Into the Immersive Realm:

Examining the Challenges and Ethical Intersection of the Web3-Powered Metaverse and Innovative Technologies

Analysis


Social & Ethical Issues in CS

University of Montana - Missoula College

Information Technology Studies

Summer 2023

Written By:

Kristina Mahagamage


Introduction

Imagine a future where you can step into a virtual world, explore limitless possibilities, and truly own your digital experiences in the immersive realm of the metaverse. This is the promise of the integration of Web3 technologies with virtual reality (VR) and augmented reality (AR) systems—a groundbreaking fusion that is reshaping the way we interact with the digital realm. By combining decentralized networks, blockchain-based transactions, and user empowerment, this convergence offers an unprecedented level of control and autonomy within the metaverse. However the seamless union of Web3, innovative technologies and the metaverse also brings forth a host of challenges. From safeguarding privacy to ensuring security and developing regulatory frameworks for this interconnected digital universe, navigating this uncharted territory requires a careful balance. In this age of rapidly advancing technology, this analysis will delve into the exciting potential and daunting hurdles of this transformative landscape, striving to forge a sustainable and inclusive future for web3-based VR and AR experiences within the metaverse.

The integration of Web3 technologies with innovative technological (VR,AR, MR, etc) systems has introduced a new paradigm that combines decentralized networks, blockchain-based transactions, and user empowerment, while also presenting unique challenges related to privacy, security, and requiring innovative regulatory approaches to ensure a sustainable and inclusive future for web3-based VR and AR experiences.

Overview

Web3 and Metaverse: Why does it matter?

Web3 refers to the next generation of the internet, characterized by a decentralized and user-centric approach that empowers individuals to have greater control over their data and online identities (Ray, 2023). It leverages blockchain technology and decentralized networks to create a more transparent, secure, and inclusive online ecosystem. On the other hand, the metaverse encompasses a VR space where users can seamlessly interact within real and simulated environments, blurring the lines between the physical and digital worlds.  It utilizes AR and VR technologies, along with avatars and holograms, to create immersive experiences. The metaverse has gained attention as a transformative concept, with potential implications for various sectors, including marketing, education, healthcare, and social interaction (Dwivedi et al., 2022). Web3 and the metaverse are closely related as they both involve the integration of emerging technologies to shape the future of the internet and redefine user experiences. The combination of Web3 technologies with VR and AR systems within the metaverse holds the promise of decentralized and immersive digital experiences that empower individuals and revolutionize various aspects of society (Ray, 2023, Dwivedi et al., 2022).

Web3-powered Metaverse: Redefining the Landscape of Technological Innovation

Web3-based VR and AR refer to the integration of VR and AR technologies within the context of Web3, which represents the next evolution of the internet. Web3 is characterized by the use of blockchain technology and decentralized networks to create a more open, transparent, and user-centric digital environment (Kováčová, Horák, & Higgins, 2022).

In the context of the metaverse, which can be described as a collective virtual shared space that encompasses multiple interconnected virtual worlds, web3-based VR and AR play a crucial role. These technologies enable users to immerse themselves in virtual environments and interact with digital objects and entities in a more realistic and engaging manner.  The integration of innovative technologies into the metaverse enhances the seamless transition between the physical and virtual worlds, allowing individuals to have multimodal experiences and interactions. This fusion of technologies opens up endless possibilities for various sectors, including marketing, tourism, leisure, hospitality, education, and social networks (Dwivedi et al., 2022).

Web3-based VR and AR revolutionize the way technologies are developed and utilized by consumers. The combination of VR and AR with Web3's decentralized nature enables new forms of ownership, governance, and monetization within virtual worlds. It empowers users to create and own digital assets, participate in decentralized applications (dApps), engage in peer-to-peer transactions, and shape the development and direction of the metaverse (Martins & Wolfe, 2023).

Moreover, the integration of behavioral analytics, immersive technologies, and machine vision algorithms within the web3-powered metaverse allows for a deeper understanding of user behavior and preferences. This information can drive customer engagement, personalization, and optimization of virtual retail experiences, ultimately enhancing customer satisfaction and brand awareness in e-commerce operations (Kováčová, Horák, & Higgins, 2022).

