of society and state relations. As in Hollywood productions such as “Ready Player One”, Metaverse-type virtual worlds and game environments should not pave the way for the collapse of the real world, nor should humanity lose its ontological integrity in the new virtual world, as in the book “Neuromancer”, which heralds the arrival of the cyberpunk movement. Secondly, a Metaverse type of virtuality and the technological tools it will utilize should not create new social orders that could lead to great inequalities and injustices to the extent of eliminating the meaning of citizenship. For this, the legal system must reconsider the rights and

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freedoms of the individual within the framework of the concept of digital citizenship. Here, it is important to build an ethical understanding that covers the whole of humanity as well as states. Thirdly, the Metaverse needs to reflect a subtlety that will ensure that the new living spaces that will emerge in the Metaverse do not suffer from the classic lack of emotional dimension in the state-citizen relations of the past. Here, the role of social scientists and artists is critical. In such a system of possibilities, citizenship now has the potential to become a starting point rather than a part of a hierarchical structure of subjects to the state. The Metaverse, defined in political science as the “new power” [24], where citizens can come together for production, communal sharing, solidarity, and common ownership outside the decision-making process of the state, could very well be the Metaverse. In this case, there may be the possibility of what Selly Arnstein [25], describing the process of citizen participation as a ladder, describes as the final stage of citizen participation, leaving public affairs to full citizen control. However, it will not be enough to analyze and draw conclusions from massive data using known methods; new approaches will be needed that can unify the meaning hidden in the depths of human nature. Otherwise, citizenship may become instrumentalized in the emergence of life practices that, in Marcus Miessen’s [26] words, may lead to a nightmare of participation. From the point of view of the Metaverse, pursuing an understanding that can improve the existing practices of citizenship in the construction of virtuality as a goal can determine which future we will choose for states and societies. If the human being is defined not only as an entity that uses reality but also as a constructor of that reality, the Metaverse can become a positive tool in bringing citizenship into the new century. Ultimately, the outcomes of the Metaverse in terms of citizenship should be seen to be closely related to ethical and political problems as old as humanity.

References 1. Albrow, M.: The global age: State and society beyond modernity. Stanf. Univ. Press. (1997) 2. Boucher, D., Kelly, P.: The social contract and its critics. In The social contract from Hobbes to Rawls (pp. 11–44). Routledge. (2003) 3. Balibar, E.: The nation form: history and ideology. Review (Fernand Braudel Center), 329–361. (1990) 4. Ercan, S.A., Gagnon, J.P.: The crisis of democracy: Which crisis? Which democracy? Democr. Theory 1(2), 1–10 (2014) 5. Bloom, P., Sancino, A.: Disruptive democracy: The clash between techno-populism and technodemocracy. Sage. (2019) 6. Toots, M.: Why E-participation systems fail: The case of Estonia’s Osale. ee. Gov.Ment Inf. Q., 36(3), 546–559. (2019) 7. Calzada, I.: Digital citizenship regimes rescaling Nation-States?. In emerging digital citizenship regimes (pp. 23–55). Emerald Publ. Lte. (2022) 8. Fukuyama, F.: Against identity politics: the new tribalism and the crisis of democracy. Foreign Aff. 97, 90 (2018) 9. Fontanel, J. GAFAM, a progress and a danger for civilization. In Financial Architecture; Forced Economic Development in the Context of External Shocks and Internal Inconsistencies. (2019)

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10. Sayın, Ö., Sahin, ¸ S. Z.: Kindness more contagious than viruses: an inclusive and innovative response to inequalities in ankara. In Volume 4: Policy and Planning (pp. 111–120). Bristol Univ. Press. (2021) 11. Schou, J., Hjelholt, M.: Digital state spaces: state rescaling and advanced digitalization. Territory, Politics, Governance 7(4), 438–454 (2019) 12. Sadowski, J.: When data is capital: Datafication, accumulation, and extraction. Big. Data Soc. 6(1), 2053951718820549 (2019) 13. Turner, C.: Augmented reality, augmented epistemology, and the Real-World Web. Philos. & Technol., 35(1), 1–28. . (2022) 14. Pew Research Center. The Future of Digital Spaces and Their Role in Democracy”,https:// www.elon.edu/u/imagining/wp-content/uploads/sites/964/2021/11/Future-Social-Media-Dem ocracy-In-2035-Elon-University-Pew-Research-2021.pdf (2021) 15. De Zwart, M., Lindsay, D.: Governance and the global Metaverse. In the Real and the Virtual: Critical Issues in Cybercultures (pp. 171–182). Brill. (2009) 16. Brownsword, R.: Law, authority, and respect: three waves of technological disruption, pp. 1–36. Law, Innovation and Technology (2022) 17. Rowland, D.: Virtual world, real rights?’: Human rights and the internet. In Emerging Areas of Human Rights in the 21st Century (pp. 17–33). Routledge. (2012) 18. Nabben, K.: Building the Metaverse: ‘crypto states’ and corporates compete, down to the hardware. Available at SSRN. (2021) 19. Hinrichs, R. Avatars as the first manifestation of geo-politically unconstrained global citizens. J. Virtual Worlds Res., 4(2). (2011) 20. Dick, E.: Public policy for the metaverse: Key Takeaways from the 2021 AR/VR Policy Conference. Information Technology and Innovation Foundation. (2021) 21. Dwivedi, Y. K., Hughes, L., Baabdullah, A. M., Ribeiro-Navarrete, S., Giannakis, M., AlDebei, M. M., Wamba, S. F.: Metaverse beyond the hype: Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice, and policy. Int. J. Inf. Manag., 66, 102542. (2022) 22. Calongne, C., Sheehy, P., Stricker, A.: Gemeinschaft Identity in a Gesellschaft Metaverse. In: Teigland, R., Power, D. (eds) The Immersive Internet. Palgrave Macmillan, London. (2013) 23. Talmon, N., Shapiro, E. Foundations for Grassroots Democratic Metaverse. arXiv preprint arXiv:2203.04090. https://arxiv.org/abs/2203.04090 (2022) 24. Heimans, J., Timms, H.: Understanding, “new power.” Harv. Bus. Rev. 92(12), 48–56 (2014) 25. Arnstein, S.R.: A ladder of citizen participation. J. Am. Inst. Plann. 35(4), 216–224 (1969). https://doi.org/10.1057/9781137283023_16 26. Miessen, M. Katılım Kabusu. Metis. Publishing. (2013)

The Role of the Law in Metaverse Regulation Osman Gazi Gucluturk

Abstract Not unlike other emerging technologies, the Metaverse comes with legal uncertainties and problems. Although the interactions that take place in Metaverse platforms are seemingly similar to the interactions in the physical world, they may have different legal effects and implications due to the involvement of virtual worlds. On the other hand, legal uncertainty and unresolved risks may not always merit regulatory intervention. In particular, it is possible to regulate behavior in virtual environments with different tools. While interactions in some Metaverse platforms create problems similar to those in online games or social media platforms and, thus, are subject to existing regulations, interactions in some others offer an immersive experience with the assistance of virtual reality headsets or augmented reality applications, which may justify legal intervention to a certain extent. Accordingly, the control power that these platforms can muster in the long term and the possibility of controlling a 360° world may justify the introduction of supervisory and audit-oriented legal provisions. Criminal law, on the other hand, cannot be applied to Metaverse interactions solely on the grounds that actions appear as well as feel similar to the existing crimes on their face. Nevertheless, it is not necessary to adopt criminal law amendments in the short term since it is the last resort, whereas the regulation of Metaverse interactions is possible with existing private law mechanisms and technical measures. Keywords Metaverse · Law · Regulation · Policy · Virtual reality

This chapter is a translated and updated version of the book chapter entitled “Metaverse Regülasyonunda Hukukun Yeri” in “Metaverse: Gelece˘gin Dünyalarını ˙In¸sa Edecek Teknolojiler, Fırsatlar ve Tehditler (ed. Fatih Sinan Esen)”. O. G. Gucluturk (B) Bogazici University, Istanbul, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_18

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1 Introduction As it happened with the internet and social media, the spread of the Metaverse may cause interactions between the actors to transform. Naturally, this raises questions as to how these interactions should be governed and which legal rules should apply thereto, if any. On its face, purchasing a land token from Metaverse platforms, which is among the most popular Metaverse transactions in Türkiye, or purchasing a clothing item for an avatar, which is the virtual representation of the users in the Metaverse environment, on a Metaverse platform may be seen functionally similar to buying real estate or shopping for clothes in the physical world, respectively. Likewise, the conversations between avatars may be conducted in a manner similar to the physical interactions or, even further, trigger psychologically or emotionally similar outcomes. However, this functional similarity may not be reflected in the legal domain, and the effects of these actions and transactions may, in fact, differ. Indeed, the legal rules and principles governing the assets in the physical world and the assets in the virtual environments may significantly vary [1]. There may be various reasons for such a divergence. Particularly in the case of emerging technologies, existing legal provisions may be impractical or inapplicable. In other instances, there may be provisions trying to address different risks depending on the subject matter. For example, the use of physical assets is exclusionary for others, and thus, the possession of physical assets is associated with important legal implications. The situation in digital assets is, however, different as they can be perfectly copied at almost no cost. Determination of which legal rules and principles apply to a given piece of technology is important as legal rules and principles provide some protections or, more generally, some rights and obligations. In other words, what can be legally claimed with respect to an action or transaction is dependent not upon its appearance or functionality but on its legal classification. It should also be noted that legal protections become much more important when an emerging technology such as artificial intelligence or blockchain is involved since the uncertain and dynamic nature of these technologies increases the risks. I believe that the determination of whether any legal protection exists is even more crucial for Metaverse transactions considering that, unlike the physical world, there does not have to be an underlying physical asset or a similar basis that would provide inherent value to a Metaverse asset or transaction. Legal rules and principles may be fundamental for the governance of interactions between different actors in almost any platform, whether physical or digital. However, it should be emphasized that the law is not the only regulatory tool used to influence or regulate behavior. Particularly in digital environments, technical tools, and measures may be effectively used to regulate user behavior as these may strictly delineate what users can or cannot do. Instead of trying to inform users in different jurisdictions about the implications of copyright regimes, data protection rules, and licensing agreements and expect them to comply, geo-blocking techniques may be used to govern what users can see and which content they have access to, depending on their location. The use of such techniques has a significant advantage over traditional command

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and control-based legal rules as they are directly enforced, and their circumvention is either completely impossible or requires a high level of technical competency. Metaverse platforms, being primarily built upon the internet infrastructure, are also suitable for the use of such techniques and, hence, the availability, as well as the feasibility of such techniques, should be taken into consideration for Metaverse regulation. Considering these, in this study, firstly, what is meant by Metaverse regulation shall be explained. Subsequently, the question of whether the introduction of new legal provisions specifically made for Metaverse is required shall be explored. While doing so, user interaction and the question of regulation at the platform level shall be examined separately. Despite not being a technical dependency for Metaverse platforms, the effects of the uncertainty concerning the regulatory framework applicable to crypto assets shall be briefly considered as these are closely associated with Metaverse experience on the user side. Finally, the study shall be concluded with explanations regarding the role and implications of criminal law on Metaverse regulation. These explanations will be provided in a separate chapter due to the distinct and strict nature of criminal law. Before proceeding further, it must be noted that, with the awareness of the dynamic and developing nature of the concept, this study will not try to establish a single legal definition for the term “Metaverse”. Instead, the term Metaverse shall be used as an umbrella term to refer to digital environments where users can interact with each other.

2 The Metaverse Regulation The term “regulation” is traditionally associated with the command-and-control power of the state as the sovereign. This leads to an ambiguity between the law and regulation, the former being one of the most prominent tools used by the state for the command-and-control-based regulation when referred to in the same text. Hence, for the purposes of clarity, it is necessary to explain what is meant by each of these terms. In this study, without diving deep into detailed conceptual discussions, the term “regulation” shall be used to refer to all actions that affect the behavior of individuals and lead them to act or prevent them from acting in a certain way. In this respect, affecting the behavior of individuals through legal rules and principles is a type of regulation. In literature, the term “governance” is used by some authors to refer to regulatory interventions of the state that are not based on command-andcontrol power [2]. However, we will not be making such a distinction. Accordingly, what is meant by Metaverse regulation in this study is all actions that are aimed at influencing or directing actors in the respective Metaverse environment. Regardless of the technical infrastructure or devices they use, all Metaverse environments through which users can interact with each other shall be referred to as Metaverse platforms.

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The scope of the regulation to be implemented is as equally important as the meaning imposed on the term “regulation”. A distinction should be made between the Metaverse regulation and the regulation of components of the Metaverse. Naturally, regulation of these individual components may, and in most cases shall, affect the Metaverse regulation as a whole. However, it should be emphasized that every component is not necessarily a dependency or an integral part of all Metaverse environments. The most prominent example here is crypto assets. Some authors may argue that there is a link between the development of Metaverse applications and decentralized networks, which is the underlying structure for most crypto assets [3]. Indeed, crypto assets and Metaverse are two distinct technologies that can be used together for increased functionality. The important thing here is that this is not a requirement. The situation is the same with virtual reality or augmented reality equipment. These provide users with an immersive experience. Nevertheless, they are not, at least at the time of this writing, the definitive component of the Metaverse. Accordingly, regulatory issues associated with these components shall affect Metaverse regulation only to the extent that they are part of a given Metaverse platform. While Metaverse regulation is a general concept, a determination must be made with respect to these individual components for an accurate and comprehensive regulatory framework for each Metaverse platform. On a related note, if any legal provision is to be made addressing Metaverse interactions, the existence of such additional components should be taken into consideration. Metaverse platforms are cyberspaces where actors interact using an internet connection. These interactions are not necessarily linked to the real-life identities of these actors. In literature, there are different opinions as to whether, to what extent, and how regulation of behavior in cyberspace could be possible. According to the pathetic dot theory of Lessig, each individual is a dot that is under the influence of four major regulatory forces, being law, norms, market, and architecture. Even if traditional forces such as the law, the social norms, or the market dynamics may fail within cyberspace, the infrastructure, or more specifically, the code, may be used to regulate individual behavior [4]. On the other hand, Murray argues that individuals are not only passive targets of these regulatory forces, as Lessig presumes, but also, they are part of a network influencing the formation and development of these forces [5]. The common point of these two opinions is that regulation is not necessarily made via rules based on the command-and-control power of the state. Even small design choices may be used to regulate individual behavior [6]. The most effective and influential means of regulation in cyberspaces, however, is the code. The code determines how actors could behave in a given cyberspace, what they can or cannot do, or to which content they have access. People may throw their garbage or smoke in public spaces despite the existence of legal or social norms, the threat of prosecution, or even an officer specifically appointed to monitor compliance. However, in cyberspace, such an action may be strictly prevented with a couple of lines of code. Indeed, as Murray pointed out, these cyber-barriers may also be knocked down, just like physical borders or obstacles [5]. However, in most cases, circumvention of an additional technical measure in cyberspace would be much more difficult and

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complicated compared to the violation of a functionally similar rule in the physical world. At this point, it should also be noted that unwritten rules or social norms may be important for cyberspaces where social interaction is frequent. A clear example of this is LinkedIn. LinkedIn is perceived as a professional social network platform, and its users willingly avoid sharing political content and restrict their actions mostly to professional news and developments. The fact that even users who shared content about extreme circumstances such as the Russian invasion of Ukraine feel obligated to refer to the distinct nature of the event to justify their posts shows how influential these rules can be for the regulation of cyberspaces. On the other hand, it must also be noted that, in principle, such rules do not come into existence overnight but are established over time. This phenomenon is important to demonstrate that some problems may be resolved over time without any intervention. However, the mere possibility of the emergence of such rules will not be sufficient to rule out the necessity for regulatory intervention via legal rules in any case, as it may not be appropriate to wait for some time to pass in certain instances. For this reason, the primary focus of this study will be on the intervention via the technical measures related to the code as an alternative means of regulation to the introduction of legal rules. Special reference to the social norms and other regulatory powers shall be made only to the extent that they carry special importance. Using technical measures instead of legal rules to regulate interactions in cyberspaces has several advantages. Firstly, for platforms where millions of micro cross-border interactions take place in seconds, it is practically impossible to monitor the behavior individually via traditional legal mechanisms. There may be legal provisions in force that are applicable in theory, while the proper enforcement thereof remains impossible in practice. In these cases, technical measures make it possible to effectively monitor and regulate behavior regardless of the number of users involved. Indeed, technical measures can also be used to complement traditional legal requirements in these cases. The platform where these interactions take place may be chosen as the regulatory target and subjected to certain rules that, when implemented, would influence the behavior on the platform in a certain manner. Secondly, technical measures are advantageous over legal rules as they are dynamic. The introduction of new legal rules or amendments thereto mostly requires the pursuit of complex and time-consuming procedural rules. On the contrary, technical measures are mostly deployed after a private, internal, and flexible assessment period. Thus, they can be easily and quickly deployed, enforced, and, when it becomes necessary, modified. On the other hand, it must be ensured that technical measures do not substantially or unproportionally interfere with the exercise of fundamental rights and freedoms in cyberspace. Strict keyword-based content filtering may be detrimental to the freedom of expression, whereas the processing of huge amounts of personal data to develop and implement technical measures may create risks for privacy. Furthermore, since technical measures are mostly deployed and executed by private platforms and not by public institutions, there may be questions of arbitrariness, legitimacy, or even legality. Technical measures that are based on fully automated

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decision-making procedures may cause unintended or even illegal consequences, such as discrimination [7]. The subject matter expertise and the margin of appreciation of private platforms in regulatory measures other than the ones based on the law create a significant conflict of interest. These platforms are, in most cases, profit-driven, and their business model is based on showing ads, charging commissions, or providing digital goods and services. In order to show more ads, attract more clients, or increase the revenue stream from the provision of digital goods and services, these platforms may be inclined to process the personal data of their users and adopt practices that would increase interactions taking place on the platform. There are rules in place in almost every jurisdiction to protect users in these cases, such as data protection rules, rules on consumer protection, and unfair commercial practices. However, considering that strict compliance with such rules would most likely decrease the number of interactions and, by doing so, adversely affect the revenue stream, it would not be reasonable to expect these platforms to exercise their discretion in a manner that is fully compliant with these rules and in favor of users all the time. At this point, it can be argued that the platforms may consider not only the shortterm commercial gains but also their long-term image in the eyes of their users while taking regulatory steps, and, in this respect, they may adopt approaches in favor of the users to obtain a competitive advantage. Indeed, sometimes the actors may take steps that seem in favor of the user over the platform’s commercial interests at first glance, just like Apple’s restricting the targeted advertising by monitoring the user behavior through different channels by giving the user more privacy and autonomy. However, the fact that platforms are taking steps seemingly in favor of the user without external intervention does not mean that they will really favor the users and that they should not be put under scrutiny. After all, Apple’s advertising revenues increased in January 2022 compared to the last quarter of the last year as a result of the interruption of targeted advertising activities in other channels and the subsequent shift of advertisers to channels managed by Apple. Technical instruments should not be solely considered a substitute for regulation through legal instruments. They can be used to ensure compliance with the existing legal framework. Most data protection rules require the data controller or the processor to take necessary measures to maintain a certain level of security without explicitly providing a list, and all technical measures implemented to this end are implemented using technical instruments such as firewalls and passwords. Similarly, online copyright infringement on video streaming platforms is mostly monitored with algorithms. Moreover, a hybrid and effective regulatory framework may be established by introducing legal instruments determining rules and limits on the nature and application of technical tools. This is mostly the case with the telecommunication or payment services regulations regarding the technical infrastructure used in these sectors. Such a combination of legal provisions and technical instruments may also be useful in solving the aforementioned legitimacy problem. In most cases, using technical instruments or preferring legal instruments instead is a policy choice. While making such a choice, technical limits and practical requirements must also be considered for an effective legal and regulatory policy. In order

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to contribute to this evaluation, the necessity of regulating the Metaverse through legal instruments will be examined in the next chapter.

3 The Necessity to Regulate Metaverse via Legal Instruments Calls for regulation are not uncommon when there is hype around a novel technology. Metaverse is no exception to this. Currently, there are different opinions as to whether the Metaverse should be regulated via legal instruments. In this cacophony of new technologies, incidents, and reactive calls for regulation, however, whether such regulation is indeed necessary is mostly overlooked. In my opinion, regardless of tools and methods, rushing to regulate new technologies in order to counter public reactions and incidents without meticulously analyzing the feasibility and necessity of such an intervention would create more problems than it aims to solve. The law as a system contains generally applicable provisions as well as principles that might apply even to the newest developments and transactions. For an effective regulatory analysis, firstly, it should be examined whether there is any applicable provision or principle. Then, it should be evaluated whether these provisions or principles are sufficient to address the problems and risks associated with that new technology. If they are, then there might not be a need to introduce any new legal provisions. Generally speaking, regulatory steps have a target, a certain purpose, and associated goals. They influence their targets and, if available, behaviors thereof to achieve these goals. The purpose may be many things, including, but not limited to, solving a specific problem, addressing a risk, or promoting a certain type of behavior. For example, algorithms that can compare online multimedia content can be deployed as a regulatory tool with the purpose of detecting copyright infringement. The regulatory target here would be content providers, as they would be directed not to create or upload any copyright-infringing content. The purpose and regulatory targets for Metaverse regulation should also be identified. This is not an easy task itself, but the conceptual uncertainty and the dynamic nature of Metaverse platforms make it even more difficult. In this study, the purposes for regulating Metaverse platforms and the control these platforms have over Metaverse interactions shall be examined separately. While doing so, protecting users shall be given special weight.

3.1 Metaverse Interactions What is meant by the term “Metaverse interaction”? This is closely linked to the question of what is understood from the term “Metaverse”. There is no consensus as to what Metaverse is and what its elements are [8]. Mostly, the concept of Metaverse is explained by a comparison with virtual reality and augmented reality [1, 8–10].

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At this point, it should be noted that fundamental issues regarding the Metaverse are explored in the earlier chapters of this book. In this chapter, we will make additional evaluations of the Metaverse and its features. However, these evaluations will not aim to provide a decisive definition but to draw boundaries that would facilitate the identification of the actors and the elements that may be targeted by steps taken to regulate Metaverse or the determination of features that may affect these boundaries. Drawing these boundaries is necessary for the actors to know which legal provisions they are subject to and to have legal certainty. Indeed, the nature and the legal implication of interactions taking place on an immersive Metaverse platform requiring virtual reality headsets will be different than a platform where the virtual space is separated from the physical reality only on the screen of a device. Only after drawing the boundaries between different Metaverse platforms could we properly analyze the legal framework applicable to each. Even though the features of Metaverse platforms and interactions taking place thereon differ, it is possible to identify some common features. The first thing standing out is that Metaverse platforms mostly, and sometimes purely, consist of virtual interactions as opposed to the physical world. In fact, some platforms are created to replicate physical interactions in a virtual space. The question here is whether the existence of virtual interactions alone is sufficient for regulatory intervention. I believe that this question should be examined separately for platforms in which the interactions between physical and virtual worlds can be separated clearly and platforms offering completely immersive experiences through special equipment. The main difference between these two is in the perception of reality of the user. In the first group of platforms, the boundaries between the virtual space where interactions take place and the physical space in which the user is located are clear and visible to the user. What happens in the virtual space may be significantly important for individuals and affect their physical life, but from an objective perspective, these worlds do not get intertwined, and particularly the interactions in the virtual space are not affected by the interactions in the physical world. Inputs from the physical world are transferred to the virtual space through ordinary units such as a mouse, keyboard, or touchscreen. Henceforth, these platforms shall be referred to as separate reality platforms (“SRP”). At the center of the hype surrounding the Metaverse, there is the second group of platforms offering an immersive experience. In these platforms, the visible physical world around the user gets either modified with the introduction of virtual elements or replaced completely with a virtual one using special equipment such as headsets. Augmented reality applications such as Niantic’s Pokemon GO are among the examples of the former, while Horizon Worlds by Meta is an example of the latter. In these platforms, interactions take place through both standards as well as a novel type of unit and create an experience of mixed reality. Even in fully immersive examples, physical elements are used and affect the virtual experience. When a virtual reality headset like Meta’s Quest is put on, the user moves in the physical world to interact in the virtual space. Simultaneously, the user remains subject to the obstacles of the surrounding physical world. For this reason, henceforth, these platforms shall be referred to as mixed reality platforms (“MRP”).

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The law is no stranger to SRPs. The functioning of these platforms and interactions thereon are quite similar to what we have in online platforms. Thus, there may be many legal provisions applicable to these platforms in every jurisdiction, including, but not limited to, the provisions on some of the fundamental rights and freedoms, such as the freedom of expression and the rules on data protection, copyright, electronic contracts, or electronic commerce. Moreover, the risks associated with SRPs are not completely novel. These risks are similar to the ones posed by online gaming or social media platforms, which are governed by a set of existing rules to a certain extent [11]. Mostly, interactions in these platforms are governed by contractual clauses in standard form contracts between the users and the platforms [3]. There may exist some gray areas where the rules applicable to interactions in SRP are not clear. For example, the legal classification of avatars, even in SRPs, is open to debate, and it is argued that Metaverse avatars should be granted legal personality or that some corporate law principles should apply thereto [12]. This is similar to the argument that artificial intelligence should be granted a legal personality, and I believe that this would not be the correct way to go. Legal personality is an established concept in many legal systems with a huge set of legal implications. Even the third parties shall be affected by a new type of legal personality as the legal personality is an objective state that has to be respected by everyone. Granting something a legal personality without a thorough analysis would create, once again, more problems than it aims to solve [13]. Considering these, I argue that, at least at the date of this study, neither sufficient data nor evidence is suggesting that interactions in SRPs create novel risks or problems that would merit legal intervention. It is highly likely that new platforms will emerge over time. Even with these, however, it should be examined whether the existing legal framework is sufficient to address the risks associated with these platforms before jumping to the conclusion that there is a need for new legal provisions.

3.1.2

Metaverse Interactions in Mixed Reality Platforms

The existing legal provisions or principles may also apply to interactions in MRPs [11]. However, the identification of the applicable provisions and the determination of how these provisions should apply to constitute a more complicated problem in MRPs compared to SRPs due to the difference in their nature. Indeed, I believe that what may cause novel risks and problems and, thus, merit legal intervention is MRPs for three main reasons. Firstly, interactions in MRPs may be structured in a manner that is similar in appearance but different in nature and effects compared to physical interactions. The effects of increased similarity between physical and virtual interactions on human decision-making and psychology are not yet clear. Still, it is expressed that the

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perception of security and truth of a user placed within a 360° immersive experience may be shaped according to the visible world they see, and they can even explore just like the physical world, and the control and alert mechanisms ensuring that what is seen is not real but virtual may get weaken [1]. In such a setting, to prevent users from being misled by techniques exploiting this difference in perception, systems aimed at properly informing users should be developed. For meaningful protection and disclosure, these systems should be supported with or made compulsory by legal instruments. Secondly, users will be monitored in MRPs on a scale they have never been on before. Wearable technologies are not new. However, recording of many relevantly new information, including 360° view, each step, each eye, and hand movement, and each content or application interacted with continuously makes it significantly more challenging to deal with privacy concerns in the Metaverse [10, 11, 14]. It is suggested that to address these concerns, legal provisions prohibiting the tracking of every single movement and emotional reactions of users or the manipulation thereof may be adopted [10]. Thirdly, the effects of being subjected to such an immersive experience for a long time on human physical and mental health are currently unknown. Symptoms such as disorientation, nausea, eye strain, or even vomiting have been recorded after using virtual reality headsets [15]. It must be emphasized this is the case when these headsets are neither common nor very affordable. This raises the concern that the situation and symptoms might get worse after long-term exposure. Once again, there is a conflict between the interests of users in being protected against unknown longterm effects of the equipment used in MRPs on the one hand and the interest of society in technological development in the field of virtual reality as well as the Metaverse on the other. I believe that, in situations like this one, a blanket ban or a strict restriction is not the ideal response, at least not for adult users. Users should be warned against potential adverse effects. The use by children may also be restricted to a certain extent. However, beyond that, there is no evidence supporting the necessity of a ban or strict restriction. Instead, a disclosure requirement could be introduced. The type, content, and method of such disclosure should be determined in each case, taking the specific circumstances into account. In connection with the regulatory methodology proposed above, the question of whether these risks justify regulation directly through legal instruments without resorting first to regulation via technical instruments or waiting for social norms to take effect may come to mind. This question should be examined separately for each platform. However, it must also be reminded that platforms’ commercial expectations, as mentioned above, may prevent them from implementing effective technical instruments aimed at maintaining compliance rather than prioritizing their own interest or acting in a manner supporting the emergence of proper social norms. In these cases, resorting to other means of regulation itself may, ironically, lead us to a situation where regulation via legal instruments becomes necessary.

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3.2 Regulation of Metaverse Platforms Regulation of MRPs must be assessed separately from the regulation of interactions therein due to the potential social and economic implications of these platforms. I argue that the purpose of such a high-level regulation must be to prevent any platform from being a sine qua non to work, exist, or, more generally, survive in modern society. In other words, getting involved with an MRP must not be a practical necessity for anyone to live. This is only logical as the long-term effects of MRPs are still unknown. Additionally, forcing people to be subjected to such invasive digital monitoring raises red flags with respect to fundamental rights and freedoms. Before proceeding further, it should be noted that whether any Metaverse platform will become the dominant or the monopolistic actor can only be observed over time. It is perfectly possible that none of these platforms reaches that level, or even the concept of the Metaverse itself may fade off or be replaced with different technological applications. Furthermore, even if a platform signals that it may reach a dominant position, there are rules in place in many jurisdictions to prevent the abuse thereof. However, I argue that, even if all of these are true, the pre-active regulation of Metaverse platforms should be seriously considered for two main reasons. First, quite different from the platforms we have interacted with so far, MPRs will have the ability to control everything that is seen by users in a 360° world and not on a single screen. Considering the nature of the developers of these platforms and the relevant equipment, that would mean leaving control of everything users to see to a group of private actors, which will most likely be profit-driven. Having experienced the potential effects of the control on what is seen on screen on human decision-making in instances such as the Cambridge Analytica scandal, it would be fair to say that the content in MPRs can reach a higher level of customization and a greater level of influence [10]. The mere possibility of this kind of influence should be considered sufficient for some measures. Second, if such a platform becomes mainstream, this might cause people to get forced to be involved with this platform even for the simplest daily interactions or needs, such as working or getting an education. The idea of being able to experience the things we get used to in a physical setting in an immersive virtual world may be tempting at first. However, we have a very vital and quiet recent experience on our hands. Millions of people around the world are forced to transition to remote working or teaching through video conference software during the COVID-19 pandemic. Unsurprisingly, being able to work or teach remotely from the comfort of our own homes without the need to travel saved us both time and money, and it seems to be here to stay even after the pandemic. However, lockdowns and compulsory remote working showed us also that people may not like to be forced or stuck into such a physically isolated virtual interaction-based setting in the long term, even though they do not know it or even feel optimistic and enthusiastic themselves in the beginning. It may be argued that the mere possibility of such speculative unwillingness from the user side may not be sufficient to call for proactive regulation. However, it should be reminded that people are inclined to start using new apps and technologies within

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the hype. It only took five days for ChatGPT, the AI-based chatbot of OpenAI, to hit one million users. Taking all these into account, I argue that regulation via legal instruments is necessary for the purposes of monitoring platform powers and potential abuse since regulation by other means may fail. This recommendation is not based on the assumption that each and every platform will continuously try to manipulate all of its users. Rather, it aims to provide only a set of measures to monitor and prevent any platform that engages with such practices from becoming a practical necessity and too-big-to-regulate.

3.3 Uncertainty of Regulatory Framework Applicable to Crypto Assets and Effects on Metaverse Regulation One of the common features of existing Metaverse platforms is the use of crypto assets. As explained above, Metaverse platforms are created for virtual interactions. Naturally, a unit of exchange will be created by the platform or agreed upon by the users over time. However, it should be reminded that the use of crypto assets either as a unit of exchange or any type of certificate of ownership is not a technical necessity for all Metaverse platforms. On the other hand, the fact that crypto assets are not an indispensable component of Metaverse platforms is not sufficient to determine whether there is a need for legal intervention. The legal classification of crypto assets and the regulatory framework applicable thereto are highly debated issues in many jurisdictions. The uncertainty surrounding crypto assets, naturally, affects the regulatory framework applicable to Metaverse platforms using crypto assets as well. The question here is whether the use of crypto assets in Metaverse platforms alone requires legal intervention. It is not possible to provide a universally correct answer to this question. Each platform should be examined separately, taking the features of the platform as well as the crypto assets used into account. The important point for the purposes of this study is that the focus of this regulatory discussion is not Metaverse platforms but crypto assets. Regardless of crypto assets being used in Metaverse platforms, the uncertainty of the legal status of crypto assets triggers regulatory debates. Any attempt to resolve this uncertainty will also affect, albeit indirectly, the regulatory framework applicable to Metaverse platforms using crypto assets. Attention should be drawn to the fact that this is the case not only for crypto assets but for all components. A significant amount of personal data is processed within Metaverse platforms so that any amendment to personal data protection rules will also affect the regulatory framework applicable to Metaverse regulation. In other words, the regulatory debates concerning components of Metaverse platforms will naturally affect the rules applicable to that platform. Still, this effect alone should not be considered sufficient to merit legal intervention. More specifically, as crypto assets are not mandatory for Metaverse platforms, a legal intervention concerning

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the use of crypto assets in Metaverse platforms should not be made hastily for the purposes of the regulation of these platforms.

4 The Role of Criminal Law in Metaverse Regulation The final issue to be examined in this study is whether the interactions carried out in the Metaverse constitute a crime and, thus, fall within the ambit of criminal law. Constructing the interactions in the Metaverse to be the virtual equivalent of the interactions in the physical world may, at first glance, create the impression that the crimes in the physical world may be committed and, thus, should be prosecuted in the Metaverse. For example, if an avatar is attacked by another avatar in a Metaverse platform that is coded in a manner allowing avatars to die, would it mean that there is an injury or a murder? The answer to this question significantly differs depending on the jurisdiction in question, as criminal law is highly domestic. In addition, criminal law differs fundamentally from other branches of law on some principles. Among these, the conduct element, the rule of strict interpretation, and the criminal law being the ultima ratio are important in determining whether an interaction in Metaverse platforms constitutes a crime. The conduct element, which is also referred to as the principle of typicality in some jurisdictions, means that all actions within the definition of a criminal offense should be committed for a crime to exist. The labeling of the principle and its details may vary depending on the jurisdiction in question. On a related note, provisions are interpreted strictly, and application by analogy is prohibited in criminal law, which means that an action cannot be considered a crime based on interpretation based on similarities [16]. For example, roughly speaking, stealing a phone from a person constitutes a crime in many jurisdictions. However, when the good in question is not physical but digital, depending on the drafting of the provision, the situation may change. For example, in Türkiye, theft can only be committed with physical tools, and thus, stealing bitcoin from someone does not constitute theft [17]. Depending on the circumstances, however, it may constitute another criminal offense. Sexual offenses may be provided as another example. Verbal abuse of an avatar by another avatar may constitute a crime in many jurisdictions, whereas it would not be that easy to classify virtual actions as rape, given that rape is mostly associated with physical contact. Hence, before jumping to the conclusion that interaction in a Metaverse platform constitutes crime purely due to the visible appearance, the jurisdiction and the applicable criminal law should be identified, and then, the drafting of the relevant criminal law provisions should be examined. Additionally, if special equipment is used for a given Metaverse platform, the physical effects of this equipment should also be taken into account. Taking a step further to the policy level, I also consider that actions should not be made criminal offenses in principle. It is important to note that this is not to say that actions should be left without consequences. There are generally applicable private

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law frameworks like tort that could be resorted to before seeking criminal sanction. The effect of criminal law is much more severe compared to private law sanctions. Additionally, it requires the involvement of public mechanisms. More importantly, it directly interferes with the fundamental rights and freedoms of individuals. For these reasons, criminal law is considered ultima ratio, meaning that criminal law provisions should be introduced as a last resort and only when they are essential for the protection of the public interest [18]. Criminal law provisions cannot be introduced for the purposes of compensation or personal gratification in any disturbance. The frequent resort to criminal law and transforming it into a primary tool for intervention is both wrong and dangerous [19]. The problems related to disturbing interactions in Metaverse platforms may be addressed by existing general private law frameworks. Additionally, technical measures may prove significantly useful in solving these problems. In fact, the problems in Metaverse interactions may be solved via user-to-user engagements or technical instruments in most cases. Particularly with respect to technical instruments, considering that all interactions are virtual, users may be granted rights and privileges, allowing them to control what they can see or who can see them to a certain extent. In the example of verbal abuse, the platform may allow the victim avatar to filter out the offending avatar. Moreover, virtual prisons may be constructed for offending avatars. However, it should not be forgotten that these technical instruments are developed and deployed not by public authorities but by private actors. Leaving the space completely unregulated and subjected to the discretion of these actors may cause these actors to emerge as quasi-sovereigns in Metaverse platforms. The examination of the question of the legality and legitimacy of granting this much power to private actors is beyond the scope of this study. Here, it suffices to say that these actors are not above the law, particularly the provisions on fundamental rights and freedoms, and, hence, they should respect the relevant rules while implementing such technical measures to restrict user behavior.

5 Conclusion In light of the above, the first and most important conclusion of this study is that Metaverse regulation is an issue that should be evaluated by considering the characteristics of each Metaverse platform. Thus, before proceeding with the regulation of a Metaverse platform, features of that platform and risks associated therewith should be identified. Furthermore, even after the identification, there is no single or uniform legal framework to apply, and hence, jumping to the conclusion that legal intervention is necessary would not be quite accurate. While it may be possible to apply some of the existing legal provisions to some of the features, the existing legal framework may not be sufficient in the governance of interactions in Metaverse platforms that drastically affect the perception of physical reality by changing or adding virtual elements.

