a16z-backed metaverse firm co-founder says Big Tech to lose control over users’ data

It seems that 2023 might be a watershed year for the integration of the metaverse and blockchain technology. A new sort of digital economy is emerging, one that is borderless, decentralized, transparent, and driven by genuine digital ownership, thanks in large part to the rise of virtual worlds and immersive media.

Interestingly in this new digital economy, TJ Kawamura, co-founder of Everyrealm, believes it will no longer be acceptable for large institutions to fully control user data, as he wrote in an open letter to investors about 2023 trends shared with Finbold on January 31.

According to Kawamura, it will no longer be acceptable for corporations like Google, Amazon (NASDAQ: AMZN), or Meta (NASDAQ: FB) to have complete access to user data and then sell that data to advertising without compensating or benefiting the users who provide the value.

“It will no longer be acceptable for large institutions like Google, Amazon, or Meta to have full control over data and sell an individual’s information to advertisers without providing any compensation or benefits to the users who are generating the value. People will own their data and be able to use and leverage it how they choose.”

Importance of an online identity

The co-founder of the a16z-backed metaverse tech company stressed that these days, a person’s online persona is equally as significant as their actual one. For this reason, individuals must have management over their digital identities and profiles. Users have traditionally been required to establish and maintain many identities while interacting with various online services such as social media, email accounts, and dating sites. 

Consumers now face the headache of having to keep their many online personas consistent and accurate and the difficulty of updating their scattered personal data. Companies have not yet worked together to emphasize consistency and accuracy in developing a global identification system that all its users can use. 

However, with an interoperable identity, customers may consolidate their many online personas into a single, unified identity under their control, allowing them to represent themselves more effectively and take advantage of the many possibilities presented by the digital realm.

Crypto space can implement AI

It has also been suggested that another trend would be using artificial intelligence (AI) to improve user-generated content and give creators more control.

Kawamura notes:

“There are many opportunities for businesses in the crypto industry to implement AI into their systems, collaborate with existing AI companies to develop products, and deliver new user-friendly experiences to their customers.”

Finally, in 2023, the divide between the virtual world and the real world is anticipated to be less than it has ever been before. In this line, users of online platforms will earn virtual prizes for attending real-world experience events, and in return, they will get real-world incentives for engaging on online platforms. It is planned to continue developing non-fungible tokens (NFT) that also reflect ownership over an existing physical asset. 

Moreover, brands that have been making inroads into the metaverse will have the ability to pre-sell digital assets, which will allow them to calculate the number of physical goods to make while simultaneously reducing unnecessary waste. In doing so, they will transform their clients into consumers in both the digital and physical realms.