Evidence-Based Illustrations

This section presents a collection of real-world examples and evidence-based illustrations that showcase the application of innovative technologies, decentralized networks, blockchain-based transactions, and their implications on privacy, environment, and sustainability.

Decentralization

Web3 revolutionizes the internet through decentralized networks and user empowerment, while the metaverse blurs physical and digital boundaries, offering immersive experiences. Both concepts utilize emerging technologies to reshape the internet and the way society uses the internet. A controversy in the media regarding decentralization is that the EU's smart contract "kill switch" under the Data Act sparks debates, balancing security and decentralization concerns. Companies must adapt smart contract designs to comply while retaining decentralization's benefits (Blockchain Council, 2023).

The EU's introduction of the smart contract "kill switch" as part of the Data Act has sparked debates in the Blockchain community. This provision mandates all smart contracts to include a mechanism to terminate or pause operations during security breaches or emergencies. Supporters believe it enhances security, General Data Protection Regulation (GDPR) compliance, consumer protection, and regulatory adherence, preventing potential harm. However, critics fear it compromises the autonomy and decentralization principles of Blockchain technology, granting authorities excessive control. The kill switch's impact on the future of decentralization is uncertain, but experts suggest incorporating decentralized governance mechanisms to strike a balance between security and autonomy (Blockchain Council, 2023).

One of the significant negatives of the smart contract "kill switch" is the risk of centralized control, contradicting the foundational principles of decentralization. It could lead to censorship and loss of user autonomy, eroding trust in Blockchain systems. Additionally, there are concerns that this mechanism could be exploited for political or economic gains, leading to unfair treatment or manipulation of contracts. The ambiguity surrounding the conditions for its use may also create uncertainty and legal challenges in the future (Blockchain Council, 2023).

On the positive side, the smart contract "kill switch" offers increased security and risk management. It can prevent significant security breaches and protect user data in emergencies, complying with data protection regulations like GDPR. The kill switch can also safeguard consumers in consumer-facing applications, ensuring financial protection and reinforcing trust in the technology. Additionally, it allows smart contract developers to fix critical bugs promptly, preventing potential financial losses and maintaining the integrity of the system (Blockchain Council, 2023).

Privacy

A protocol for eye-tracking data collection in VR is introduced, leveraging the Ethereum blockchain and smart contracts. It allows remote, diverse participant data gathering with integrity and privacy. Intelligent contracts handle compensation, eliminating third-party involvement. Future work includes implementation with an actual VR application and Head Mount Display (HMD)-integrated eye tracker, addressing privacy concerns (Bozkir et al., 2020).

Traditionally, such data is gathered in laboratory settings with limited participants due to time and resource constraints, and subjects may behave differently. The proposed protocol aims to overcome these limitations by using the smart contracts and Ethereum blockchain to collect high-quality eye-tracking data remotely from many participants with diverse characteristics. The subjects use a VR application provided by the data collector, and the recorded eye-tracking data is validated and hashed using white-box cryptography to ensure data integrity. The protocol allows for efficient and anonymous data collection, potentially enabling continuous research even in remote settings (Bozkir et al., 2020).

Privacy concerns arise from storing personal data on a public blockchain, potentially compromising subjects' sensitive information. Obtaining informed consent from remote participants may be challenging, as the immutable nature of blockchain limits data control and erasure. Additionally, data ownership and usage rights questions can impact subjects' autonomy. On the negative side, remote data collection may lack the authenticity of real-life settings, affecting the validity of results, and some individuals may face technological barriers to participation. However, there are positives to this approach, as it enables larger and more diverse datasets, enhancing the quality of research outcomes. Furthermore, eliminating centralized intermediaries enhances data security and privacy. Moreover, during crises like COVID-19, this protocol allows research to continue remotely, ensuring the continuity of scientific progress (Bozkir et al., 2020).

Recently, OpenAI's CEO, Sam Altman, revealed plans to scan the irises of billions of people worldwide with football-sized 'Worldcoin' scanning devices in multiple countries. The purpose is to create a unique digital record called a World ID, enabling users to prove their human identity and combat online fraud. However, this move has raised privacy and security concerns among authorities due to sensitive data collection and access issues. Worldcoin attracted two million sign-ups before its launch, but its rollout in the US must overcome regulatory obstacles. Altman claims the project will aid in reshaping the economy with AI and could be used for benefits verification and voter ID (Norton, 2023).