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If there is not a legal provision applicable to interactions on Metaverse platforms or if the application of the existing regulation does not solve the problem, it should not be hastily concluded that legal intervention is necessary. Virtual interactions can be self-regulated over time according to the social norms established by the actors of the platform. Nevertheless, if a legal intervention is to be made due to the fact that there is no self-regulation and waiting for the emergence thereof is not convenient, it would be more appropriate to do this with more dynamic and more convenient technical instruments than the legal intervention, which may cause problems in the long term when introduced hastily without a proper pre-examination. At this point, the question of the arbitrariness of technical instruments may be raised. Indeed, technical instruments are mostly developed and implemented by private actors, which may be inclined to increase their own gains. Ideally, these technical instruments should not be arbitrary. A standard may be developed within the relevant sector. To the extent that the arbitrariness of the technical instruments cannot be avoided in the short term, the introduction of secondary legal provisions that limit their scope can be considered a hybrid and effective regulation method. On the other hand, considering the uncertainty as to the long-term effects of MRPs on human health and the possibility that MRPs may be used to gain an advantage in a manner exploiting this uncertainty, legal provisions focusing on monitoring these platforms may be introduced in order to prevent irreversible harm. In addition to the interactions, the power of Metaverse platforms may also raise concerns. Considering that MRPs may have control over not only a screen but everything visible to users, this power should be monitored. Such monitoring is also necessary to be able to prevent Metaverse platforms from becoming practically mandatory for people. Finally, whether interactions in Metaverse platforms will trigger the application of criminal provisions simply due to an apparent similarity or whether new criminal provisions should be introduced to make these interactions criminal offenses is open to debate. Although criminal law is no stranger to virtual interactions classified as criminal offenses, an examination should be made taking the principles of criminal law into account. Furthermore, given the ultima ratio nature of criminal law, Metaverse interactions should not be introduced as criminal offenses, and the problems should be addressed either via private law mechanisms or via the implementation of technical measures.

References 1. Erlank, W.: Law and property in virtual worlds. In: Barfield, W., Blitz, M.J. (eds.) Research Handbook on the Law of Virtual and Augmented Reality, pp. 636–661. Edward Elgar Publishing, Cheltenham (2018) 2. Marsden, C.T.: Internet Co-Regulation European Law, Regulatory Governance and Legitimacy in Cyberspace. Cambridge University Press (2011) 3. Garon, J.M.: Legal Implications of a Ubiquitous Metaverse and a Web3 Future. SSRN (2022). https://ssrn.com/abstract=4002551

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4. Lessig, L.: Code Version 2.0. Basic Books (2006) 5. Murray, A.: Information Technology Law: The Law and Society. Oxford University Press (2019) 6. Yeung, K.: Towards an understanding of regulation by design. In: Brownsword, R., Yeung, K. (eds.) Regulating Technologies, pp. 79–108. Hart Publishing, Portland (2008) 7. Criado, N., Such, J.M.: Digital discrimination. In: Yeung, K., Lodge, K. (eds.) Algorithmic Regulation, pp. 82–97. Oxford University Press, New York (2019) 8. Lee, L.H., Braud, T., Zhou, P., Wang, L., Xu, D., Lin, Z., Kumar, A., Bermejo, C., Hui, P.: All One Needs to Know about Metaverse: A Complete Survey on Technological Singularity. Virtual Ecosystem, and Research Agenda (2021) 9. Park, S.M., Kim, Y.G.: A metaverse: taxonomy, components, applications, and open challenges. IEEE Access 10 (2022). https://ieeexplore.ieee.org/document/9667507 10. Rosenberg, L.: Regulation of the Metaverse: a roadmap. In: Proceedings of the 6th International Conference on Virtual and Augmented Reality Simulations (ICVARS), Brisbane, Australia (2022) 11. Bavana, K.: Privacy in the Metaverse. Jus Corpus Law J. 2(3), 1–11 (2022) 12. Cheong, B.C.: Avatars in the Metaverse: potential legal issues and remedies. Int. Cybersecur. Law Rev. 3, 467–494 (2022) 13. Güçlütürk, O.G.: Yapay Zeka ve Verinin Kullanımı. On ˙Iki Levha Yayıncılık (2022) 14. Leenes, R.: Privacy in the Metaverse. In: Fischer-Hübner, S., Duquenoy, P., Zuccato, S., Martucci, L. (eds.) The Future of Identity in the Information Society, pp. 95–112. Boston, MA (2007) 15. Nwaneri, C.: Starting up in virtual reality: examining virtual reality as a space for innovation. In: Barfield, W., Blitz, M.J. (eds.) Research Handbook on the Law of Virtual and Augmented Reality, pp. 44–63. Edward Elgar Publishing, Cheltenham (2018) 16. Stahn, C.: A Critical Introduction to International Criminal Law. Cambridge University Press (2019) 17. Aksoy Retornaz, E.E.: Ceza Hukuku Perspektifinden Blokzincir. In: Aksoy Retornaz, E.E., Güçlütürk, O.G. (eds). Geli¸sen Teknolojiler ve Hukuk I: Blokzincir, 2nd ed., pp. 381–417. On ˙Iki Levha Yayıncılık, ˙Istanbul (2021) 18. Mitsilegaas, V.: EU Criminal Law. Hart Publishing (2022) 19. Parti, K.: Actual policing in virtual reality—a cause of moral panic or a justified need? In: Kim, J.J. (ed.) Virtual Reality, pp. 647–672. InTech (2011)

The Metaverse and Terrorism Aybike Yalcin-Ispir

Abstract Information and communication technologies develop continuously and uninterruptedly with the main purpose of increasing the quality of life by facilitating human efforts in many areas. However, these technologies can often be exploited for the realization of malicious acts. Terrorist groups, which aim to attract attention by creating fear and confusion in large populations, use such technologies as effective tools. The internet enables widespread access, end-to-end encryption, and the establishment of virtual private networks, which provide a useful environment for terrorist and extremist groups to air propaganda, recruit new members, assemble financial resources, and plan and conduct terrorist acts. The enhanced version of virtual reality technology, the Metaverse, is a development that will allow users to connect to an already existing virtual world via the internet. In this research, previous studies were examined on the connection between terrorism and technology, and evaluations and suggestions were made about how the Metaverse—most probably the next stage in the development of the internet—might be used for terrorist acts. According to the results of the study, in addition to those already experienced in internet use for the purpose of terror, there may be different types of threats in the Metaverse. Therefore, it is important for both states and international organizations to conduct studies on the possible misuse of the Metaverse.

1 Introduction Terror is not a new phenomenon; however, as a modern political term, its use began with the French Revolution in the 1790s. Although consensus on the definition of terrorism has still not been reached, violence and the threat of violence are common elements in definitions of terrorism. As a result of political developments, terrorism has evolved many times, not only terminologically but also in terms of its targets and methods. In particular, the period of globalization following the Cold War has been a significant reason for the latest transformation of terrorism. A. Yalcin-Ispir (B) Independent Researcher, Elazig, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_19

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Globalization advanced the concept of the “nation-state” for discussion. This concept was introduced in the 1648 Treaty of Westphalia, which was the start of the modern international relations system that we still live with today. The developments in information and communication technologies that began after the fall of the Soviet Union have also transformed societies because the transnational infrastructure of global information networks has eroded the borders of nation-states. Thus, the influence of traditionally powerful and authoritative states has decreased while the actors in the international arena have diversified. The developments in information and communication technologies as the trigger of globalization provide advantages for the welfare of human beings, but they have also brought new risks in the context of both personal and national security. With globalization, people, capital, and beliefs have gained the ability to travel beyond the borders of traditional nation-states, but this new world has also been opened to elements of crime and terrorism. There are numerous examples of terrorist organizations using information and communication technologies, especially social media, to make demands and threaten and enact violence in a significantly easier way and with a wider effect. In today’s world, it is impossible for individual states to fight transnational terrorism using the logic of the “nation-state”. For this reason, states have established various cooperation mechanisms, especially under the framework of international organizations. Intelligence sharing, extradition, and mutual administrative assistance can be given as examples of such mechanisms. Based on previous experience with terrorist use of the internet and social media, it is also very likely that the Metaverse, which has been designated as the new roadmap that guides the activities of technology companies in the digital world, will be abused for terrorist purposes. The topic is a new and developing one, which is why the amount of research on the Metaverse is quite low. Therefore, there is a definite need to conduct comprehensive studies on the security of the Metaverse. Based on this necessity, this study discusses how the Metaverse might be used by terrorists, based on previous lessons learned from using the internet and social media for terror purposes.

2 What is Terrorism? Prabha states, “Terrorism is a global phenomenon which is easy to recognize but difficult to define” [1, p. 125]. Due to this difficulty, it has not been possible to determine a globally accepted definition of terrorism. Saul argues that it is impossible to reach a consensus on the definition of terrorism, underlining that: “Disagreement about terrorism runs much deeper than technical disputes about drafting; it reflects doctrinal, ideological, and jurisprudential arguments about who is entitled to exercise violence, against whom, and for what purposes” [2, p. 4]. Although terrorism is not a new phenomenon, defining terrorism was not a priority until the September 11 terrorist attacks, but since then it has become more important

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to determine a global definition. The impetus for this was provided in the wake of the 9/11 attacks, when the United Nations Security Council (UNSC) required states to take measures against terrorist acts and terrorists; however, without a clearly drawn common definition of terrorism, the framework of the measures to be taken becomes vague [2, p. 5]. As Schmidt also underlines, although the definition of terrorism is not the end, a lack of definition may create a suitable environment for future terrorist acts [3, p. 378]. There are many studies in the literature focusing on the conceptual definition of terrorism [2–5] and its place in other forms of political violence [6–9]. According to the results of the study conducted by Schmid and Jongman, violence/force, politics, and fear/terror are the top three elements in the definitions of terrorism produced in the period 1936–1981 [10]. Terrorism began to change following the collapse of the Soviet Union, and with the September 11 attacks, the new version was designated “new terrorism” or “modern terrorism.“ According to Duyvesteyn, the elements that define the new brand of terrorism are: terrorists acting in a transnational and flexible manner for predominantly religious purposes, more effective means used for terrorism, and randomly selected targets [11, p. 439]. As it is one of the newest tools that can be exploited within the scope of new terrorism, it is of great importance to focus on the Metaverse and its possible terrorist uses. According to Damar’s examination of research on the Metaverse, it has received little attention in the fields of social sciences and sociology [12, pp. 2–3]. Since it is a developing field, discussions on using the Metaverse for terrorist purposes are still predictive.

3 The Use of the Internet by Terrorist Organizations Platforms such as Twitter, Facebook, YouTube, and WhatsApp, referred to as social media, are communication tools that allow the creation of content by the user. The period following the September 11 terrorist attacks is when social media began its rise. Using the internet, terrorists had the opportunity to reach their membership, potential supporters, and the international public through social media applications in this period [13, pp. 4–5]. Although there has always been a deep trade-off between terrorism and traditional media, social media has paved the way for terrorists to act faster and reach a wider audience [14]. Today, regardless of their political orientation, all active terrorist organizations benefit in some way from the advantages of the internet. Many applications, such as WhatsApp, provide an encrypted and therefore confidential and secure environment for their users, and while traditional media can be controlled by the state through filters such as broadcast bans and censorship, social media provides a much freer habitat for terrorists. Examining websites maintained by terrorists reveals that these sites contain the history of the terrorist organization, the biographies of its founders and leaders, their social/political background, and their widely known terrorist acts [13, p. 4]. In addition to these, statistical and visual information, such as so-called country maps, the

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number of martyrs and enemy casualties, and the aforementioned number of attacks listed on their websites are used as propaganda materials [13, p. 4]. In actual fact, the internal policies of the companies creating these applications feature mechanisms for dealing with accounts that share terrorist content. For example, in Twitter’s violent organizations policy, it is clearly stated that there is no room for terrorist organizations, violent radical groups or individuals who are involved in or promote illegal activities, and additionally, the methods for reporting those who violate this rule are listed [15]. In this context, Facebook, Twitter, Microsoft, and YouTube cooperated in 2017 to establish the “Global Internet Forum to Counter Terrorism.” This group has subsequently expanded with the addition of other technology companies to the original members and continues cooperating to prevent harmful content from being spread on the internet by terrorists and violent extremists [16].

4 The Metaverse and Terrorism It can be argued that terrorist acts in the Metaverse are going to be substantially more numerous but will echo the main purposes and methods of current internet use by terrorist organizations. In this context, it is important to first examine the purposes of terrorist internet usage in order to infer how terrorists may use the Metaverse to serve their aims. In a report prepared by the United Nations Office on Drugs and Crime (UNODC) on the use of the internet for terrorist purposes, the activities for which the internet is used by terrorists are grouped under six overlapping categories: propaganda, financing, training, planning, execution and cyberattacks [17, p. 3]. Similarly, Weimann identifies eight ways in which terrorists exploit the internet for their purposes: psychological warfare, publicity and propaganda, data mining, fundraising, recruitment and mobilization, networking, information sharing, and planning and coordination [13, pp. 5–11]. According to Britannica, propaganda is defined as “dissemination of information, facts, arguments, rumors, half-truths, or lies to influence public opinion” [18], and it is one of the main reasons for terrorist organizations to use the internet. Organizations can become visible easily through the internet, especially social media, and can quickly circulate their propaganda to a wide audience. Violence is encouraged, radical discourses are spread, psychological manipulation is conducted, and fear and panic are introduced into society through shared voices, images, and messages by terrorists. The publishing of horrific images has an especially large impact on the public. In addition to disseminating propaganda, the internet and social media are also used in the recruitment and mobilization of current or potential terrorist groups. DAESH is one of the organizations that actively use social media for propaganda. According to Salihi and Göksun, in addition to being an armed organization, DAESH resembles a huge media company with its magazines and social media channels being produced in different languages [19, p. 19], a way in which DAESH is known to have attracted large numbers of foreign terrorists. Berger [20] describes DAESH’s online recruitment process as composed of five highly planned and complicated

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stages. The first phase is discovery, in which the potential terrorist finds DAESH or DAESH finds the potential terrorist. The second is the micro-community creation phase, in which DAESH supporters gather around the potential terrorist to provide various information. The third is the isolation phase, in which the potential terrorist is encouraged to sever communication with his closest associates, such as family and friends. The fourth is the communication phase, in which the potential terrorist is requested to conduct communication through secret messaging platforms. The final phase is the identification of what the potential terrorist can do for the organization and then encouraging that person to act [20]. In another article by Guadagno et al. [21, p. 25] on terrorist organizations’ online recruitment, it is underlined that by starting with basic online requests and then gradually increasing demands for the terrorist cause, the potential targets begin supporting extremist ideologies and actions that they would not support under normal circumstances. Similarly, Veerasamy and Grobler [22] conducted studies on how players are identified as potential terrorists and how they are lured to terrorist organizations on internet gaming sites, especially those participating in war games and who are skilled or successful in certain fields such as marksmanship, engineering, chemistry, and weapon development. It is even known that the US and British national security agencies infiltrate virtual games containing Metaverse elements, such as Second Life and World of Warcraft, to gather intelligence. These efforts are regarded as an indication that states consider these environments as potential environments for planning terrorist acts and recruiting new terrorists [23, p. 231]. Reflective on this, the Reynard Project conducted by the US from 2009 to 2012 examined social dynamics and suspicious terrorist behavior in online games with the aim of using the results to fight terrorism [24]. Networking is another way terrorists exploit the internet. Many terrorist groups, large or small in size, speaking different languages and from different countries, can communicate and coordinate with each other over the internet. With the advantage of the internet, the cost of communication decreases, communication speed quickens, and the variety and complexity of shared information increases [13, p. 9]. It is widely known that the internet is also used by terrorists to finance their actions. Yuen [25] emphasizes that the financing of terrorism via social media can be performed in many different ways, and in some cases, the senders are not even aware that their money is being used to support violence. These methods, which can be grouped under the four headings of direct solicitation, e-commerce, the exploitation of online payment tools, and charitable organizations constitute an important source of financing for terrorist organizations [17, p. 7]. Jacobson maintains that terrorist organizations such as Hamas, Hezbollah, and Lashkar al-Tayyibe effectively use the internet to raise and transfer the necessary funds to support their actions as it provides advantages such as the anonymity of the recipient and sender names, a certain degree of privacy, access to a wide audience, and time efficiency [26, p. 353]. Fundraising advertisements by terrorist organizations are usually placed on social networks and thematic websites. In order to hide the true purpose and avoid being deterred, clear messaging of terrorism financing is generally not used and in its place deceptive information is provided; for example, that the money is being collected for humanitarian purposes [27, p. 32]. According to Aykın and Sözmen, the most

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vulnerable among commercial online sites to be abused by terrorists are those that act as customer-to-customer intermediaries [28, p. 55]. With the online payment system, these sites actually provide various conveniences to customers, and when abused, similar conveniences are extended to criminals. Veerasamy and Grobler [22] also highlight that online casinos, stolen credit cards, online auctions, and the sale of counterfeit medications are frequently used by terrorists to collect income over the internet. The internet is also used by terrorists for training and information sharing. Detailed instructions and training modules in multimedia format with multiple language options on numerous topics can be shared with other terrorists via internet platforms, such as how to make explosives/firearms and how to plan terrorist attacks [17, p. 8]. In his study on how the al-Qaeda terrorist organization uses the internet for training, Stenersen finds that the internet is not exactly a virtual training camp for organizations and their members but rather a training resource used by radicals who are sympathetic to terrorism [29, p. 215]. In addition to training, the internet is also used by terrorists for planning purposes because the process of planning a terrorist act requires remote communication between various parties [17, p. 8]. In planning a terrorist act through the internet, secret communication can be established between terrorists through encrypted applications. In addition, the analysis of publicly available information provided by the internet can be used to determine the potential target and find the most effective method for the success of the terrorist attack [17, pp. 8–11]. As Weimann states on data mining, “Terrorists, for instance, can learn from the Internet a wide variety of details about targets such as transportation facilities, nuclear power plants, public buildings, airports, and ports, and even about counterterrorism measures” [13, pp. 6–7]. Following the planning and implementation phases of attacks, terrorists also use the internet to communicate among themselves, such as to specify their location [17, p. 11]. Another use of the internet by terrorists is for cyberterrorism. Online terrorist activities take different forms, such as cyber-attack, cyber war, cyber terrorism, and cybercrime. According to Alexander, the difference between cyber-attack and cyberterrorism is related to the intention of the perpetrator: the purpose of criminals who carry out cyber-attacks is generally financial, while those who engage in cyberterrorism generally have social, political, or religious motivations [30, p. 3]. In cyber warfare, states or international organizations use the cyber environment as a battlefield and take hostile actions against other states. What cyber wars have in common with cyberterrorism is their target. Both are used to destabilize states designated as enemies and endanger their physical and digital infrastructures. For example, a psychological war can be waged through cyberterrorism, and terrorist organizations can reduce societal resistance by instilling mass fear and anxiety through disseminating misleading news, especially via social media. The most frequently used tactics in cyber-attacks are to destroy websites or render them inaccessible to cause discomfort and financial loss in a society; to organize a digital attack on communication platforms to threaten a society; to digitally attack financial institutions to transfer money or cause confusion; to organize a digital attack to steal sensitive information; and to infect vulnerable data networks with

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computer viruses. The fight against cyberterrorism emerged in the 1980s and is an important field of activity for both states and international organizations today. For example, the North Atlantic Treaty Organization (NATO), which is an important regional security organization in terms of members and fields of activity, accepted cyber space as an operational domain similar to land, air, sea, and space in 2016 [31]. Tellingly, in a report prepared by NATO’s Center of Excellence for Defense against Terrorism, cyberterrorism is defined as “a cyber-attack using or exploiting computer or communication networks to cause sufficient destruction or disruption to generate fear or to intimidate a society into an ideological goal” [32]. Following the announcement of Mark Zuckerberg’s renaming of Facebook to Meta in October 2021 and the announcement that the company will focus on the Metaverse, the concept of which originated in a dystopian science fiction novel approximately 30 years ago, it has become a subject that arouses curiosity and interest in today’s daily life. Alongside Facebook, other technology companies such as Microsoft, NVIDIA, and Google have also expressed similar opinions, confirming that the Metaverse is an impending reality. The quarantines imposed during the COVID-19 pandemic can be regarded as the driving force behind people’s increasing interest in the Metaverse. Namely, in a period when people are relegated to their homes, demand is created for an environment that is not connected to the physical world and is not affected by different variables, and this can be identified as among the most important reasons for the inclination toward Metaverse studies. Although there are various definitions of the Metaverse, it can be expressed as a platform that includes new communication technologies such as virtual reality, augmented reality, and non-fungible tokens. Moreover, it can be seen as the catalyst for the transition from Web 2.0, in which users can produce content and interact, to a decentralized, three-dimensional, and blockchain-based technology. According to Zuckerberg [33], the Metaverse will be an environment where almost anything imaginable can be realized, such as being with friends and family, working, learning, playing, and shopping. At this point, based on previous experience in the use of the internet and social media, it is very likely that elements that may threaten national and international security will also occur in the Metaverse. Neal Stephenson, who first introduced the concept of the Metaverse in his book, underlined in a 2017 interview that everything invented causes some predictable and unpredictable results and that there are no specific processes to predict and control these results, because at the end of the day, all the consequences that may occur are related to people’s capacity to act responsibly and ethically [34]. Although the question of how the Metaverse can be used in the context of terrorism has not been posed very often, there are some studies expressing opinions on this subject. For example, according to an internal document prepared by the EU CounterTerrorism Coordinator, the declaration of a virtual caliphate by DAESH in the Metaverse, the creation of a virtual terror camp, the staging or re-activation of large-scale terrorist attacks in this new universe, the spread of hate speech and disinformation by violent extremist organizations, the manipulation of people by terrorists for recruitment, attacks on personal avatars in the virtual environment by terrorists and the reflections of all these scenarios in real life are among the foreseeable dangers that

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terrorists may use to affect society [35]. In an interview, futurologist Abishur Prakash argued that there will not be a single Metaverse that the whole world will use and that each country’s creation of its own Metaverse will create new fault lines between countries, which will feed terrorism both in the Metaverse and in the real world [36]. The security threats posed by the Metaverse were also discussed by Herath and Jarnecki [37], and attention was drawn to threats such as more interactive terrorists, an increase in violent extremist content, and misinformation and attacks through avatar identities. In an article published by Smith et al. [38], it is again argued that there are issues that need to be addressed for security concerns in the Metaverse, such as cyber security, identity management, crypto-currencies and payments, legal regulations, intellectual property rights, data security, data management, and data control. It is stated by Danilin [39] that new technologies increase terrorism and violent extremism, but perhaps more important than the act of terrorism itself is the escalation of fear in an audience that can affect national strategies and decision-making, or the inspiration of recruits or the providing of follower support. In the same vein, three researchers from the University of Nebraska Omaha argue that the Metaverse has a potential dark side, and they examine these terrorist threats under three headings [40]. The first of these is related to recruitment, and they emphasize that since it is very easy for people to meet in the Metaverse, it will be easier to recruit online, so extremist leaders will have the opportunity to expand their spheres of influence in order to create and maintain ideological and social communities. The second topic is coordination, and it is stated that the scattered membership of the Metaverse will offer new ways of coordinating, planning, and organizing terrorist acts. It is underlined that with adequate preparation and information gathering, radical leaders will be able to allow their members to walk routes to key targets, create virtual worlds containing representations of designated physical structures, and prepare terrorists more than today’s attackers for an attack in the real world. Finally, under the title of new targets, it is emphasized that the Metaverse may inspire new targets for terrorist attacks such as religious buildings, shopping malls, public events, or weddings, and that whether in the virtual world or in real life, all may be deemed suitable objectives for terrorist attacks [40]. As a result, when the views on the use of the Metaverse for terrorist purposes are collectively examined, it can be inferred that similar risks have already been experienced in the use of Web 2.0. In addition to these risks, it is inevitable that new risks will emerge with Web 3.0. It is thought that there will be difficulties in countering all these risks due to the intertwined structure of the real and virtual universes. In this intricate structure, it seems possible for real-life terrorist organizations to create their digital twins in the Metaverse and to implement their actions in a hybrid manner using both universes. In addition, a future can be foreseen in which it is possible that new terrorist organizations exclusive to the Metaverse are established with attacks realized in the digital world, or perhaps the actions of these new terrorist organizations established in the Metaverse would later be transferred to the real world.

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5 Conclusions and Policy Implications Developments in information and communication technologies bring many opportunities and risks. The internet and social media, which have become an integral part of our daily lives, have been abused by terrorist organizations in the past, and states and international organizations have developed various methods to combat this. It is thought that the Metaverse, which is stated to be a fully simulated reality rather than a simple virtual reality and has been envisioned to create a virtual layer that completes the physical world and eliminates the concept of time–space, will begin to enter our daily lives in the near future. Our knowledge of the Metaverse is still limited. However, experience so far shows that it is an inevitable fact that terrorists, who can adapt very quickly to technological developments, will benefit from the Metaverse. Moreover, with the advantages of this new technology, it is predictable that malicious activities of terrorist organizations, such as propaganda, disinformation, recruiting, acquiring financial resources, organizing cyber-attacks, and planning and implementing terrorist acts, will be much more effective. When the Metaverse is a part of our lives, multi-layered detection and response studies will be required for possible attacks by terrorist organizations in the real world, virtual world, or of a hybrid nature. The knowledge and experience that are acquired through previous studies on the use of the internet and social media for terrorist purposes will provide valuable arguments in order to be prepared for the security of the Metaverse. Before the Metaverse is discovered and exploited by terrorists, it is important to conduct studies and raise awareness both at the level of states and at multilateral international organizations such as the United Nations (UN), European Union (EU), and NATO.

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The Relationship Between Blockchain Applications in Financial Markets and Metaverse Harun Turker Kara

Abstract Digitalization is considered as one of the most important trends changing the way of doing business. The new developments and technologies supporting digitalization, there are issues such as facilitating data sharing, widespread use of the cloud, virtual/cryptocurrency, smart contracts based on blockchain infrastructure, artificial intelligence, and the internet of things. In addition, factors like the spread of remote work and real-time location services with the impact of the COVID-19 pandemic also supported the spread of new business models and digital applications. The changing business models with digitalization have brought new opportunities and challenges to the financial markets and a transformation has taken place in financial services in this context. In this paper, this transformation will be discussed in the context of relationship with the metaverse ecosystem. Keywords Financial system · Blockchain · Metaverse

1 Introduction Transformation of financial services can be examined in three periods, which are traditional financial institutions that act as intermediaries (traditional finance), online platforms that automate traditional financial services (financial technology— FinTech), and the structure that does not rely on blockchain-based central financial intermediaries (decentralized finance—DeFi) [1]. Traditional finance needs central units to act as intermediaries, and intermediaries serve as central nodes that provide essential services such as maintaining access to the financial system, keeping records for customers, verifying transactions, payment, liquidity, and security [2]. Banks,

Grateful mercy to Bengisu ˙Ipek for her meticulous and valuable contributions. H. T. Kara (B) Ankara Medipol University, Ankara, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_20

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brokers, exchanges, etc., which are interconnected with payment systems and traditional financial systems, which are operated with the help of intermediary institutions, have adopted and implemented digital tools in many countries with the advent of digitalization. After the spread of digitalization with the help of financial technology and the use of blockchain technology in the finance sector, a decentralized financial system that allows all financial transactions to be carried out without the use of any intermediaries has come to the fore. Decentralized finance promises to create a new form of intermediation, using elements such as new automated protocols and stable money that facilitate fund transfers with the help of blockchain technology to support the trading, lending and investment of crypto assets [3]. Decentralized finance is generating a wave of financial innovation, using smart contracts and the decentralized settlement layer to create reliable versions of traditional financial instruments. Among the new financial instruments brought by the ecosystem created by these applications are atomic swaps, autonomous liquidity pools, decentralized fixed currencies, and flash loans [4]. In all these developments, the most important of the driving technologies is blockchain technology. Blockchain technology opens the door to developing a decentralized, open, and scalable digital economy [5]. Blockchain technology can also be described as an emerging financial technology that is ready to have strategic effects on organizations [6]. This technology enables the creation of new solutions with innovations that pave the way for realization in both financial and non-financial sectors. In the near future, blockchain technology in the financial sector is likely to affect many areas such as digital identity, supply chain management, money transfers, payment flows, and commercial finance within the framework of financial technology. Another area where blockchain technology is important is the metaverse. Different participants enrich the meaning and depth of the metaverse, which is a constantly evolving concept that works with an identity system that allows each user to produce content and organize the virtual world [7]. Existing predictions about the Metaverse include features that offer an open, decentralized, human–computer interaction experience and are associated with digital assets and the digital economy. On the other hand, the future shape and boundary of the metaverse world is not clearly known [8]. Although the decentralized finance structure does not include financial actors, financial institutions have to follow the developments in this field since the metaverse establishes a link between the physical world and the virtual world. Despite of the fact that Metaverse is a new approach, the structure established with the rapid progress in its development and decentralized finance has the potential to give birth to a system that rivals traditional financial systems. This situation forces all financial institutions to develop a new perspective for the upcoming period. The market volume of the metaverse economy is anticipated to increase further in the approaching period [9]. For this reason, players in the financial markets have started to take various steps to be included in this economy.

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2 The Process of Change in Financial Digitalization and Decentralized Finance Thanks to the developments in information and communication technologies, computer ownership, and widespread use of the internet, borders between countries have begun to disappear in many fields and subjects. This situation has brought about the spread of digitalization both in daily life and in economic life. In order to keep up with the digital transformation, it is important for businesses and individuals to closely follow the latest developments in technology and adapt quickly. Digitization has led to radical changes in the financial services industry. In addition to the automation of financial transactions and processes, the digitalization process has also created new business models (e.g. robo-advisors) and fundamentally reorganized the financial services value chain with new actors entering the financial markets [10]. These developments have brought about an increase in the formation of new financial services apart from traditional financial services in recent years. New business models and technological concepts place the foundation for innovative solutions in finance. It is expected that the upward momentum of financial digitalization will continue with the use of more mobile devices and the further development of technologies such as the internet of things [11]. Financial digitalization enables the use of many financial services in the finance sector at lower costs, regardless of the concept of place and time. Today, customers in the financial sector demand smart yet easy-to-use financial services that are independent of location and time and with ever-decreasing costs. Especially with the spread of internet and mobile devices, the number of users using online channels has increased and digital finance applications have become widespread rapidly.

2.1 Transformation of Financial Technologies Similar to many fields, technological innovations and developments in finance have created new ways of doing business. These include the growth of mobile payments; reduced use of cash; the growth of new forms of algorithmic and high-frequency trading; There are some issues such as cross-border stock trading, clearing, and settlement [12]. Figure 1 presents the fundamental digital innovation evolution timeline of technological innovations and developments in finance. These developments have the potential to reshape the future of money, payments and digital assets, as well as creating changes in service and business models among institutions. Digital finance encompasses numerous new financial products, financial businesses, financial software, and new forms of customer communication and interaction offered by financial technology companies and innovative financial service providers [12]. Digital finance, which offers benefits such as improving process efficiency in

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Fig. 1 Technological innovations and developments affecting the future of finance (The Asian Banker [13])

the finance sector, digitization, process automation, and improving transaction levels, has also affected customer habits and behaviors. The combination of finance and technology is often referred to as “financial technology (FinTech)”, which describes companies or innovations that use new technologies to improve or renew financial services [14]. FinTech can be expressed as an interdisciplinary subject that brings together finance, technology management, and innovation management [15]. Beyond the transformation of financial institutions with technology, FinTechs have also brought financial services to a different dimension with their innovative business models. FinTech aims to improve customer experience and increase process efficiency by bringing new working methods and approaches to the services and processes provided by the finance sector. In this way, it is possible to offer new alternatives to potential customers by redesigning traditional services to be more personalized, transparent and accessible through digital channels [16]. Technologies such as blockchain-based ledgers, new coding capabilities for transaction monitoring, data mining, machine

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learning, and artificial intelligence can be counted among the technologies that support these developments and create new opportunities [12]. Existing FinTech solutions are offered as digital providers or financial services by banks and insurance companies and non-bank/non-insurance institutions. In addition, in the development of FinTech, it is observed that the focus has shifted from in-organization solutions to customer-oriented business to customer (B2C), customer to customer (C2C), and provider-oriented business to business (B2B) inter-organizational approaches [10]. FinTech refers to innovations in the financial sector that benefit from ubiquitous communication, particularly through the internet and automated information processing. Fin-Tech accelerated innovations and digitalization in financial markets and increased competition. In addition, it expanded its customer base by providing digital access to some customers that are unable to be reached with traditional financial services. This led to the development and dissemination of new financial services and applications; business models and services of financial institutions have caused them to constantly follow technological innovations. Examples include internet banking, mobile applications, contactless credit cards, smart cards, and Quick Response code (QR) systems. All these developments improve the financial services sector by increasing efficiency in operations, providing customer-specific service and transparency. It is expected that FinTech will completely change the dynamics of the financial sector and cause change in the competitive structure and ecosystem of financial services [17]. In this context, FinTech has a high strategic importance for financial services companies [10]. Blockchain technology is demonstrated as one of the most promising technologies in the FinTech revolution [6]. Another development that has recently become widespread and discussed in financial markets is crypto assets that benefit from blockchain technology. Cryptocurrencies are a kind of FinTech application product and enable transactions to be carried out in a digital environment. The fact that cryptocurrencies have features such as confidentiality, fast transfer and low cost makes their use widespread [11]. This transformation in the financial markets and finance sector has brought about an increase in the use of virtual and crypto money, which facilitates payment and transfer transactions. Although it does not yet have government support and a clear legal infrastructure like fiat currencies, the use of cryptocurrencies around the world is becoming more and more common day by day.

2.2 Decentralized Finance and Business Models Financial systems fulfill different functions that are important for economic growth and stability, such as allocating resources to the most efficient use in economies and ensuring the use of efficient tools in the transfer from those who have surplus funds to those who need funds. In this context, financial systems directly or indirectly affect many different sectors besides the financial sector.

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The basis of the central financial structure used by traditional financial systems is often based on intermediaries such as banks and financial institutions [18]. In this structure, intermediaries perform most of the basic functions in the system and also assist in the implementation of regulatory objectives such as tax reporting, antimoney laundering or financial protection of the consumer [2]. In a centralized financial system, financial institutions are the key intermediaries that mediate and control transactions [19]. This has greatly contributed to the rapid and secure development of financial markets. On the other hand, the rapid developments in information and communication technologies, the fact that the needs of some users cannot be accomplished effectively in traditional financial systems have brought about the need for alternative structures [20]. The decentralized provision of financial services, on the other hand, means that interactions are facilitated and, in fact, mostly enabled by technology in the first place, and provided to multiple participants in a “distributed” manner [18]. In this case, there is no need for intermediaries, who are the most influential players in traditional financial systems. In decentralized systems, control is not realized from a single center and there is a distributed and independent structure [21]. Translated into Turkish as decentralized or decentralized finance, “Decentralized Finance—DeFi”, as the name suggests, is basically a system in which a specific authority is not centralized, and it contains the appropriate financial tools [20]. DeFi can also be defined as a Web 3.0 peer-topeer system where financial products and services become publicly available in a decentralized blockchain network [1]. Decentralized finance is a blockchain-based financial infrastructure that has received a lot of attention lately. The term generally refers to an open, unauthorized, and highly interoperable protocol set built on smart contract platforms [4]. This structure, which is based on a number of new technologies such as artificial intelligence, big data and cloud technology, aims to provide financial services without intermediaries by using automatic protocols on blockchains and stable currencies to facilitate fund transfers [3, 18]. With the increase in digitalization, FinTech has begun to take on some of the intermediary roles traditionally played by large financial institutions [19]. Among the dimensions of digital finance, digital finance, digital investments, digital money, digital payments, digital insurance and digital financial consultancy take part [22]. The effects of digital finance in all these dimensions have created a wave of change in the provision of financial services and the structure of traditional centralized financial systems has begun to change. In addition, in the 2008 global economic crisis, a distrust of traditional financial institutions emerged, and central financial systems received various criticisms. With the emergence of Bitcoin after 2009, the interest in cryptocurrencies increased and the need for decentralized financial structures began to be discussed. The comparison between the decentralized finance that emerged with these developments in the new digital economy and the traditional central finance structure is illustrated in Table 1. As can be seen here, there are differences between the two financial structures on many topics. Decentralized finance does not rely on intermediaries and centralized institutions. Instead, it is based on open protocols and decentralized applications abbreviated as

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Table 1 The new digital economy (Treleaven et al. [1, p. 1]) Economy

Traditional finance

Decentralized finance

Corporate economy

Ownership economy

Financial services

Based on mediation

Peer-to-peer based

Assets

Securities

“Tokenized” digital or physical asset

Money

Fiat currency

Cryptocurrency and tokens

Control

Big companies

Consumers

Data ownership

Companies

Citizens

Structure

Web 2.0 + cloud

Web 3.0 + blockchain

“DApps” [4]. Decentralized applications are permissionless unauthorized and globally accessible applications that are built on decentralized technology, have transparent, auditable code, and are built on smart contracts [9]. Transaction types that can be performed within the scope of decentralized finance include liquidity mining, staking, direct fundraising on the blockchain (Initial Coin Offering—ICO), asset tokenization on the blockchain, and lending using blockchain [20]. Decentralized finance structure has the potential to offer solutions to some of the important problems in traditional financial systems such as data privacy and transparency, transaction costs, governance problems, and systemic risk [2]. It also allows individuals who do not have access to traditional financial systems to make financial transactions. In summary, it would not be wrong to state that this concept was formed to eliminate some of the disadvantages of traditional financial systems. On the other hand, decentralized finance applications also have risks and these risks are presented in Table 2 by associating them by category. Among these, risks such as smart contract execution risk (not being able to correct when a wrong transaction is made), operational security and dependencies on other protocols and external data, and scalability come to the fore [4]. Although decentralized finance still appeals to limited users and does not have a legal infrastructure, it has provided new markets and financial instruments beyond the current regulations. Although decentralized finance applications seem to be limited applications built around simple applications such as cryptocurrencies trading or collateralized lending, they are growing rapidly in terms of scope and complexity [2]. In this case, the most important tool that is effective is blockchain technology and its decentralized structure, which enables money to be created independently from any central regulator. New business models have emerged thanks to decentralized finance and blockchain technology, which has the potential to erode the effectiveness of traditional financial regulation and enforcement. Decentralized, innovative, interoperable, and transparent financial applications created by the use of blockchain technology in the financial sector are expected to increase and become widespread in the coming period.

