Failure to maintain governmental supervision might lead to the metaverse being a very hazardous environment. Hackers and fraudsters might use the metaverse as a playground to steal people’s identities. The world looks to be ill-prepared for what is ahead.
In the future, cryptocurrency will continue to grow as more research is done. The advantages and disadvantages of Bitcoin’s blockchain technology will be passed on to the new system.
#1. Privacy and Digital Identity Issues
With digital identification, the metaverse aims at creating “a new reality”. We may anticipate digital IDs to play a significant role in removing obstacles. In other words, instead of using an anonymous public key as an identification, users might reveal their true identities to one another. Identity theft can be prevented if this information is kept private.
Additionally, transactions within the Metaverse and other data linked with identity management might be revealed. Metaverse might encrypt all sensitive data contained in its blocks to overcome this issue.
Lack of attention to both privacy and security concerns during the development process might result in major consequences.
There are risks and downsides associated with any cryptocurrency and blockchain initiative that might lead to a catastrophic outcome. Bitcoin and Ethereum’s inherent hazards are expected to be included in any new cryptocurrency that emerges in the nearest future.
#2. Bloat Issue
Running a complete node on the Bitcoin blockchain is becoming more and more expensive as the network grows at a rate of about 1MB every ten minutes (which is 1GB per week). The number of worldwide bitcoin full nodes has rapidly fallen over the past years, from over 10,000 in late 2013 to roughly 5,500 in July 2016.
The UTXO nature of the Metaverse blockchain may increase the problem of bloat. UTXO mining is required in the early phases, as stated in the ETH White Paper, and this problem is handled there.
#3. Consensus Mechanism
With more transactions taking place on the blockchain, Metaverse’s DPoS + BFT consensus mechanism is anticipated to have an impact on the system’s performance. Ethash + PoS will enhance confirmation time and minimize energy consumption at mining nodes by 99 percent if compared to PoW. The consensus appears to be a significant factor in the success of a cryptocurrency.
#4. Legal Issues
According to legal experts, the Metaverse necessitates global or meta jurisdiction.
It faces a slew of legal difficulties that must be solved as soon as possible. Criminals may be able to use the platform more easily because of the system’s anonymity.
Some experts are warning the public that the growth of the metaverse will come at a cost. Many individuals are worried about what this implies, but they don’t actually know what’s coming next.
#5. Motion and Haptic Interfaces
To take advantage of this rapidly expanding field of technology, experts believe that haptic interfaces should be deployed as soon as feasible. Over the next few years, competition is set to heat up the market.
IoT (the Internet of Things) was predicted to have a significant influence on human existence in the future. Security flaws are still a worry, and they might have a significant impact in the future. There hasn’t been much progress in the Metaverse’s haptic and motion capabilities, so it will be fascinating to watch if anything changes over the next years.
Metaverse has yet to come up with a solution for haptic and motion interfaces that provide users with the highest rates of gratification. More rivals, including Qtum and Ethereum, have been developing new platforms for IoT applications, which might heat up the market.
Plans for the Future
People aren’t aware of the loophole when businesses begin to enter the Metaverse, which has great potential.
The Metaverse, unlike Bitcoin, is a blockchain that contains a wide range of capabilities. But the platform’s image may be tarnished if it has privacy issues.
Haptics and motion capture technology will need to advance to new levels if the virtual world is to become a place where people can feel both emotionally and physically present.
Communities with high-quality members are more valuable than those with fewer members. If the Metaverse community is to remain focused on its basic aim of building a new reality, it means the Metaverse has to be carefully regulated.
Regulators and criminals will need to be handled before the Metaverse is extensively used. Since criminals might identify vulnerabilities in this system, one of these features is its anonymity.
For the Metaverse to be a universal success, there are significant legal issues that must be solved. Most people aren’t aware of what the emergence of the Metaverse implies for them, according to experts.