Environment

Innovative technologies like VR intersect with blockchain and Web3 concepts, but they also raise concerns regarding their negative environmental and sustainability impacts. Blockchain's energy-intensive consensus mechanisms can contribute to high energy consumption and carbon emissions. Combined with VR and AR applications, these technologies can intensify the strain on energy resources, potentially exacerbating environmental issues (Marr, 2023).

Blockchain, NFTs, and Web3 technologies have a sustainability problem due to their massive energy consumption and environmental impact. The energy-inefficient Proof of Work (PoW) system used by some cryptocurrencies contributes to carbon emissions. A shift towards energy-efficient Proof of Stake (PoS) systems and adopting renewable energy sources is essential to address this. Blockchain's potential in fighting climate change includes pollution monitoring and tracking product sustainability. It could also aid the deployment of renewable energy in developing countries. Integrating renewable energy and sustainable mining practices is crucial for these technologies to become more environmentally friendly (Marr, 2023).

Another example is fast fashion, responsible for a significant portion of global carbon emissions and wastewater production, which is shifting its focus to the metaverse. Brands like Zara and H&M are launching digital fashion collections while continuing to produce massive amounts of physical clothing. AR clothing try-on is becoming a reality with recent pilots and investments. This advancement could revolutionize fashion brands by enabling digital clothing sales, boosting conversions, and reducing fast fashion's unsustainable practices (McDowell, 2021). Critics accuse them of greenwashing by promoting virtual initiatives without addressing their real-world environmental impact. Some emerging brands, like Mntge, embrace sustainability by sourcing vintage garments and incorporating NFC and digital NFTs, extending the lifecycle of existing clothing. Web3 native labels adopt made-to-order manufacturing, reducing material waste (Ryder, 2023).

The examples provided delve into diverse industries and their effects on sustainability, underscoring the tension between technological progress and ecological concerns—the first centers on blockchain, NFTs, and Web3 technologies, highlighting their sustainability challenges. Notably, the energy-intensive nature of blockchain's Proof of Work (PoW) consensus mechanism contributes substantially to carbon emissions. This suggests remedies like transitioning to more energy-efficient systems like Proof of Stake (PoS) and embracing renewable energy for mining. Meanwhile, the second example on fashion addresses sustainability issues in the fast fashion industry, emphasizing the industry's high carbon emissions and wastewater production. It observes how fast fashion brands are venturing into the metaverse and virtual fashion, diverting resources from tackling real-world environmental problems. It raises concerns about "greenwashing" and the necessity for greater transparency in Web3 activations. Despite the industries' disparity, both shed light on how technological advancements and digital innovations can substantially impact the environment. They underscore the critical importance of integrating sustainability into these sectors and balancing technological advancement and responsible environmental practices (Marr, 2023: Ryder, 2023).

Impacted Stakeholders

The integration of Web3 technologies with innovative systems in the metaverse is a groundbreaking fusion that promises to reshape the way we interact with the digital realm, offering limitless possibilities and user empowerment. As this transformative landscape evolves, various stakeholders are positively and negatively impacted.

Individuals (Users) stand to benefit from the metaverse's immersive and decentralized experiences. They gain greater control over their digital assets and identities, enhancing autonomy and privacy. However, privacy concerns arise as decentralized environments may expose user data to potential misuse, and navigating complex regulatory frameworks can be challenging for users (Kürtünlüoğlu et al., 2022 ).

Companies and Organizations exploring Web3-based VR and AR experiences find new opportunities for business models, revenue streams, and customer engagement. Decentralized networks enhance security and efficiency through blockchain, but regulatory challenges may pose hurdles, and the environmental impact of energy-intensive technologies draws criticism (Bozkir et al., 2020).

Regulatory Bodies have the opportunity to create a secure and transparent metaverse by implementing frameworks that safeguard user rights and privacy. However, crafting appropriate regulations amidst rapid technological advancements is complex, requiring a delicate balance between innovation and protection (Garon, 2022).

Nonetheless, concerns about data privacy, security, and environmental impacts can trigger public skepticism and the need for responsible governance and sustainable practices (Kürtünlüoğlu et al., 2022 ).