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Table 2 Decentralized financial risks (World Economic Forum [23, p. 13]) Category

Associated risks

Financial Depletion of funds due to the transactional behavior of fellow users concerning the digital assets in the DeFi service

Market risk Counterparty risk Liquidity risk

Technical Failures of the software systems supporting transaction execution, pricing, and integrity

Transaction risk Smart contract risk Miner risk Oracle risk

Operational Failures of the human systems for key management, protocol development, or governance

Routine maintenance and upgrades Forks Key management Governance mechanisms Redress of disputes

Legal Compliance Use of DeFi to engage in illicit activity or to evade regulatory obligations

Financial crime Fraud and market manipulation Regulatory arbitrage

Emergent Dynamic interactions Macro-scale crashes or undermining of the financial system Flash crashes or price cascades due to the interaction, scaling and integration of DeFi components

3 Blockchain Technology and Usage Areas Decentralized business models developed with blockchain technology have the potential to reshape existing industries and create a new environment for entrepreneurship and innovation [19]. In this context, Blockchain technology, which is talked about much, is accepted as one of the most destructive and revolutionary innovations after the invention of the internet, and it has made a name for itself in innovative solutions for many sectors [24].

3.1 Blockchain Technology and Operation A blockchain is essentially a distributed database of records, or public ledger of all transactions shared between the executing and participating parties. Distributed ledgers are characterized by no or minimal centralized management and no centralized data storage [18]. In the system using the distributed ledger infrastructure, every transaction on the pages in the public ledger is verified by the consensus of the majority of the participants in the system. The serial numbers of these pages form a link with each other. Since changing one of the transactions will remove the link with the next transaction, the information once entered into the system created using this technology can

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never be deleted. Transaction-related information is recorded in all stakeholders in a decentralized structure, and every transaction performed within the system is linked to the previous transaction. This approach can be utilized to record transactions on any asset that can be represented in digital form. The transaction can also be in the form of a change in the nature of the asset or transfer of ownership [5, 14, 24]. The working principle of blockchain technology is given in Fig. 2. In blockchaincircular technology, the transaction between two people is defined as a block, and the blocks are added one after the other like a chain ring and distributed to the network, and the transaction is approved by all participants and added to the blockchain. In this way, with the peer-to-peer electronic payment system established with this technology, new transaction entries are verified and transaction blocks are added to the chain. In this process, it is important for the system to be in a distributed network structure in terms of security and sustainability. Blockchain technology is a financial technology that was first used for Bitcoin in an article prepared by Nakamoto Satoshi in 2008 [6]. Bitcoin is a decentralized currency since it does not require a financial intermediary for transactions and is not controlled by any central bank or regulatory institution [11]. In his study, Nakamoto [26] presented a new cryptocurrency called Bitcoin as a solution to overcome the

Fig. 2 Working principle of blockchain technology (Crosby et al. [5, p. 10]; Avunduk and A¸san [25, p. 373])

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difficulties experienced with the central authority in transferring money to the world. Although blockchain is not used directly as a word in this study, the basic component of the crypto money technology used in the study consists of a series of data blocks chained to each other. In the study, it is emphasized that the payment can be made between two parties in a transparent and open source manner without the need for a third financial institution through Bitcoin. Blockchain technology provides conveniences such as low cost and fast transactions, transparent open to the control of all users, and easy tracking of transactions. Since there is no need for a central authority, users are assured that a transaction will run as protocol commands. Blockchain is resistant to cyber attacks thanks to its peerto-peer structure. Some chains continue to work even when offline or under security attack. This gives confidence to users [27]. Thanks to the unchangeable structure of the data in the solutions created using this technology, it is possible for the control mechanisms to work more actively, quickly and at low cost in their use with artificial intelligence [28]. However, blockchain technology has gone beyond just being an interface that allows transactions with cryptocurrencies, and today it is considered a disruptive technology with the potential to fundamentally affect social and economic systems [28, 29]. For this reason, this technology has not only advantages but also some disadvantages. The potential challenges and risks of blockchain technology are as follows [14, 30, 31]. ● There may be problems with the system in terms of scalability and speed. ● In the field of finance, there may be problems in terms of interoperability and integration with different technologies. ● The absence of a centralized infrastructure and a centralized presence can create governance problems in ensuring effective management of the overall infrastructure. ● Regulatory scrutiny and the lack of industry standards yet to be developed can create efficiency issues. ● Keeping a copy of all data in the system and accessing the content by all users may cause privacy problems. ● If the system consumes too much energy, it can be an environmental problem. ● Compared to traditional databases, there may be inadequacy in performance. ● A 51% attack can pose a systemic risk. ● Different solutions may be needed for data storage in the growing system. Distributed databases on the basis of blockchain technology provide advantages in terms of security. This technology also has the potential to open the door to radical changes in fundamental issues such as reshaping processes, ensuring efficiency, and increasing quality. Hence, this technology, which accelerates eco-system-based thinking and developing new business models in the sector, brings many opportunities with it. On the other hand, there are some uncertainties and doubts regarding the technology since this technology, which is not yet widely used, is in the development stage and its legal infrastructure has not been fully established.

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3.2 Uses of Blockchain Technology and Its Effects on the Financial Market The possibilities created by the blockchain technology, which attracted attention with the introduction of Bitcoin to the market, attracted the attention of many different sectors such as trade, agriculture, governance, health, public institutions, and international organizations, especially the finance sector [14]. International companies such as IBM, Microsoft, HP, and Amazon also strive to provide blockchain-based services for their customers [24]. The most prominent usage areas of blockchain technology, which has the potential for a wide range of uses, are summarized below [28, 32, 33]: ● Digital identity: By establishing a decentralized identity registration and verification system, it is possible to share all or a certain part of the identity information with the approval of the identity holder. In this context, identity management can be carried out in matters such as bio-identity, driving license, and combining corporate identities. ● Smart contracts: Smart contracts are decentralized platforms that allow transactions on the data on the blockchain network with a predetermined limit and can be verified by a secure computer network [21]. With the help of smart contracts, the production stages of a product can be easily followed, money transfers can be made automatically, and all conditions for the work to be done can be easily determined. With blockchain and smart contract-based applications, secure and effective solutions can be provided in matters such as “tax collection and management”, “voting”, “chance and betting games”, and “syndication loan”. ● Peer-to-peer loan applications: It facilitates the granting of loans from consumer to consumer between individuals without the need for an intermediary institution. ● Automated compliance mechanism: It is possible to reduce the possibility of error by automating the information related to financial data with audit software and removing manual operations. ● Supply chain management: A permanent product history can be created and documented for every step of the products, from production to sale, and the movements of the product on the chain can be automated using smart contracts. ● Customer recognition: Behavioral and preference-based information of the customer can be stored securely. ● Global payment systems: Provide real-time, low-cost, secure, and efficient payment infrastructure. ● Cryptocurrency and token solutions: It enables fast and low-cost money transfer by enabling physical money to be transported to the digital world. ● Microfinance services: With its peer-to-peer payment feature, it creates financing opportunities in cases where global banking services are not available or access to these services is difficult. ● Fundraising and management: By providing the principle of confidentiality, it makes it possible for the donation structure to be transparent and low-cost.

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● Able to meet the need for venture capital: With the ICO (Initial Coin Offering) financing model, tokens are created and sold to meet the capital needs of investors at various levels. ● Copyright and copy product protection: Solutions can be created to ensure that digital contents are copyrighted, controlled, and understood if they are copied; It can be determined whether the products are originals or copies. ● Property and accident insurance compensation process: It is possible to simplify and automate the application processes in property and accident insurance with blockchain and smart contract-based applications. ● Other aspects: Blockchain-based solutions can be offered in all areas that require public and health records and tenders, military chains of command, and trust protocols. The main feature that distinguishes blockchain technology from other technological innovations in the past in terms of the financial sector is that it offers the possibility of a different financial architecture to be built on decentralized finance [2]. The decentralized system, which is established with the help of blockchain technology in the financial sector, also enables to make transactions without the need for a secure third party. This situation, which removes the need for administrators of the system, reduces the transaction cost [25]. Blockchain technology can propose different solution alternatives in the category of financial instruments, records, and models. In this context, among the usage areas in the finance sector, currency (cryptocurrencies), financial instruments (private and state-owned stocks, bonds, bonds), derivative instruments (future contracts, options, swaps, forwards, etc.), voting rights linked to financial instruments, commodities fields such as expenditure and trade records, pledge-mortgage/credit records, service-service records, crowdfunding, and microfinance can be counted [28, 29]. On the other hand, the fact that cryptocurrencies working with blockchain technology are not dependent on a central authority, are anonymous and have the ability to operate in international markets, in the field of finance, money laundering, financing of terrorism, market manipulation, fraud, drug trade, etc. It also makes it possible to use it in areas that are not considered legally appropriate. In this respect, it can be said that this area, which has not yet been regulated, is met with concern by the central authorities [30, 34]. It is seen that there is a wide potential usage area of blockchain technology such as money and payment systems, financial services, collateral and property records, internal systems of financial service providers in the finance sector. Within this scope, many companies in the financial sector from banks to insurance companies, audit firm and professional service companies make investment in blockchain technology, which is accepted as a disruptive technology [35]. Many transactions carried out using blockchain technology are used in solutions accelerating trade, banking, insurance, supply chain, and contract processes, so its use in the FinTech field is becoming more common day by day. The finance sector also emerges as a driving force in the use of the said technology in other sectors, with its connections with many sectors.

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Collaborations on this subject and the increase in information sharing will create more opportunities for use in the field of finance.

4 The Relationship of Blockchain Applications and Metaverse With the increase in digitalization around the world, the need for data security has also increased and the use of new technologies in this field has become widespread among larger masses. Today, in this direction, the use of different technologies to ensure digital data security has begun to be used, and one of the most emphasized technologies in the current situation is blockchain technology. Blockchain technology creates new solutions for businesses in different subjects such as smart contracts, cryptocurrencies, digital identity and has the potential to change the way users interact with data and to handle transactions differently than in the past. In addition, with the spread of this technology, which does not need an intermediary, there will be a decrease in the number of people required to process and verify the information transmitted between individuals and organizations. The metaverse, which harmonizes the virtual and real world by establishing an economic system based on blockchain technology, can also be expressed as a new internet application and social form that has integrated various new technologies (Ning et al. [7, pp. 1–3]). Metaverse can also be described as the next stage of digital evolution and has the potential to transform the digital world by expanding the field of services beyond standard systems with online access [36]. In this context, it is expected that the metaverse will be developed along with the developing technology and new applications and solutions will be created in this field. Since the metaverse economic system is largely dependent on blockchain technology, developments in this field matter to developments in the metaverse world.

4.1 The Role of Metaverse and Blockchain Technology in Metaverse Blockchain technology makes a presence in different fields from the field of finance to the field of health. In this case, it is effective that this technology has a structure that allows transparent, reliable, and fast data processing. It is expected that its adaptation to different fields and sectors will accelerate, as studies on fields of research have progressed much faster and more focused in the last ten years [24]. One of the areas where blockchain technology is used is the metaverse. In the meta-verse, three-dimensional virtual reality is created that allows people to interact with each other, and users make transactions with digital currencies [37]. In other words, a technological ecosystem is created that allows people to develop virtual

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universes for themselves through avatars [38]. In Metaverse, users can find land, house, artwork, etc. in a virtual environment. Many virtual purchasing opportunities are offered and transactions made within this scope are protected by blockchain technology. Metaverse, in a way, removes the boundaries of the physical world with the opportunity it offers to its users in the virtual environment. It is possible to conceptualize the Metaverse as an interface between technology trends in society and business and digital transformation. In this way, it can allow improved human-centered collaboration in the virtual space, resulting in more effective information use, system design, and system integration [39]. In this context, it can be stated that the metaverse has the potential to create an ecosystem that is user-friendly and prioritizes people in creating economic outputs [40]. Metaverse is expected to trigger new business models in different fields such as culture, tourism, marketing, and education [41]. For example, hotels that receive payments with crypto money in the accommodation sector have started to take steps to take place in the metaverse area. The revenue increase provided by the advantages such as Metaverse’s absence of guest restrictions, pre-booking opportunities, virtual tours, virtual realization of meetings and events are the positive effects such as creating brand loyalty and providing personalized experience are expected in this sector [42]. In addition, the metaverse has the potential to shape new social dynamics with the use of new technological developments in the metaverse world. For example, it is possible to have new social status indicators such as buying an original work of art or a specially designed clothing for your digital twin [40]. Blockchain technology enables the economic interactions of metaverse elements with the real-world economy. This technology brings together different sectors and offers the potential to provide a transparent and reliable economic system for the metaverse. In other words, blockchain constitutes an important part of the technological base of the metaverse. Figure 3 illustrates the key blockchain technologies used for the metaverse. With the help of these technologies, real data can be shared and stored securely on more than one virtual world. In addition to blockchain technology, augmented reality, artificial intelligence, three-dimensional reconstruction, interactive technology, mobile networks, neural interfaces, wearable electronics, internet of things, cloud computing and edge computing are among other advanced technologies that support the metaverse [7, 43]. It is possible that the business structure, which has expanded from offline to website-based online in recent years, will expand into the metaverse area online with the developments in the metaverse area [41]. With the increase in the awareness of Metaverse, there has been an increase in the demands of the users and the expectations in this field have increased. Within this context, many large companies have started to exist in the metaverse area [7]. Although Metaverse has the potential to be a platform that offers significant opportunities in many areas, especially businesses selling digital products, it also has some concerns and potential threats. Rapid technological change and transformation, people’s inability to adapt to these developments, lack of control, malicious uses can be counted among the potential problems and threats associated with the metaverse [40].

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Fig. 3 Key blockchain technologies to enable the Metaverse [36]

4.2 Metaverse Economy and Its Effects on the Financial Market Decentralized finance, powered by advanced blockchain technologies, prefers a new approach to possible economic models in the metaverse, and the proliferation of decentralized finance is expected to accelerate the developments in the metaverse field [8]. While financial institutions are preparing themselves for the change to be experienced in this context by trying to understand the direction of the paradigm shift experienced with decentralized finance. In this context, many financial institutions strictly follow the new generation practices, including the metaverse, within the scope of adapting to the external environment. An ideal metaverse is a full-fledged economy in which individuals and businesses adopt by creating value, creating a wide variety of jobs, investing and getting rewarded for all of these [43]. It is likely that Metaverse will create new business scope in the field of economy and finance or expand existing business and processes [37]. In addition, the development and rise of blockchain technology, decentralized finance, and new sectors in the metaverse have the potential to contribute to economic development [7]. In this context, it can be said that the world of the metaverse, with its decentralized structure, offers opportunities for issues such as digital banking, digital exchanges, digital trade, and workflows, especially with the spread of the digital economy and the developments in decentralized finance, and has the potential to change business models. Metaverse is on its way to becoming the next step of the internet or Web 3.0. Web 3.0 means that the internet changes in the focus of ownership and decentralization concepts through blockchain technology [9]. Financial technology is critical in the metaverse environment, enabling individuals to make payments by enabling them to buy, sell, and store goods and services. The economic system is one of the basic components of the metaverse, and the metaverse

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Fig. 4 Traditional economy and metaverse economy [8]

also creates the economy of the metaverse by creating its own economic system. The Metaverse economy will grow and potentially reach 5 billion users by 2030; its market value is expected to reach a value between 8 and 13 trillion dollars [9]. As can be seen, in the metaverse economy, unlike the traditional economy, there is a decentralized structure based only on digital technology, which does not need financial intermediaries (Fig. 4). Financial services will play an important role in the evolution of the metaverse in almost every field, from the inception to the ongoing processes of commerce. In this context, as the metaverse develops, various financial services will be needed to support the activities carried out. The metaverse finance (MetaFi) that the metaverse economy will require is expected to be a mix of decentralized finance (DeFi), centralized finance (CeFi), and traditional finance (TradFi), with new products specifically designed to meet the unique needs of the new ecosystem. MetaFi refers to the decentralized financial instruments of the metaverse, mostly based on DeFi [9]. Metaverse can be considered as an independent economic system with a digital product production and consumption chain. The number of individuals using the Metaverse is increasing with the development of technology, and a lot of information is created as actions are taken on a scale similar to reality in this field. The versatile use of these data will be possible. In this context, the metaverse will also come to the fore for financial data management with the help of financial transaction management methods provided by FinTech solutions in the finance sector [37]. Metaverse has the potential to change the business environment in which many organizations, including financial institutions, operate today, although not enough progress has been made yet. These include helping businesses expand their offline business activities to the virtual world, and enabling international business partners to experience different experiences and collaboration activities together. This also provides organizations with a comprehensive scenario simulation opportunity to support their digital transformation in a virtual environment. Within this context,

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various financial institutions around the world have started to turn to projects using virtual reality or augmented reality in order to increase customer satisfaction and create different experience alternatives for customers [9, 37]. Although it is still in its infancy, it is seen that there is a high interest in meta-universes. In this context, the development and spread of metaverse studies have the potential to create some changes in the finance sector in the approaching period.

5 Conclusion In today’s world, rapid changes are experienced in almost every sector with the effect of technological developments. Financial sector stands out among the sectors that adopt early new developments in information and communication technology and use them intensively. The emergence of innovative business models and the rise of new competitors have a significant impact on current industry dynamics. In the light of rapid changes in economic conditions and cost regulations, established providers of financial services have faced a significant transformation in the field of digital finance [22]. Technological changes experienced accelerated digitalization in the financial sector, enabling the creation of new alternatives to existing applications and the development of newgeneration solutions. Blockchain technology, as part of the digital economy in the financial field, enables the creation of decentralized financial services that tend to be more decentralized, innovative, interoperable, borderless, and transparent. Blockchain is basically a technology that enables people who do not know each other to take evidence-based action. Verifying this shared event log eliminates the need for a third party to mediate as it is possible for all participants in the computer network. The main hypothesis in blockchain technology is that the blockchain establishes a distributed consensus generation system in the digital online world [5]. Blockchain technology brings with its different solutions such as faster and lower cost money transfer to improve existing business processes in the field of finance, digital identities, making transactions over the internet without the need for an intermediary in some transactions, making smart contracts and providing cyber data security. In addition, this technology supports mass peer-to-peer collaboration models. Technology has also come to the fore as an alternative solution to the problem of trust in financial markets, especially after the 2008 global financial crisis [2]. This technology potentially has many application areas. One of them is the metaverse area, which has gained importance in recent years, designed as a virtual universe where individuals and companies can interact. Metaverse aims to provide people with three-dimensional impressive and personalized experiences by utilizing different technologies, and the most promising of the solutions developed to ensure the security of the data used in this field is the blockchain application. Metaverse is seen as a way to connect the physical and digital worlds and it is possible to benefit from the metaverse in gaming, education, tourism,

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utilities, virtual commerce, smart manufacturing, recruitment, health services, social collaboration, and many others [9]. The rapid development of digital technology and the spread of digital applications with the COVID-19 pandemic have changed the society’s perspective on virtual environments, and the border between the physical and digital worlds has begun to disappear. This situation has increased the interest in the metaverse field. In order for the Metaverse to be widespread, it is expected to have a strong connection to the real-world economy and eventually be an extension of it. This is currently largely provided by applications based on blockchain technology such as cryptocurrencies and certificates. In this context, there is a need to make various arrangements to meet the changing digital requirements especially around the emerging decentralized financial systems. In addition, blockchain technology is of key importance in the formation of the metaverse economy. It is considered that the developments in blockchain technology and decentralized finance applications will make progress in the metaverse economic system, and all these innovations and changes will bring some changes in the finance sector.

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Technology Giant South Korea’s Metaverse Experiences Hasan Tinmaz

Abstract The support of the Korean government accelerates for Metaverse R&D. The Ministry of Information and Communications Technology and Science announced that they would support at least 220 Metaverse companies with sales volumes of more than 5 billion won ($4.2 million) in Korea and create a “Metaverse Academy” this year for the training of 40,000 local staff by 2026. On top of that, with the ongoing “Metaverse Seoul” project, all the services of Seoul municipality will be offered on the Metaverse. In addition, many medical academies, especially the Seoul National University hospital, are carrying out serious projects for the use of medical Metaverse. With the help of governmental support and their own funds, the Korean private sector has been creating many successful Metaverse projects. Among them, the most important corporations are Kakao, Cheil, EVR Studio, Shinsegae and Hancom cooperation, Lotte and VAIVCompany cooperation, Hancom and Cyworld, DoubleMe, Mirae Asset Securities, Naver and Zepeto cooperation, SK Telecom and Ifland, VA Corporation and Paratus Investment cooperation, Hyundai and Unity collaboration. Since it is impossible to ignore K-pop and Korean dramas when it comes to Korea, Metaverse’s partnership with these two important structures is also noteworthy. The recent Korean presidential election can also be an important example to show the effects and use of the Metaverse. In addition to these, Metaverse takes its place as a part of job recruitment processes in Korea. Finally, along with all expected positive outcomes, anticipated problems are considered in Korea. Keywords South Korea · Metaverse Academy · Kakao · Ifland · Zepeto · Cyworld · K-pop · K-drama

H. Tinmaz (B) Woosong University, Daejeon, South Korea e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_21

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1 Introduction The South Korean State, which could not get rid of the effects of the Second World War, found itself in a great destruction between 1950 and 53, the result of which would be the division into two states, which will go down in history as the Korean War. The Republic of Korea, which will continue on its way as “South Korea” after this division, has strengthened its place in the world arena as one of the countries where technology is most advanced. South Korea is portrayed as an exemplary country, where all technological developments are closely followed by its citizens, its high budget spent on R&D, and its world-renowned large companies. As an expected consequence of this situation, it is not surprising that the concept and development of the Metaverse already occupies an important place in South Korea. Before focusing on Metaverse, it is crucial to find out where South Korea is in technology in order to understand our main topic; Metaverse in South Korea. As a short reminder, the author will use “Korea” instead of South Korea or the official name of the Republic of Korea to refer to them briefly.

2 Latest Technological Developments in Korea First, to focus on Internet usage, in the country with a population of 52 million, the Internet usage rate among Koreans aged three and over is around 93% at the end of 2021. As can be seen in Fig. 1, the rate of Internet access has doubled since 2000, and it has become available to almost all citizens of the country [1]. Parallel to this, at the beginning of 2022, the country’s Internet penetration rate was 98.0% of the total population [2]. When analyzed in more detail, 91.2% of the population of the country is an active social media user, and the time that citizens daily spent on the Internet is calculated as 5 h and 29 min. Considering the fact that access to technology is not possible without having technological devices, when technological device ownership between the ages of 16 and 64 is examined, it is observed that 97% smartphone, 37% tablet, 14% game console, 21% smartwatch, and 4.5% virtual reality device ownership for Korean citizens [2]. Regarding these percentages, it can be concluded that Koreans generally do not have any problems in owning technological equipment and that they can access the Internet easily and quickly with the tools they have. Korea is the third country in the world, after UAE and Norway, for mobile Internet connection speed (104.98 MBPS). When the world average is 29 MBPS, Korea’s high Internet speed is even better comprehended [3]. Of note, higher mobile data speeds will also help accelerate developers’ ability to deliver engaging AR, VR, and Metaverse experiences via mobile connections. It is necessary to look at the research and development budget to understand that these statistics are not coincidence and are the result of investments made. For

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Fig. 1 Internet usage rate in Korea 2000–2021 (Source Statista [1])

example, looking at the 2020 report of the Korean Industries Federation, it is clearly seen that 4.8% of the country’s domestic gross national product (approximately $75 billion) is allocated to R&D activities. In the same report, it is stressed that Korea is the second country with the highest R&D expenditure among the 38 OECD member countries [4]. Due to the robustness of its technical infrastructure and the high level of investments, Korea can follow the emerging technological innovations very closely. For this reason, Metaverse, which is one of the hot topics of recent times, has taken its place in Korea and started to be studied at different levels. This chapter summarizes Metaverse-related planning and implementations in a short period.

2.1 Views and Plans of the Korean State on Metaverse The Korean government has unveiled a new long-term road map with the goal of becoming the world’s fifth-largest Metaverse market within the next 5 years. The government reports that Korea currently ranks 12th in the world in terms of market share in the Metaverse industry. According to the plan, Korea’s Ministry of Information and Communications Technology and Science announced that a “Metaverse Academy” would be formed to support at least 220 Metaverse companies with sales volumes of more than 5 billion Korean won (US$ 4.2 million) and to train 40,000 local experts by 2026. A budget of 177 million dollars was allocated for all these

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plans. Minister Lim Hye-sook stated that the government will work closely with companies in the sector and relevant ministries, and said, “The Metaverse is a digital new world with endless possibilities” [5]. The government focused on five priority development points related to Metaverse: broad meta space, digital human, ultra-realistic technologies, real-time user environment (UI)/user experience (UX), distributed/open platforms, and an R&D road map to secure competitiveness in medium to long-term Metaverse technology [6]. Following the decision, it is planned to establish an online Korean language institute on Metaverse platforms for foreigners and launch various projects to apply Metaverse technology in tourism, medicine and art, including K-pop. To further drive growth, a “K-Metaverse Academy” is planned to be formed to help global Metaverse startups enter the Korean market and connect with local content companies [5]. The Ministry of Information and Communication Technologies and Science announced on March 27, 2022 that the first trainees would be recruited to be trained as Metaverse Experts within the Metaverse Academy. In addition to the trainees, the ministry also called for professional trainers, mentors, and companies to be partnered with the project. For the academy, which is planned to open at Metaverse Hub in Pangyo City in May 2022, the curriculum has been organized as online pre-learning (May–June), self-learning (June–August), peer learning (September–October), Metaverse platform development, and content creation (November–December). In the training, which is open to trainees under the age of 39, 180 trainees would be selected according to their performance in the 4-week pre-learning stage and continue to other stages. In the Metaverse Professional Trainer/Mentor section, a total of approximately 15 professional trainers and consultants will be recruited to closely lead the Metaverse service development and content creation process. In addition, Metaverse companies with their own Metaverse service technology and operational expertise are also sought to be involved in the process. Companies can join Metaverse Academy in a variety of roles including curriculum development, trainee selection and evaluation, project consulting and tutoring, boot camps (shortterm intensive training), and internships. Currently, 27 large domestic and foreign companies, including CJ ENM, Wysiwick Studio, Microsoft, Unity, Adobe, and The Sandbox, have decided to join the academy [7]. Korea Education and Research Information Service (KERIS) is a public institution under the Ministry of Education of Korea that supports various projects and academic research related to Information and Communication Technology (ICT) in education from primary to higher education. KERIS’ “Educational Use of Metaverse: Possibilities and Limitations” report of 2021, explains the concept of Metaverse to everyone working in different educational levels and institutions. The report consists of five main sections: (i) Metaverse as a concept, (ii) four types of Metaverse, (iii) Metaverse features and educational uses, (iv) advantages and challenges that Metaverse could bring to an educational environment, (v) results and recommendations. Table 1 summarizes the implications of Metaverse in education with the potential contributions and problems it may create. The report is also significant in that it shows the importance Korea attaches to the use of Metaverse in education [8].

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Table 1 The positive and negative effects of Metaverse in educational environments [8] Metaverse features

Educational contributions

Educational challenges

New social communication space

Even in situations like school closures due to COVID-19, students can connect socially beyond the boundaries of reality

Privacy issues may arise due to the collection and processing of various personal information when interacting with others on the Metaverse if it creates a game-centered relationship that is different from real-world interaction

Ultimate freedom

Students’ freedom in the learning process can be expanded with experiences that will be provided from being just a content consumer to being a content producer

Due to the high degree of freedom, platform managers cannot predict all the actions of users; they may be subject to various crimes due to the anonymity of Metaverse

Ultimate interaction over virtualization

In order to support the active learning processes of the students, new experiences can be offered with plenty of interaction

It can cause identity confusion, escapism from reality and incompatibilities with the real world in people whose identity and personality are not fully established

After this report, Korea Digital Literacy Association started studies on the definition and dimensions of Metaverse literacy: “Metaverse literacy is the competence to think critically, create content, communicate, establish relationships and collaborate on the basis of healthy self-leadership in an expanded virtual world connected to the real world” [9]. The Korean Finance Minister announced that they have planned to invest more than 20 trillion won ($16.4 billion) in the data, network, and artificial intelligence sectors over the next three years to help nurture future-oriented industries. In addition to these financial supports, the government added that they have also planned to provide support for R&D and tax incentives for the development of the data, network, and artificial intelligence sectors. The Minister emphasized that support to the data, network, and artificial intelligence sectors will be important in creating synergies with the BIG3 industries (semiconductors, bio-health, and next-generation vehicle). The Minister also emphasized that BIG3 industries will create more jobs and encourage innovation-based development [10]. All planned incentives are also expected to directly influence Korea’s Metaverse platform and content development activities. Since Korea is the headquarters of many technology giants such as Samsung and LG, it will not be surprising that it ranks fifth in the World Innovation Index. In addition to its extensive high-tech industry, Korea is also world-renowned for its popular culture products such as K-pop and video games. It is not known whether this is because the two cultural products have something in common, but NFTs have already managed to attract the attention of Koreans. According to Google Trend reports, Korea ranked fourth globally in interest in NFTs as of November 1, 2021. With NFT adoption skyrocketing, Korea’s reputation as a technological innovator

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and leader began to spread even faster. In Korea, where crypto money and the tax to be collected from this crypto money are not clearer yet, NFT purchase offers an alternative solution to its investors [11].

2.2 Seoul Metaverse Project As in many countries, smart city projects occupy the country’s agenda in Korea as well. The city of Sejong, which was established from scratch with the logic of a smart city on its own, functions as the second capital of Korea. In addition, the smart city transformation of Seoul, which is the main capital city, continues rapidly. The fact that 95% of Seoul residents have a smartphone with 5G connection further triggers this transformation. As a result of this high speed, Seoul Municipality has started to establish a Metaverse ecosystem (Metaverse Seoul) to operate its services to its citizens over Metaverse. Within the scope of the project, it is planned to offer the municipality services more effectively, as well as to start Metaverse-based virtual tourism through produced digital twins. The city’s long-term vision for the Metaverse ecosystem is to combine support for business development services and training, to provide support for city services including filing complaints if needed, finding out the information about real estate, and filing tax returns. Every citizen will be able to participate in this ecosystem free of charge by developing his or her own avatar. Thus, it also aims to make it easier for citizens to connect with government services and with each other. The project also plans to overcome time, place, and language constraints. Finally, new ways to improve city satisfaction and user experience will be explored through the Metaverse ecosystem. Once completed, the platform aims to utilize the three-dimensional digital twin, which is the exact replica of the city, to improve the city’s public infrastructure, report fires, and facilitate access to local security footage. For example, there is an S-Map [Seoul Map] digital twin service being used for real-time fire monitoring, urban planning, and wind path analysis. The platform also includes the Ansimi app as a security service that provides citizens with direct access to police services in Seoul. In this way, police can easily access camera feeds and location data to speed up investigations. Most of the big companies in the Korean business world already see Metaverse as their future workplace, and this project wants to include virtual co-working spaces that will enable citizens to work remotely via Metaverse as they currently do in a real office. In the next stages of the project, it is also considered to add an AI-based public official who will provide public service and solve citizens’ problems in parallel with Seoul’s smart city policy [12].

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2.3 Korea and the Metaverse in Health As it attracted the attention of many different fields, Korea started to work on the use of Metaverse in the field of health. For example, Metaverse has been determined as the main theme of the “Medical Korea 2022” conference. In his “New MetaverseBased Global Health Strategy” speech, Professor Jheon Sang-hoon (Seoul National University—Korea’s number one university) pointed, “In the not-too-distant future, a cloud computing-based general hospital operating across borders [Metaverse] will be created and medical education, research and clinical trials will be conducted on this setting. This [Metaverse] looks like the future of healthcare.” In this context, Prof. Jheon states that the focus on medical technology is shifting and that new medical business models will become more predictive and preventionbased systems providing services for doctors and hospitals. He emphasizes that these changes are no longer a dream and can be realized due to the advancement of artificial intelligence, big data and network technologies. Prof. Jheon uttered that although the Metaverse is an incomplete structure, there will be no return from the Metaverse trend. According to Prof. Jheon, although the global health care gap continues, Metaverse is a candidate to be the most important tool to close this gap. While Jheon states that in his CPR (Cardiopulmonary Resuscitation) training, for example, doctor candidates come together to watch videos and practice several times. Yet, on Metaverse, by using virtual patients and artificial intelligence-based trainers, doctor candidates can perform better. In addition to this example, Metaverse can be used in a variety of areas including laboratories, intensive care units, and infectious disease control offices. Finally, Prof. Jheon concludes by saying that Korea is a country that is advanced enough to prove itself in both information technology and healthcare, so the combination of these two fields will help the nation seize the lead in these global trends [13]. Professors from the Seoul National University School of Medicine established the “Medical Metaverse Research Association” in January 2022 to explore how the Metaverse, a combination of virtual and physical space, could be applied to the healthcare industry. The association aims to seek ways to use Metaverse in patient care and medical education, and connect it with the technology industry to solve problems in the clinical realm. The association will also seek to train medical Metaverse experts and create a solid link between the technology industry and healthcare. Association president, Prof. Park Chul-kee expresses that while Metaverse is still in its early development stage, it is still a candidate to be a part of people’s lives in all areas of health, including medical education, disease diagnosis and treatment, and disease prevention. Prof. Park defines the concept, as “The essence of Metaverse is togetherness. If, in physical or virtual reality, it is possible to share and experience a certain three-dimensional space and time with other people, it is a Metaverse”. Park Sang-joon, CEO of Medical IP, a newly established medical Metaverse firm based on artificial intelligence-assisted analytics technology, made a presentation at the association’s first conference entitled as “The immersive era of high-throughput information: The Metaverse in Healthcare”, in which Metaverse, as a new method,

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can be used to make meaningful use of patients’ health information. He added that they were able to predict the emergence and importance of the Metaverse in the technological development process observed in the world. Dr. Park, in his own definition, describes Metaverse as a platform for interaction with digitized patient information, using sensors as a tool. Dr. Park added that in the future, patients’ life data would become recognizable on the Metaverse environment with hospital visits, just as people upload their photos or information to social media and share their daily lives nowadays. Dr. Park concluded that the Medical Metaverse would be an important platform to bring together patients’ treatment history, medical simulations, clinical practice, and medical education [14]. The scene of doctors who successfully perform brain surgeries by wearing virtual reality glasses, which we are used to seeing only in movies, becomes reality with the new technology being clinically applied at Seoul National University Hospital and Chungbuk National University Hospital, a system that allows very complex surgery in real time and has the advantage of reducing side effects. Metaverse medical company Medical IP, one of the first in-hospital startups at Seoul National University Hospital, plans to strengthen its market position by developing these technologies. Firm CEO Park Sang-Jun remarked, “the reason why Metaverse is promising is that it is a convergence technology area that encompasses software technology and hardware technology. We anticipate that it will have many uses in the future as it is implemented.” The company is currently focusing on finding and working on cadavers, which is an important problem in medical education, and has focused on working on a Metaverse platform that applies bones, muscles, and organs in detail and in the most accurate way. Surgical Mind is another Korean company that uses Metaverse technology by applying virtual reality technology to medical care. The main purpose of the company is to assist patients in different matters through remote intervention with Metaverse medical technology. For example, when a patient from a rural area needs to travel from a local hospital to a large hospital, he or she is scheduled to receive diagnosis and treatment with the help of a doctor in a tertiary general hospital. Another example given by the firm is that when Korean Antarctic Base crews need top-notch medical care, they can collaborate remotely with the headquarters in Seoul or with doctors at any hospital. Surgical Mind CEO Il Kim describes another goal of the developed Metaverse system as providing medical support to Koreans outside of Korea. For example, if a Korean citizen has gone on a business trip overseas and needs emergency surgery, it will be possible for a local doctor to cooperate with a doctor in Korea [15].