Implicitly, the environment is also a stakeholder, encompassing the broader interest in sustainability, natural resources, and the ecosystem. The environmental impact of integrating Web3 technologies, incredibly energy-intensive blockchain mechanisms, becomes a critical concern, warranting the need for responsible and eco-friendly practices (Aria et al., 2023).

Ethical Code in Web3

Integrating Web3, metaverse technologies, and innovative systems raises ethical considerations. Deontology emphasizes a regulatory framework to protect user rights and privacy. At the same time, utilitarianism aims for overall welfare—examples include the smart contract controversy impacting decentralization and privacy concerns in blockchain's environmental impact. The ACM Code of Ethics principles offer valuable perspectives. By advocating for regulation, prioritizing privacy, and addressing environmental impact, IT/CS professionals can promote responsible innovation and uphold ethical standards for a sustainable and inclusive future.

Ethical Theories in Web3 and the Metaverse: A Deontological and Utilitarian Perspective

Deontological and utilitarian ethical theories provide frameworks for assessing the integration of Web3, metaverse technologies with innovative systems. However, these theories offer contrasting perspectives. The deontological ethical theory emphasizes adhering to obligations and duties when making decisions. In the context of the ethical concerns surrounding regulatory compliance and decentralization, smart contracts and privacy, and environmental impact with Web3 and metaverses, deontology asserts that the duty of governing bodies and technology developers to establish a global regulatory framework that ensures user rights, privacy protection, and content moderation across different virtual worlds and metaverse environments. This framework should prioritize consistency, fairness, and ethical standards in the governance of these technologies. The resolution proposed from a deontological perspective would be collaborating with stakeholders, including governments, industry leaders, and user communities, to develop and implement comprehensive regulations addressing ethical concerns while fostering innovation and technological advancement (Chonko, 2023).

Alternatively, Utilitarian ethical theory focuses on maximizing overall happiness and welfare for the most significant number of people. The argument is that a lack of regulations may lead to inconsistencies in user rights, privacy protection, and content moderation, resulting in negative consequences and harm to individuals and society. Utilitarianism supports compliance by ensuring fairness, protecting user interests, and maintaining a level playing field. The resolution would involve balancing regulatory compliance and decentralization to ensure user safety, prevent monopolies, protect individual rights, and uphold ethical standards. There is also the issue of the environmental impact of blockchain technology, particularly proof-of-work consensus algorithms like Bitcoin and Ethereum, which raises significant concerns (Chonko, 2023). Consequentialism highlights the substantial energy consumption associated with these technologies. Optimizing resource usage, promoting energy-efficient hardware, and exploring decentralized infrastructure solutions is important to address this. Utilitarianism supports these measures as they contribute to society's well-being and happiness, ensuring a sustainable future for future generations. By reducing energy consumption and promoting eco-friendly practices in blockchain technology, companies and corporations can align their actions with utilitarian principles, considering the long-term benefits for both the environment and society. It would require collaborative efforts among governments, industry leaders, and user communities to develop and implement comprehensive regulations that address ethical concerns while fostering innovation and technological advancement for society's overall benefit and well-being (Aria et al., 2023).

ACM Code of Ethics: Decoding Ethical Dilemmas

The ACM Code of Ethics and Professional Conduct includes two essential principles that provide insightful frameworks for analyzing ethical dilemmas associated with various aspects of Web3, metaverses, and innovative technologies. These principles, specifically 1.1 "Contributing to society and promoting human well-being" and 1.6 "Respecting privacy," offer valuable perspectives on the ethical challenges related to regulatory compliance and decentralization, smart contracts, privacy concerns, and the environmental impact  (ACM, 2018, para.7, 20).

The ACM Code of Ethics (1.1), which emphasizes the obligation of computing professionals to contribute to society and human well-being, holds particular relevance in the context of this ethical dilemma, encompasses risks associated with smart contracts, privacy concerns, and environmental impact challenges in Web3, metaverse, and innovative technologies like VR/AR/MR. Computing professionals must recognize the environmental implications of their work and strive to address them responsibly by actively promoting energy-efficient practices, optimizing resource usage, and exploring decentralized infrastructure solutions. By adhering to this principle, IT/CS professionals can demonstrate their commitment to ethical practices in developing and deploying Web3 and metaverse technologies. This commitment aligns with the principle of contributing to society and human well-being and ensures future generations' long-term sustainability and welfare. It encourages professionals to consider their work's broader societal and environmental implications (ACM, 2018, para.7; Kshetri, 2022; Martins & Wolfe, 2023).

Based on the analysis of the ACM Code of Ethics principles and the ethical dilemmas presented, some recommendations for IT/CS professionals is to actively advocate for a global regulatory framework that prioritizes user rights, privacy protection, and fair governance. They should also consider the environmental impact of their work, address privacy and security risks, and promote ethical content and responsible innovation. Promoting an ongoing and inclusive dialogue and collaboration with stakeholders is crucial in advocating for establishing a global regulatory framework that prioritizes the well-being of individuals and society at large. Computing professionals must recognize and address the environmental impact of technology, particularly innovative advancements. They should strive to prioritize energy-efficient practices, optimize resource utilization, and explore decentralized infrastructure solutions (ACM, 2018, para.7; Kshetri, 2022).

Furthermore, given the persistent concerns regarding privacy and security in emerging technologies, professionals must give utmost importance to implementing robust privacy measures, stringent security protocols, vulnerability assessments, and comprehensive audits. These measures are essential to safeguard user data and prevent unauthorized access. By embracing these recommendations, IT/CS professionals can uphold ethical standards, contribute to a sustainable and inclusive future, and ensure the well-being of individuals and society (ACM, 2018, para.7).

The second significant principle outlined in the ACM Ethics (1.6) emphasizes respecting privacy as a fundamental concept. This principle underscores the obligation of computing professionals to honor and safeguard the privacy of individuals. In Web3, metaverses, and other innovative technologies, gathering, utilizing, and protecting personal information have become subjects of great concern. Computing professionals must be well-informed about the various aspects of privacy and the associated rights and responsibilities concerning the collection and usage of personal data. They should take appropriate measures to prevent unauthorized access, unintentional disclosure, and the re-identification of anonymized data. Numerous concerns exist regarding the potential misuse of such technologies against consumers or individuals engaged in these platforms, and the responsibility lies in understanding and mitigating the risks involved (ACM, 2018, para.20).

Several suggested recommendations include that IT/CS professionals should prioritize incorporating privacy considerations into designing and implementing Web3, metaverse, and other innovative technologies. It can be achieved by adhering to established data protection practices, ensuring data handling transparency, obtaining informed consent from individuals, and adopting secure data management protocols. Computing professionals should actively advocate for policies and procedures that empower individuals to retain control over their data. It includes advocating for individuals' rights to review and correct inaccuracies in their data, as well as the ability to delete their information when deemed necessary. By implementing these principles, IT/CS professionals can contribute to developing a responsible and privacy-focused technological landscape (ACM, 2018, para.20; Kürtünlüoğlu et al., 2022).

Two contrasting ethical theories offer intriguing perspectives on the ethical dilemma surrounding the integration of web3, metaverse, and innovative technologies. Deontology emphasizes the responsibility of governing bodies and technology developers to establish a global regulatory framework. On the other hand, utilitarianism prioritizes the protection of society by maximizing all individuals' happiness through supporting compliance, ensuring fairness, safeguarding user interests, and maintaining a fair and equitable environment. These ethical theories can also be examined through the lens of the ACM code, particularly in contributing to society, promoting human well-being, and respecting privacy, all of which align with the principles of these ethical theories.

Innovation and Ethical Obligations

Ethical Decentralization

Using a smart contract "kill switch" raises several ethical dilemmas from both deontological perspectives. Deontology emphasizes the principle of decentralization, which could be compromised by the kill switch, concentrating power in a few authorities and undermining the trustless nature of Blockchain technology (Chonko, 2023). It also highlights the duty to prioritize user privacy and security, as a centralized entity could intervene in contract operations, potentially violating ethical standards outlined in the ACM Code of Ethics (1.1 "Contributing to society and promoting human well-being" and 1.6 "Respecting privacy") (ACM, 2018, para.7, 20). Utilitarianism supports compliance to ensure fairness and protect user interests, aligning with the ACM principles and considering the potential negative consequences and harm to society if the kill switch is misused. To address these ethical concerns, companies need to adapt to the changing landscape, embrace decentralization, and reevaluate smart contract designs while exploring alternative security measures, such as multi-signature wallets, to comply with the mandate while retaining the benefits of decentralization (Aria et al., 2023: Blockchain Council, 2023).