3 Korean Metaverse Platforms Eighty-eight percent of Koreans aged 16–64 use KakaoTalk. This application has become the most favorite social media platform among all social media tools of Koreans with 57% usage. In addition, Kakao.com is the sixth most visited website in Korea. Koreans spend an average of 11 h per month on KakaoTalk. The fact that

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YouTube’s 40-h weekly usage leads the same rate can be an example of how much time Koreans actually spend on KakaoTalk [2]. KakaoTalk is an all-in-one function application from Kakao Corporation (voice/ video chat, messaging, file transmission, taxi calling, hairdresser finding, bus/subway mapping, etc.). In addition, with Kakao Pay, KakaoTalk users can make online payments or transfer money, including QR code/barcode payments, NFC payments, online payments, and in-app payments. Using KakaoPay, KakaoTalk users can earn multiple sales promotions in the form of discounts/bonus money when paying at a specific location (for example, some physical convenience stores or some large stores). In addition, users can use Kakao Pay as a digital wallet and use Kakao Pay to pay utility bills or simply invest in KakaoTalk account for profit [16]. This IT giant company announced that after July 2022, all its employees will have to work remotely at least 4 days a week as part of a new “Metaverse work” system. A Kakao official said that for the remaining days, employees should meet offline, but this meeting does not have to be held at the company office. All work-related matters will be conducted online as they will connect with colleagues in the virtual space using text, audio, and video depending on the circumstances. Namkoong Whon, CEO of Kakao, explained their new working model: “After experiencing remote working [due to COVID19] over the past two years, we have come to the conclusion that “connection” is more important than physical space. The Metaverse working system, which puts the connection at the center, will help all our employees to work efficiently and will also ensure that this becomes a company culture”. About a dozen Kakao subsidiaries, including Kakao Games, Kakao Mobility, and Kakao Bank, are gradually moving to the Metaverse working system [17]. Founded in 1973 in Seoul and within the scope of Samsung Group, Cheil, a marketing company that provides services such as advertising, public relations, customer marketing, sports marketing, digital marketing, etc. has invested (17 billion won ($13.35 million)) in EVR Studio, a leading virtual content production company also based in Korea, for their new Metaverse based business model. EVR Studio develops Metaverse content with proprietary technology, including sandboxes and digital versions of people (especially many Korean celebrities). EVR Studio was founded in Seoul in 2016 and has grown its business in visual effects with gaming and entertainment companies to focus on research and development of Metaverse technology. The firm employs of a team of approximately 70 technical professionals, 80% of whom have experience working for Hollywood effects studios or major game developers. More importantly, EVR made headlines for developing digital versions of Korean celebrities like Kim Soo-Hyun, which have been appearing in many commercials, games, and movies. “This strategic investment and close collaboration will strengthen Cheil worldwide ability to produce Metaverse content and the rapid transition to Metaverse-focused content in the global advertising market” said Jeongkeun Yoo, Cheil president and CEO [18]. Shinsegae, an important chain of shopping malls in Korea along with many other businesses headquartered in Seoul, stated that they have started working with Hancom, another important technology company in Korea, to enter the world of

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Metaverse. Hancom will develop the Metaverse platform services and Shinsegae will develop the content on the Metaverse. In addition, Shinsegae and Hancom will create NFTs of various products that can be traded in the virtual world. Before Shinsegae’s Metaverse services go live, the company also plans to host various events on other Metaverse apps. Shinsegae’s investment in Metaverse encourages retail competitors to enter this new market as well. For example, Lotte Department Store, one of Shinsegae’s biggest competitors, signed an agreement with VAIVCompany in November 2021 and announced that they also intend to develop a Metaverse platform. Lotte aims to display and sell the products sold in its own stores and branches in the virtual world [19]. In addition to all these, Hancom announced the development of “Hancom Town” Metaverse app within Cyworld, which is another social media platform. The beta version of Hancom Town, which was designed as a Metaverse-based meeting space in Cyworld, started to serve at the end of 2021. Hancom Town is designed with 2.5D graphics like US Metaverse platform “Gather Town” instead of 3D graphics like SK Telecom’s “ifland” and Naver’s “Zepeto”. Each Cyworld avatar (“Mini Me”) can open a meeting room (“Mini Me Room”) for 10 people on Cyworld’s Hancom Town. The door of this meeting room opens onto a square that hosts five hundred online people at the same time. Therefore, users can host small meetings in the Mini Me Room or use Square to host large-scale events and seminars. Real-time conversation is also possible via video conference and chat. Mini Me Room and Square participation can be done via e-mail or invitation link. Hancom supports avatars and background templates through continuous updates; Cyworld Hancom Town has been collaborating with various brands on new content to expand into entertainment, shopping, and education markets. In this way, Hancom Town aims to be a Metaverse platform that melts real life with online life. For example, in GS Retail (a leading company specializing in general retailing), “GS25” grocery store, “GS the Fresh” supermarket and home products shopping “GS Shop” can be connected with Cyworld Hancom Town so that users can purchase products on the Metaverse and ship anywhere they want. Another example is from the chain of cinemas called Megabox. Customers can validate their movie tickets with QR codes to purchase movie items in Cyworld Mini Room. Customers can also use Megabox membership points in this purchase process. In addition to all this, Hancom and Cyworld plan to expand their services by linking document content, product operations, and NFTs, and by connecting various business models such as seminars, advertisements, online education, and tourism [20]. DoubleMe, another Korea-based Metaverse startup, has raised $25 million jointly led by Coentry Investment and NH Investment, with the participation of Samsung Electronics. Founded in 2015, DoubleMe set out with a solution that can transform two-dimensional videos into three-dimensional models. In November 2020, the company launched TwinWorld, a Metaverse platform that allows users to create

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an artificial (augmented) reality (AR) experience in any physical location. TwinWorld has reportedly reached $4.5 million in revenue since its launch. The platform currently has paying customers from seventeen cities worldwide. The firm plans to use this newfound funding for product development, customer acquisition, marketing, and recruiting purposes, while also aiming to launch a commercial version of TwinWorld later this year that can support AR devices like Nreal headsets. Lastly, prior to this fundraising, DoubleMe had raised $1 million in initial funding and received $16 million in grants from the Korean and UK governments [21]. Korean Mirae Asset Securities firm announced that it has developed the prototype of the world’s first virtual trading system (VTS) that allows stock trading on a Metaverse platform. Thinking that the future of commerce lies in the virtual space, the Korean firm plans to open about five VTS experience zones in and around Seoul. It was also stated that VTS was developed in line with Oculus Quest 2, which was previously developed by Facebook (now Meta). To view current stock prices and trade in the sandbox, it is necessary to download Mirae Asset Securities’ VTS app and plug in Oculus Quest 2. The user can select the stock and place an order with a flick of a finger. Comparison of different stocks in the world is among other features. According to the company, other functions will be added to the VTS application before the prototype is commercialized. The firm anticipates that transactions on VTS will be possible from next year, after getting the green light from the Financial Security Institute for cybersecurity. A statement from Mirae Asset Securities summarizes the firm’s approach “We didn’t want to delay developing VTS until spending time in the Metaverse became the norm. We wanted to be prepared for that time and act cautiously”. Finally, Mirae also plans to make VTS available on Zepeto, the Metaverse platform of Naver Corp., one of Korea’s largest online services firms. As of May 2022, Zepeto’s estimated monthly active users were between 12 and 15 million worldwide [22]. Zepeto, the Metaverse platform of Naver, one of the most important technology companies in Korea, announced in a statement that the total number of local and international users has reached 300 million since its launch in 2018. International users account for 95% (285 million) of this figure. In addition, the number of monthly active customers reached 20 million. Zepeto serves over 200 countries, including Korea, China, Japan, and the United States, with the Metaverse platform. During the period, more than 2.3 billion Metaverse products were sold. The largest share of this massive sale was the purchase of clothing and shoes for the avatars and other design items purchased to decorate the Metaverse studios. At the last point, there are more than two million unique members (and their avatars) registered on the platform. In addition, there are individual accounts that design, produce, and sell 68 million home decoration or fashion products. In Zepeto, which is planned to be the playground of the Z generation, the first thing the user has to do is open the camera and take a photo of her/his face. Afterwards, the user can create her/his own avatar by playing with its features as much as s/he wants. When the user completes her/his avatar, s/he receives 8500 digital currency as a gift and logs into the Metaverse platform. The user can buy various clothes, ornaments,

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and items with this initial capital. If users want, they can make and sell these paid products themselves and earn profit [23]. Zepeto already has many Zepeto influencers who make a living by designing and selling digital fashion products. For purchases made using the in-game currency called “zems”, 5,000 zem is around $100. Therefore, Zepeto has already become the world’s largest virtual fashion marketplace [24]. Zepeto platform’s collaborations with big companies such as Gucci, Ralph Lauren, Christian Dior, and Nike accelerated its growth. The company has also partnered with Korea’s local and hit entertainment agencies, including JYP and YG, further boosting its development pace. The company also announced that they plan to further expand its partnerships with global intellectual property companies [25]. Similarly, Korea’s leading mobile operator firm SK Telecom introduced a new Metaverse platform called “Ifland”, which was announced in July 2021 as its first 5G virtual service business. Ifland refers to a virtual world where users can be whomever they want, meet anyone they want and make many possibilities come true. However, it was first released only for Android devices, and then it is planned to be opened to IoS and other virtual reality devices. At its press conference, the company said that Ifland would be a leading Metaverse platform that attracts Gen Y and Z users, so it is designed to be as simple as possible. After users activate the application, they can see their avatars at the top of the screen. Ifland initially offers approximately 800 types of avatar resources, allowing users to represent themselves in a variety of ways. Ifland offers 66 different emotional expressions, making it easier for avatars to express themselves better. At the bottom of the screen is the “Rooms” list, which is a meeting place for users who share the same interests. Users from 18 different virtual areas can choose a room they are interested in and can make advanced settings by choosing from multiple decoration concepts such as weather, time, room materials, and wallpapers depending on the characteristics of the room. In an environment where each room is limited to 130 participants, Ifland also allows users to create rooms themselves through a simple user interface. Additionally, SK Telecom plans to create new opportunities for users to build new careers in the Metaverse through the “Influencer Training Program” and to offer innovative marketing methods to businesses by enabling them to meet customers in Ifland [26]. On August 27, 2021, Samsung Electronics held a Galaxy Fold and Flip event on the Metaverse platform Ifland. This 2-h event, attended by approximately 1,400 people in total, was held successfully. Participants were able to join directly in various social programs such as quiz and raffle events as well as product promotion videos from their homes [27]. VA Corporation, another Metaverse platform company, has signed a 100 billion won ($80 million) Series A investment contract with private equity management firm Paratus Investment. In this way, Korean startup VA Corporation became the first company that managed to reach 1 trillion won ($80 billion) corporate value in the shortest time in the industry. Through this investment, VA Corporation solidified its

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position to be a leading responsive company to the Metaverse industry. VA Corporation will further strengthen its capabilities as a specialized Metaverse company by expanding its 115,000 square foot studio, employing Metaverse experts, focusing on technologies such as NFT and virtual humans, and developing new Metaverse businesses. VA Corporation is a key company that can provide a one-stop service from planning and production to branding and content distribution. To increase its content competitiveness, VA Corporation has VFX specialist company Mopack and many subsidiaries such as entertainment companies, drama film production and investment distribution companies, advertising production and branding companies. VA Corporation also has a long-term partnership with Netflix. The firm is further expanding its influence by forming technology-based alliances with leading companies [28]. Korean auto giant Hyundai and the world’s leading real-time 3D content developer and platform operator Unity have signed a memorandum of understanding for the creation of a Metaverse platform and presented a road map at CES 2022, one of the world’s most influential exhibitions, to create a meta factory concept that is the digital twin of a real-world factory, empowered by the Metaverse platform. As the ideal target of Hyundai Motor, the meta factory is expected to operate as the digital twin of a real production line and accelerate digital transformation based on smart solutions. In this way, manufacturers will be able to see how a factory will work in real life without visiting them physically and will be able to make decisions remotely to identify problems and produce ideal solutions when necessary. This meta factory, which will be developed at the Hyundai Motor Global Innovation Center in Singapore, is expected to be completed by 2025 [29].

4 K-Pop, K-Drama, and Metaverse One of the first things that come to mind today when Korea is mentioned is the Kpop music movement. K-pop, which is defined as one of the most important export items of Korea, could not be expected to stay away from Metaverse technology. One of the first groups that comes to mind when it comes to K-pop is BTS, which is managed by the HYBE agency. The choreography video for BTS’ hit English single “Dynamite” was not telecasted on YouTube, but was presented through a virtual social space called “Party Royale”, which was on Fortnite’s FPS (First-Person Shooting) game developed by US game publisher Epic Games, September 2021. BTS has long been making an appearance on Metaverse with “Weverse”, a fan club (ARMY) app developed by their agency. Another industry that is as famous as K-pop is Korean dramas and movies. After the 2019 production Parasite received an Oscar, the interest in Korean productions increased worldwide and perhaps reached its peak with Squid Game. This global popularity of “Squid Game”, a Netflix series, was not limited to viewership ratings. When “Squid Game” is typed into the search bar of Roblox, users can see nearly a thousand results. Roblox is one of the domestic companies of Korea and an online

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platform where users can be the creators of their own mini-games, share with others and even earn money. Korean production company Studio Dragon began collaborating with Naver Z’s Metaverse app Zepeto in July 2021 to sell avatar characters and various fashion items worn by characters based on a hit Korean drama “Hotel Del Luna” (2019). Zepeto is also recreating a number of memorable scenes from the series with avatars. The studio also sold 100 NFTs of the “Cassano Shield of Arm” lighter from another hit Korean drama “Vincenzo” (2021) [30].

5 The Korean Presidential Election and the Metaverse Before the Korean presidential election held on March 09, 2022, the candidates tried to introduce themselves on the Metaverse and especially to get the votes of the Z generation. Due to the COVID-19 pandemic, Korean presidential candidates were unable to physically meet with the citizens they aspire to vote. In the face of this situation, various new technologies were used, from artificial intelligence to raising money-using NFTs, in order to reach citizens through all digital channels. In this context, the Metaverse, which has already been introduced in Korea’s key industries such as online games and K-pop, has also found a place for itself. Major broadcasters such as SBS and KBS have created a special election-themed digital world in Zepeto, the leader in Korea’s Metaverse market. In this world, users could browse exhibits that provided information about past and current elections, participate in quizzes, and take photos showing their avatars. Zepeto focused on allowing users to express themselves freely in an open space, but did not play an active role in the election itself. Zepeto’s major company, Naver Z, made a statement to BBC: “We have never worked with any particular political party or candidate, but many politicians are using our platform creatively to reach young voters”. Professor Jae-Bung Choi of Sungkyunkwan University, who is an expert on future industries, claimed that Metaverse provides several advantages for election campaigns. For example, when candidates want to give citizens the feeling that they are one-step ahead, Metaverse will be the platform that will best provide this environment. In addition, Metaverse can be more efficient than video conferencing tools such as Zoom, due to its ability to transmit many information to many people at the same time by using avatars [31]. Yoon Seok-Yeol was elected as the new head of the Korean State in the elections. During the selection process, he defined three major goals for Korea in the IT sector: ● Digital World Age, Economic Hegemony, ● Digital Platform State Export, ● Strengthening the Digital Economy Strategic Alliance. Under these promised general objectives, the policies and commitments said about Metaverse during the selection process are:

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Big data Blockchain convergence hyperlink network, 6G technology priority, Enacting a special law for Metaverse technology, Establishing Korea’s NFT policy, Reorganization of the financial economy system, Raising 100,000 new workforce for Metaverse related businesses [32].

6 Human Resources Management and Metaverse Another usage area of Metaverse in Korea is job and employee search processes. Due to the recent pandemic, a non-face-to-face life and activities are encouraged, and in parallel, there are changes in the recruitment of companies; “Recruitment using the Metaverse”. Even if the person does not visit the company or meet in person, s/he can perform the negotiations by presenting the necessary documents as if s/he was visiting over Metaverse. Realizing this, Korean companies are, therefore, increasingly working on the Metaverse recruitment process. In addition to recruitment, recruitment information meetings can be held within Metaverse and training can be organized for new employees over Metaverse. The Korean game company Netmarble, using the Metaverse platform, to organize a recruitment fair drew even more attention to the subject. Dongwon Group, the number one seafood sales company in Korea and the world, has also utilized Metaverse as a part of their recruitment process [27]. A survey conducted by Saramin (Korea’s most preferred job search platform) shows that 41% of companies prefer Metaverse as their non-face-to-face recruitment method. When companies are asked the reasons for their preferences, the answers are gathered around the following themes: ● ● ● ● ●

Reducing stress in the interview process, To facilitate the operation and management of the recruitment process, Applicants should be familiar with the Metaverse environment, Cost savings compared to offline gatherings, Ability to attract a large number of applications without being limited to the number of people, ● To be able to introduce new technologies quickly. In addition to interviews, which are the most used method in recruitment, Metaverse can also be used in skill tests and new training. The Korean firm Lotte has even started using the Gather Town platform to train its new employees [33].

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7 Expected Challenges Although the development of Metaverse in Korea is very good, it should not be forgotten that there are various problems on the other side of the coin. It is clear that the problems experienced in the preparation of legal grounds for new technologies and their establishment, as in the examples of Drone, Uber, and AirBnB before, will also be experienced in Metaverse applications. Especially, the money exchange that is planned to flow on the Metaverse will cause the legal challenges of the business to deepen even more. One of the other important problems is that the number of users on Metaverse platforms is very low compared to other social media environments and the profile diversity does not yet reflect the demographic structure of the country. In other words, it is a problem that Koreans’ Metaverse experiences are not as high and diverse as their other technological experiences. In the face of these situations, Sungkyunkwan University’s Dr. Choi emphasized that Korea has a saturated and mature digital civilization and culture, adding that “Koreans like to experience a new digital environment and learn quickly” [31]. This openness of Koreans to innovation will lead to faster normalization of Metaversebased solutions.

8 Conclusion and Discussion Reborn from the ashes and located among the countries with the most advanced technology, South Korea could not be expected to be late for the Metaverse. The big government support, which was announced as a priority, means that the future of Metaverse R&D is also guaranteed. The Korean state does not only provide financial support but also encourages schools to use Metaverse. In addition to this encouragement, the Korean state also lists possible problems and warns to be careful. Another important breakthrough that the state has made is to create legal regulations. In other words, the Korean state does not want Metaverse applications to be postponed or canceled due to legal problems when it finds an area of utilization. It should not be surprising that Metaverse found a place for itself in the most recent presidential elections with the principle of the state being an example to the citizens. As a result of this huge government support, many important Korean companies, whether they are direct technology companies or providing services in other fields, are producing serious projects to prepare their own platforms, NFTs, cryptocurrencies, and content in order to take their place in the Metaverse world. It is possible to see the concrete outputs of these projects in many different areas such as health, education, music and entertainment, cinema, and human resources. Thanks to the high technological literacy of Korean citizens, we will be able to see more examples of Metaverse technology, which will be more easily integrated, as soon as possible.

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Acknowledgments This research was funded by Woosong University Academic Research in 2023.

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E-Sport: Ball and the Rifle Are on the Net Yigit Anil Guzelipek

Abstract Although ontologically, sports were defined as physical activities for individuals and/or groups to have a good time, nowadays sports have become a phenomenon that goes beyond their purpose of existence. Engaged with politics in the first stage, sports have become an industrial pursuit after capitalism declared its monopoly as a valid economic ideology. In the last stage, which expresses the current process, sports have become a digital phenomenon as a result of extraordinary technological developments, which is one of the most important catalysts of the globalization process, but also the result. It is very difficult to imagine this triple transformation that sports have experienced in the historical sense separately from each other. Moreover, in the light of this information, it is a fact that sports are the subject of many interdisciplinary studies today. In particular, this digital transformation experienced by sports has exhibited such a powerful trend that even the supporters of digitalization say that sports can no longer just be a physical activity and can be transferred to digital platforms in the future. The aim of this study is to discuss the position of e-sports, which have gained extraordinary popularity in recent years, compared to traditional sports in the context of opportunities and threats. In addition, within the conceptual framework of the study, the concepts of political science are used frequently. Keywords Sport · E-sport · Digital transformation · Globalization

1 Introduction Today, there is almost no area in which the globalization process does not affect human life. As a result, most of the studies on the ‘modern world’ must touch on globalization. The existence of a large number of definitions and perspectives concerning this ‘interlocking’ term called globalization further complicates the already intricate Y. A. Guzelipek (B) Department of Political Science and International Relations, Karamanoglu Mehmetbey University, Karaman, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_22

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process. Despite this, it is possible to argue that the most prominent dynamics of globalization are the stretching of nation-state borders, the hybridization of national identities, and the formation of a supranational/cosmopolitan dialogue environment [1]. On the other hand, there is no doubt that technological developments have a great impact on the dynamics in question, becoming more observable day by day. Although it is extremely difficult to follow the technological developments in the twenty-first century, it is seen that these developments basically express a process that progresses from manual operation to digitalization. Therefore, it is possible to argue that the extraordinarily strong link between globalization and digitalization is actually the backbone of the globalization process. In the final analysis, it is seen that digitalization creates online ‘common places’ by removing the physical presence of human beings in every medium, from the economy to business life [2]. In the light of this information, it is seen that a part of digitalization, which is called the catalyst of globalization, actually consists of virtual networks. Moreover, the concept of the Metaverse, which has made a very strong entrance into our socioeconomic life in recent years, reveals the ultimate point that globalization and digitalization have reached. It describes a universe in which the distinction between virtual and real has almost disappeared. Just like globalization and the concepts related to it, the Metaverse promises a universe that aims to include extremely different fields from economics to management sciences, from security studies to entertainment. In other words, the Metaverse can also be expressed as the effort of a large number of actors with large, medium, and small capacities to create a second world by simulating the real world [3]. Undoubtedly, sports will be one of the primary fields in this promising process. In fact, sports emerge as a sector with the earliest and most permanent engagement with electronic/virtual platforms. Therefore, discussing digitalization through sports represents a very suitable starting point for analyzing the possible effects of the Metaverse in the future. In the first part of the study, which consists of two main headings, traditional sports are discussed in the sociopolitical conceptual framework, ontologically and philosophically. In the second part of the study, the concept of electronic sports, which is called e-sports in short, is analyzed from the same perspective and conceptual framework in comparison with traditional sports. In the conclusion part of the study, an effort was made to create a discussion on the future of e-sports.

2 Homo Ludens and Traditional Sports Debates about what man actually is can be very long lasting. While some define humans as Homo sapiens, others define them as Homo economicus. Max Frisch, on the other hand, defined them as Homo faber, ‘tool maker’. Although it is possible to increase the number of these definitions, one of the most interesting definitions for the nature/reason of existence of humans was produced by Huizinga. Dutch historian Johan Huizinga, in his book published in 1938, defined humans as Homo ludens, that is, ‘playful human being’. According to Huizinga, the game is older than all

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historical acquisitions of humans, including culture. More importantly, the game is actually a culture maker [4]. In this context, again, according to Huizinga, the game is first and foremost an activity based on volunteerism. In this context, the ‘acting’ of children and animals is purely instinctive behavior. Therefore, activities that are actually called games express the moments when people are at their most free and creative [5]. On the other hand, there is an important difference between sports and games, although there is an extremely close correlation between them. While the game is an activity based entirely on entertainment, sports are the physical activities that systematically train the human body and soul and are performed collectively or individually according to certain rules [6]. In other words, while the game is an action based on unlimited freedom and creativity, sports emerge as a physical action that is carried out in a disciplined, systematic, and rule-based manner. On the other hand, it would be an extremely incomplete analysis to limit the reason for the existence, functioning, and effects of sports, which is a concept almost as old as the history of humanity, as activities performed only to make the body and spirit healthier. Like every human-oriented discipline, sports have a content that can be the subject of many different research fields from the economy to politics, from sociology to technology. In this context, it is possible to argue that the strongest correlation between sports and globalization is the extraordinary fluidity they have in both concepts and their ability to affect different areas very quickly. In this context, sports are a concept that emerged with people starting to live together. Furthermore, sports have had a militaristic character from the very beginning in order to maximize the physical strength of societies and to discipline societies, based on the fact that wars have been based on physical strength since ancient times [7]. Moreover, considering the fact that the reason for the existence of sports is to win and to have superiority over the opponent, the accuracy of the above-mentioned argument becomes much more provable. Since the eighteenth century, with nationalism becoming an ideology dominating the international system, sports have become a tool that consolidates national identities by increasing their militaristic character. Accordingly, it can be argued that another historical mission of sports is to contribute to nation building. In particular, it is seen that the most observable national formation of sports, called national teams, is an extension of the reflex of states to establish superiority over each other in modern times. An important point to be noted at this point is the fact that the debates on the reason for the existence of sports are highly influenced by the ideologies and perspectives of individuals. Although the abovementioned conclusions regarding the aggressive and militaristic character of sports reveal a very realistic perspective on traditional sports, they are insufficient to explain the concepts of multiculturalism, supranational dialogue, and cooperation inherent in sports. In fact, these dynamics that sports have gained later are also evaluated in the context of the effects of globalization on sports. A study conducted by Ta¸s et al. on the development of international sports in the European Union reveals a very satisfactory perspective on these dynamics that sports have acquired. Accordingly, the sui generis dynamics of participation and cooperation that the European Union has from time to time exhibited in a supranational structure are in fact in great harmony with the nature of sports. The fact that different

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identities, regardless of language, religion, or race, come together for a common goal within the framework of ‘team spirit’ already makes sports a ‘melting pot’. Based on this argument, sports are considered a socio-cultural tool of the European Union [8]. At this juncture, an important point to be mentioned is the fact that sports have a mission to increase the representation capabilities of states in the international arena. In particular, although the small actors in the international system have great difficulties in proving their existence in the political arena, organizations such as the Olympics and the World Cup stand out as huge platforms that ‘remind’ the international public of the existence of these actors in the international arena. Although, in the European Union, attempts are made to handle sports as a dynamic that supports the building blocks of European identity and universal values, there is also remarkable resistance to this policy. In this context, racism and violence can be regarded as the primary dynamics that erode the multicultural and cosmopolitan structure of sports. With the influence of the capitalist production process and the language of the media, racism is entrenched in sports in different parts of the world, especially in Europe. In the realization of this situation, instead of imagining different identities as an element of sociological richness in terms of immigrants, perception of them as an economic rival and a threat to national culture plays a major role [9]. Similarly, suppression of political views and identities perceived as a threat to the existence of the state in social life is a precautionary mechanism that states frequently resort to. On the other hand, stadiums are among the platforms where ideologies that are suppressed and banned by the political authorities erupt. In the light of this information, it is understood that traditional sports are literally a social laboratory. With politics, militarism and industrial sports understanding is becoming more and more entrenched in traditional sport. In other words, sports are actually becoming the ‘mirror’ of the problems experienced in the aforementioned areas. At this point, the question that arises is whether e-sports can offer a more peaceful and idealistic profile, especially compared to the problems caused by traditional sports in terms of spirit and implementation performed on online digital platforms and in the Metaverse realm called the ‘second world’.

3 E-Sports: The Transition of Reality into Virtual Reality The emergence of e-sports is undoubtedly closely related to the technological developments that have occurred due to globalization. E-sports, the first examples of which can be seen in the form of individual games in arcades in the early days have undergone extraordinary development today due to the fact that access to technology is faster and less costly. Accordingly, thanks to computers, game consoles, and mobile phones, multi-player game options have been added to single-player games. Although it is a controversial issue, e-sports also develop depending on both dexterity and physical capacity, just like traditional sports, especially depending on the speed and style of using the computer mouse or game controllers by the players

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[10]. In particular, in e-sports, the term cognitive flexibility expresses the strategies and decision-making abilities of the players to achieve their goals during the game in the best way [11]. In this context, although all of the traditional professional athletes produce strategies in the game and employ the best decision-making process, the fact that e-sports perform this process on digital platforms is the biggest difference between e-sports and traditional sports. Secondly, unlike traditional athletes, the fact that e-sportsmen can form a huge community without being physically in the same environment reveals that e-sports are an actor in the process called time and space erosion. In order to better understand the impact and structure of e-sports, it is thought that it will be useful to analyze the basic profile of this huge community consisting of athletes, fans, coaches, and manufacturers. It is possible to argue that most of the main actors in e-sports are members of generations Y and Z. Based on this inference, an academic study by Chansaengsee contains extremely important data in terms of revealing the basic expectations and motivations of the e-sports community regarding e-sports. Accordingly, the vast majority of e-sports players and audience have a great passion for computer games from an early age. As a result of the combination of this passion with different motivations, such as the need for fun and socialization in later years, the desire for self-realization, the desire to constantly learn, the effort to evaluate different job opportunities, and the tendency to replace the unpredictability and pessimism of the real world with a more predictable and optimistic platform [12], the world of e-sports is developing day by day. Naturally, it is not possible to claim that all sportsrelated circles approach the elements of the structure of e-sports so far with the same seriousness. In other words, sectors that we can consider conservative regarding sports still consider e-sports a temporary trend that is ‘doomed’ to remain in the shadow of traditional sports. On the other hand, the limited but striking studies on e-sports lead to questioning of the validity of these views. In this context, e-sports are an area that requires significant sacrifice, just like traditional sports. Just like in traditional sports, players in e-sports train an average of 8 h a day. Similarly, eathletes who travel domestically and abroad, like traditional athletes, also participate in national and international tournaments, are transferred and rewarded, and at the same time have to make a great effort to advance in their careers. Therefore, esports are actually a full-time job [13]. At this point, one of the important issues to focus on is the question of what opportunities and risks e-sports entail in terms of digitalization and even the Metaverse because correctly answering these questions will satisfactorily reveal how e-sports can affect our lives in the future. First of all, it should be noted that e-sports are a field that includes militarism and violence, just like traditional sports. Therefore, it would not be right to imagine the Metaverse as a non-violent, optimistic, and extremely entertaining universe in the near future. The contents of computer games, which are the subject of e-sports, differ from each other according to the size of the community they are addressing. It is possible to categorize these games simply as survival/strategy games, sports games, and first-person shooters (called FPS games). On the other hand, according to research, among the most popular games are those based on violence, war, and domination in which the players are in constant communication with each other [14].

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In this game category, it would be appropriate to open a separate parenthesis for the game called Counter-Strike: Global Offensive (called CSGO for short). A CSGO match, which was watched by 2.4 million people simultaneously on Twitch, a social media platform in 2019, is extremely important in terms of expressing the popularity of e-sports today [15]. CSGO, which takes place between terrorists and counter-terrorists within certain mapped locations, is considered a unique game in the field of e-sports in terms of strategy, cognitive intelligence, and the successful functioning of the decisionmaking process. Likewise, the extremely precise game rules that CSGO has compared to other e-sports and the market and game volume of millions of dollars, as well as the national and international tournaments in which the game is played, actually make CSGO no different from the functioning of a traditional sports branch. The fact that the virtual items in the game can be the subject of real trade makes CSGO a subject of commodity fetishism [16]. Therefore, while traditional sports ceased to be a game and became an industrial business field [17], it was a phenomenon that took place over a long period of time; the fact that e-sports were created directly under the dominance of industrial sports makes it possible to evaluate e-sports as an industrial business field since their inception. As mentioned before, it is not possible to evaluate e-sports as consisting entirely of CSGO. In fact, CSGO is the virtual world equivalent of a world that cannot be seen in real life. On the other hand, examining the e-sports version of a passion that drives millions of people in real life, like football, will reveal a decisive perspective on the reflections of the same concept in different universes. In fact, the idea of being in the stadium with our virtual reality glasses without going to the stadium one day, and (or) the possibility that the athletes will compete in the Metaverse world in the form of avatars that are the exact reflection of their own characteristics, thus eliminating the risk of injury, goes beyond being an expectation to create great excitement for some while causing great concern for others. The integration of football into the e-sports world has been possible by simulating traditional football with its rules and actors in a digital environment. In this context, when the relationship between football and e-sports is considered, one of the first games that comes to mind is the famous FIFA series [18]. In fact, the integration of football into the world of e-sports is both older and more permanent than other sports, thanks to the enormous popularity it has enjoyed. According to Dilek, the esports version of football is considered a competitor to traditional football. Moreover, leading clubs in world football such as Manchester City, West Ham United, Paris Saint-Germain, Wolfsburg, and Valencia have signed contracts with e-sports stars and taken the necessary steps for their traditional clubs to be represented in e-sports tournaments as well [19]. Accordingly, it is seen that traditional football is quite willing and innovative in the process of integrating into the e-sports world. There is no doubt that the fact that football games such as FIFA and Pro Evolution Soccer, known as PES for short, are so successful and popular that they provide a perfect transition of emotions from the real world to the virtual world. In particular, from the physical appearance of the players to the equipment they use in the FIFA series and from sponsors to advertising signs, all digital items are almost perfect copies of

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reality. In addition, the perfect placement of the spectators and the stadium ambiance [20] reduces the difference between the e-sports version of football and its traditional version to almost zero. At this juncture, one of the important points to be noted is that it gives very strong signals that football will show the successful integration that it has shown in the e-sports world, as well as in the Metaverse. As is known, digital currencies have gained great popularity both technologically and economically in recent years. In particular, with Facebook and Instagram taking the name Meta in 2021, the Metaverse has gone beyond being a technological study and has turned into a social trend. Within this trend, it is seen that crypto money developers tend to come to the fore with different projects in the Metaverse. It is thought that these projects, which are known as move-to-earn (M2E) and aim to gain by acting, will enable football to fully adapt to the Metaverse in the future. In particular, the crypto money project called Dootmoovs aims to transfer the physical movements of individuals physically located in different places to the Metaverse by using artificial intelligence technology. In this way, players who are physically in different places will have the chance to compete by transferring their physical movements to the digital environment. It is expected that the concept of virtual reality will be fully met with the presence of the referee, which will also be produced using artificial intelligence [21]. Finally, it is thought that it would be useful to mention the studies and projects carried out in Turkey regarding e-sports. It is seen that the studies on e-sports in this country are in parallel with those around the world. In this context, Turkey’s first e-sports team, Dark Passage, was established in 2003. Afterwards, based on the popularity of e-sports, Be¸sikta¸s in 2015, 1907 Fenerbahçe E-Sports in 2016, and Galatasaray E-sports teams were established and started to support e-sports clubs for the League of Legends game. In addition, as a result of the discussions on the existence of the supreme authority in e-sports, the state officially recognized e-sports with the establishment of the Turkish Digital Games Federation in 2011. Afterwards, with the establishment of the Turkish ESports Federation in 2018, the existence of the highest official body for e-sports was registered. Since 2014, the Ministry of Youth and Sports has been granting e-sports licenses to players who will participate in professional leagues [10].

4 Conclusion The ancient Greek thinker Heraclitus’s phrase ‘The only thing that does not change is change itself’ perfectly expresses the inevitability of change in history. Globalization, which has left its mark on the twenty-first century, emerges as an inevitable process, based on the aphorism of Heraclitus and independent of ideological perspectives. In this context, globalization was considered a process that should be integrated rather than resisted, at least for states. The extraordinary fluidity of the process in question causes almost everything that concerns people today to be subject to globalization. In the present study, the effects of globalization and the developing technology on sports were discussed comparatively in terms of traditional sports

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and e-sports. Sports, which have a history as old as the history of mankind, are regarded as an extension of games when considered as physical activities done to have a good time in the ontological sense. On the other hand, sports, which have been identified with the concept of discipline since their emergence, have been in great harmony with the assumptions of realism, which is an International Relations theory, by adopting a militaristic character from ancient times to the present. Sports, which we can consider a platform for acquiring an identity in the sociological sense, have become a platform where almost all human problems and (or) positive elements can be observed due to their human-oriented pursuit. With the great influence of technological developments, although sports continue to exist in the traditional sense today, they also take place on digital platforms under the name of e-sports, both in an amateur sense and as an industrial occupation. Just like traditional sports, esports have gained a huge cosmopolitan community thanks to the huge popularity they have acquired in a short time. An important point to be noted here is the fact that, unlike traditional sports, e-sports have been able to isolate themselves from ideological currents in the context of nationalism until now. In other words, despite the fact that today’s sports are heavily influenced by ideological movements, especially nationalism, it is observed that the e-sports community mostly see themselves as ‘e-citizens of the e-world’. For this reason, it can be easily stated that e-sports are a sector where the ‘main subject’ is discussed and applied compared to traditional sports. On the other hand, when e-sports and traditional sports are compared, it would not be inaccurate to state that e-sports lag behind traditional sports in terms of representation ability. As stated before, the international platforms of traditional sports represent an excellent chance for representation, especially for small-scale actors in the international system. On the other hand, the technological requirements that e-sports need in terms of both implementation and monitoring make the field of e-sports mostly developed countries. In this context, it appears that e-sports are still western-centered. It is possible to argue that e-sports also contain violence, based on the example of CSGO, which was chosen as one of the sample games in the study. On the other hand, the absence of fan events, as observed in traditional sports, allows e-sports to be envisioned as a more optimistic world. The FIFA and PES series, which were chosen as the second example game(s), reveal that today the distinction between traditional football and e-football is gradually being eroded. In the final analysis, it is considered a rational expectation that the Metaverse, which is still developing, will be better integrated into e-sports in the future and eliminate the real and virtual distinction in humans to a large extent.

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Metaverse: Transformation and Future of Agriculture Figen Büyükakin and Özgür Bayram Soylu

Abstract In our world where the population is increasing rapidly and the climatic conditions are changing, the increase in the rate of development and productivity of agricultural production is very important in order to meet the increase in food demand and to eliminate the problem of access to food. For the realization of these developments in agriculture, the use of technology is required to a large extent. Especially in recent years, the rapidly increasing agricultural input costs and the decrease in agricultural income have highlighted the developmental stages of agricultural technology. The process that started from Agriculture 1.0 has reached agriculture 4.0 at the point we have reached. It is predicted that it will continue to progress further after that. The agricultural virtual world, which has emerged thanks to technology, which is widely used in almost every field today, encourages more growers to enter the sector and at the same time causes the need for food safety and sustainable agriculture to be reinforced. In addition, the intersection of virtual and augmented reality in the Metaverse with the agricultural sector brings some opportunities and threats to the agenda. The study aims to evaluate the integration of virtual and augmented reality into the agricultural production process in the light of the development and application phases of agricultural technology. In this context, the possible effects of virtual and augmented reality applications on the communication mechanism between the consumer and the producer; negative and positive effects of practices in the meta-universe on agricultural production processes; whether virtual crop and pesticide applications in the meta-universe are sufficient for sophisticated agricultural production; issues such as the reactions of agricultural production processes to possible changes in the Metaverse and whether the applications in the Metaverse can transform e-retailing of agricultural products into commodity verse retailing, whether a sustainable agricultural transformation can be achieved in the Metaverse are taken into account. Keywords Metaverse · Virtual reality · Augmented reality · Agricultural practices

F. Büyükakin · Ö. B. Soylu (B) Kocaeli University, ˙Izmit, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_23

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1 Introduction In an environment where today’s conditions are constantly changing and reshaped, being a part of this change by keeping up with the change has become a necessity. In this process, all sectors have been integrated with others outside their fields. Undoubtedly, the agricultural sector is also closely affected by these developments. Moreover, agriculture has a strategic significance for the economic development of any country. Because agriculture is the most significant factor, it leads to a safer and relatively easier feeding of human beings in the adventure of social life that starts with hunting. The agricultural sector is closely related to each member of society with its socioeconomic dimensions. The use of technology in agriculture has become inevitable to increase the food demand due to the constantly growing world population, the speed of development of agricultural production, and the increase in yield. While the world population is estimated to reach 10 billion by 2050, it is clear that the solution to the gradual decrease of agricultural lands in the world and the need for nutrition lies in the techniques and methods used, that is, in the integration of technology and agriculture. Although the idea of using technology and innovation in agricultural production is quite old, this idea could not go beyond being a matter of debate until recently, except for a few countries that have put it into practice [1]. However, today, with globalization, technological innovations have forced the agricultural sector, which is the locomotive of production, to change and transform, as it has reached almost every country. As technology begins to transform agriculture, the agricultural sector is evolving into a large entrepreneurship sector. Because the use of advanced agricultural technologies in production not only brings about the establishment of a value-added chain but also ensures the production of high-quality, efficient, low cost and competitive agricultural products. On the other hand, modernization of agricultural production by transforming it with technology causes some problems as it is closely associated with socio-economic issues such as nutrition, climate, food security, and famine. With fintech techniques such as contract agriculture, licensed warehousing services, digital agriculture market (D˙ITAP), Electronic Product Certificate applications, it is aimed to solve the problems to a large extent. The aim of the study is to determine what needs to be done in order to preserve its place in the center of humanity from the past to the future by increasing the awareness of the global epidemic, food safety and digitalization of the agricultural sector, which has a significant role in the development and development of countries, and to transfer it from generation to generation.