Privacy Ethics

The ethical dilemma surrounding blockchain-based eye-tracking data collection in VR revolves around privacy concerns and informed consent. Storing personal data on a public blockchain raises questions about confidentiality and security, limiting participants' control over their data and the ability to revoke consent due to the blockchain's immutability. Ensuring participants fully understand the implications of sharing their eye-tracking data and providing informed consent is challenging. Balancing the benefits of efficient and diverse data collection with potential risks to privacy and autonomy creates an ethical dilemma for researchers and data collectors (Bozkir et al., 2020). In the context of OpenAI, the same concerns can be applied. This initiative has triggered significant privacy and security concerns among authorities and the public due to the sensitive nature of data collection and access (Norton, 2023).

Utilitarianism plays a role in this ethical dilemma, highlighting the need to maximize overall welfare and happiness. Balancing the benefits of efficient and diverse data collection with the potential risks to participants' privacy and autonomy aligns with the utilitarian focus on protecting the well-being of individuals (Chonko, 2023: Kshetri, 2022). Regarding the ACM Code of Ethics, the principle that is most relevant to this situation is 1.6, "Respecting privacy"(ACM, 2018, para.20). This principle underscores the obligation of computing professionals to honor and safeguard the privacy of individuals, which directly relates to the concerns about storing personal data on a public blockchain and the potential risks to participants' information. The perspectives of utilitarian ethical theories and the ACM Code of Ethics principles shed light on the importance of prioritizing user rights, privacy protection, and the well-being of individuals involved. To address these concerns, obtaining informed consent, communicating implications, and exploring decentralized or permissioned blockchain networks can aid in resolving the ethical dilemma while advancing research responsibly in virtual reality and eye tracking technologies (Chonko, 2023: Kshetri, 2022:ACM, 2018 ).

Sustainability and Ethics in the Web3 Era

On one side, the fashion industry is utilizing AR to simulate fashion and exploring web3 technologies to address sustainability concerns (McDowell, 2021). These advancements are seen as positive steps towards tackling environmental issues. However, on the other side, the application of web3 blockchain technology itself has raised apprehensions due to its negative impact on the environment. This technological progress and environmental responsibility paradox is evident in various industries, including blockchain, NFTs, Web3, and fast fashion (Marr, 2023: Ryder, 2023).

While these sectors embrace innovation and progress, they must also take responsibility for their contributions to carbon emissions and other environmental problems. Achieving a harmonious balance between technological advancement and responsible environmental practices is crucial. This requires adopting eco-friendly solutions, reliance on renewable energy, and ensuring transparency in these technologies to align with sustainability goals (Marr, 2023: Ryder, 2023).

This ethical dilemma can be analyzed through deontological and utilitarian ethical theories. Deontology emphasizes the duty to protect the environment and adhere to ethical standards, urging companies to prioritize eco-friendly practices and minimize their environmental impact in compliance with the ACM Code of Ethics principle of "Contributing to society and promoting human well-being" (Chonko, 2023: ACM, 2018, para.7). Utilitarianism advocates maximizing overall happiness and welfare, underscoring the need to address environmental concerns in these industries for the greater benefit of society and future generations. By integrating ethical principles and ACM guidelines, companies can navigate this dilemma responsibly, fostering technological progress and environmental sustainability (Chonko, 2023).

Introspective Thoughts

The integration of Web3 technologies with VR and AR systems within the metaverse presents a promising yet complex landscape. This convergence could revolutionize various aspects of society, from entertainment and education to healthcare and marketing. The idea of a decentralized and immersive digital realm where individuals have greater control and ownership over their digital experiences is inspiring.

However, one must acknowledge the significant challenges that come with this transformation. Privacy and security concerns are paramount in this interconnected digital universe and remain areas of significant concern across all digital platforms. As the metaverse evolves, it becomes crucial to establish regulatory frameworks that protect user rights, ensure data privacy, and prevent unauthorized access to personal information. Open dialogue and cooperation are necessary to address the intricate legal and ethical issues that may arise in this new landscape.