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2 The Place and Importance of the Agricultural Sector in the Economy The agricultural sector produces different results according to the structure of each country. That is to say, while agriculture increases economic welfare for developed economies, it is a trigger for development for developing economies. From this point of view, agriculture has a very significant position in terms of meeting the physiological needs that are at the base of Maslow’s Hierarchy of Needs and supplying raw material inputs to other sectors. Do˘gan collects the contributions of the agricultural sector to the economy under four headings in his study. These are listed as product contribution, market contribution, production factor contribution, and foreign exchange contribution [2]. The contribution of agricultural products is based on the condition that the sector should feed not only its employees but also those who work in non-agricultural work. Thus, it is essential to produce enough to equalize supply and demand. The market contribution states that the largest source of autonomous demand for industrial products, independent of income, is the demand from the agricultural sector [3]. Because agricultural growth and industrial growth in a country are two complementary goals. If the agricultural sector is growing fast, this triggers industrial growth in a country. Another contribution of agricultural production to the economy is the factor of production. In case of increasing agricultural productivity in the economic development process of countries, the labor needed by industry and other fields of activity is transferred from agriculture. Thus, the labor released in the agricultural sector is employed in the industrial sector and plays a significant role in the growth of the industrial sector [3]. In addition to labor input, there is a flow from agriculture to other sectors as capital and raw materials. Therefore, the stronger the agricultural sector in a country, the easier it is to ensure the sustainability of economic development since other sectors are also fed from this field. The source of foreign exchange, which is necessary for the economic development of countries, depends primarily on the export of agricultural products. It refers to the foreign exchange contribution of the agricultural sector to the economy. Namely, the importability of investment goods necessary for economic development varies depending on the foreign currency input obtained by exporting agricultural products [3]. In summary, it is possible to list the contributions of agricultural activities to the economy as follows [4]: i. ii. iii. iv. v.

It provides labor input to the industry and service sectors. It is in the food supply for nutrition, which is the most basic need of society. It provides basic raw material input to the industry sector. It earns foreign currency for the countries. It plays a significant role in the sustainability of rural development and accelerates real growth.

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As can be seen, the agricultural sector has essential for countries to achieve their development and development goals, and there is a close connection between agriculture and industry. In addition, there is no substitute for the agricultural sector. For this reason, countries must first develop policies that focus on the development of the agricultural sector to achieve these goals.

3 Agriculture and Technology The rapid increase in the world population, climate change, and the decrease in arable land for various reasons strengthen the expectation that the demand for food will increase more shortly all over the world. On the other hand, when factors such as aging in rural areas, declining birth rates, increased migration from villages to cities, and shrinkage of lands through inheritance are taken into account, the agricultural sector is constantly losing strength and getting weaker day by day. Countries are conducting various research and developing new techniques and strategies to satisfy the food demand of the increasing population and to solve the problem of environmental pollution. Digital agricultural applications aim to produce more products by using fewer inputs and reducing environmental destruction. In this direction, by making use of rapidly developing and diversifying information and communication technologies, the agricultural sector is exposed to a rapid digital transformation in subjects such as agricultural information systems and database systems. For the digital transformation of the agricultural sector, the following processes must be followed [5]: i. Geographic Information System: Village database, separation of agricultural parcels, processing of satellite images, creation of agricultural production and registration system. ii. Integrated Administration and Control System: Digitization of the Land Parcel Identification System and processing of aerial and satellite images, etc. iii. Agricultural Information Systems: Information systems such as national agricultural inventory system, product verification and tracking system, agricultural observation stations, etc. iv. Farm Accounting Data Network: Providing integration of many agricultural data such as data network created with structural, physical, and financial information from 6 thousand enterprises. Developed countries have completed these stages to a large extent. It is not possible to say the same for developing countries. Countries that have completed their technical infrastructure are more advanced and expert than others in subjects such as “global entrepreneurship index, innovation capacity, universityindustry collaborations, R&D expenditures, venture capital investments, agricultural producer support and the presence of the number of researchers in every 1000 employees” [6].

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However, it should be noted that various factors affect the ability of agricultural production and the yield of harvest. These factors generally grouped under two headings [7]: i. Natural Factors: Soil, climatic features, and topography. ii. Human Factors: Soil cultivation, irrigation, fertilization, improvement of seeds, spraying, mechanization, training of farmers, transportation and marketing, and the existence of organizations supporting agriculture. Among the factors mentioned here, natural factors consist of data-like that are ready and must be accepted. And cannot be directly interfered with; Human factors, on the other hand, include factors that can be improved over time, renewed, open to change and external interactions, and that can also be increased and characterized as variable. Considering these factors, increasing agricultural production is highly dependent on the guidance of government policies. Because the policies followed by the countries in the areas where they are active can also change the course of agricultural policies in a chain.

3.1 Developmental Stages of Agricultural Technology While the production process in the agricultural sector was initially known as labor-intensive, it later became capital-intensive, and today it has started to turn into a knowledge-intensive sector with technological developments. Efficiency is lower in labor-intensive production. Although productivity can be slightly increased when capital is intensive, it is possible to obtain more efficiency in both types of information-intensive production. In this context, production can be carried out more effectively by establishing ecosystems where technical knowledge, financial technology, efficiency, traceability, and governance are predominant. It is possible to express the phases that the agricultural sector has gone through, starting from Agriculture 1.0 to Agriculture 4.0 [8, 9].

3.2 Agriculture 1.0: Combining Animal Power and Mechanization This phase began at the end of the eighteenth century with the realization of the combined use of water and steam power in agricultural production. Thus, mechanization in agriculture was started. Previously, a system with low efficiency and productivity, in which labor was used predominantly, was valid in agricultural production. The use of water and steam power, especially in large farms, has come into question throughout the world with Agriculture 1.0. The food needs of the societies have been met more effectively than in previous periods in this way. In this period, the use of labor and animal power in small farms continued.

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3.3 Agriculture 2.0: The Beginning of Engines and Tractors in Agriculture The Agriculture 2.0 phase, also known as the “green revolution” began with the use of electricity in agricultural production, the mass production of vehicles such as tractors, and the adaptation of internal agricultural mechanization practices to the agricultural sector. With the development of mechanization at this stage (the widespread use of machines such as harvesters and seed spreaders), the development of chemistry and plant science made it possible to produce new products (agricultural management practices such as synthetic pesticides and nitrogen). The agricultural productivity and productivity through synthetic fertilizers could increase as never before, albeit temporarily, and production costs decrease significantly.

3.4 Agriculture 3.0: Moving to Guidance Systems and Precision Agriculture Practices The Agriculture 3.0 phase is referred to as the “Precision Agriculture phase.” In this process, the Global Positioning System (GPS) has been put into operation, and activities such as manual guidance applications and monitoring of fertilization periods have become easy and fast. In this phase, which started towards the end of the twentieth century, there has been widespread use of information and communication technologies, electronics, and automation systems in agricultural production. Thanks to the use of computers and automation applications in agricultural production, seasonally produced products have always become producible if suitable conditions are provided.

3.5 Agriculture 4.0: Connected Agricultural Practices Since the Agriculture 4.0 phase refers to a process in which agricultural production is provided by information and communication technologies, it is also described as “smart agricultural practices.” This phase aimed to predominantly use information technologies and artificial intelligence in the realization of agricultural production and to achieve maximum efficiency. The definition of Agriculture 4.0 is based on the concept of Industry 4.0, which first emerged in Germany in 2011, that is, the process of working together with information technologies and industry. In this context, the developments in Industry 4.0 have also been valid for the agricultural sector [10]. In the Agriculture 4.0 phase, agricultural vehicles and agricultural fields used in all areas of agriculture are equipped with sensors, thus enabling agricultural elements to communicate with each other [9].

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By enabling farmers to use digital technologies in agricultural production through Big Data, the Internet of Things (IoT), smartphones, sensors, drones, and tablets, remote measurement of soil conditions, healthier and controlled water management, and remote monitoring of farm animals and products. Many agricultural processes such as these have become easier and more effective [11]. In addition, with the use of information technologies, it is possible to monitor real-time production performance, ensure efficient and sustainable use of resources, facilitate access to reliable and healthy food, reduce costs, view detailed analyses of products and production processes, and make environmentally friendly agricultural production [9].

3.6 Precision Agriculture Applications1 The concept of precision agriculture refers to the situation in which information technologies are used effectively in production. Precision agriculture technologies commonly used by developed countries include Global Positioning System (GPS), Yield Mapping System (VHS), Geographic Information System (GIS), Remote Sensing Technologies (UAT), and controlled field traffic Technologies [13]. Among the most significant objectives of precision agriculture practices are to reduce the costs of agricultural production, to ensure the continuity of production, to limit the effects of climate and environmental factors on the production process, to reduce chemical inputs, and to obtain highly healthy products. With precision agriculture technologies, producers have the opportunity to remotely control the production process in their fields through computerized control systems and network communication. Thus, in light of the information they obtain from their lands, producers can identify the negativities in the production process as soon as possible and have the opportunity to solve their problems immediately. In this way, the possibility of a loss of farmers can be minimized.

3.7 Drone Applications Drone applications are one of the methods that enable farmers to monitor their agricultural production cheaply, effectively, and regularly. With the help of infrared sensors carried by drones, also known as unmanned aerial vehicles, the health of the planted crops can be checked, and the crop conditions are intervened and improved locally with fertilizer or pesticide inputs [14]. Drone applications in agriculture aim to provide all kinds of plant needs to plants and to increase income by avoiding waste. Another area of use is to help control farm animals by removing harmful animals. The 1

Precision farming practices first emerged in the United States in the 1980s. Today, America is the leader, followed by Canada, Australia, England, France, and Germany. Precision farming practices have been carried out in the pilot regions determined in Türkiye since 1998 [12].

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purpose of using drones in agricultural production can be listed as precise fertilizer planning, weed, and disease control, land and tree mapping, crop spraying, and plant pollination [15].

4 Agricultural Financing and Fintech Applications Since agricultural production is carried out substantially depending on soil and climatic conditions, it contains uncertainty due to its structure. This uncertainty in question can only be estimated, as it brings with it risk. Whether the prediction is right or wrong is learned when the time comes. For life to continue, agriculture must be sustainable and not interrupted at all. In this respect, those engaged in agricultural activities may need serious financing from time to time to overcome the negativities they face. Moreover, farmers do not have the power to control the risks to which they are exposed. On the other hand, financial institutions, on the other hand, can control these risks. Although they are faced with substantial and systematic risks in providing the financing resource that the agricultural sector needs [16]. In short, credit and risk are the main influencing factors of the agricultural sector. Today, the effectiveness of information and communication technologies in financial markets provides great convenience in obtaining the financial resources needed by the agricultural sector. It has also been possible to diversify these sources. Thus, several financing solutions were offered to users to ensure price stability arising from the sales of the farmer and to maintain the aim of effective competition. In addition to the loan financing supplied through banks, offering price guarantees to the products thanks to user-friendly applications is also very important in terms of comforting the producers [17]. In this context, investors are looking for different types of resources for the financing needs of the agricultural sector. As technology plays an active role in financing, it has been possible to develop and offer using new instruments. Evaluations regarding the main applications in this sector are given below.

4.1 Crowdfunding Crowdfunding, unlike conventional financing methods, occurs in the form of more than one small investor coming together and becoming a partner in a project of their choice in return for their investments or expecting a symbolic return, and in the product development phase, pre-ordering or providing capital to entrepreneurs by donating [18]. Thus, inexperienced entrepreneurs who were trying to start a business before had to meet their early financing needs in different ways because they did not know the markets at all. In cases where their savings are insufficient, they try to meet their financial needs from their families, close relatives, or friends. Today, thanks to the crowdfunding system, they have the opportunity to solve these problems with

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the help of websites and social media tools [18, 19]. The only condition necessary for the operation of said system is to have a system with high credibility, willing investors, and substantial social media dissemination, both in terms of technology and legislation [20]. The goal is to facilitate the voluntary participation of investors in the production process without compensation or with a lesser amount compared to the contribution provided to the firm in crowdfunding practice. The crowdfunding process for entrepreneurs in need of funds starts with their application to their websites for funding. Entrepreneurs’ projects continue by introducing them to investors via the internet platform, and the process is concluded when investors donate funds to the projects they like [21]. Thanks to the crowdfunding technique, supporting entrepreneurs with alternatives such as awards, donations, etc. in the implementation of domestically produced technological projects accelerates the work towards production and efficiency. It is a fact that this method is also promising for agricultural activities. Giving hope to entrepreneurs and directing the sector with these options to use the resources of farming effectively also sheds light on the future of agriculture.

˙ 4.2 Digital Agriculture Market (DITAP) A platform that enables the actors at every stage of agricultural production (such as farmers, consumers, industrialists, cooperatives and unions, retailers, exporters, and stockbrokers) to come together quickly, easily, and effortlessly, regardless of place and time, is expressed as “Digital Agricultural Market (D˙ITAP)” [22]. This transparent system has been designed to ensure the sustainability of agricultural production. The platform in question makes it possible to establish the supply– demand balance, monitor the production from seed to fork, and ensure sustainable production and supply conditions. Also, to obtain centrally managed, high-quality, and robust products at low prices and establish a planned production chain [23]. DITAP ensures that the buyer and the seller come face to face directly to ensure that the farmer, who has stock, can get the full reward for his labor with contracted production. Thus, the prices become more affordable as the distribution channels and brokers are needed until the product reaches the final consumer. There are no restrictions on participation in the portal created for this market. In addition, D˙ITAP also allows financial technology (fintech) applications and crowdfunding initiatives to be used in agricultural areas [24]. However, reliable blockchain technology is required for the system to work effectively. D˙ITAP lays the groundwork for the participation of the parties outside the system (farmers, buyers, and consumers) in the system by increasing the confidence in the market as it requires the follow-up of policies to reduce the risk of the counterparty and raising the competitiveness conditions [22].

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4.3 Contracted Agricultural Practices Contract production is a form of agricultural production based on the principles of mutual benefit between the parties. This strategy saves the producer from the problem of sales, the industrialist from raw materials, and the consumer from unhealthy products [25]. Thus, by considering demand-based production for every segment active in the sector, the price mobility in food products is stabilized. And a win–win model is adopted. In addition, considering the production and sales process in line with the raw material–product relationship, contract farming practices also contribute to the realization of vertical integration between agriculture, industry, and trade sectors [24]. The parties agree in advance on the conditions necessary for the production and marketing in contract production. These conditions include the determination of the price to be paid to the farmer, and the quantity, quality, and delivery date of the product demanded by the buyer [23]. Thus, it is clear when, to whom, and at what price the farmers will sell their products, and as possible risks are minimized, it is possible for the farmer to plan his production better and increase his profitability [23]. Since contract production substantially eliminates uncertainty, it ensures that the private sector’s agricultural investments increase, the public intervention is reduced, the relationship between the farmer’s selection of the product to be produced and its marketing is established, and above all, the farmer has a regular and stable income source [24].

4.4 Electronic Product Bill (ELUS) Applications Since agricultural production is closely related to climatic conditions, it may vary from year to year. Providing nutrition, which is one of the basic needs in terms of the sustainability of life, requires the soil to realize a continuous abundant, and fertile harvest. However, while the soil allows this for some years, it does not allow for some years and may cause famine. This situation requires the storage of production and the use of products stored at insufficient times. The verses of the Qur’an in Surah Yusuf are one of the best examples of this. Similarly, Confucius argues that the existence of states depends on the size of the food stock [26]. Therefore, storage attempts made with the developed techniques are of great importance for human life. In this context, electronic product bills (ELUS), developed as a new technique, especially after the 2008 global crisis, are a document that shows the details of the stored product and are issued in exchange for agricultural products delivered to licensed warehouses. The products represented by these bills, which are stored electronically within the Central Registration Agency (CRA) and can be sold on authorized commodity exchanges, generally consist of agricultural products that can be safely stored in licensed warehouse enterprises. Physical deliveries of products can be made when requested [27].

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Table 1 Agricultural products within the scope of licensed warehousing Product

Type

Pistachio

Pistachio

Hazelnut

Hazelnut

Cereals, legumes, and oilseeds Barley, sunflower, wheat, legumes, rye, paddy, beans, flaxseed, rapeseed, corn, lentils, chickpeas, triticale, rice, soybeans, oats Dried apricots

Dried apricots

Raisins

Raisins

Dairy products

Milk powder, whey powder, butter, and cheddar cheese

Cotton

Cotton

Olive

Black, discolored, green

Olive oil

Olive oil

Source Turkish Mercantile Exchange (TMEX) (2022). Retrieved from www.turib.com.tr on 20 April 2022

Transactions that can be made with electronic product bills are listed below [28]: i. ii. iii. iv. v.

It provides the opportunity to store/store in a healthy and safe environment. A class/quality distinction can be made in the product according to the standards. Products have a competitive advantage and their prices are protected. Products can be marketed over their real value. It facilitates trade based on agricultural products in the domestic and foreign markets. vi. The product can also be used as a security against promissory notes/security.

Products that are suitable for storage in Licensed Warehouses are shown in Table 1. Thus, in case of any extraordinary situation, it is possible to take the necessary measures in terms of food safety. As it is understood from Table 1, the products that can be stored usually consist of basic foodstuffs that can last for a long time and are common to use.

5 Examples of Countries Using Technology in Agriculture The Netherlands and Israel, which are pioneers in the agricultural sector compared to other countries, are at the forefront of the countries that quickly implement the use of technology in agriculture and Agriculture 4.0 applications. These countries have shown a great change with the technology they use in agricultural production and have achieved records.

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5.1 The Case of the Netherlands The Netherlands ranks first in the list of European agricultural product exporters and second in the world after the United States. It is a world leader in ornamental plants and vegetable exports, third in milk and dairy products, and fourth in meat and oil-fat exports [29]. The basis of this success is many factors such as efficient production model, innovation, cooperative nation, marketing, and market supervision [30]. In addition, the role of competitive advantage factors that emerge whereby an effort obtained, won, planned, and strategically developed has also enabled the Netherlands to get ahead of other countries. Although the Netherlands is the smallest country in Europe, it is the most populated country in terms of population density. The Netherlands, which is approximately 3000 km2 larger than the province of Konya, is one-seventh of Türkiye’s surface area. Moreover, half of its territory lies at least 1 m below sea level. However, despite all this, it has been breaking records in the export of agricultural products, especially in recent years. The agricultural production of the Netherlands is based on the strong clustering (Porter Model) model based on innovation. According to the model in question [31]: i. With the geographical concentration of companies and supporting units operating in the sector, each sector specializes in its production area. ii. Establishing a trust-based exchange of information between companies and enabling each company to show its difference. iii. Establishing a substantial logistics network and establishing a good interaction between seed companies, trading companies, production, education, research, and development. iv. Production distribution and education being close to city centers. v. The existence of other supportive agricultural sectors. In addition to fulfilling all these conditions in the Netherlands, the obligation for agricultural lands to be registered with cooperatives, the implementation of the auction system, the importance given to specialization, and the existence of cooperation with the university brought about agricultural development [32]. In addition, supporting the producer-state and private sector partnership on all platforms makes the success achieved sustainable in the country. In the Netherlands, which carries out agricultural activities on limited lands, while researches in universities increase productivity, farmers produce, and the government gives the necessary incentives for the sector. This cooperation, which is in question as a requirement of the country’s sustainable agricultural policy, is called the “golden triangle that ensures success” [33, 34]. Universities in the Netherlands continue their research in agricultural activity, generally focusing on food production, increased consumption of food, living space, food health, and livelihoods. These studies also aim to reach the yield that will ensure double the product purchase by using fewer inputs, which they call “24th-century agriculture,” especially in food production [35].

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5.2 The Case of Israel Israel is a country where only 20% of its land can be cultivated, half of which is desert, is below the water poverty line, has a very low agricultural workforce, and yet it meets 95% of its own food needs with its technology proficiency [4, 9]. Israel has succeeded in coming to the fore like the Netherlands in agriculture [36] by turning its disadvantaged position into an advantage with mechanization and R&D studies. In summary, Israel takes its place among the giants of the world by having a superiority based on knowledge and technological developments, not according to natural comparative advantages in agricultural production [4]. Israel is a country that has achieved success by locking into two goals in agricultural production. These are [36]: (i) Ensuring close cooperation and interaction between all actors in the agricultural sector (state-private sector-farmer). (ii) Promoting the use of advanced technology in all areas of agriculture. Thus, it leads agricultural development by developing region-specific solutions to problems in production. It also makes agricultural production sustainable by managing and directing the process [37]. In this framework, the State of Israel has determined the number of strategic strategies to make the country a leader in agricultural technology by integrating farming production with its technological development [38]: i. In the development of new products, the creation of support mechanisms that facilitate assistance and partnership. ii. Constitute of agricultural information centers that focus Israel’s research and development on agricultural technologies for industry and export, and produce new solutions for efficient and improved agricultural production. iii. Establishing transparent and competitive digital trade centers that directly bring producers and buyers together. iv. Expanding investment in agricultural technology and innovation. v. Establishment of investment funds to encourage and support the application of new technologies in agricultural production. vi. To support the expansion of cooperation between entrepreneurs, investors, farmers, and academics at the local and global levels. By implementing the mentioned strategies, Israel obtains high yields by providing 86% of the water used in agricultural production from the recovered water, despite the poor quality of its soil, and exports 90% of its products [9]. Israel is a country that best manages digitalization in agriculture and has achieved significant success in this field. The region started precision farming practices with the drip irrigation system. By developing this field, he developed computer-controlled drip irrigation, computerized early warning systems for leaks, and thermal imaging systems for crop water stress detection [4]. Today, the country, which has achieved to have a say in the fields of mobile applications, sensors, drones, data collection hardware, and advanced analysis software, takes its place among the leading countries in fertilizer

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production and export, biological pest control systems, and the acquisition of new fruit and vegetable varieties [4].

6 Transformation and Future of Agriculture: Agriculture in the Metaverse The fact that modern agriculture has become more and more effective in production procedures has reinforced the feature of agricultural activities as the primary source of development. With the digitalization movements, the consumer side of the ecological system of agricultural production has mobilized. The fact that the governance processes for farming lands have become manageable using digital networks has prepared the appropriate ground for Metaverse applications. The fact that access to wireless communication networks, which is necessary for collecting data on agricultural land and products in production processes and taking preventive measures for production, is facilitated through the internet of things has also reinforced the adaptation of agricultural production processes to the Metaverse. Visual recognition technologies and digital identification of agricultural production areas and products have also facilitated the transition to the Metaverse in agriculture.

6.1 Virtual Reality (VR) and Augmented Reality (AR) Applications in Agriculture Virtual reality (VR) is a new technology that allows users to experience threedimensional environments that mimic artificially created spaces [39]. In this way, it plays users the opportunity to experience a stage as if they were present. VR applications offer a significant opportunity for the agricultural sector, especially in taste tests, the preliminary effect of product packaging and labels, and the appearance of products in aisles. It is aimed to capture consumer insight with applications aimed at testing the appreciation of consumers. In a sense, it draws attention as an effort to make sense of the consumer’s behavior while purchasing goods and services. With the help of virtual reality applications, consumers get an opportunity to experience the simulated environment as actual. While VR applications have the advantage of attracting consumers and having remarkable features, they have elements that increase interaction and reinforce brand loyalty compared to online shopping [40–42]. Augmented reality (AR) application, on the other hand, is a technology that allows virtual objects to be placed in the real world in real time, thereby increasing our knowledge of the world around us [43, 44]. The main difference between VR and AR is that VR creates the perception of the actual world based on virtual information, while AR improves perception and uses the real environment with computer-generated information [45]. In other words,

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while AR interacts with the real world, VR offers a virtual experience. At the same time, AR harmonizes real-life digital information with time and space, transforming the entire environment into a virtual World [46]. Intensive application-based AR can cause the user to change his perspective on the actual world and vision. When evaluated from the consumer’s point of view, it is a favored reality application that allows consumers to utilize the hedonic properties of products by combining the virtual and real-world environment of product designs, colors, and appearances [47]. Toricco et al. [48] analyzed the measurement of the hedonic responses of the consumer to diet and sugary chocolate with the virtual reality application. In particular, the levels of influence of the consumer’s preferences with the virtual environment and sensory tests were examined. As a result of the virtual reality test, it was concluded that the effect of the application on the consumer preference for the chocolate product was not much. It is emphasized that virtual reality should execute progress, especially in the taste and sensory preferences of traditional consumer behaviors as a result of the research. Stimuli such as touch, taste, and smell stand out when it comes to food products. At this point, the ecological realities of virtual environments that use these senses effectively increase. Huang et al. [49] used virtual reality applications in their experimental research on the relationship between tea color and taste. As a result of the application, it was emphasized that virtual reality applications do not significantly affect the relationship that the consumer has established between tea color and taste. Meißner et al. [50] stated that while experimentally measuring the effect of virtual reality applications on product differentiation, price sensitivity, and satisfaction, access to a wide range of products emerged with VR. Therefore, price sensitivity and pleasure remained in the background. However, Andersen et al. [51], Siegrist et al. [52], and Sinesio et al. [53] emphasize that virtual reality applications have significant effects on consumer perception in measuring consumer tastes in food products and that virtual reality application has a great potential in the development of experimental research on consumer perception and behavior. In particular, having a sustainable application area brings with it the ability to produce a feeling of being in an actual environment [54]. In industrial marketing processes, brands continue to add innovation to online and offline shopping with the help of virtual centers they have established to increase their sales volumes. Global brands such as IKEA (IKEA VR Experience, IKEA Immerse VR, IKEA Place) and Amazon (Amazon AR View) are currently using virtual and augmented reality applications that also point to the future meeting points of consumers and manufacturers. However, in existing applications, VR technology is not used at full capacity, and if it is used, it contains the opportunity to present a competitive advantage by retail [50]. Kim and Choo [47] point out that augmented reality applications are significant technological advances for brands to convince consumers. They argue that uploading information about products in these applications is an opportunity for innovative market understanding. The said technological innovation continues to transfer its existence to future generations as a new-generation marketing tool in terms of discovering the impact of the products on the consumer and consumer insight. The capacity

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of AR applications to combine current materials like images by the digital world leads to increased developments in favor of producers and consumers [55, 56]. Virtual and augmented reality applications and communication mechanisms between consumers and companies continue to be transformed by developments in information and communication technologies. Thanks to these applications, consumers can engage in purchasing behavior by interacting with products produced kilometers away from them. This situation brings up virtual food tourism, which encourages the sales of food products. With the effect of the pandemic, the increasingly digitalized consumer profile maintains its position most ready to experience these applications. As the impact capacity of VR applications on consumers and AR applications on manufacturers increase, the widespread use of these applications is encouraged. The increasing demand for agricultural food brought about the questioning of the ability to meet the increased production with limited resources, bringing precision agriculture practices to the agenda. VR technology is a widely used application in the promotion processes of agricultural products. With its artificial intelligence infrastructure, it can be easily preferred principally in tests for sensory organs. VR technology initiates a virtual integration process with immersion, multi-sensory, interaction, and autonomous features. Thanks to virtual reality technology, agricultural resource, and production planning, agricultural tools, and equipment design and manufacture can become possible. For example, management processes such as virtual soil adhesion, emissions, and growth processes of animals and plants can implement an effective agricultural production process. By using virtual reality, agricultural production efficiency can be increased through lighting and auditory and visual stimulation. Thanks to virtual plant technology, three-dimensional simulations of herbal products, their designs, and the follow-up of their life cycles not only save time spent by labor but also bring the employment market the risk of idle labor. Although the realization of processes such as pruning, fertilization, and spraying carried out by labor with virtual reality applications provides a cost advantage in terms of both employment and time, there is also the possibility of negatively affecting the labor supply and demand balance. Moreover, there is a need to create a farming producer profile that can use this technology, which is used not only for the product but also for farming tools and equipment design, production processes, and product performance evaluation. Li [57] argues that the agricultural modernization path passes through VR and states that the computational crop-environment theory and VR technology constitute the basic logic of this modernization. The fact that AR applications support production processes based on technology offers an opportunity for agricultural producers to find new answers besides precision agriculture solutions [58]. The opportunities presented by AR applications in the field of agriculture can be listed as follows [59–62]: i. Smart production line. ii. Preventive maintenance. iii. Practical crop farming.

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iv. Precision livestock. v. Crop farming based on increased yields and reduced inspection costs. vi. Activating agricultural food and livestock management processes. Combining the real and virtual worlds, enabling real-time interaction, and recording virtual and actual objects, the AR application can provide a path-finding process to guide farmers through the traditionally laborious soil sampling processes [63, 64]. Agricultural producers can access any product registered in the system with the help of arrows. For example, with the AR application in the livestock sector, it is easy to direct the animals to the pasture area. The application can provide both feedback to the agricultural producer and the flow of information on significant issues for agricultural production, such as crop capacity and farming diseases. The AR application and its complements, which are suitable for the widespread use of the manufacturer, have the feature of resisting indoor and outdoor weather conditions that do not tire the user. The fact that the application does not restrict movement and provides access to the excess application with single hardware is preferable for agricultural production [58]. The accurate and real-time weather information that AR technology will provide to agricultural producers also plays a role in the right product choice of producers. Real-time, correct, location-specific weather updates reduce risks and make it easier for manufacturers to take proactive steps [65]. By using VR, manufacturers can be aware of detrimental and diseased assets and take action with the AR application to save the crop and reduce the cost. For example, crop scanning can do by installing sensors in the agricultural production area. Technical information such as weather, plant health, fertilizer requirement, or harvest date can obtain via smartphone or compatible tablet. At this point, special glasses are available as an alternative to a smartphone or tablet. The low cost of sensors installed in the agricultural field also makes this application financially advantageous.

6.2 Extended Reality (XR) Application in Agriculture In addition to VR and AR, the application of augmented reality (XR) in the field of agricultural products is also becoming common. The XR allows observation and visualization to provide information on food and its content, mediates training to increase the quality of labor, contributes to increased efficiency and safety, and improves consumer experience causing it to differentiate from AR and VR applications in agricultural products. With XR applications, agricultural producers can monitor their soil fertility, production quality, and agricultural diseases and take precautions quickly. Today, Sparkle (European Union), CSIRO (Australia), Bareburger, and Hololamp are examples of Metaverse applications in agricultural production processes. For example, Sparkle often uses XR applications by monitoring agricultural production areas, training employees, and evaluating vehicles and equipment. Regarding the information and content of food products, square (QR) codes, which are widely

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used today, attract attention. With the help of QR codes integrated into the AR application, users can visit production facilities where agricultural products are produced and be sure of the freshness, hygiene, and reliability of the crops. Today, ABP Food Group and ASDA have shown users how to cook steak, and FarmVR has shown consumers where the products they consume come from and how seafood reaches the tables with an AR tour on the NexTech AR fishing boat. Väderstad, on the other hand, enabled agricultural producers to calibrate their machines from their smartphones, with the application developed for personnel training. Thanks to AR, new and experienced agricultural producers can also have innovative training opportunities. In particular, producers who can discover agricultural vehicles and equipment in a virtual form have the opportunity to avoid dangerous situations while having information about possible work accidents. At the same time, they mediate in choosing the right equipment required for agricultural production and using the most appropriate vehicle in the right place. Cornell University’s Veterinary Department gave students anatomy lessons with the help of VR, allowing students to experience new techniques before trying them on live animals [66]. Harbin Aiweier Technology company demonstrated the corn planting process in VR at Green Expo, from breeding to planting and harvesting, and users experienced planting via virtual farm. OneRare has combined Metaverse technology with the agriculture and food industry to create a virtual environment that allows users to learn about food and interact on a global level. Platforms, where users can collect their products in the Metaverse and sell them in virtual markets, offer advantages such as the detection of strategic marketplaces and the experience of obtaining a high degree of profit. In the Metaverse, where the supply–demand balance is adapted, the tendency of users to produce the same products also allows the motivation to act strategically to the producer by reducing the Qualified Intellectual Land Registry (NFT) prices of those products.

7 Conclusion Durability, digitalization, the capacity to act effectively, and sustainability are significant building blocks for the agricultural sector. The top obstacle account of the agricultural producer in developing innovative processes is the lack of technical assistance, the inability to meet the on-site equipment and technological needs, and high costs. Financial literacy is one of the technical competencies required by agriculture in the Metaverse, and the essentials of economic activity are the biggest supporter of innovative processes in agriculture to eliminate these obstacles. In addition, increasing global uncertainty, emerging cost increases, and climatic factors make it necessary to develop the insight of the agricultural producer about the future and financial literacy. Increasing digitization is a critical tool for capturing this insight. Especially after the pandemic period, where the labor-intensive industry tested, digitalization makes it necessary to reach even the most remote corner of the country. For this reason, it is substantial to develop technical infrastructures for digitalization in

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agricultural production and marketing processes and to improve existing connection features. Supporting agricultural producers who are distant from agricultural innovations, financially and technically, integrating them into innovation processes, and directing them to long business investments have strategic importance for the future of agricultural practices in the Metaverse. Thanks to the applications that have the advantage of providing competitive advantage in the market, the obstacles in front of agricultural productivity can be eliminated. Products and services produced with VR, AR, and XR applications offered by Metaverse can be supplied for sale with NFT. And the process of earning income is possible thanks to the economic activity that takes place. It is possible to taste agricultural products that cannot be reached in real life with alternative production and consumption opportunities. The opportunity to realize postponed or planned gastronomy tours. The possibility of odor and emotion transfer with AR, VR, and XR applications further increases the attractiveness of these opportunities. In addition, thanks to the Metaverse, the borders in front of agricultural economic activity at the regional and global levels will disappear, and a universal production-consumption composition will emerge. Metaverse also has the potential to increase the value of agricultural production. Increasing crop yield, reducing energy consumption, and reducing labor and technical service costs in the Metaverse are outstanding positive developments. In addition, the agricultural producer’s preference for highly productive products, active data estimation, combating harmful and diseased factors, and taking active preventive measures against natural disasters make the Metaverse attractive. Thanks to AR, VR, and XR applications, the agricultural producer can make a SWOT analysis of agricultural land, planting, and harvesting processes. This opportunity is considered a significant occasion to ensure price and volume stability in agricultural production. The potential to expand stable agricultural production values based on NFT in the Metaverse also contributes to the development of agricultural production to a higher level.

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Metaverse Applications in Biotechnology Era Sevgi Salman Unver

Abstract There is a great transformation in information technologies that has been going on for the last 20 years. This digital transformation has affected many areas of life. Its impact in the field of life sciences gave a great impetus to the development of ‘biotechnological-compatible with life’ products and solutions by better understanding the ‘language of life’ and improving and reproducing the information of living things or living things in nature with technology. Steve Jobs said in 2010, ‘The greatest innovations of the twenty-first century will emerge at the intersection of biology and technology, a new era is beginning’. He stated that the age of biotechnology has begun with these words. The most important developments in the field of biotechnology gained momentum with the discovery of the double helix structure of DNA, which we can call the ‘alphabet’ of life. In the period between 1953 and 2003, when this breakthrough was made and when the Human Genome Project was announced, technological advances made it possible to sequence all the letters in DNA. But it was understood that there was still a long way to go to understand complex living structures. Addition to genome studies, epigenome studies investigating the effects of genes and the environment, proteome studies examining the proteins that are the building blocks of life, microbiome studies investigating the microorganisms with which they share the human body, and metabolome studies examining the formation of all metabolism. The biological data in all these layers formed a great deal of biological data—or Omic data. The field of bioinformatics makes analysis of information and makes them more understandable. Examining the ‘Omic Universe’ created by all this Omic data will create a more realistic link between the ‘Meta-Universe’ of the future and real life. In the digital version of life, more ‘vital applications with more resemblance to the real version’—such as avatars, learning and even thinking machines that are closer to reality—will be possible with a very good understanding of the language of real life. This technological transformation will come true with the combination of the biotechnology platform and the information technology platform. S. S. Unver (B) Genomedis Biotechnology, Istanbul, Türkiye e-mail: [email protected] Biotechnology, Gebze Technical University Biotechnology Institute, Gebze/Kocaeli, Türkiye © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_24

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Keywords Biotechnology · Omic technologies · Biological Big Data · Genome · DNA · Proteome · Epigenome · Microbiome · Metabolome · Bioinformatics · Life Sciences

1 Introduction Biotechnology is defined as a technology application area in which products and solutions are developed by using a solution found in nature or the information obtained from living things [1]. One of the most important features of biotechnology is that it is a horizontal technology platform that includes many sectors rather than being a single sector. Biotechnology has the power to transform the technologies of the future in many fields such as health, food, agriculture, industry, environment, defense, energy and informatics. Along with these, the transformative effect of biotechnology increases day by day by developing the solution offered by nature, making it more efficient and presenting it for a sustainable life in harmony with nature with the developing technological opportunities, especially information technologies [1]. Since the 1950s, many crucial developments have taken place in the field of biotechnology. With new technological advancement in biotechnology, many useful bio-products by using living structures from nature as raw materials. One of the most important early development is the production of next-generation antibiotics that save the lives of millions of people. Over the time, the discovery of the structure of DNA, developments in cell biology, new generation biological drugs, next generation diagnosis and treatment methods can be listed as main developments in this field. The innovations that have emerged with the applications of the developments in information technologies in the last two decades seem to start a new era. One of the most important predictions in this regard belongs to Steve Jobs, the founder of Apple. Steve Jobs said in 2010, ‘The biggest innovations of the twenty-first century will be at the intersection of biology and technology’. This new era has begun and we have observed the transformation of this era very intensely, especially during the COVID19 pandemic. COVID-19 vaccines were developed faster than in history. This big success in vaccine development helped to save the millions of lives. Thus, COVID-19 pandemic has clearly demonstrated the vital importance of biotechnology. The latest point reached in information technologies has accelerated and increased the transformation in life sciences very intensely. It is one of the most important issues that have been emphasized recently that biotechnology applications are critical to ensure a sustainable life. In order to achieve this, nature, living structures and the interactions they create need to be better understood, analyzed and integrated into solutions. Developments in the field of information technologies, especially innovative applications such as bioinformatics, artificial intelligence, machine learning and virtualization are of great importance in the development of biotechnology [2]. The transformation that will be created by Metaverse applications, which is defined as the technology of the future, is followed with enthusiasm. It is clear that biotechnology will have an important place in Metaverse applications. In this section, it will be

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about how these two important technology areas will produce innovations and how they will transform. It mainly focused on four topics: 1234-

Understanding the Language of Life in the Digital World. Future Health and Metaverse. Future Agricultural Practices and Metaverse Solutions in Food Production. Biotechnology and Metaverse for a Sustainable Life. At the end of the chapter, there will be an overall assessment and future projections.

2 Understanding the Language of Life in the Digital World Learning the alphabet and understanding the language of life is one of the most basic aims of biological sciences. Hundreds of scientists in the world of science have worked for many years to reveal the alphabet of the language of life. At the point reached today, thanks to innovative technologies, the alphabet of life and the complex connectivity of life have become much more understandable [1]. However, there is still a need to better reveal this complex structure, to obtain information and to analyze it. Every day, we see the applications and accelerating effect of information technologies to understand biological structures. In order to understand the language of life, revealing the genomic information, that is, DNA sequencing, which is the software of living things, was an important step. As part of the Human Genome Project, it took two months to sequence a single human genome from beginning to end, deciphered three billion letters and cost a total of ten million dollars. Now, with next-generation sequencing methods, the human genome is sequenced in a few hours, at a cost of less than a hundred dollars and with much higher accuracy. Genome sequencing quickly, accurately and at affordable costs provides a huge amount of biological information. As this information increased, it was seen that sequencing the genome alone is not enough to understand the biological structure, that is, to understand the language of life. The transformation of a gene in the genomic structure into proteins, that is, its expression, is one of the most important vital mechanisms. The mechanism by which the gene emerges as a protein and governs life functions is called ‘epigenetics’. After genomic studies, epigenomic studies have also become crucial for understanding the language of life. Studies that examine the process from genes to proteins are called proteomic studies and proteomic data provides valuable data. Proteomic data is used extensively in the development of new diagnostic and treatment methods. The data of metabolomic studies examining the relationship of living structure with the environment have also added an important dimension to understanding the language of life. Living things can share the same body with other living structures, especially microorganisms, as living beings. Microbiomic studies examining microorganisms further deepen the meaning of the language of life. All of these studies are called ‘Omic’ studies. When all these omic data are brought together, the use of digital technologies will enable to understand living structures, that is, the book of the living, sentence by sentence, paragraph by paragraph and in its entirety. When the

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Fig. 1 Data-driven personalized health planning. Unver and Kurnaz [1]

biological information in each layer is used to create the mathematical model that forms the interaction, connections and interconnections of the layers. Investigation and analysis of biological structure with ‘omic technologies’ are important subjects of ‘systems biology’. The living structure forms a system. Understanding of interconnections between living structures provides much more accurate diagnosis and treatment in future medicine. With the use of omic technologies in current studies, obtaining biological data, understanding and analyzing data by information technologies, providing automation with artificial intelligence and machine learning, understanding individual differences make the personal approach more widespread [1]. In Fig. 1, data-based personalized health planning is schematized. As a summary, understanding the language of life, biology, is like understanding the connections of letters, words, sentences, paragraphs and the whole book. It is only when these connections are understood that it becomes possible to understand the information that comes out of the book as a whole. Understanding the elements that make up the language of biology also provides a better understanding of the language of biology. In order to understand and analyze this complex structure, significant technological developments have taken place in recent years. It has become possible to examine layers of living systems from genomic structure to protein structure, from metabolic structure to epigenetic profile and microbiota, to solve relationships, to make sense of connections and to look at biological structure as a system in a connectional and holistic way. These studies created a huge knowledge universe. We can call it the ‘Omic Universe’. If we consider this omic universe concept as the universe of biological knowledge, it is clear that this knowledge will be crucial in ‘Metaverse’ applications. In the following sections, the expansions of Metaverse applications on health, agriculture, food and environment, which are the most important biotechnology areas, are examined.

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3 Future Health and Metaverse During last two decades, technological transformation in life sciences has enabled to obtain a huge amount of biological information from various biological sources. There has been an exponential increase in the biological knowledge pool. Analyzing and using this information as intelligent information has led to the emergence of many innovations in all areas from protective health applications to diagnosis and treatment of diseases. These innovations largely took place in the areas where biotechnology intersects with information technologies. These biotechnological innovations started a transformation in health [4]. It is thought that this transformation will accelerate in future, and the following four approaches will gain more importance. I. Predicting health risks by making detailed analyzes of personal data based on the biological information pool. II. Supporting a healthy life with preventive measures rather than seeking treatment after getting sick. III. Participation in people’s biological data, health and disease states and other life issues. The use of person’s biological data will accelerate with wearable gadgets and other biosensor applications. These continue and intense biological data and person’s willingness to take more responsibility for a healthy life can be evaluated as ‘participation’ to future health concept. IV. Creating personalized health and treatment guidelines as a result of the holistic evaluation of individuals’ biological differences, genomic data and environmental conditions, physiological and psychological health-related connections. Bringing a whole new dimension to the health approach, these four approaches are studied by Dr. Lorey Hood et al. conceptualized it as 4P (Precision, Preventive, Participatory, Personalized). Many technological innovations, which examine complex biological systems at the molecular level and provide a better understanding of their dimensions related to human health, have been developed especially after the 2000s. At the top of these are molecular techniques that examine living things at the molecular level and even enable us to analyze their most basic structures at the level of DNA. Innovative technologies in biotechnology enable to analyze at each level of biological system; the cell, tissue level, organ level and whole body level. This results in establishment of connections between these structures and organization of these connections as algorithms. These technological solutions offer significant hope for more accurate diagnoses and more effective personalized treatment schemes. Technologies that provide a much more detailed understanding of the living structure with the information formed in every layer from the smallest molecular structure to the most complex system have the potential to be used routinely in many areas from health protection to more accurate diagnosis and treatment. For example, it is thought that a better understanding of human physiological, psychological and social, analysis with big data and development of personalized approaches will have substantial place in Metaverse applications. One of the most important applications of Metaverse is the virtual development of the biological twin and, since it is based

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on personal biological data, this twin can be designed very close to reality [5]. This is where a real revolution will take place. Now, with the development of the virtual twin, the transformations it will create in the field of health are summarized under four main headings.

3.1 4P Approach in Future Healthcare In the concept of 4P in health, it is fundamental to approach biological structures and health as a system. This is an integrative approach that means the causes associated with many biological, physical, chemical and emotional dimensions of the causes, and the relationship of these causes with each other should be evaluated, a predictive, protective, participatory and personalized approach. Metaverse has taken the concept of 4P one step further. Analyzing big biological data and turning it into applications with artificial intelligence will allow the creation of virtual twins that are much closer to reality. Because this virtual twin can simulate the entire biological makeup of humans, it could be a huge innovation for predicting health risks, maintaining health and testing individual reactions. Although it may seem like a science fiction movie for now, I think it is possible to observe the health risks of the person on the virtual twin, to test the healthier lifestyle on the virtual twin, to try the effects of protective measures on the virtual twin, to apply personalized diagnoses and treatments on the virtual twin. A long and healthy life is main purpose for everyone. In order to achieve this goal, evaluating virtual twins with 4P applications and creating a ‘realistic’ health guide for the person in this direction may be the routine practice of the future.

3.2 Innovation in Medicines and Vaccines Development In Pharmaceutical industry, the conversion of drugs from chemical drugs to biological drugs gained momentum with the development of recombinant DNA technology in the 1980s [6]. With this technology, the applications, developments and reproductions of the natural solution of many diseases, especially diabetes, in the laboratory, have made it possible to treat them with the drugs that come out. These included many protein-based hormone drugs, especially insulin, and molecules that are active in other biological mechanisms. These drugs are called ‘biological drugs’. Most of the drugs developed in the last two decades are biologically based drugs. The basic approach of these drugs is to understand the biological structure at the molecular level and to develop a biological platform and regulatory molecule. We have seen one of the important developments regarding biotechnological drugs with the mRNA vaccine developed during the COVID-19 pandemic. The mRNA vaccine was based on the approach of producing a solution using mRNA, one of the important molecules in biology. The mRNA technology platform, which has recently entered our lives

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as a COVID-19 vaccine and saved the lives of millions, has the potential to be a permanent solution for many autoimmune diseases, especially cancer. Likewise, CRISPR technology, which enables genetic editing known as gene surgery, has the potential to be a cure for many incurable diseases. Stem cell therapy applications have the potential to break new ground in the treatment of many diseases, especially neurodegenerative diseases [7, 8]. Drug and vaccine development stages are a very long and laborious process, from laboratory tests to animal experiments and human phase studies. Thanks to the development of digital technologies and the analysis of big data with artificial intelligence, drug development processes are progressing more targeted and faster. Especially in laboratory studies, it is ensured that more accurate choices are made that accelerate the trial-and-error processes. We also experienced this during the COVID-19 vaccine development process. In normal conditions, the development of a vaccine is calculated as over 4 years but the COVID-19 vaccine is ready within a year due to big pandemic urgency. Human phase studies are the longest and most costly phase of drug and vaccine development. It looks very exciting that virtual twins are being developed as a Metaverse application and the innovations that can happen when human phase studies are primarily modeled on them. It means the production of smart drugs in which all possible biological reactions, effects and side effects are tested on the virtual twin [9]. Can you imagine what a great accelerator effect it could be? A large number of innovative drugs are being developed as personalized and targeted drugs. It is expected that the clinical study can be tested on the virtual twin of the person first, and it will become possible to obtain the most realistic results.

3.3 Innovative Diagnostic and Therapeutic Applications Recent developments in medical technologies have enabled faster, easier and more accurate diagnosis of diseases in recent years. Artificial intelligence supported algorithms built on big data have increased the accuracy and speed of diagnosis. One of the most important examples of this is that while a pandemic has not yet been declared, the Sars-Cov-2 virus was identified and the whole genome sequence was published 12 days after the COVID-19 disease appeared in China. Thanks to this important information, diagnostic kits that detect the virus with high accuracy were developed immediately and became one of the most important tools in the management of the pandemic. In fact, with the technological developments accelerating during the pandemic process, the possibilities have been evaluated before the pandemic, and if there is an increasing risk, it has reached the point where public health practices can be started. It will also be possible to test these risks on virtual twins and run possible scenarios in the future. One of the biggest areas of improvement in healthcare is diagnostic accuracy. Despite all physical examination data, laboratory and imaging tests, hundreds of thousands of people around the world can be misdiagnosed every year. Thanks to the increase in biological big data and its diversification from molecular level to more complex system data, artificial intelligence supported

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solutions are developed in the field of diagnosis. Artificial intelligence solutions, in which imaging tests, pathological evaluations, molecular and biochemical data are evaluated holistically, are now a part of health applications [5]. Evaluating the virtual twin with innovative diagnoses technologies in Metaverse can create a great transformation in the process of getting a more accurate diagnosis in real life. In the treatment process, the biggest breakthroughs will be in the field of personalized treatments. This can be considered in a wide range from designing a personalized drug and testing it with its virtual twin, to applying the molecularlevel gene editing technique to the virtual twin and observing the results. These tests and observations made on the virtual twin can be considered as the most realistic rehearsal of the application to the person in the real environment. For example, without applying a solution developed on the mRNA platform to the person, all stages of the virtual twin can be simulated, risks can be determined and the results can be optimized. Metaverse applications will create a serious transformation on the methods of health care. The concepts of virtual hospital, virtual patient, virtual physician, which has increased in recent years and gained momentum with the COVID-19 pandemic, can gain a completely different dimension with the Metaverse. How? Instead of physical hospitals, remotely managed virtual health care areas, where all the necessary systems are provided to the patient, can be developed. Instead of physical hospitals, remotely managed virtual health care areas, where all the necessary systems are provided to the patient, can be designed. The patient may be able to receive the widest possible range of services effectively without being physically present in a hospital environment. Isn’t it quite exciting to imagine that physicians and other healthcare providers have also virtual twins being able to provide healthcare remotely in multiple locations? Particularly, the tremendous speed and capacity of quantum computers will be able to operate in a synchronized manner even if they are thousands of kilometers away. Consider a surgeon who is an expert in his field, although he is not physically in the operating room where the operation is performed, he can perform the surgical operation thanks to his virtual twin. Isn’t it very exciting? There are many initiatives working on artificial intelligence-assisted clinical decision support systems. As an example, the Veyond Metaverse is a company that focuses to develop healthcare applications in the Metaverse ecosystem. This Metaverse initiative develops technologies that will enable both personalized clinical diagnosis and treatment and medical education to be carried out more realistically in the Metaverse environment. At this point, the applicability of Metaverse technology extends to various fields of life. It is obvious that there is a necessity to determine the ethical limits of Metaverse applications in especially in healthcare and some other critical fields [10].

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3.4 Brain–Computer Interactions The complexity and connectivity of biological structures are becoming more and more understandable in innovative technologies. The neurons and nerve cells that make up our brain form an amazing network of connections. These connections, which started while still in the mother’s womb, are shaped by many effects and interactions. An enormous network transmission system has been established in which each neuron interacts with an average of 10–15 thousand neurons [3]. As the data on living structures increase, the technological innovations that will emerge with the integration and interaction of biological structures with machines have started to create even greater excitement. Technologies that produce robots that come closer to reality have gained great momentum. Mechanical technologies, developments in materials engineering and information technologies, development of big data, data engineering and artificial intelligence applications, machine learning and deep learning methods play a critical role in the acceleration of robotic technologies. The variety, capacity and applicability of biosensors are increasing at a rapid pace. It is now much more possible to collect instant and real biological data. Sensor technologies, which strengthen the biological data pool, make a great contribution to the development of robotic technologies [11]. When these technologies are integrated with biological data, there might be great innovations that are more compatible with life. For example, the development of robots that mimic humans better, and the printing of artificial organs with the closest feature to the real structure with 3D printers seem to be at the door. Mathematical modeling and mapping of extremely complex neural networks and revealing their interaction with all functions of living things will constitute a crucial step. Will psychosocial interactions, which are more complex than physical functions, also be provided? The studies in neuroscience as the connectome project have raised hopes about how the brain and computers can be connected, how they can interact, and even that the brain can control the computer as an interface and manage the body. The first examples began to emerge in which a paralyzed patient, who had been paralyzed for years, was able to move his body and walk by interacting with a computer. The Neurolink presentation is shown in Fig. 2. Neurolink, which works with the serious investment support of Elon Musk, stated that it will soon put innovations in this field into service. This could mean the start of a whole new era.

4 Future Agricultural Practices and Metaverse Solutions in Food Production Nutrition is one of the most basic needs for the continuity of life. Adequate nutrition and access to food sources are the most important issues for human beings. The rapid increase in population and the fact that food sources are not easily accessible in

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Fig. 2 Neurolink representation

every geographical region is one of the critical issues. There may be risk of hunger in this century, despite the high technological development. Many biotechnological researches and developments have been made in the last two decades to increase agricultural productivity and food quality [12]. The pace of progress towards understanding the structure of plant and animal genomes in the field of agriculture and food biotechnology is remarkable. As in human genetics, a very large biological knowledge pool has been formed in these fields as well. Systematic research of animal and plant genomes, revealing and mapping their connections are of critical importance for modeling the future agriculture and food in the virtual environment. As an organism’s complete genome becomes known, the location of genetic markers, specific DNA sequences, and specific genes can be identified and linked. Thanks to the analysis of this big data with artificial intelligence, models can be made for the development of innovative products. Biotechnology research outputs are aimed to offer solutions to traditional agricultural problems. These solutions facilitate food production; it can be listed as increasing food quality and providing better nutrition with functional foods. For the regions with food shortages, it is aimed to produce innovative solutions such as fiber sources, biomaterials and biofuels that increase biomass as biotechnological agricultural products [13]. Biotechnology innovations are concentrated in several areas to increase agricultural yields and facilitate food production. Biotechnological control against pests, insects, viruses and fungi that negatively affect agricultural yield is one of the important innovation areas. Chemical spraying, pesticide and fertilizer applications both pose health risks and damage water and soil resources. While biopesticides and biofertilizer solutions fight pests in harmony with nature, yield can be increased with biofertilizers that enrich the soil microbiota. One of the most critical factors that reduce agricultural productivity is natural events such as drought, salinity and frost, which are considered as soil and water stress. Biotechnology applications can help to do product modifications. For example, it might be possible to produce products that are resistant to unwanted stress that natural events. It is possible to create

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resistant strains by gene transfer or gene editing. CRISPR technology is also a useful technology for agricultural products and is expected to have a wide impact area. In addition to these, it has become possible to combat wild plants that affect agricultural yield in the form of gene-based targeted breeding and purification instead of traditional breeding studies [14]. Metaverse technologies can be an important facilitator in the development and application of these innovations. Processes can be accelerated, optimized and transferred to the real environment thanks to their products or virtual twins of agricultural fields. It is expected that biotechnology applications will have an important place in the development of food products with increased nutritional quality and nutritional values. Many innovations are in this scope, from raising animals that will provide higher animal food with higher nutritional value to the production of plant-based meat with high nutritional value. Biotechnology applications are focused on products that have improved quality, increased nutritional value and polluted the environment less through genetic editing. Metaverse technology, which offers virtual environment during the development and implementation of all these solutions, will be a facilitator.

5 Biotechnology and Metaverse for a Sustainable Life The most important global issue today seems to be ’sustainability’. The rapid increase in population, the fact that food resources do not increase at the same rate, poverty and hunger still continue, the decrease in clean water areas, the decrease in the diversity of sea creatures, the impoverishment of agricultural areas and the ’climate crisis’ that makes life increasingly difficult. Now it’s getting harder and harder for this beautiful blue planet to carry so much weight. Previously, we thought that the climate crisis consisted only of melting glaciers at the poles and polar creatures struggling to hold on to life. However, the global climate crisis is now in all of our lives. In the summer of 2021, in Turkiye’s most touristic southern regions burned down one after another. At the same period of time, the situation was similar in almost every part of the world that was in the summer season. Billions of trees were burned, forest life was destroyed and the ecosystem was devastated. On the other hand, rains, floods and tsunamis took place in the northern regions of our country and in many parts of the world with similar climates. In the same months, the Marmara Sea, one of the most important inland seas of the world, was experiencing a natural disaster called sea sputum or mucilage. This is a microbial formation in sea plants, microalgae and plankton, which increased excessively as a result of the deterioration of the marine ecosystem, caused the extinction of sea creatures. The COVID-19 pandemic, which has been lived through since the beginning of 2020, has also revealed the difficulties related to the sustainability of life. Due to the increasing population and urbanization and the rapid spread of virus, despite all the point of technological development, the loss of millions of people’s lives could have not been prevented.

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Fig. 3 Sustainable development goals

At the 2015 meeting of the United Nations conferences, 193 countries prioritized sustainability with a common goal. This consensus has unanimously adopted the ‘Sustainable Development Goals’ consisting of 17 articles in order to increase the sustainability of the world until 2030. Figure 3 shows the Sustainable Development Goals. In the realization of all these goals, technologies that have to be compatible with nature and that prioritize the protection of nature are of great importance. Biotechnology and information technologies are at the forefront of these technologies. Biotechnology and information technologies can able to produce smart solutions with big data that are more compatible in the nature. Many solutions take place at the intersection of these two technology platforms; biotechnology and information technologies. Health, agriculture and food and the applications of biotechnology and information technologies were related to the first three of the ’Sustainable Development Goals’. Increasing healthy water resources with biotreatment systems, clean energy with biofuels, sustainable production with biomaterial-based production in harmony with nature, technologies that protect and enrich marine and land ecosystems are other important applications for other development goals. Biotechnology applications have the potential to create the ’sustainable bioeconomy’, which is the economic model of sustainable life. The circular economy is schematized in Figure 4. All these biotechnology solutions are based on the transformation of big biological data into smart solutions with information technologies. These solutions that can be summarized as the creating a virtual twin with the use of various biological big data, making simulations and transferring them to the real environment will gain a great speed.

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Fig. 4 Bioeconomy for a sustainable life. Unver and Kurnaz [1]

6 Conclusion and Future Insights It is a very exciting experience to evaluate the areas where information technology and biotechnology intersect with the Metaverse. Obtaining of biological big data from the molecular level of life to the most macro level will make big impact to understand biological complexities. In addition to these advancements, algorithms of information technologies have the potential to create a great transformation of biological data in a wide variety of application areas. Although the creation of virtual twins for all living things, including humans, and the creation of virtual environments closest to reality in the real world in the virtual universe may seem like science fiction, it may be the routine of the near future. Especially, reintroducing virtual twins to the physical environment with robotic technologies will bring many economic, social, legal and psychological transformations. Virtual applications of Metaverse in the health field may accelerate transformations such as more effective protection of health, personalized development of drugs, diagnosis and treatments, and not having limited space and time for access to health services. The basis of these innovations is the biological information pool at all levels, obtained with omic technologies, and smart digital applications developed with this information. The integration of real-time biological data collected by wearable biosensors provides huge opportunities to reach biological data. Testing health-related diagnosis and treatment on virtual twins and evaluating biological responses in a virtual environment will enable more accurate diagnosis and more effective treatment. The most important health challenge is the complexity of the biological makeup and the great impact of individual differences. Hippocrates, who is called the father of modern medicine, has this quote as ‘It is far more important to know what person the disease has than what disease the person has’. This valuable quote is important in terms of emphasizing these biological differences thousands of

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years ago. Interconnectivity of biological systems and integrational analysis of all data, from omic data to other vital data, even social connections, and virtual twins created in line with this analysis, virtual systems will have an important place for personalization of health. Innovations in agriculture and food production are spreading rapidly in relation to nutrition, which is the basis of life. Testing, monitoring and instant monitoring with biosensors will create a great transformation in efficient agriculture and quality food production by simulating living structures with virtual twins in the field of agriculture and food, as well as in healthcare applications. Biotechnology is defined as developing products that are compatible with nature by using a solution found in nature, living things in nature or information obtained from living things. As it is clearly stated in this definition, biotechnology acts as a locomotive in the process of developing solutions compatible with nature for a sustainable life. Information technologies might help to increase the scope and efficiency of these solutions to a great extent by blending the applications of biotechnology. The creation of virtual ecosystems and the simulations of virtual living twins in this ecosystem will have many application areas, from early recognition of natural risks to prevention, management of resource constraints and protection of natural life. In addition to all these, transferring biological structures to a data-based virtual environment may require serious ethical rules and security measures. If the living structure can be transferred to the virtual environment as its closest form to reality, a cyber-attack in the virtual environment may also expose the biological structure, all living things, and of course people, to a serious security risk. The use of personal biological information as a resource reveals risks of personal security, cyberattacks and bio-attacks. In this period, the importance of protecting personal data has increased. There will be an increased need to manage the virtualization of biological information with serious regulations. The use of blockchain technology, which is an important technological innovation, will be important in the protection and storage of personal data. Although it still seems like science fiction, advances in neuroscience make it possible to better understand the brain’s network structure, see connections more clearly, and analyze the mind as a relational holistic. Creating a virtual twin of the mind independent of the body may mean reaching the immortality goal within the philosophy of transhumanism. In fact, can the communication, interaction and emotional sharing of virtual twins in the Metaverse turn into reality? Will it be possible to meet with loved ones on the other side of the world in 3D in the Metaverse universe, share, spend time and satisfy longing? In fact, can it be a science fiction scenario to meet your loved ones who are physically separated from this world from time to time in the Metaverse, to have a chat to satisfy their longing? The realization of all these futuristic predictions will require a brand new ethical, legal, economic and social structure. Since virtualization is biological constructs, the acquisition, analysis and integration of biological information into solutions will take place on the biotechnology platform. For this reason, the new age that started at

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the intersection of biotechnology and information technologies has opened the door to great transformations.

References 1. Kurnaz, I., Unver, S.: Biyoteknoloji Ça˘gına Ho¸s Geldiniz. Aba Yayınları (2020) 2. Thomason, J.: MetaHealth – How will the metaverse change health care? J. Metaverse 1 (1), 13–16 (2021). Retrieved from https://dergipark.org.tr/tr/pub/jmv/issue/67581/1051379 3. Kilic, T.: (2021) Ba˘glantısallık & Ya¸samda¸slık, Ayrıntı Yayınları 4. Sagenta Innovation. “What does the Metaverse hold for health care?” https://www.sagentiai nnovation.com/insights/what-does-the-Metaverse-hold-for-healthcare/ (2021) 5. Thomason, J.: Big tech, big data and the new world of digital health. Global Health J. 5 (4), 165-168 (2021), ISSN 2414-6447, https://doi.org/10.1016/j.glohj.2021.11.003 6. Johnson, I. S.: Human insulin from recombinant DNA technology. Science 219(4585), 632–637 (1983). http://www.jstor.org/stable/1690508 7. De Masi, C.: Application of CRISPR/Cas9 to human induced pluripotent stem cells: from gene editing to drug discovery. Human Genom. 14–25 (2020) https://doi.org/10.1186/s40246-02000276-2 8. Dolgin, E.: The tangled history of mRNA vaccines. Nature 597(7876), 318–324 (2021). doi: https://doi.org/10.1038/d41586-021-02483-w. PMID: 34522017 9. Liu, S., Ye, Z.: Intelligent medicine: leading the new development of human health. Global Health J. 5(4), 163–164 (2021). https://doi.org/10.1016/j.glohj.2021.12.001 10. Rizk, S. H.: Ethical and regulatory challenges of emerging health technologies. In: VasiliuFeltes, I., Thomason, J. (eds.) Applied Ethics in a Digital World, Hershey, PA: IGI Global, pp. 84–100 (2021) 11. Mbunge, E., Muchemwa, B., Jiyane S.& Batani J.: Sensors and healthcare 5.0: transformative shift in virtual care through emerging digital health technologies. Global Health J. 5(4), 169–177 (2021), ISSN 2414–6447, https://doi.org/10.1016/j.glohj.2021.11.008 12. Kutman, B.Y.: Tarımsal Biyoteknoloji; ˙Içinde Kurnaz, I. & Unver, S. Biyoteknoloji Ça˘gına Ho¸s Geldiniz.(ss 85–118). Aba Yayınları (2020) 13. Ranjha, M.M.A.N., Shafique, B., Khalid, W.: Applications of biotechnology in food and agriculture: a mini-review. Proc. Natl. Acad. Sci., India Sect. B Biol. Sci. 92, 11–15 (2022). https:// doi.org/10.1007/s40011-021-01320-4 14. Kumar, K., Gambhir, G., Dass, A.: Genetically modified crops: current status and future prospects. Planta 251, 91 (2020). https://doi.org/10.1007/s00425-020-03372-8 15. Türkiye Sürdürülebilir Kalkınma Amaçları, https://turkiye.un.org/tr/sdgs

The Tourism Sector in Metaverse: Virtual Hotel and Applications Seda Karagoz Zeren

Abstract The existence of technological innovations and the transition from the physical world to the virtual world form the basis for research beyond the universe. This is how the Metaverse concept can be defined as beyond the universe. In the Metaverse world, people can create an avatar with the characters they create and with the presence of smart technologies like virtual glasses, smart consoles, etc. They can also travel in this world with their avatars. The physical world’s needs can be met as well as those of the virtual world. In the Metaverse world, people will be able to benefit from hotel businesses to meet the accommodation needs of their avatars. Virtual hotels and applications can also be found in the Metaverse world. The purpose of this research consists of constructing a virtual hotel in the tourism sector of the Metaverse world and determining what the applications of this hotel can be. Within the scope of the research, how to structure the virtual hotel application that can be created in the Metaverse world and its advantages and risks in terms of tourism businesses are conceptually examined. Document analysis and case studies are used as research methods. As a result of the research, it is stated what virtual hotels and applications can be in the context of the tourism sector in the Metaverse, how businesses and guests who use the applications can benefit from these applications, and what alternatives can be related to tourism activities in the Metaverse in future studies from a broad perspective. Keywords Tourism companies · Metaverse · Virtual hotel · Avatar · Tourism industry

1 Introduction The increase in the use of mobile devices with the increase in personal computers makes it easier for people to access information. With smart devices, the satisfaction of various personal wishes and desires can be met easily and quickly. The rapid S. Karagoz Zeren (B) Trakya University, Edirne, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_25

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increase in information and communication technologies enables the emergence of various developing technologies. With the increase in the use of technologies by people, various new technologies and technological integrations are being developed accordingly. With the existence of all these situations, interest in the concept of the Metaverse, which can be described as a new technological revolution, is increasing. The Metaverse refers to the transition to a virtual world created in parallel with the real world. In this universe, people can come together and do various activities. In the Metaverse universe, three-dimensional visuality comes to the fore and there is a new world in which the real and virtual worlds enter into each other. While the connection between the real world and the virtual world increased with the discovery of the internet and the development of web tools, it was mentioned in the work “Simulations and Simulation” written by Jean Baudrillard, a French thinker, and sociologist in 1981, long before this date [1]. This work is a work in which the simulation theory, which gave birth to concepts such as hyperreality, is developed, and the virtual and the real are discussed [2]. In this work, simulations are expressed as “the copy of the copy without an original” [3], while simulation, in other words, hyperreality, is expressed as “the derivation of reality devoid of an origin or a reality through models” [4]. It is stated that losing reality creates a virtual new world hyperreality. In the Metaverse universe, there is a situation of hyperreality where the real world and the virtual world coexist. The fact that the existence of a virtual world associated with the real world can be realized is also curious to people and the fact that many activities that can be done in the real world can be done in the virtual world is also interesting to people. One of these activities is tourism activity. Tourism activity is a type of activity in which people meet their needs in the form of sightseeing, resting, having fun, and learning. Bayer [5] defines tourism as “a humanitarian activity that departs from a place of leisure or business to a specific destination”. With the development of technology, the preferences and experiences of tourists who benefit from tourism activities are changing and there are orientations to applications where virtual worlds can be used more actively. Dubey [6] states that tourists can have different experiences with 3D printers and virtual reality applications. Similarly, Suava [7] declares that smart travel companions consisting of augmented reality, e-agency, virtual reality, hologram, and artificial intelligence-supported applications used in tourism will offer tourists the opportunity to try before activities take place. In Metaverse universes, an environment is created where possible personalized tourism experiences can be provided with the use of artificial intelligence-supported virtual reality tools. In the world of Metaverse, it is stated that there will be both brand loyalty and revenue increase with “renewed guest reservations”, “realistic virtual tours”, and “enriched virtual journeys” in tourism [8]. This paper is a conceptual analysis of tourism activities in the Metaverse, which may be a transformation that will be experienced in the tourism sector with the development of technological possibilities in recent years, the existence of virtual hotel construction in this universe, and what its applications may be. The purpose of this paper is to look at the benefits and opportunities, as well as the risks and threats, that a new tourism activity in the Metaverse universe will provide for tourism businesses. Within the scope of the case study, it is discussed how the virtual hotel

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can be designed in the Metaverse universe and what its applications can be. The paper aims to create a foresight for tourism businesses and their stakeholders, focusing on the developments in the tourism sector in the Metaverse universe.

2 Metaverse and the Tourism Sector In tourism, service production offers a significantly different holiday experience than physical product production, which is facilitated by many suppliers [9]. In order to benefit from the services in tourism, a first-hand experiential process must be carried out. Such a requirement does not make it possible for the person to experience the tourism activity without performing it, but it provides the opportunity to experience it only while performing that activity. People can use virtual applications to have an optimally realistic experience without performing tourism activities. A virtual experience can be used to approximate reality by offering realistic interaction through technological applications such as three-dimensional (3D) technology and can attract tourists to the relevant destination [10]. The infrastructure of a city in information and communication technologies plays an important role in making that city competitive in tourism [11]. With virtual technologies and a smart city application that offers a three-dimensional experience, tourism destinations can be presented to tourists more attractively. Before arriving at the destination, a tourist can obtain information about the destination through virtual technologies. In destinations called smart tourism cities where the use of virtual technologies is at the forefront, the pleasure of tourists from the touristic place increases, and tourists can reach touristic destinations more easily. As a result of supporting smart tourism cities with advanced technologies, tourism activities will be possible in Metaverse universes. While the Metaverse universe is expressed as a convergence of the virtual and real worlds, smart city applications can take place in a Metaverse universe by transforming them into real and virtual-based metadata warehouses [12]. Applications that focus on the real world and enable one to experience the real world with virtual technologies are called real-based Metaverses as mirror worlds [13]. An example of this application is the “Casa Batlló” museum, built by the famous architect “Antoni GAUDí” in Barcelona (Spain), where AR technology is used and is included in the digital exhibition created by the digital painter “Refik ANADOL” [14]. Figure 1 shows a visual of the dynamic non-tradable token-NFT (non-fungible token) work named “Casa Batlló: Living Architecture” designed by Refik ANADOL using blockchain technology and sold for $1,380,000. The virtual-based Metaverse, on the other hand, provides an experience as a result of the creation of a virtual world, unlike the real world. In this way, tourists experience tourism in a virtual environment while performing their tourism activities through their avatars [13]. An example of a virtual-based Metaverse application is “The Sandbox (SAND)”, a game where digital lands called LAND can be purchased

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Fig. 1 Casa Batlló: a living architectural NFT work (Refik ANADOL) [15]

and buyers can create experiences on them to interact with other users. An image of the virtual-based Metaverse example, The Sandbox, is shown in Fig. 2. Another example of reality-based and virtual-based Metaverse applications is the application called “AR Incheon”, which is a smart city application developed by South Korea and presented with AR technology as a reality-based metadata store, and Metaverse applications called “Incheoncraft”, which is a virtual-based metadata store [12]. Metaverse applications in the tourism sector can also take place by using video game (gaming) technologies. Tourism experiences in Metaverse universes are transformed into experiential travel forms by gamification in tourism marketing [17]. Metaverse applications can take place in many areas in the tourism sector. It can be used to indicate the cultural heritage of a destination, to animate historical and cultural events, to promote tourism destinations with virtual tour guides (chatbot), in tourism destination marketing activities, in the process of creating customer loyalty

Fig. 2 The Sandbox (SAND) Metaverse [16]

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by providing a personal experience to tourists and visualizing entertainment, shopping, accommodation, and food and beverage services. Another example of Metaverse applications in tourism is the introduction of Gyeongju Historic Sites in South Korea, which was included in the World Heritage List by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in 2000, by organizing VR tours online within the scope of Gyeongju cultural tourism. A similar application is the creation of a virtual Hangang park application, which enables the Hangang River to be visited from anywhere in the world, on the “ZEPETO” application, which is the Korean Metaverse created by the Korea Tourism Organization [18].

3 Advantages and Opportunities, Risks and Threats for Tourism Companies in the Metaverse Metaverse is a universe that adds new meanings to new technologies by using them together. For example, in this virtual universe, cryptocurrencies form the basis of the economy, while non-tradable tokens (NFT) and smart non-tradable tokens (INFT) are used in asset management. With the avatars that users have determined for themselves in the Metaverse, users will be able to do what they can do in real life in the Metaverse. For this, they will benefit from NFT and INFT digital assets. For example, in this Metaverse, when a user wants to take his/her avatar on a trip, he/she can pay a certain economic price in crypto money to the destination he/she will reach, and if he/she wants to have a marked product belonging to this destination in return, he/she will be able to buy the NFT or INFT version of that product and have a digital asset. As the simulation power increases, the perception difference between the real universe and the virtual universe will decrease and users will be able to manifest themselves as a part of the Metaverse. Another advantage that tourism businesses in the Metaverse can provide is that businesses can seize economic opportunities in this universe and can carry marketing activities to the digital environment. In particular, the interest of the Z generation and the Y generation in the idea of a holiday that can be made in this universe, the marketing activities of tourism enterprises through this channel will make the enterprises an inseparable part of the economy of the future. In terms of tourism businesses, providing services in the Metaverse universe can be seen as a risk, as the real perception and virtual perception of the users are deleted and the demand for that business in the real world decreases. Similarly, the operation of a business in the Metaverse and the presentation of digital assets may bring along certain expertise, technological infrastructure, difficulty in use, security and privacy problems, and administrative and legal obligations. The challenges associated with this and similar issues are meta lawyers, meta tour guides, meta marketing experts, meta managers, etc. will be able to both lay the groundwork and offer solutions for new professions that may emerge in the future.

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If a tourism business in the Metaverse continues its marketing activities in this universe, creating brand awareness in the long term and offering new ways of communicating with the target audience may create opportunities to create customer loyalty. The rapid change in technology, the profit-oriented approaches of technology companies and managers of tourism businesses that will take place in this universe, the inability of users to adapt to new technologies, the problems of control and confidentiality, the decrease in the perception of truth, and the increase in disinformation may be threat factors [19]. Even if there are various obstacles to presenting a tourism activity in the Metaverse, it is possible that the future will be an inevitable tourism activity. Hedonic desires, the desire to be a part of the community, the ability to use technology as a pioneer, etc. may require tourism businesses to be even more active in the Metaverse in the future.

4 A Virtual Hotel and Applications Tourism and entertainment sectors are among the sectors that will gain the most momentum in the Metaverse [20]. Tansu Yegen, Vice President of UiPath Europe, a global software company that makes robotic process automation software, said, “Tourism, education, entertainment, and even the health sector will capture serious potential through the Metaverse. A hotel will be built in the Metaverse, a vacation will be taken, and payments will be made with cryptocurrencies. People will be able to wear their virtual glasses and visit the ruins of Ephesus, and then come and visit here” [21]. Although a full Metaverse experience is not fully presented at the moment, tourism businesses have also started to take place in the Metaverse universe with virtual hotels and applications. The first of these studies is the market research of the Aloft hotel, which is part of the hotel chains of the Marriott Group, through the “Second Life” application, which is a virtual platform. In September 2006, Starwood Aloft hotel in the virtual world was presented as a digital prototype of the hotel planned to be built in the real world, two years before its opening. The hotel, which remained open in the virtual universe until June 2007, received feedback on the design and design from the virtual guests using the service, and the hotel built in the real world was designed using this information [22]. Figure 3 shows the Aloft hotel design, the construction of which was completed in the real world, and the Aloft virtual hotel design in the Second Life application. A similar pioneering application in the Metaverse universe was presented by the Marriott group in 2021. Marriott Bonvoy, the loyalty program that replaced Marriott International, Marriott Rewards, The Ritz-Carlton Rewards, and Starwood Preferred Guest (SPG), started to be implemented in 2019 [24]. With the “Global Power of Travel” campaign created within the scope of the Marriott Bonvoy program, it took place as an accommodation brand in the social platforms “TikTok” and “Pinterest” applications in 2021. In 2022, it partnered with three digital artists for the NFT

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Fig. 3 Aloft Hotel design (In the real world on the left picture and in the virtual world on the right picture) [23]

Fig. 4 Marriott Bonvoy NFT collection [25]

collection, a digital asset in the meta database. With these situations, the first hotel to offer accommodation services to join the Metaverse was the Marriott group [8]. Figure 4 shows three NFT collections created for the Marriott group.