As the demand for digital experiences and virtual interactions grows, so does the energy consumption of data centers that support these technologies. The increased electricity usage could exacerbate carbon emissions and contribute to global warming. Moreover, producing and disposing of hardware components like VR headsets and sensors can generate electronic waste, adding to the planet's electronic pollution problem. As we venture into the metaverse's potential, it is essential to prioritize sustainable practices, energy-efficient solutions, and responsible e-waste management to minimize its environmental impact.

“The metaverse has a long way to go before matching the widespread adoption of today's web or the metaverse in Snow Crash. [...] ‘Our initial exposure to the metaverse is a kind of very vast market, a lowest common denominator to include ... the worst of television,’ Stephenson said. ‘But later on, as we get farther into the book, we see that people have used it to make beautiful works of art. There are some people ... who lavished a lot of time and attention on making homes in the metaverse that are exquisite works of art, both visually and in this sonic environment.’" (Shankland, 2023).

The technology in question holds tremendous potential for good. In VR and AR experiential design, one cannot help but feel optimistic about its possibilities. Its capacity to revolutionize interactive experiences and reintroduce empathy into entertainment is remarkable. Additionally, the technology's transformative influence on the design process and its application in training and education further solidify its promise.

Conclusion

In conclusion, integrating Web3 technologies with VR and AR systems holds immense promise for a future where individuals can explore limitless possibilities and truly own their digital experiences in the metaverse. This transformative landscape offers unprecedented levels of control and autonomy, empowering users to participate in decentralized applications, own digital assets, and shape the direction of this interconnected digital universe (Ray, 2023; Dwivedi et al., 2022).

In the context of ethical theory,  deontological and utilitarian perspectives provide insight into this issue. While deontology emphasizes the duty to establish a global regulatory framework, utilitarianism focuses on maximizing overall happiness and well-being. Balance must be struck between regulatory compliance and decentralization to ensure user safety, prevent monopolies, and protect individual rights (Chonko, 2023).

To summarize, using a smart contract raises ethical dilemmas related to decentralization and user privacy. Deontology emphasizes the importance of decentralization, but the kill switch concentrates power and undermines trust in Blockchain. Utilitarianism supports compliance to protect users but also considers potential harm if misused. Regarding eye-tracking data in VR and OpenAI, privacy concerns arise from storing data on public blockchains, challenging informed consent. Utilitarianism emphasizes protecting individual well-being, and the ACM Code of Ethics principle of "Respecting privacy" is relevant. In the fashion industry, web3 technologies address sustainability but raise environmental concerns. Deontology and utilitarianism highlight the need for eco-friendly solutions and transparency to balance progress and environmental responsibility (Chonko, 2023; ACM, 2018; Marr, 2023; Ryder, 2023; Norton, 2023; Blockchain Council, 2023).

Integrating Web3 technologies with VR, AR, and MR systems within the metaverse holds immense potential but demands careful navigation of ethical, privacy, security, and environmental challenges. By prioritizing user rights, privacy protection, ethical governance, and fostering collaboration among stakeholders, we can shape a sustainable and inclusive future for web3-based VR and AR experiences in the metaverse.