5 Conclusion and Discussion Metaverse, which enables tourism businesses to provide an experiential service to their guests, attracts the attention of users and tourism sector stakeholders. The number of consumers in the meta database in this universe is increasing, with many tourism businesses offering and preparing to serve in the Metaverse. In the metauniverse created by the intertwining of the real world and the virtual world, tourism businesses will be able to offer their services and users will be able to realize metatourism, which can turn into a new type of tourism in the future, through their avatars. It will be crucial for hospitality and tourism industry actors not only to recognize this new phenomenon Metaverse but also to take advantage of this opportunity to

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develop strategies to actively participate in this new world and to create a sustainable competitive advantage. Although accommodation and tourism activities in the Metaverse universe cannot replace real-world service experiences, consumers will also be able to reveal a new marketing approach by changing the way they consume touristic products and services. Similarly, there may be differentiations in the administrative processes of tourism enterprises in the Metaverse. With the increase in the applications of tourism businesses in the Metaverse, the opportunities, risks, and threats to be provided for businesses will be explained more clearly. As stated in the Technology Acceptance Model [26], the success of applications related to the Metaverse may occur not only according to technical and managerial characteristics but also according to the personal characteristics, expectations, and perceptions of Metaverse users. Especially with the population growth in Generation Z and the interest in the use of technology, tourism businesses are likely to gain various opportunities such as pioneering, creating customer loyalty, economic benefits, etc. from Metaverse applications. When the guests perform their tourism activities in the Metaverse universe, they will be able to make more active use of the services experientially. The transformation to be experienced in the tourism sector in the Metaverse universe and the effects of this transformation will create a road map for further studies.

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14. Casa Batlló by Antoni Gaudí, Barcelona: Living Architecture Casa Batlló by Antoni Gaudí, Barcelona by Refik Anadol Studio, 07 05 2022. https://www.casabatllo.es/en/mapping/. Accessed 10 June 2022 15. ˙IHA: Refik Anadol’un ‘Casa Batllo: Ya¸sayan Mimari’ adlı NFT eseri, açık artırmada 1,38 milyon dolara satıldı, 11 05 2022. https://www.cumhuriyet.com.tr/yasam/casa-batllo-yasayanmimari-adli-nft-eseri-acik-artirmada-138-milyon-dolara-satildi-1934763. Accessed 10 June 2022 16. Eser, S.: Patlayan Metaverse Coin The Sandbox (SAND) Nedir? 20 11 2021. https://kripto koin.com/the-sandbox-sand-nedir/. Accessed 10 June 2022 17. Rainoldi, M., Winckel, A., Yu, J., Neuhofer, B.: Video game experiential marketing in tourism: designing for experiences. In: ENTER22 e-Tourism Conference, Cham, pp. 3–15. Springer, Cham (2022) 18. Yoo, S.C., Piscarac, D., Kang, S.: Digital outdoor advertising tecoration for the Metaverse smart city. Int. J. Adv. Cult. Technol. 10(1), 196–203 (2022) 19. Ku¸s, O.: Metaverse:‘Dijital büyük patlamada’fırsatlar ve endi¸selere yönelik algılar. Intermed. Int. E-J. 8(15), 245–266 (2021) 20. inbusiness: Metaverse pazarı en çok bu sektörleri ilgilendirecek (2022). https://www.inbusi ness.com.tr/sektorler/teknoloji/2022/02/19/Metaverse-pazari-en-cok-bu-sektorleri-ilgilendi recek. Accessed 15 June 2022 21. Marqasal: Metaverse Pazarının 5–10 Yıl ˙Içinde 8 Trilyon Dolara Ula¸sması Bekleniyor (2022). https://www.marqasal.com/Metaverse-pazarinin-5-10-yil-icinde-8-trilyon-dolara-ula smasi-bekleniyor/?doing_wp_cron=1656625322.3489160537719726562500. Accessed 15 June 2022 22. A˘gacı, Y.: Aloft Hotels Second Life(R)’de Güncellenmi¸s Tasarım Stratejisini Açıklayacak. https://www.hospitalitynet.org/news/4031358.html. Accessed 15 June 2022 23. Gates, S.: Aloft Hotels in Second Life (2014). https://stephengates.com/portfolio/aloft-hotelssecond-life/. Accessed 15 June 2022 24. Marriott International News Center: Marriott Bonvoy Invites Members to Explore the World with its First Ever Bonus Points Promotion, “Double Take” (2019). https://news.marriott.com/ news/2019/03/08/marriott-bonvoy-invites-members-to-explore-the-world-with-its-first-everbonus-points-promotion-double-take. Accessed 15 June 2022 25. OpenSea: Mariiott Bonvoy NFT Collection (2022). https://opensea.io/collection/marriott-bon voy-nft-collection. 26. Davis, F.D.: Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Q. 13(3), 319–340 (1989)

Metaverse and Supply Chain Management Applications Gülçin Büyüközkan

Abstract Technological advancements triggering Industry 4.0 have lately been shaping logistics and supply chains through digital transformation. Metaverse uses new technologies such as 5G, industrial IoT, VR/AR/XR, and digital twins to deliver an immersive and multi-sensory user experience. Thanks to the application potential of these technologies, logistics and supply chain industries will benefit the most from the Metaverse. Metaverse will increase supply chain transparency and visibility into how products are manufactured, stored, distributed, and sold. Metaverse furthermore promotes collaboration throughout the supply chain, both up and downward, making the end-to-end chain more efficient and effective. This chapter explores how Metaverse technology can change, improve, and transform supply chains. Keywords Metaverse technology · Supply chain · Transparency · Visibility · Collaboration

1 Introduction Supply chain management can be defined as strategic and systematic coordination, integration, and management of business functions, processes, and plans of different entities in a supply chain related to the transformation and movement of products from the raw material stage to the end users, especially those of suppliers, manufacturers, and end buyers, to improve the long-term performance of the entire chain. Today, an effective supply chain entails the enhancement of supply chain processes with digital technologies to be fully integrated with suppliers, manufacturers, logistics, and warehouses with a digital supply chain approach [1]. In this study, embedded Metaverse technologies are proposed for reliable, transparent, and effective supply chain structures. Metaverse can help visualize a supply chain by three-dimensionally representing the manufacturing, distribution, and sales processes. This implies that parties in the G. Büyüközkan (B) Galatasaray University, Istanbul, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_26

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chain will easily gain valuable insights into lead times, durations, delays, and even real-time costs of, e.g., transportation. Such access to transparent and visible data will not only increase the reliability and efficiency of supply chains but will also promote simultaneous collaboration among these parties both up and down in the chain, instead of merely seller’s suppliers for innovation and cost purposes. The access to real-time visualized supply chain information, enhanced by Metaverse technologies, can thus ameliorate the overall efficiency, transparency, effectiveness, and ease of process optimizations and cost negotiations between buyers and sellers. As an increasingly popular technology for logistics and supply chains, Metaverse and immersive virtual environment supporting various online collaborative interactions can lead to increased quality of products and services with reduced margins of error, decreased customer churn and return rates, and cost savings thanks to, e.g., reduced need for quality control or travel to vendor locations. This study will explain how Metaverse technology can be applied for more efficient logistics and supply chain activities. It is structured as follows. After the first introductory part, the second part summarizes the contributions of key technologies for the Metaverse to supply chain management processes and operations. The third part, titled “meta supply chain management,” provides insights into the effects of Metaverse technology on supply chain management. The last section provides a general evaluation of the study.

2 Metaverse-Enabling Digital Technologies for Supply Chains Metaverse leverages the strengths of many digital technologies [2, 3]. The digital technologies that power the Metaverse and also stand out for more effective supply chain management are presented in Fig. 1. This section briefly introduces these technologies and then describes how they affect and shape supply chains to illustrate the potential of the Metaverse for supply chains.

Fig. 1 Key digital technologies for the Metaverse and supply chains

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2.1 Big Data and Data Analytics Big data is the raw data collected from various communication sources, transformed, and made processable. When big data is interpreted with suitable analysis methods, it supports companies to make strategic decisions accurately, manage their risks better, and innovate. Data analytics provides an advantage to businesses by using statistics, mathematics, econometrics, simulation, and other techniques to draw meaningful conclusions from data and support companies in making better decisions with these results. Analytical tools are used to provide real-time information in the light of data, to closely monitor the ecosystem in which the organization is located, and to report to senior executives. Big data and data analytics significantly impact on logistics and supply chain management [4]. Indeed, along with the material and financial flow, information flow is essential in logistics and supply chains: the earlier and more precise the data-driven information is obtained, the greater the success in optimization and the better the business processes. Advanced forecasting techniques and real-time processes are essential for capacity forecasting and resource control. Data analytics allow taking action against such supply chain risks. In this regard, DHL, a logistics service provider, has identified three key value areas of big data in its research [5]. Operational efficiency, customer experience, and new business models. Operational transparency, resource utilization, as well as process quality and performance can all be improved with the help of big data, in particular for larger-scale logistics and supply chain operations. Similarly, big data analysis techniques can be used to understand and differentiate better those customer demands that will create value and ensure loyalty, take business continuity management measures, and develop new business models for supply chains.

2.2 Internet of Things The Internet of Things (IoT) can be defined as communicating with physical objects containing embedded technology over a common network. Increased interest in IoT applications can be traced back to the availability of low-cost sensors, control, and transmission tools that can be embedded in physical objects, the accessibility of networks, and the increase in their capacities, and developments in data storage and analysis, among other factors. For supply chains, the IoT provides significant benefits in terms of operational efficiency, safety and security, customer experience, and new business models [4, 6]. It supports new generation “track and trace” systems to increase the visibility of the movement of products in a value chain, enabling faster, more accurate, predictable, and safe monitoring and tracking of supply chain risks. Connected pallets and objects in warehousing can enable smarter inventory management, creating opportunities

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for operational efficiency in warehouse and transportation operations. By eliminating unnecessary work and standardizing work processes, they facilitate quality and predictability and reduce costs by utilizing people, systems, and assets collaboratively and efficiently. With connected vehicles, fleet management and maintenance schedules can be automated. Connecting delivery personnel and vehicles can impact return routes and increase efficiency in consumer deliveries [7].

2.3 Digital Reality Digital reality is a term that covers augmented reality (AR), virtual reality (VR), mixed reality (MR), IoT, and spatial technologies [8]. It has redefined how people interact with data, technology, and each other. Although wearable technologies, smart objects, and sensors are beginning to dominate consumer consciousness, the important point is not the device itself but the scenarios and experiences made possible by the devices. In the digital age, people’s participation is unnaturally through glass screens. Digital reality transcends keyboards and touchscreens to offer a more vivid, personal, and customized experience, presenting new ways for engaging users. Advances in speech interfaces, computer vision, and auditory technologies realize the dream of discovering unique experiences for people interacting with the digital world. In the supply chain, AR today shows its greatest potential in warehouse activities [4]. It provides great benefits, especially by improving the material-picking process. It helps to train new and temporary employees and to activate the warehouse plan. With AR, realistic simulations of warehouse activity processes are produced in warehouse redesign and planning studies. Changes are tested and planned, and new designs are corrected in a realistic environment through field testing. AR tools (e.g., glasses, windshield projection) will start to replace navigation systems in transport (delivery) vehicles to optimize routes, increase driving safety and minimize driver distraction. This will enable the driver to use this technology without taking their eyes off the road and access critical information about real-time traffic analysis, the environment, the vehicle, and the goods/cargo being transported. Although still under development, AR and wearable technologies promise reduced margins of error in logistics operations, shorter and more efficient processes, agentless working with mobile connectivity, real-time monitoring and inspection, and safer business processes through digital controls [6, 9].

2.4 Artificial Intelligence Artificial Intelligence (AI) can be defined as a computer’s or machine’s ability to carry out specific processes very similar to human beings. In today’s digitalized world, a wide range of AI applications are emerging to address the needs of the real

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world, mostly thanks to more economically viable software, advancing technology, and processing power. AI technologies transform supply chains through real-time data processing and decision-making to make supply chains truly data-driven, reduce human subjectivity and bias, and help the formation of digital supply networks [10]. AI technology learns from the raw, unprocessed data available in the supply chain and can improve organizations’ end-to-end visibility, enabling more efficient demand forecasting, inventory management, logistics optimization, product sourcing, supply chain planning, and workforce planning. It also contributes to the sustainability of organizations by providing significant improvement in their productivity and gross profit margins in the short term [11].

2.5 Digital Twins A digital twin can be briefly defined as a detailed virtual model of a real-world entity or system. Typically, digital twins are a unique, single, and private copy of the object that acts as a bridge between physical entities and virtual models using real-time data of the objects. It mimics an object’s physical state and behavior and connects to the object in such a way that it updates itself according to changes in its conditions, state, or content. It can visualize, analyze, predict, and optimize. In addition to these characteristics, digital twins can have even more potential to create value in practice. For example, a digital twin remains existing beyond the creation of its physical counterpart, even after its lifecycle. A single object may have multiple digital twins, with differentiated models designed for different users and functions, e.g., contingency planning or estimating the state of the object in future operating conditions. The supply chain digital twin helps firms in the chain to make more effective decisions in the short, medium, or long term [12]. Short-term decisions are more about better understanding existing or potential problems and comparing possible solutions. Better planning of daily operations can also be part of the work. Production scheduling, vehicle routing, or warehouse workforce planning can be done based on several days or weeks of operation data. Medium-term decisions are made in situations that can change on the order of months. Re-determining inventory levels in case of demand changes, calculating vehicle requirements for distributions in certain periods, deciding how many workers and shifts the factory will have in different periods, etc. Long-term decisions are more like strategic decisions about what a supply chain should ideally look like—network design and optimization, planning of long-term production, logistics capacity investments, etc. By using historical data, it is possible to design the supply chain with lower costs and higher efficiency. Digital twins provide the full picture of product performance throughout the lifecycle, enabling businesses to apply an integrated, comprehensive perspective to manage these products. A similarly holistic approach should be adopted to supply chains to maximize the lifetime value of products and related services. Specifically,

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businesses explore creative approaches to optimize inventory amounts with their associated costs and lead times in supply networks, highlighting the criticality of transparent and holistic supply chain visibility. Value chain setups enabled with digital twins are essential to withstand fluctuations in supply and demand, recover quickly in extraordinary situations, maintain service levels by acting flexibly under challenging conditions, and ensure consistency in lead times [13]. Achieving a digital twin of a warehouse or a distribution center can greatly affect how logistics facilities can be designed, operated, and optimized. Digital twins can be thought of as a 3D model of a facility, with technology developed to visualize the movements and packaging operations in a closed space. The warehouse digital twin supports the design and blueprint of facilities, helping businesses optimize the use of their available space and mimic the flow of goods, staff, and equipment [14].

2.6 Blockchain Blockchain is a smart business model and way of doing business, a high-security electronic record-keeping mechanism open only to stakeholders that proves who owns what or what is sent between interlocutors. By using high-level encryption and data protection with blockchain technology in supply chains, it is possible to monitor all intermediate processes of a product, from raw material procurement to production, end customer, and beyond, in a recorded and documented manner. This level of visibility can help customers make more informed purchase decisions, save time and cost, and reduce errors. Blockchains can also be used for applying smart contracts so that the system automatically approves a specific process of the supply chain along with the clauses in the contract in real time. As a system becomes more digitalized, e.g., with blockchain technology, such a reduction in human intermediaries will decrease time spent on manual work, the associated costs, and errors. The data produced and stored by blockchains provide various opportunities to process data, a must in data-driven supply chains [15]. These may include [16, 17]: Increased transparency and visibility throughout the chain; improved coordination between supply chain partners; enabled and improved realtime monitoring and control; increased efficiency and speed; improved data, product, and process quality; increased reliability and auditability; increased security.

3 Meta Supply Chain Management The complexity and distributed character of supply chains point to the potential of using Metaverse for creating entirely new supply chain experiences. A recent survey by Accenture found that 64% of executives in supply chains expect benefits from Metaverse for their supply chain processes and operations [2]. In the

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Fig. 2 Benefits that meta supply chain management can provide

Metaverse-based supply chain management structure, which we call “Meta Supply Chain Management,” these benefits are summarized in Fig. 2.

3.1 Effective Collaboration at All Layers of the Supply Chain The Metaverse is a space where suppliers, manufacturers, and customers across all supply chain layers, both internally and externally, can coexist and interact in realtime, enabling greater collaboration. Higher connectivity potential does not only promote a more direct collaboration up and downward within the supply chain to reduce costs. It also makes synchronization across the value chain faster and simpler. Better connectivity implies a more responsive, visible, and reactive value chain [18]. The Metaverse moreover offers every employee, from workers to logistics teams and supply chain professionals, smart planning tools for taking sustainability and occupational health and safety issues into greater consideration. For example, in a Metaverse “collaboration room,” teams of retailers and suppliers can virtually convene to discuss sales plans, production schedule forecasts, and expected production volumes based on potential supply limitations. In another example, parties of a supply chain network can spot the exact locations of inventory items, estimate delivery delays due to congestion by virtually moving through routes, and come up with alternative routes to ensure goods move to the correct store and shelf [2].

3.2 Increased Supply Chain Transparency Stakeholders of a global supply chain often expect good visibility and clarity of where raw materials are sourced from, where components are manufactured, finished by whom, the extent of environmental and secondary impacts, and similar data that

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conventional supply chains usually fail to provide in sufficient depth and quality. Metaverse technology can simulate the entire chain in 3D to transparently visualize how producers manufacture and deliver their goods and services so that supply chain parties can see real-time lead times, transportation costs, transit times, and estimated delays, among others, which will also strengthen the trust, reliability, and efficiency [19].

3.3 Effective Balancing of Supply and Demand Metaverse will help companies reduce supply constraints by offering user-friendly insights into processes, facilities, inventories, and capacities. With the immersive nature of the Metaverse, there will be more interaction with customers and greater visibility into the buying process, enabling a better understanding of customer demand so that it becomes fully “knowable.“ This will enable a shift in supply chains from under-estimating demand to working/doing business with highly accurate data that can create new opportunities to create stronger customer experiences and create more customer value by delighting customers [2]. Collecting information from both sides will help align supply and demand. Irrespective of the location of supply chain partners, the Metaverse will make it easier to collaborate and make faster, more effective decisions.

3.4 Effective Planning and Forecasting Using the Metaverse can offer new ways of addressing supply chain problems that are difficult or even impossible to solve with conventional chain structures. Due to their prohibitively high costs, resource consumption, and the specific environments such problems present themselves, workable solutions were traditionally developed by supply chain professionals who had to make assessments of current situations using historical data and personal experience, which can fail with costly implications. In the Metaverse, in contrast, decisions for new circumstances do not necessarily have to depend on historical information since AI can instead produce synthetic data adapted to the new situation. For example, during the pandemic, companies were unable to accurately predict supply or demand and had to rely on historical data, obviously only with limited success. Similarly, for the next years, the data collected during the pandemic will not be sufficiently representative, presenting a data gap, although conventional supply chains will still rely on these. In such scenarios, AIgenerated synthetic data can help businesses develop better forecasts for simulating market and supply chain conditions [2]. The Metaverse will therefore provide supply chain partners with stronger tools for using synthetic data for modeling and scenario planning and new levels of supply chain data. This will enable greater accuracy in plans and forecasts.

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3.5 Streamlining the Procurement Process Business continuity requires companies to procure the goods and services needed at the right time, in the right quality, in the right quantity, and from the right sources. Managing procurement carefully benefits companies due to their cost aspects. In supply chain structures supported by digital technologies, data processing becomes dynamic, where value chains are connected end-to-end. Potential gains in efficiency, cost savings, performance, and resource use can be achieved with AI-based Metaverse applications in demand forecasting, supplier risk and performance management, contract management, and negotiation processes [10]. For example, procurement personnel can visit virtual trade fairs and showrooms to engage with new suppliers, get to know new contacts, and stay up-to-date with emerging technologies and new products. Such Metaverse technologies promise immersive and interactive experiences with products and quickly test new designs in a virtual world [20]. The Metaverse can be expected to improve sourcing and purchasing processes by simplifying, accelerating, and enhancing these. The same is also true for the procurement of design-based products, where the Metaverse can bring buyers and suppliers together in virtual environments, enabling buyers to better understand and interact with virtual models of new or updated products, make better-informed decisions, and even virtually provide feedback to suppliers for production-optimized designs and better product quality. This way, the Metaverse offers efficiency gains by reducing quality control costs and the need to visit suppliers’ premises for inspection and approval [19].

3.6 Streamlining the Production Processes Manufacturing is a critical part of supply chain management and involves many complex processes. The various components involved in the manufacturing process include inventory and labor costs, production speed, quality control, and quality assurance, among others. Common manufacturing problems, such as quality control concerns, long-term contracts, and production design risks, can lead to production delays, defective products, and customer dissatisfaction. A Metaverse-integrated approach in manufacturing can improve the effectiveness of supply chain management, production designs, and inventory management. The three major highlights of Metaverse applications in manufacturing are rapid production processes with collaborative product development, increased product designs, and visibility into supply chain processes that provide transparency to customers [21]. For example, the Metaverse can make virtual tools, such as 3D visualization, more easily accessible to customers. This will enhance creativity and accelerate the possibilities for mass customization. It will also facilitate the digital replication of products, making it possible for manufacturers to better allocate resources between facilities along their value chain and plan accordingly with alternative production

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scenarios, leading to less disruption to physical production facilities, reduced downtime, easier adoption of alternatives, and rapid changeovers in plants. To meet customer requirements, Metaverse enables cost-effective production of personalized products in traditional factories that have been originally designed for mass production [19].

3.7 Enabling Product Life Cycles Depending on the interactions of users in the Metaverse environment, many different types and large volumes of data are generated. It will be possible to utilize these data in new product development or product improvement processes. Metaverse is an ideal virtual platform for exchanging ideas, collaborating on new product plans, sharing innovative ideas with other parties in the supply chain, and receiving rapid feedback. This shortens the lifecycle of new products and promotes practical designs by enabling fast, responsive, and intelligent planning [19]. In short, the Metaverse can increase the efficiency and agility of product design and development life cycles, simplify design and development processes, reduce costs, and provide an enabling environment for more customer-oriented product and service designs.

3.8 Enabling Warehouse Design Metaverse can help plan warehouses by refining and immersively simulating them before they are created physically. Material flows in the warehouse and the outline of changes can be modeled before work commitments. This not only saves time and money in the transition process from concept to reality but will also result in better warehouse designs and more conducive working environments. While optimization and placement in warehouses are always important, such virtual planning can be particularly critical in regions and micro-distribution centers where storage capacity is scarce. Better active space utilization through modeling and improved location and shelf optimization will provide more benefits as the volume of SKUs grows [19].

3.9 Enabling Quality Control and Audits Quality is critical for supply chain compliance and consumer satisfaction. Metaverse enables us to see quality control, inspection, or compliance gaps along supply chains and helps us close them. In particular, simulating the usual testing and quality control processes of large product volumes in a 3D environment offers potential benefits. For example, advanced cameras can be used in combination with rapid image processing technologies to keep factories, production lines, and products under tight control to

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make sure that quality requirements are met. Potential product problems can be identified and resolved by transparently sharing lab test results, sample tracking, and sample room management in a virtual environment. Facility audits can be carried out virtually, at least partially, without being physically present on-site with the help of, e.g., an on-site auditor using cameras, smart glasses, and other technologies. In other examples, IoT and other devices can monitor emissions and other environmental impacts in real-time that inform decision-makers, or packaging designs can be virtually inspected to reduce waste and streamline transportation and distribution [20].

3.10 Reducing Returns and Effective Returns Management Wide-ranging collaboration and optimized strategies for deeper manufacturing and jointly managed margins for manufacturing errors can help produce better goods and services that result in reduced return rates. Real-time visibility across the chain and intelligent optimization tools will enable efficient management of returned goods and processes.

3.11 Effective Training of Human Resources Training of personnel is critical for the development of individuals, improving the quality of jobs and the efficiency of business processes, and ensuring job security. One of the important areas where Metaverse can create value in supply chain management is the development of human resources virtually, without the need to halt supply chain operations at affordable costs in the safe digital reality that the Metaverse environment presents.

4 Conclusion Effective integration of information technologies into supply chain structures is at the heart of effective supply chain management. It is critical for supply chain professionals to closely follow IT technology trends and integrate them into their business to generate better value. The Metaverse is a digital universe powerful enough to eliminate the boundaries between users’ perceptions of the real and the virtual world. In this virtual universe, the behaviors that exist in life now have a more realistic equivalent than ever before. Therefore, the Metaverse has the power to create new supply chain experiences that have never been experienced before in the real world.

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At the moment, Metaverse technology is in its baby steps. However, the technologies underlying the Metaverse are not new, and some of its key features are being increasingly deployed by leading firms to understand the benefits it will create. For example, AR is being used to enhance planning processes, and supply chain digital twins are being used to model manufacturing operations. Over time, as these technologies mature and become more widely deployed, this transition will become more tangible and profoundly transform the way supply chain networks operate. Despite the benefits the Metaverse promises, there are some limitations associated with implementing this technology, as follows: ● Organizational constraints: Institutional resistance to Metaverse technology by companies and employees in the supply chain and problems of integration of this technology into supply chain processes. ● Technological constraints: Cyber security, security of data sharing, compatibility and standardization problems, and infrastructure inadequacies (slow internet speed, etc.). ● Operational constraints: The cost of the infrastructure required by Metaverse technology, lack of knowledge and experience. ● Sustainability constraints: Creating and maintaining a universe in the Metaverse require very high energy consumption, with its associated legal and ethical issues. For future research, it is also important to investigate the challenges or barriers to further expansion of the Metaverse in supply chains. Acknowledgements This work has been supported by the Scientific Research Projects Commission of Galatasaray University (FOA-2021-1059).

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Metaverse Applications in Education: Systematic Literature Review and Bibliographic Analysis of 2010–2022 U˘gur Sirvermez and Sehnaz ¸ Baltaci

Abstract In recent years, the use and popularity of virtual environments and 3D virtual games in education have been increasing. In addition, virtual environments where people can meet and shop have started to be preferred day by day. In particular, the COVID-19 pandemic crisis has brought some changes in the education system. The environments in which teaching takes place have rapidly changed to cover a broad audience. In this case, different situations arise in the design process of the virtual learning environment made in the Metaverse environment. In this chapter, a systematic and bibliometric analysis of the concept of the Metaverse and the gamification applications created in virtual world environments associated with this concept in virtual environment design has been carried out. In this study, a systematic review of the use of Metaverse environments as an educational environment, the preferred techniques, and the criteria considered was carried out and was completed in seven stages. PRISMA guidelines were used as the reporting method. Within the scope of the research, only applied research is carried out in the field of education, including the concepts of “Virtual World”, “Second Life”, “Multi-user virtual environments (MUVE)”, and “Social MUVE”, in the databases of ERIC, Web of Science, Tr Index for the years 2010–2022 were included. In the first stage, 342 studies were accessed, and 52 studies that met the selection criteria were included in the analysis. The articles were examined in the context of the title, abstract, keyword, method, type of application used, application area, and findings. In this context, the literature was reviewed, the studies in the last 10 years were examined, and the historical development of the Metaverse, its applications in education, and suggestions for future studies were presented. Keywords Metaverse · Systematic literature review · Bibliographic analysis · Virtual world · Virtual environment

U. Sirvermez · S. ¸ Baltaci (B) Bursa Uludag University, Bursa, Türkiye e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_27

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1 Introduction Recently, the word Metaverse has started to be heard frequently, and the popularity of virtual environments and 3D virtual games has increased rapidly. However, virtual environments where people are able to meet or shop have also been increasing rapidly. Damar (2021), in his study on the Metaverse, states that the subject of Metaverse has been intensively studied along with virtual reality and augmented reality technologies and that the education sector and digital marketing areas exhibit interest in this technology [1–3]. They also suggest that the Metaverse will probably penetrate many areas of our lives in the next 15–20 years and that this technology will shape our lives [2]. Blockchain technology, which is used together with the Metaverse, may be one of the critical issues of the upcoming period. This way, public and healthcare procedures can be carried out faster and with less labor burden with the introduction of artificial intelligence [4]. In this context, in a world where the economy has gained significance with new blockchain and cryptocurrency technologies, concepts such as digital citizenship, law, and cognitive ethics will gain prominence in the context of the requirements of the twenty-first century.

2 Metaverse and Education With the spread of the Metaverse concept, studies on the “Virtual World” come to mind. The COVID-19 pandemic crisis, particularly between 2020 and 2022, brought about changes in the education system. Teaching shifted from offline to online [5]. The main issue is that the teaching methods have also changed along with the shift in the teaching environments. In other words, the traditional classroom environments in educational institutions have been partially abandoned in recent years. The closure of schools has forced countries to innovate to keep the education system afloat, and a new education system has been formed all over the world, and while countries have found perpetual solutions to maintain continuous teaching, the quality of learning has largely depended on the level and quality of digital access [6]. During the pandemic, traditional learning environments were replaced by elearning environments. Universities adopted instructional management software and open-source digital learning solutions to conduct online classes [5]. Following these environments, online meeting tools such as Skype, Google Meet, Microsoft Teams, and Zoom were widely used. However, it is worth noting that some teaching programs have theoretical and practical parts. Online meeting tools are not sufficient for applied teaching. Virtual and augmented reality is one of the most important alternatives to overcome this deficiency [7]. Metaverse, on the other hand, emerges as a more advanced environment that includes the above-mentioned virtual and augmented reality technologies. In today’s conditions of rapid digital transformation, Metaverse applications can be used as a new educational environment.

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2.1 From the Traditional Classroom Environment to the Constructivist Classroom Environment In the traditional classroom approach, teacher-centered teaching is used. The teacher is at the center of the classroom, and teaching is carried out in line with the information from this center. For the teacher to understand the nature of the teaching styles, he/she needs to consider this issue first for himself/herself and then for his/her class and environment [8]. However, with the constructivist approach, in teaching environments where the student is at the forefront, the design of the classroom naturally changes since the student is at the center of the classroom. In light of the general characteristics of learning environment design, instructional design needs to be understood as an effort to provide environments in which the individual takes an active role in the center of the learning process [9]. The two essential components for an instructional design in which the individual can be active in the learning process are the students’ cognitive capacity and the limitations arising from the physical environment [10]. In distance learning or e-learning environments, differences occur in the physical environment, and different criteria may be relevant for the design of virtual learning environments. Along with the pandemic period, the inadequacies of traditional understanding have come to the fore. The COVID-19 pandemic demonstrates that Türkiye’s open and distance education system needs to be reinforced in terms of infrastructure, access, content, design, implementation, quality, security, legislation, and pedagogical aspects [11]. The new era should now include unique environments that adopt new teaching approaches in which current technologies are embedded. Therefore, in e-learning environments where digital environments are preferred, virtual environments can create a new and shared learning environment. The change in the physical environment and the design of a virtual learning environment are essential.

2.2 Virtual Environments and Environment Design The virtual world is one of the most contemporary living spaces created by the internet and computer technologies. Virtual worlds can be defined as three-dimensional graphical worlds with real simulated experiences [12]. Bell [13] defined virtual worlds as online 3D environments that generally enable simultaneous communication between multiple users and allow permanent and simultaneous interaction with virtual objects [13]. When we look at it in the context of education, it appears as a virtual social learning environment including interactions of 3D avatars Therefore, the change in the learning environment brings along the use of different tools and techniques in the learning environment. The design of the virtual learning environment based on the theoretical and practical aspects of the content to be taught, therefore, gains importance. As a result, each course has its unique environment design, which may

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vary with the tools and methods used. It is crucial to pick the appropriate tools and strategies for the content.

3 Previous Studies Several studies available in the literature on virtual environments, the tools, pedagogical approaches, systems, and learning models are used in these environments. Similar meta-analyses and systematic reviews on this subject also exist. Among these, the studies between 2010 and 2022 are presented in Table 1. Previous systematic literature reviews reveal that research was carried out at multiple educational levels. Higher education students’ situation in virtual reality environments [15, 16, 19]; collaborative learning in virtual environments [16, 19, 21], virtual environments as a pedagogical tool [14, 20, 22], the sociability of the created environment, the behavior and activities of the virtual participants were examined in previous research [18, 21, 22]. It was observed that only one study examined the concept of “Metaverse” in the field of education [17].

4 Method and Process In this study, the systematic review was used as the research methodology. “Systematic reviews are meticulously designed and conducted literature reviews that thoroughly investigate, identify, value and synthesize all high-quality research evidence to answer a specific research question"[23]. Certain criteria need to be set, and data need to be summarized in order to achieve the most authentic version of the data related to the design of a virtual environment. On the other hand, it is aimed at eliminating unnecessary information and facilitating the coding of the data to be obtained. In this study “Newman and Goug’s [24] 9-stage systematic review stages” is used. These stages are as follows: (1) Development of the research question, (2) Designing the conceptual framework, (3) Establishment of selection criteria, (4) Development of search strategy, (5) Selection of studies using selection criteria, (6) Coding studies, (7) Evaluation of the quality of the studies, (8) Analyzing the results of the synthesis of individual studies to answer the research question, and (9) Reporting the findings [24]. In this chapter, the Preferred Reporting Items for Systematic Reviews and MetaAnalyses (PRISMA) guidelines as suggested by Moher, Liberati, Tetzlaff, Altman, and PRISMA Group (2010) were utilized. The steps involved in this process are explained in detail [25].

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Table 1 Meta-analyses and systematic literature reviews conducted between 2010 and 2022 Author

Year

Analysed year range

Levels of education

Aim of the study

Asad et al. [14]

2021

26 (2009–2020)

All

Pedagogical tools, educational tools, social learning, experimental learning, teaching and learning models in virtual environments

Huang et al. [15]

2021

46 (2010–2020)

Higher and professional education

Virtual reality systems and effectiveness in teacher education

Mystakids et al. [16]

2021

33 (2004–2019)

Higher Education

Deep meaningful learning in social virtual reality environments

Narin [17]

2021

40 (Unspecified)

All

Metaverse content analysis in virtual worlds

Mantziou et al. [18]

2018

205 (2003–2016)

All

Second Life Learning opportunities and activities in a multi-user virtual environment

Correia et al. [19]

2016

49 (2006–2016)

K-12 and Higher Education

Collaborative learning in virtual environment

Beck and Perkis [20]

2014

127 (Unspecified)

All

Analysis of the status of educational research methods in desktop virtual world environments

Hanewald [21]

2013

10 (2008–2013)

All

Collaborative learning in virtual worlds, collaborative learners

Dass et al. [22]

2011

15 (2006–2010)

All

Natural properties, pedagogical approach and student perceptions in virtual worlds

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5 Research Questions The widespread use of the Metaverse concept brings to mind the emergence of education in the virtual world as an element of non-formal education with the pandemic process. There are few literature studies on the Metaverse concept [17]. There is a need to increase the number of studies that will guide the tools, software, and methods that can be used in instructional design involving a virtual environment. Within the scope of this study, the concept of the Metaverse and the educational activities conducted in virtual world environments associated with this concept was analyzed. The research questions were determined as follows: Q1: What topics are being researched in the context of virtual worlds, including the concept of “metaverse” in education? Q2: What are the teaching styles applied in these virtual worlds? Q3: Which software and tools were used while designing the specified virtual environments within virtual worlds?

6 Data Analysis The primary sources were selected in this study since systematic research was conducted regarding the Metaverse. While searching the data sources, the terms determined were first sought in the articles. As a result of the first review, the studies obtained as a result of the research were eliminated by considering the eligibility criteria prepared in advance. During the elimination, attention was paid to the use of 3D virtual environment tools in the studies called virtual environment and virtual world. Among these tools, except for instructional designs, simulation tests or studies examining the development processes of technological materials were not included. After these review processes were completed, the data in the articles were listed. The following steps were implemented for the method mentioned above.

6.1 Data Sources and Terms The articles contained in this study were selected from EBSCO and Google Scholar databases. While searching the databases, the term Metaverse was paired with different words. The terms “Metaverse” AND “Education”, “Metaverse” AND “Learning”, “Metaverse” AND “Gamification” were searched. While searching with these terms, it was checked whether the identified words were included in the texts. In the following process, if the words specified above were not detected in the articles, the concepts of “Virtual Worlds”, “Virtual Reality”, “3D Virtual Immersive Environments”, “Virtual Environments”, “3D Virtual Environments”, “Multi-User

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Virtual Environments (MUVE)” were searched together with the term “Education”. The contents of the found studies were categorized based on the selection criteria.

6.2 Selection Criteria Care was taken to use primary studies published in peer-reviewed journals within the review. In this context, conference papers that did not contain methods and results and previous literature reviews were excluded from the scope of the study. The properties sought in the articles were as follows: 1. It was required for the articles to contain the above-mentioned terms. The title, abstract, and other items were examined during the selection process. 2. Studies with virtual reality applications conducted in the field of education were examined. 3. All education levels were examined without any distinction. 4. Articles published between January 2010 and February 2022 were reviewed. 5. In the articles containing the term Metaverse in secondary sources, studies containing the terms "Virtual Worlds", "Second Life", "Mirror World", "MultiUser Virtual Environment (MUVE)", "Social MUVE", and "Immersive" were also examined. 6. All qualitative and quantitative studies were examined. 7. The studies written in Turkish and English were examined.

6.3 Selection of Studies When the first review of the studies was completed, 342 studies were identified. Among these studies, 22 identical studies were eliminated. Afterward, with the exclusion of news, reviews, and similar content, the studies were eliminated based on the title and summary sections, which resulted in a total of 84 remaining articles. Among the 84 articles, research studies that were not compatible with the content in the research criteria were also eliminated in addition to the above-mentioned criteria. In addition, meta-analysis studies were excluded from the scope of the research. As a result, 52 articles out of 84 articles were selected for review. This analysis process is presented in the PRISMA flow diagram in Fig. 1.

6.4 Quality and Data Extraction When extracting the data, each article constitutes an individual data unit. The data were examined through the classifications in Table 2.