Works Cited

  1. Aria, R., Archer, N., Khanlari, M., & Shah, B. (2023). Influential Factors in the Design and Development of a Sustainable Web3/Metaverse and Its Applications. Future Internet, 15(4), 131. https://doi.org/10.3390/fi15040131
  2. Association for Computing Machinery. (2018). ACM Code of Ethics and Professional Conduct. Retrieved from https://www.acm.org/code-of-ethics
  3. Bozkir, E., Eivazi, S., Akgün, M., & Kasneci, E. (2020). Eye Tracking Data Collection Protocol for VR for Remotely Located Subjects using Blockchain and Smart Contracts. In 2020 IEEE International Conference on Artificial Intelligence and Virtual Reality (AIVR) (pp. 397-401). Utrecht, Netherlands. doi: 10.1109/AIVR50618.2020.00083.
  4. Chonko, L., Ph.D. (n.d.). DSEF Presents Ethical Theories. Retrieved July 7, 2023, from https://dsef.org/wp-content/uploads/2012/07/EthicalTheories.pdf
  5. Dwivedi, Y. K., Hughes, L., Baabdullah, A. M., Ribeiro-Navarrete, S., Giannakis, M., Al-Debei, M. M., Dennehy, D., Metri, B., Buhalis, D., Cheung, C. M. K., Conboy, K., Doyle, R., Dubey, R., Dutot, V., Felix, R., Goyal, D. P., Gustafsson, A., Hinsch, C., Jebabli, I., Janssen, M., Kim, Y.-G., Kim, J., Koos, S., Kreps, D., Kshetri, N., Kumar, V., Ooi, K.-B., Papagiannidis, S., Pappas, I. O., Polyviou, A., Park, S.-M., Pandey, N., Queiroz, M. M., Raman, R., Rauschnabel, P. A., Shirish, A., Sigala, M., Spanaki, K., Tan, G. W.-H., Tiwari, M. K., Viglia, G., & Wamba, S. F. (2022). Metaverse beyond the hype: Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy. International Journal of Information Management, 66, 102542. https://doi.org/10.1016/j.ijinfomgt.2022.102542.
  6. Garon, J. M. (2022). Legal Implications of a Ubiquitous Metaverse and a Web3 Future. SSRN Electronic Journal. Retrieved from https://doi.org/10.2139/ssrn.4002551.
  7. Kováčová, M., Horák, J., & Higgins, M. (2022). Behavioral Analytics, Immersive Technologies, and Machine Vision Algorithms in the Web3-powered Metaverse World. Linguistic and Philosophical Investigations, 21(2), 57-72.
  8. Kshetri, N. (2022). Policy, Ethical, Social, and Environmental Considerations of Web3 and the Metaverse. IT Professional, 24(3), 4-8. doi: 10.1109/MITP.2022.3178509.
  9. Kürtünlüoğlu, P., Akdik, B., & Karaarslan, E. (2022). Security of Virtual Reality Authentication Methods in Metaverse: An Overview. Cryptography and Security (cs.CR). Retrieved from https://doi.org/10.48550/arXiv.2209.06447.
  10. Martins, & Wolfe, S. G. (2023). Metaversed : see beyond the hype. John Wiley & Sons, Incorporated.
  11. Ray, P. P. (2023). Web3: A comprehensive review on background, technologies, applications, zero-trust architectures, challenges and future directions. Internet of Things and Cyber-Physical Systems, 3, 213-248. ISSN 2667-3452. https://doi.org/10.1016/j.iotcps.2023.05.003.
  12. Shankland, S. (2023, June 1). The Man Who Named the Metaverse Is Optimistic Despite Waning Hype. CNET. Retrieved from https://www.cnet.com/tech/gaming/the-man-who-named-the-metaverse-is-optimistic-despite-waning-hype/
  13. Blockchain Council. (2023, April 21). The EU's "Kill Switch": What Does It Mean For The Future Of Decentralization? Retrieved from https://www.blockchain-council.org/blockchain/the-eus-kill-switch-what-does-it-mean-for-the-future-of-decentralization/
  14. Marr, B. (2023, January 13). Why Blockchain, NFTs, And Web3 Have A Sustainability Problem. Forbes. Retrieved from https://www.forbes.com/sites/bernardmarr/2023/01/13/why-blockchain-nfts-and-web3-have-a-sustainability-problem/?sh=3e10209c5b0b
  15. Ryder, B. (2023, May 31). Greenhushing And Metawashing: How Fast Fashion Obscures Its Carbon Footprint Behind Web3, The Metaverse. Jing Daily. Retrieved from https://jingdaily.com/greenhushing-metawashing-fast-fashion-carbon-footprint-web3-metaverse/
  16. Norton, J. (2023, July 25). Chat GPT boss unveils plans to scan people’s EYEBALLS to help prove they are human on the internet in bid to counter the threat of AI amid privacy and security concerns from the authorities. Daily Mail. Retrieved from https://www.dailymail.co.uk/news/article-12337179/Chat-GPT-boss-unveils-plans-scan-peoples-EYEBALLS-help-prove-human-internet-bid-counter-threat-AI-amid-privacy-security-concerns-authorities.html
  17. McDowell, M. (2021, July 26). Why AR clothing try-on is nearly here. Vogue Business. Retrieved from https://www.voguebusiness.com/technology/why-ar-clothing-try-on-is-nearly-here

Kristina Mahagamage | TinaMDigitalArt.com | Information Technology Studies | Missoula College | Summer 2023