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Fig. 1 PRISMA (From Moher et al. [25])

The articles were examined in terms of title, abstract, keywords, method, and findings. In the context of the criteria specified in the research questions (subject of the study, teaching style, tools, and software used), the contents of the articles were tabulated in a form for summarizing. The data generated as a result of these tables were listed. In light of this data, 52 articles were classified with reference to each research question. As a result of this categorization, the data with similar scopes were written and marked as result sentences. Finally, the consistency of the articles that did not include the term Metaverse with the targeted criteria was examined. The studies

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Table 2 Classification stages of articles Classification

What are we looking for?

Title of the article

What is the article about?

Author(s) of the article

Who or whom wrote this article?

Abstract

What is the abstract of the study?

Research questions

Why was the study conducted?

Type of research

What is the type of research (qualitative, quantitative, etc.)?

Research methodology

Which research method was used?

Participants

On whom was the research conducted?

Research tools

Which 3D virtual environment tools were used?

Results

What was found as a result of the studies?

conducted in 3D virtual reality environments examined whether the study group participated actively. Within the criteria compared in these studies, it was investigated what 3D virtual environments contained differently from other studies. In addition to these, the difference between the applied methods from other studies and whether the findings reached a systematic and understandable result were also examined in the context of the data quality. The data obtained as a result of the classification were organized based on the research questions. Within this organization, since more data were obtained for Q1, the data for Q1 were divided into three subcategories. Such a categorization was not needed due to the structure of the data obtained in Q2 and Q3.

7 Findings Findings were obtained from the extracted data. These findings were reported under the headings of research questions to observe meaningful results regarding the “Virtual World” and “Virtual Environment”, including the term Metaverse and compatible with the subject.

7.1 Q1. What Topics Are Being Researched in the Context of “Virtual Worlds”, Including the Concept of “Metaverse” in Education? This term (n = 8) was encountered in several studies regarding the term Metaverse [26–33]. In the studies where the term Metaverse was found, it was used together with the term virtual (n = 7). Especially when we examine them chronologically, it is seen that Metaverse term is included in the keywords of the articles (n = 4) [26–28, 32].

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As the data were collected from the articles, it was determined that the first research question (Q1) could be divided into three main sub-headings. These were the studies focusing on the students under the term of virtual worlds, the environment design, and the comparison of virtual environments with different learning environments and the traditional learning environment.

7.1.1

Q1.1. Studies Focusing on Students

In Doumanis, Economou, Sim, and Porter’s (2019) study, which was based on gamification and included the characteristics of player types, they carried out a gamificationbased study with 36 students (aged between 11 and 18) and six teachers, aiming to complete several educational tasks involving the gamification by setting up a 3D parliamentary debate environment [34]. In addition, a study aiming to increase selfefficacy in 3D virtual environment studies was encountered [28]. Scullion, Baxter, and Stansfield (2015) examined how virtual environments affected student motivation by measuring the self-efficacy of 102 university students in virtual environments [28]. In her qualitative study, Stokrocki (2010) observed psychological or inspirational effects on artworks and production in Second Life[29]. In her study, in which she observed a participant, she stated that the immersive experience created by virtual environments together with the techniques in different art training had positive psychological effects. Kuznetcova, Glassman, and Lin (2019) examined whether Second Life contributed to the social networking of individuals by using MultiUser Virtual Environment (MUVE) [35]. In their study of 56 university students, they examined whether lecturing/blogging with MUVE was effective in the social networking of the class. Although they did not contain the term Metaverse, there were also studies examining virtual environment applications that are now seen as Metaverse (n = 19). Tutwiler (2019), in his research using MUVE, conducted a longitudinal study of the prior knowledge of 143 secondary school students and which terms they preferred to focus on with this knowledge[36]. This study was based on the SEEV (Salience, Effort, Expectancy, and Value) attention model developed by Wickens and McCarley (2008)[37, 38]. There were also a number of studies focusing on the sensitivity of students. Coffey, Kamhawi, Fishwick, and Henderson (2017) examined whether virtual environments had a relationship with intercultural sensitivity [39]. In the study conducted on 159 university students, the effect of gender factors was also examined in addition to the difference between 2 and 3D environments [39]. In the study by Tseng, Tsai, and Chao (2013), one of the studies in which virtual world was used in language learning, the verbal and non-verbal interactions of 38 university students were examined through virtual environment [40]. In this study, there was an interaction related to the learning and teaching of the second language (L2), Chinese as a foreign language. Palomeque and Pujolâ (2018) examined the use of multimodal structure in English language teaching in relation to the use of multimodal structure in the communication of 13 university students in online virtual environments (MUVE) [41]. In this study, the effectiveness, content, and success

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of the virtual environment in communication were examined. Within the scope of the systematic review, studies (n = 3) examining the application of new theories to reduce the cognitive load in language teaching, the language practice of students, and the effectiveness of Second Life in this field were also encountered [31, 42, 43]. Bacca-Acosta et al. [42], in their study conducted on 41 university students, aimed to examine the scaffolding design in a computer-aided immersive virtual reality (IVR) learning environment in English Foreign Language (EFL) teaching [42]. This observational study examined novice learners’ scaffolding mechanisms and their status in IVR environments beyond their problem-solving and existing skills. They made suggestions on information processing and comprehension in IVR environments. In Chen’s study on 15 EFL students in 2016, he carried out a 10-session task-based teaching in language learning in 3D MUVE environments [31]. In the qualitative data obtained, it was found that 3D MUVE environments facilitated the learning of English by EFL learners as they provided visual and speaking support. Wang, Calandra, Hibbard, and Lefaiver (2012) examined the effects of language learning in MUVE learning environments on 61 s-year EFL students [43]. In this quasi-experimental study, they found that MUVE environments had a positive effect on EFL students. In addition, a study was conducted by Tai and Chen (2021) on 72 eighth-grade students, which used mobile devices as virtual reality devices in language learning, and was conducted on whether effective comprehension was possible through mobile applications[44]. When the studies analyzing the social structures of students in virtual environments and the active learning process of MUVE environments were examined, Esteve- Gonzalez, Cervera, and Martinez (2016) analyzed the social and emotional presence of pedagogy undergraduate students (n = 52) in collaborative virtual learning environments in MUVE environments and examined the open communication, emotional expression and group cohesion of the students [45]. They examined the concepts used by students to express themselves as social being. There were also studies (n = 4) examining the relationship between virtual environments and selfefficacy factors[46–49]. In a study conducted on 17 graduate students in 2010, Hearrington examined the effects of the MUVE environment on students with SLOODLE (Second Life with Moodle) technologies in NETS-T (National Educational Technology Standards for Teachers) standards[47]. Ketelhut and Nelson (2018), in their study on 54 children aged 7–12 years, examined what they realized with the serious game called SAVE Science, which was conducted to ensure the learning of science in the classroom[48]. Information on how students could learn by playing games was included in this study, which was conducted as an informal activity. In a study conducted on 28 undergraduate students in 2021, Pande et al. examined the effects of IVR environments on students in teaching three topics of environmental biology and how it differed from video viewing[49]. In a study conducted by DeNoyelles and Seo in 2012, it was examined how undergraduate graduates over the age of 18 reflected their personalities and identities in the MUVE environment[50]. Considering the gender distribution of individuals who played video games, it was stated that men played more games. For this reason, it was examined whether there would be a change in the participation rate of genders

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with the transformation of a virtual environment such as Second Life into a teaching environment. There were also studies (n = 3) examining the effect of virtual environments on establishing their own social networks and preparing themselves emotionally apart from their identities [35, 51, 52]. In the study conducted by Glassman et al. on 58 pre-service teachers in 2021, they examined the effects of students on the development of epistemic learner identity in MUVE environments [51]. They aimed to investigate whether MUVE environments would have an impact on educators in creating tasks and intellectual open spaces that would help the development of learner identity in the twenty-first century. Lee, Hsu, and Cheng (2022) examined the effects of concept mapping, which serve as a pre-organizer in IVR environments, on 74 sixth-grade students in their study conducted on science lessons [52]. They examined the effects of epistemic curiosity and other affective factors on the IVR environments. In their study, Lorenzo, Pomares, and Lledo (2013) examined the effects of virtual reality experience in an Immersive Virtual Environment (IVE) based on the characteristics of cognitive styles in students diagnosed with Asperger’s syndrome (n = 20) [53]. It is seen among the results of the article that such a learning strategy would be fruitful. Passig and Eden (2010) tried to test the most efficient mode of expression in which hearing-impaired children could express a story while producing conjunctions indicating the time and cause-effect relations [54]. The study compared the values of students with and without hearing impairment. It was observed that IVE had positive effects on the students.

7.1.2

Q1.2. Concerning Virtual Environments

In some studies, using Metaverse (Meta-Universe) technology, 3D virtual campus studies were encountered. In the study carried out by Gonzalez-Yebra, Aguilar, Aguilar, and Lucas (2019), they aimed to build a 3D virtual campus at the University of Almeria by creating a MUVE environment[26]. They designed the environment using the Kano, a product design model, and the opinions of students (n = 65). Yilmaz and Cagiltay (2016) worked with novice instructional designers (n = 23), aiming to create an instructional design that incorporates game elements [30]. As a result of the group’s aim to develop a virtual learning environment, they observed that the designers had difficulty in providing a real game feel and incorporating motivation and assessment features into their designs. Ketelhut and Nelson (2016) conducted a study on how children aged 7–12 perceived virtual “game” environments [55]. There were also studies (n = 4) designed in the virtual world, although they did not contain the term meta-verse, suggesting that the MUVE model could provide more efficient environments [35, 39, 56, 57]. In 2010, Petrakou examined how virtual environments were used in an online course [56]. Fokides and Chachlaki (2019) conducted a virtual environment design study on the conservation of the Mediterranean monk seal with 326 students aged 10–12 years [57]. The study group was divided into three different groups in terms of teaching materials: written materials, web-based, and

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MUVE virtual environment tools. They found that the MUVE had a positive effect on students’ attitudes compared to other tools. In a case study conducted on pre-service teachers in 2016, Miller observed the perception of the virtual environment as a physical environment[58]. The study examined how pre-service teachers could prepare an instructional design in a virtual world. As a result of the case analysis, there were design suggestions for innovation, the role of realism, fantastic and external environments, maneuverability, and mobility.

7.1.3

Q1.3. Virtual Learning Environments and Other Learning Environments

As a result of the review, studies examining the motivation of students in traditional learning environments compared to virtual environments and the situations that would occur with the reduced role of the teacher were found. Kuznetcova, Lin, and Glassman (2020) examined whether MUVE environments could create a democratic learning environment within the framework of Open Source Educational Processes (OSEP) [59]. A group of 57 undergraduate students was analyzed through Social Network Analysis, and student–student, and student–teacher interactions were analyzed. Similar to this, there were studies (n = 9) that examined different methods that would enable cognitively efficient learning and provide active student participation in virtual learning environments [42, 47, 52, 60–65]. In general, within the scope of these studies, reducing cognitive load, ensuring active participation in the lesson, and the processes of students toward learning the subject were examined. Zhao, Lin, Sun, and Liao [60] examined how the use of summarizing strategy within the framework of IVR and interactive video affected the comprehension, cognitive load, and motivation of 75 university students [60]. A qualitative study conducted by Dooley, Calandra, and Harmon [61] examined whether 18 pre-service teachers contributed to literary sense-making with activities based on Louise Rosenblatt’s Reader Response Theory in the MUVE environment [61]. Turner examined the effects of the Self-Study online collaborative learning environment with MUVE [63]. In a study carried out by Vogt et al., they explored the potential synergistic effects of learning environments with IVR of 81 students [64]. They emphasized the importance of presenting illustrated and textual information for developing a cognitive model. Webster (2016) conducted research on a project that aimed to develop a low-cost, scalable, and portable VR system that included immersive virtual learning environments designed and developed specifically for the US military [65]. The aim of his research was to examine the lesson-based IVR-based multimedia instruction in terms of military personnel’s learning. In a study conducted in 2010, Miles revealed that students needed embodied experiences in constructivist learning environments in the context of technical communication pedagogy of virtual world environments [66]. In this focus group study, the ways in which the structures of analyzing and inventing could be provided in a constructivist teaching approach were examined. There were also studies (n = 2) examining the techno-pedagogical competencies and technology acceptance levels

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of pre-service teachers and students in different fields[67, 68]. Fokides (2017), in his study on 325 pre-service teachers, examined pre-service teachers’ intention to use 3D MUVE environments and how it affects their university courses[67]. In their case study, Mills, Ketelhut, and Gong (2019) examined how a particular teacher implemented scientific developments following IVE practices and corresponding professional development training [68]. Although the teacher believed that IVE practices had a significant role in professional development, they observed that beliefs were not transferred into practice.

7.2 Q2. What Are the Teaching Styles Applied in These Virtual Worlds? Among 52 articles, one of the prominent styles was Collaborative Learning (CL) (n = 20) [28, 30, 31, 33–35, 43, 45, 50, 56, 57, 60, 63, 66, 68–73]. In parallel, it was determined that Multi-User Virtual Environment (MUVE) (n = 27) was used as an e-learning environment. Studies examining the multimodal MUVE (Multimodal MUVE—3 M) environment were also encountered. On the other hand, there were studies examining the effectiveness of these methods for English for Speakers of Other Languages (ESOL) (n = 8). On the other hand, it was also seen that Multimodal learning (n = 3) methods were frequently used in virtual environments. Perera, Ajinomoh, and Miller (2012) designed the “3D MUVE User Interaction Taxonomy” to measure the interaction of users with the environment in 3D environments [74] (Fig. 2).

Fig. 2 Teaching styles related to the virtual environment

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The Open Source Educational Processes (OSEP) (n = 3) were included in some of the studies. In the study conducted by Beaumont, Savin-Baden, Conradi, and Poulton [75], the problem-solving (problem-based learning) skills of the students were utilized [75]. In the study by Miller [58], traditional learning methods were used [58]. Tseng, Tsai, and Chao [40] used the 3 M-MUVE model based on the Cognitive Second Language Acquisition (CSLA) theory [40]. Gamification-based studies were encountered (n = 2). Doumanis, Economou, Sim, and Porter (2019) examined whether gamification played an important role in the interaction with the virtual environment [34]. Park, Min, and Kim conducted a study using Bartle’s Player Types together with gamification [27, 76]. In a study involving Relative Motion teaching, Kozhevnikov, Gurlitt, and Kozhevnikov [77] examined the difference between teaching skills, including psychomotor skills, in relative motion teaching in virtual environments and desktop environments. Problem-solving skills were used in this study [77]. Yilmaz and Cagiltay [30] studied game-like style environment designs [30]. Papachristos, Vrellis, Natsis, and Mikropoulos (2014) examined the difference in environment designs that adopted different traditional and student-centered approaches in the virtual environment [71]. It was observed that some of the studies (n = 5) had instructional design [30, 33, 63, 64, 70]. Among the articles, studies (n = 3) also suggested that MUVE elements could be used as a part of STEM activities [32, 49, 78]. In the study by Pande et al. [49], there were sub-problems examining the active participation of students with STEM and the effects of the MUVE factor in interdisciplinary studies [49]. Zhao, Lin, Sun, and Liao (2020) examined the effect of summarizing strategy on cognitive load in their study [60]. It was aimed to increase efficiency towards reducing verbal cognitive load, especially in collaborative learning environments. In his research in 2019, Tutwiler aimed to use the SEEV attention model in MUVE environments [36]. There were different approaches in the studies involving students with special needs. Passig and Eden (2010) applied Mandler and Johnson’s Story Grammar (1977) criteria to the hearing-impaired children in their study [54, 79].

7.3 Q3. Which Software and Tools Were Used While Designing the Specified Virtual Environments Within Virtual Worlds? Many different tools and software were used in the reviewed articles. Park prepared his study based on a card game program [27, 80]. In addition, an experiment (n = 5) was carried out in a simulation running with virtual reality glasses in multiple studies [53, 54, 60, 66, 77]. The programs other than these were the studies that were carried out on desktop computers (Fig. 3). Among the studies obtained, it was observed that the software named Second Life was the most frequently used MUVE environment (n = 24)[26, 29, 31, 32,

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Fig. 3 Software terms related to the virtual environment

35, 39–41, 43, 47, 50, 51, 56, 58, 61, 62, 67, 70–72, 74, 75, 81, 82]. Other studies contained different software. There were studies (n = 2) conducted on EcoMUVE [36, 46]. Doumanis, Economou, Sim, and Porter (2019) used the REVERIE VP project through the Edu-Simulation web platform [34]. One of the other most used tools was the Opensimulator (OpenSim) software (n = 4) [33, 57, 67, 74]. Among the other types of software used was the UNITE software (n = 1), which provided a 3D virtual environment [28]. There were also academic articles (n = 4) in which the SAVE Science project was utilized [48, 55, 68, 83]. Another software was Active Worlds (n = 2) [30, 73]. In the study by Esteve-Gonzalez, Cervera, and Martinez in 2016, they used a software named “The SimuL@ab” prepared in OpenSim software [45]. Webster [65] used a VR-supported software named Vizard in the simulation that he prepared for training purposes in the US Army [65]. Educational materials were designed with the world-named WorldViz. On the other hand, in Turner’s (2011) study, an environment tool was used in which students could work on their own with the software named Wimba [63]. Miles [66] used an IVR program called CAVE in his study [66]. Kozhevnikov, Gurlitt, and Kozhevnikov [77] used Relative Motion Simulation activities in their study [77]. In this study, participants were expected to perform the given tasks. In addition to IVR programs, independent software (n = 6) was also equipped with VR sets such as Oculus Rift and Samsung Gear, many of which were developed in university environments [42, 44, 49, 52, 64, 78].

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8 Conclusion and Discussion In light of the obtained findings, we can state that innovative approaches have gained momentum in the context of education and instructional technologies with the Metaverse. Previous studies show that social teaching environments in the virtual world come to the fore on the axis of the Metaverse. On the other hand, it was observed that virtual environments were utilized to constitute a novel campus. Several articles also suggest that virtual reality environments can support language development since they create a social setting, and increase communication. In this respect, the Metaverse may become one of the most critical elements of the constructivist approach in educational environments in the twenty-first century. It can be very effective, especially in creating collaborative learning environments and project-based group studies. It is seen that discussion environments can be easily supported in Metaverse environments [34]. Another critical issue encountered in the findings was comparing the functionality provided by traditional web environments with virtual environment tools. The most fundamental consideration here is the effort to incorporate new technologies into teaching environments. As we look back on the year 2022, it can be seen that the number of such studies has increased. In the future, the use of Metaverse environments through virtual reality glasses may become widespread. When the findings obtained in this respect are analyzed, the number of experimental studies on virtual reality is increasing daily. For this reason, it can be predicted that widespread teaching environments can be formed with virtual reality glasses in the upcoming years. With this universal experience, gamification can be effective in increasing role-based teaching activities because the environments created with 3D avatars overlap with the player controls used in games. Gamification is known to affect learners’ enjoyment, involvement in the learning process, and academic motivation of learners [27]. Therefore, it can be envisaged that virtual environments with high interaction may be supported by gamification. Although virtual worlds do not offer a real game environment, platform developers can consider this idea to design more attractive environments [30]. When the data related to the teaching styles used in the study are analyzed, it is seen that multi-user virtual environments (MUVE) are used intensively. It is seen that it plays a vital role in creating social learning environments such as cooperative learning. It can also be stated that problem-based learning is common in MUVE environments. Among the studies examined, it was observed that social learning environments were created to produce solutions to a given problem. However, communication is seen as an essential tool in language acquisition. For this reason, virtual environments in language teaching programs can be viable to bring people from different languages and cultures together. On the other hand, it was seen that virtual reality (VR) and STEM activities were included in the studies in which immersive virtual environments (IVE) were used. It was observed that cognitive load theory was frequently used with IVE. In a structure where the student is in the middle of learning with the constructivist approach, virtual environments can help students synthesize and create what they

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have learned in this subject. However, virtual environments contain structures that constitute an environment designed for instructional designers to develop a learning environment. Apart from these, SecondLife was one of the most frequently utilized tools in the studies where MUVE was used. It was seen that it was frequently used in collaborative learning environments and in creating problem-based learning environments. On the other hand, it was also found to be used in language acquisition. There were also several studies in which it was supported by or compared with tools such as chat rooms and Skype used with Web 2.0 tools. Apart from these, there were also tools such as Active Worlds, WorldViz, and OpenSimulator (OpenSim). There were also some studies in which special educational virtual environments such as EcoMUVE, SAVE Science. It was seen that virtual reality tools such as Oculus Rift, HTC Vive VR, and Samsung Gear VR were used along with the use of special software to create IVE environments. It was determined that the number of virtual reality studies increased over the years. However, it is yet to be used widely.

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Securing Data in the Metaverse: What We Need to Know Madhusudan Singh

Abstract The Metaverse is the next frontier for digital engagement, but with this new digital landscape comes new security challenges. As more people and businesses flock to the Metaverse to engage in virtual experiences and transactions, the need for secure data management has become increasingly critical. This chapter will examine the current state of data security in the Metaverse and explore the key challenges and risks associated with securing data in this new digital environment. The chapter will provide an overview of the various types of data that are vulnerable in the Metaverse, and the methods used to secure them. Additionally, the chapter will explore the potential use of emerging technologies such as Blockchain and Artificial Intelligence/Machine Learning to enhance data security in the Metaverse. The chapter will conclude with recommendations for organizations and individuals who are looking to operate securely in the Metaverse and will highlight the importance of considering data security in the Metaverse as a critical component of any digital strategy. Keywords Data security · Metaverse · Blockchain · Artificial intelligence · Machine learning

1 Introduction As new technologies continue to revolutionize the way we communicate, store, and access data, it is becoming increasingly important for businesses to protect their data assets. This is especially true in the era of the Metaverse, a virtual space where people can interact with each other and digital objects. The Metaverse, also known as the digital world, is a growing and ever-evolving space that is home to a wide variety of data and assets. As the Metaverse becomes more integrated into our daily lives, it is important to understand the basics of Metaverse data security to protect ourselves and our assets from potential threats. Metaverse data security involves a M. Singh (B) College of Engineering Technology Management, Oregon Institute of Technology, Klamath Falls, Oregon, USA e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 F. S. Esen et al. (eds.), Metaverse, Studies in Big Data 133, https://doi.org/10.1007/978-981-99-4641-9_28

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range of practices and technologies that are used to protect data and assets from unauthorized access, theft, and other malicious activities. This can include practices such as using strong and unique passwords, enabling two-factor authentication, and using encryption to protect sensitive data. Additionally, there are various technologies that can be used to enhance Metaverse data security, such as Blockchain-based smart contracts and decentralized systems, which can provide additional layers of security and protection. It is important to stay informed about the latest threats and trends in the Metaverse and take steps to protect yourself accordingly [1]. This can include educating yourself and your team on the basics of data security, regularly reviewing and updating your data security policies and procedures and keeping your computer and mobile devices updated with the latest security patches and software. By understanding the basics of Metaverse data security, individuals and organizations can better protect themselves and their assets in the digital world. With so much valuable data being stored in the cloud, it is essential that businesses know how to keep their data safe from malicious actors. Here are some steps you can take to protect your data and assets in the Metaverse. This article has been organized.

2 What is the Metaverse? Before we dive into data security, let us quickly define what the Metaverse is. The term was coined by Neal Stephenson in his 1992 novel Snow Crash and describes a virtual space where people can interact with each other and machines. This digital landscape is populated by multi-dimensional simulations of real-world locations, events, products, characters, and stories. It’s also home to countless businesses that are using this platform to create new experiences for their customers. The Metaverse refers to an online environment where users can meet and interact in a virtual space. Companies such as Oculus, Microsoft’s HoloLens, and other virtual reality (VR) platforms, create these environments. The Metaverse allows users to access digital versions of themselves—called avatars—which they can use to explore these virtual worlds and engage with other users or content [2]. Figure 1 has represented the Metaverse overview.

3 Understanding Data Security in the Metaverse Data security is one of the most important considerations when working in the Metaverse. To ensure that customer information is protected, several layers of security must be put into place. Here are some of the key components of a secure Metaverse experience:

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Fig. 1 Metaverse overview

● Secure authentication protocols—Authentication protocols should be used to verify user identities and protect against potential attacks. This includes two-factor authentication (2FA) as well as password protection measures like encryption and hashing algorithms. ● Data encryption—Encryption ensures that any sensitive data stored within the Metaverse is protected from unauthorized access or manipulation. Encryption should also be applied at rest so that all information stored within the environment remains secure even when users are not actively interacting with it. ● Secure networks—Networks must be designed with security in mind from day one. Firewalls must be implemented to prevent unauthorized access while network segmentation helps limit damage if a breach does occur. Additionally, networkmonitoring tools should be used continuously to detect any suspicious activity or potential threats before they become an issue. ● Regular updates—Regular software updates are essential for maintaining data security within the Metaverse environment as they help patch any known vulnerabilities that may exist within existing systems or applications. Updates should also include regular server maintenance tasks such as checking for outdated versions of software and running system checks for anomalies or suspicious activity on a regular basis. This chapter has organized as follows: Sect. 2 discusses about need of securing data in the Metaverse, Sect. 3 represents keeping data secure in the Metaverse, Sect. 4 shows exploring advanced encryption for digital worlds, and Sect. 5 represents cyber security solutions for a hyperconnected world with conclusion of securing data in Metaverse in Sect. 6.

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3.1 Securing Data in the Metaverse Over the last few years, virtual worlds have become increasingly popular. Referred to as the Metaverse, these virtual spaces have provided a new way for people to connect and interact. However, with this new technology comes a range of security concerns that need to be addressed. Now, we will look at what the Metaverse is, why data security is critical when using it, and how you can protect yourself from potential threats.

3.2 Why Data Security is So Important? While being able to explore these digital worlds may seem like fun and games, there are serious implications for data security. As more people flock to the Metaverse for entertainment and business purposes, it becomes increasingly important that their personal data are kept secure from cyber criminals looking to exploit vulnerabilities in either the user’s device or the platform itself. This means that users must be mindful of what kind of information they are sharing on the platform and how they are securing their account credentials [3]. It also means that businesses need to ensure their systems are adequately protected against malicious actors who could potentially gain access to confidential customer information or disrupt operations altogether. As per VentureBeat report, 33% of developers say data privacy is the biggest obstacle for the Metaverse as shown in Fig. 2 data [4].

3.3 How Can Protect Metaverse Data from Potential Threats? When using any online platform or service—especially one as immersive as a Metaverse—it is important that you take precautions against potential threats. One way you can do this is by ensuring that your device has up-to-date antivirus software installed before accessing any VR environment or engaging in activities within it. Additionally, make sure all passwords associated with your accounts are complex enough that hackers or malware programs cannot easily guess them [5]. Finally, if you are engaging in any type of financial transaction within a VR environment, make sure you use a reputable payment service such as PayPal or Apple Pay so your credit card information remains safe from prying eyes. As shown in Fig. 3, key actions can make Metaverse data security stronger [6]: ● Create Metaverse data security team Managers will need to educate themselves on typical cybersecurity issues. Create a thorough security oversight team to create protocols and processes. The group

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Fig. 2 Biggest hurdles the metaverse [https://venturebeat.com/enterprise/report-33-of-devs-saydata-privacy-is-a-big-obstacle-for-the-Metaverse/] Fig. 3 Key actions for metaverse data security [https://sproutsocial.com/ins ights/Metaverse-dangers/]

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should be in charge of comprehending and outlining the many developing Metaverse threats. This may even entail putting in place an AI cybersecurity system to detect misbehavior, misuse, and other undesirable actions. Give platform administrators access to users so they may take action by suspending or kicking people off the Metaverse. ● Develop Metaverse terms and conditions Create terms and conditions for creating a digital community to safeguard your brand, whether it is a temporary activation or a permanent Metaverse environment. Consider combining accounts with an NFT to avoid identity theft or mandating unique skins to prevent avatar takeover as two examples. These specifications make it more difficult for fraudsters to create false identities in the Metaverse. Incorporating good wallet hygiene into your terms and conditions is another option. Simply said, individuals and businesses should each have a separate wallet. Consumers often have three different wallets: a mint wallet, a selling wallet, and a vault wallet. All of these wallets ought to be handled with care. A vault wallet, for instance, should only be used for high-value digital assets because it is not Internet-connected. ● Create a Metaverse security and privacy policy Provide users with a security and privacy policy to follow before creating Metaverse products, services, or experiences. Some of these rules may already be included in the policies of the hosting Metaverse platform provider. Several laws to think about User data. Specify the kind of data you will be using and how long it will last. Include the users’ access rights to personal data as well. Communication. Clearly state your users’ rights for both solicited and unsolicited communication because they may change based on your platform and technology. For instance, conversations between virtual and actual worlds are both possible in an AR environment. Virtual to virtual communication is the only form of interaction in a VR world. Ownership. One of the Metaverse’s cornerstones is user-generated content. Include guidelines for ownership of virtual digital items, avatar skins, NFTs, etc. as UGC can vary significantly and be commercialized. Use Blockchain technology to track asset ownership and manage content ownership. ● Metaverse moderation team creation Create a team of moderators that will actively watch your preferred Metaverse platform. To avoid escalation, this team needs to examine and fix tone, dialogues, and emotions. If you want to go beyond, think about putting in place a customer care staff to go through the guidelines of your Metaverse activation or serve as a live hotline for customers to contact with when they need assistance in the environment. By doing so, users will be more likely to follow the rules and pose less of a threat to the platform and other users.

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Fig. 4 Keeping data secure in the metaverse

3.4 Keeping Data Secure in the Metaverse As businesses continue to adopt virtual reality (VR) and augmented reality (AR) technology, the need for secure data storage and communications grows. With the current explosion of interconnected virtual environments, it is becoming more difficult to keep sensitive data protected [7]. In this section, we will look at some of the challenges related to securing large volumes of interconnected virtual environments and data, as well as discuss encryption software for the Metaverse, data encryption methods for the Metaverse, and virtual security network solutions [8] (Fig. 4).

3.5 Encryption Software for Metaverse One way to protect data stored in a Metaverse is with encryption software. Encryption software utilizes algorithms to encode data so that only authorized parties can access it. This makes it extremely difficult for anyone without authorization to view or alter any information. Encryption software also prevents unauthorized users from accessing data even if they manage to gain access to a server or other system containing the encrypted files. Additionally, encryption software ensures that any communication between two or more systems remains secure and private by encrypting all messages sent between them.

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3.6 Data Encryption Methods for Metaverse In addition to using encryption software, there are several common data encryption methods used in Metaverse today. These include symmetric key algorithms such as Advanced Encryption Standard (AES), which uses one key shared between two parties to both encrypt and decrypt messages; public-key algorithms such as RSA, which use two keys—one public key used to encrypt messages sent from one party and one private key used by the recipient to decode those messages; and hashing algorithms such as SHA-256, which take plaintext input of any length and produce a fixed-length output called a “hash” that is unique for each input value [9].

3.7 Virtual Security Network Solutions Finally, several virtual security network solutions available can help protect your business’s data in the Metaverse. These include advanced firewalls designed specifically for use in virtual environments; anti-malware solutions that can detect malicious code being executed on devices connected to the Metaverse; intrusion detection systems that monitor traffic on networks connected to the Metaverse; vulnerability scanning systems that check for potential weaknesses on devices connected to the Metaverse; and content filtering systems designed specifically for use in virtual environments.

3.8 Exploring Advanced Encryption for Digital Worlds As digital technologies become more and more advanced, it is becoming increasingly important to explore ways to better protect our data. This is especially true in virtual worlds, where we entrust large amounts of sensitive information to the Internet on a daily basis. In this section, we will discuss advanced encryption techniques that can be used to secure Metaverse data, communications systems for virtual worlds, and Blockchain-based data solutions [10] (Fig. 5).

3.9 End-To-End Encryption for Metaverse Data In order to ensure the security of Metaverse data, end-to-end encryption should be employed. This type of encryption ensures that all communication between two parties remains private and secure by using a specific algorithm to encrypt the data before it is sent and decrypt it when it reaches its destination. This type of encryption is particularly useful in virtual worlds where users share sensitive information such

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Fig. 5 Exploring advanced encryption for digital worlds

as personal details or private messages with each other. With end-to-end encryption, users can rest assured that their data will remain safe from prying eyes.

3.10 Secure Communication Systems for Virtual Worlds Another way to protect user data in virtual worlds is with secure communication systems. These systems utilize strong authentication techniques such as two factor authentication (2FA) and multi-factor authentication (MFA) to verify user identities before allowing them access to certain areas of a virtual world or allowing them to perform certain actions within it. These authentication methods are designed to prevent unauthorized users from gaining access or performing malicious activities within a virtual world by verifying that an individual attempting access is actually who they claim to be.

3.11 Blockchain-Based Data Solutions Finally, Blockchain technology can be used as an effective means of protecting user data in virtual worlds. Blockchain technology works by creating an immutable ledger that stores encrypted copies of all transactions taking place within a given network. By using distributed ledgers instead of centralized ones, Blockchain solutions are able to create trustless environments where all transactions are cryptographically verified and stored securely on the network’s nodes rather than on any single server or device. This makes it impossible for anyone outside the system to gain access or manipulate the data stored within it without authorization from those who control the

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network’s nodes—an additional layer of security that can help protect user data in virtual worlds from malicious actors seeking to gain unauthorized access or disrupt operations within a given platform [11].

3.12 Network Security Network security encompasses all measures taken to protect a network and its users from malicious activities such as denial-of-service attacks, malware, viruses, hacker intrusions, and other malicious activities. Network security can also help organizations identify vulnerabilities in their IT infrastructure that can be exploited by attackers. Network security solutions include firewalls, intrusion prevention systems (IPSs), network access control (NAC) systems, virtual private networks (VPNs), and authentication protocols such as two-factor authentication (2FA).

3.13 Data Security Data security involves protecting information from unauthorized access or modification by ensuring that only authorized individuals have access to sensitive data. This includes physical measures such as locking down servers and computers with passwords or biometric locks, as well as software measures like encrypting files and databases. Data security solutions also include creating backup copies of important data in case it needs to be restored after an attack or breach.

3.14 Email Protection Email is one of the most vulnerable points of entry for hackers due to its widespread use across many different types of networks and devices. Email protection involves both preventive measures such as blocking malicious links or attachments from entering a user’s inbox, as well as monitoring services that detect suspicious activity and alert administrators immediately if any anomalous behavior is detected on email accounts or networks connected to them.

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4 Cyber Security Solutions for a Hyperconnected Digital World Protecting your digital assets from modern cyber threats is no small task. As the world becomes increasingly interconnected, so too does the risk of security breaches and data loss. It is essential for businesses to stay ahead of the curve when it comes to cyber security solutions in order to protect their customers and maintain their integrity [12]. Let us look at some of the best practices for staying ahead of threats in a hyperconnected digital world (Fig. 6).

4.1 How Multi-Factor Authentication Keeps Your Data Secure? In today’s digital landscape, data security is more important than ever. With cybersecurity threats on the rise and hackers becoming more sophisticated, it is essential to have effective security tools in place to help protect your data from attackers. One of the most powerful security tools available is multi-factor authentication (MFA). Let us dive into why MFA is so effective.

Fig. 6 Cyber security solutions for a hyperconnected digital world

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4.2 What is Multi-Factor Authentication? Multi-factor authentication (MFA) is an extra layer of security that requires users to enter additional information beyond just a username and password. This may include a one-time code sent via text or email, biometric data like a fingerprint or facial scan, or an app-generated code. The idea behind MFA is that it increases the difficulty for hackers to gain access to an account by requiring multiple pieces of information for verification.

4.3 Why is MFA Necessary? Data breaches are becoming increasingly common, and hackers are finding new ways to gain access to personal information every day. By utilizing multi-factor authentication, users can protect their accounts from unauthorized access without having to sacrifice convenience. After all, having robust security measures in place does not mean anything if they are too difficult for users to actually use! MFA helps ensure that only legitimate users can gain access while also keeping user experience in mind.

4.4 How Does MFA Work? When enabled, MFA requires additional steps during the login process that must be completed before granting access. For example, when signing into an account with MFA enabled you might be asked for your username and password as normal but then also need to enter a one-time code sent via SMS or email before being granted full access. Usually, this extra step needs to be done once per device/location, but some services also require a one-time code each time you log in from a new device or IP address. This helps ensure that even if someone does gain access to your credentials, they will not be able to get into your account because they will not have the required code or biometric data needed for verification.

5 Conclusion Working with data in the Metaverse requires an understanding of best practices for securing customer information from potential threats and attacks and this guide has given you an overview of what those practices look like in action. By following these guidelines and implementing proper authentication protocols, data encryption methods, secure networks, and regular updates, you can ensure your customers’ data

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remains safe while they explore your virtual space. Now all that is left is for you to get started! The Metaverse offers an exciting opportunity for people around the world to explore new places without ever leaving their homes but it also brings with it some unique risks when it comes to protecting user data from malicious actors. By taking steps such as installing anti-virus software on your devices and using secure payment services when conducting transactions within virtual environments you can help protect yourself against potential threats while still enjoying all that the Metaverse has to offer! Securing large volumes of interconnected Virtual Environments & Data is an increasingly important challenge facing businesses today. Fortunately, there are several ways organizations can protect their sensitive information stored in a Metaverse including using encryption software, employing various data encryption methods, and utilizing virtual security network solutions like firewalls and anti-malware programs among others. By taking steps, businesses can ensure their valuable information remains secure even when stored within highly complex interconnected environments like those found in today’s rapidly evolving digital world. Keeping your digital world safe requires more than just basic security measures; you need advanced encryption techniques that are designed specifically with your needs in mind. In this part, we discussed three such measures: end-to-end encryption for Metaverse data, secure communication systems for virtual worlds, and Blockchain-based solutions designed specifically with digital world protection in mind. By employing these solutions, when necessary, you can increase your level of security significantly while retaining full control over your online presence and activities within your chosen digital space. Staying ahead of threats in a hyperconnected digital world requires using multiple layers of protection. While there are many different cyber security solutions available today—from network security to data security to email protection—the key is using them in combination with each other so that your business can remain secure against even the most sophisticated attacks. By implementing the right mix of prevention measures and monitoring services, you can ensure that your customers remain safe while still being able to do business securely online—no matter where they are located. When it comes to online security, multi-factor authentication is an invaluable tool. It provides an extra layer of protection against data breaches and keeps your accounts secure without sacrificing convenience or user experience. If you are not already using this powerful tool, now is the perfect time to start. For website owners and SEO newbies alike, implementing multi-factor authentication will help keep your data safe and protected against unauthorized access and at the end of the day is not that what really matters?

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