元宇宙和NFT入門報告（英）

ReckoningwiththeMetaverseAPrimerontheMetaverseandNFTsIntroductionPolicymakersandexecutivesmustfocusonthemetaverseiftheyarenotalreadydoingso.Many“Metazens”arealreadyspendingsignificanttimeandmoneyinvirtualenvironmentsonthingslikegaming,virtualrealestate,andnon-fungibletokens,orNFTs.1Asthemetaversebecomesabiggerpartofpeople’slivesandlivelihoods,financialandotheractivitieswillneedasolidbasisinlawandregulation.Suchabasisdoesnotyetexist.Themetaversehasthepotentialtobecomeaconstellationofrealisticandalternativeworldswhere,asinthephysicalworld,individualsandinstitutionscanpurchaseandsellalltypesofgoodsandservices.Itmakesuseofinnovationsinmoney:transactionsaremadewithdigitalassetsandsomeofthegoodssoldarepackagedasnon-fungibletokens.NFTswillplayanimportantroleinformingthebuildingblocksofpropertyinthemetaverse,andbothsectorsarealreadygrowingrapidly.2Someoftheprojectionsforthesizeofthemetaversemarketareeye-opening,rangingwidelyfrom$670billionto$13trillion.3Whilethegrowthpotentialremainsanopenquestion,themarketistoobigforregulatorstoignore.Inthispaper,weseektoprovideanoverviewofthemetaverseandhowNFTswillplayaroleinshapingit,coveringtopicssuchas:BasicsofthemetaverseInsandoutsofmetaverseuseImportanceofthemetaverseVirtualpropertyrightsconsiderations3ReckoningwiththeMetaverse|BasicsofthemetaverseBasicsofthemetaverseQ:Whatisthemetaverse?Themetaverseemploysnewtechnologytobridgegapsbetweenthephysicalandvirtualworlds,allowingcolleaguestoworktogether,studentstolearntogether,andfriendstosocializetogetherinamorerealistic,naturalwaythanthecurrentinternetoffers(seeExhibit1).Today’smetaversecontainshumanoidavatarsmeetinginamultitudeofdifferentvirtualrealityenvironments.Themostsignificantusecaseisgaming,withgameslikeFortniteenjoyingthreetoeightmilliondailyusers.4Themetaverseoftomorrowmayspanmanymoreusecases,drivenbyeasyconnectionsbetweendigitalworlds(portability)andtheintegrationofdigitalandphysicalworldsthroughtheuseofaugmentedreality(AR),virtualreality(VR),andtheinternetofthings(IoT).Theterm“metaverse”wascoinedbysciencefictionwriterNealStephensoninhis1992novel“SnowCrash.”Itportraysadystopianworldinwhichusers’avatarsareproxiesfortheirsocialstatusandwealth,andasubsetofusersbecomeaddictedtothemetaverseandeffectivelyabandonthephysicalworldforvirtualreality.5Theworkoffictionpoints

torealriskswithinthemetaverse,andtoavoidadystopianoutcome,developersofthemetaverseshouldseektohavethedigitalworldenhancethereallivesofthosewhouseitevenifitoffersanimmersiveexperience.Incontrast,someespouseamoreutopianvisionforthemetaverse,wherevirtualworldsareseamlesslyintegrated,withindividualsretainingcontrolandautonomyovertheirdigitalselves.Theseoptimistsimaginevirtualworldsbuiltontopofanewiterationoftheinternetdesignated“Web3.”Whilecurrentlymoreofanideathanafirmreality,developersenvisionWeb3asthenextgenerationoftheinternetwithafocusondecentralization,openaccess,andinterconnectivitybetweensystems.ThenameWeb3ismeanttodistinguishitfromWeb2.0,thecurrentversionoftheinternet,inwhichafewclosedandcentralizedplatformsdominatetotalvalue.WherethemetaverseandWeb3mayaligntohavethegreatestimpactisintheareaofpayments.Thelackofanembeddedpaymentsinfrastructureencouragedsomebusinessmodelstorelyonexcessiveadvertisement,datacollection,andprivacy4Exhibit1:Whatisthemetaverse?KeyFeatures?Activities??????PlatformsandWeb3integration??-?-?-?-?????Source:OliverWymanForum5ReckoningwiththeMetaverse|Basicsofthemetaverseinvasion.6Ametaversethatincludesfeatureslikedecentralizedidentitywouldallowuserstocontroltheirdatawhilegivingbusinessesconfidenceinwhotheyaredealingwith.Thatcouldenablenewbusinessmodelswithembeddedpaymentsforasuperioruserexperience.NoneofthisistosaythattheadventofWeb3orametaversewhereworldsareopen,integrated,anddecentralizedisacertainty.Achievingintegrationacrossvirtualworldsandplatformsisnoeasytask.Additionally,dissentingvoiceshaveoutlinedabearishviewofachievingdecentralizationthroughWeb3givenboththetechnicalcomplexitiesofensuringthatdifferentworldsacrossdifferentplatformscanbecheaplyandsafelyconnectedandtheeconomicrealitiesofthedigitalworldwherenetworkeffectsdrivecentralization.Thereremainsanopenquestionifthemetaversemodelthatemergeswillbebuiltinacentralized,closedmannerorifitwillbeopenandintegratedtoallowforgreatercollaborationbetweenworlds.AsExhibit1illustrates,themetaversemaygrowtobeacollectionofvirtualworldsthatareopenandintegrated,inlinewiththeethosofWeb3.Butit’salsopossiblethatvirtualworldswillbebuiltoncentralizedplatforms,withpotentialintegrationtootherdecentralizedworlds.Ametaversebuiltfromcentralizedplatformsmaynotbeasrevolutionaryasadecentralizedone.Ultimately,customerdemandandtechnologicaladvanceswilldeterminewhichpathofdevelopmentprevails.

WhatdoNFTshavetodowiththemetaverse?NFTswillberelevantonlytosomevirtualworldsinthemetaverse.Let’sstartbyfirstdefiningwhatanon-fungibletokenis.Non-fungiblenon-fungibleitemisuniqueandnotinterchangeablewithanotheritem,liketheMonaLisa.Thisistheoppositeofafungibleitem,likedollarsorbarrelsofoil,whereapurchaserorsellercaresonlythatiteminvolvedinatransactionisoneoftherightcategory.TokenAtoken,inthecryptomeaningoftheword,isanassetthatexistsonablockchain.Beingonablockchainmeansthattheownershiprightstothetokenare,intheory,indisputableastherecordsareavailableopenlyonablockchainwhichisapublic,distributedledgerexistingacrossanetwork.Bitcoinisafungibletoken;thereisnomeaningfuldifferencebetweenthesinglebitcoinownedbyPersonAortheoneownedbyPersonB.Incontrast,NFTsrepresentauniquetokenonablockchainthatisdifferentthananyoneelse’s.WhereasBitcoincanbeseenastheblockchainequivalentofmoney(fungible),NFTsaretheblockchainequivalentofart(non-fungible).About95%ofNFTstodayaremintedandownedontheEthereumblockchain.7WhensomeonemintsanNFT,codeisexecutedthataddstheownershipinformationtotheblockchain.Themintingoccursthrough6smartcontracts,orcomputerprogramsstoredontheblockchainthataresettorunundercertainconditions.TheybothassignownershipandmanagetransfersoftheNFT.8Further,theownershiprightisonlyasgoodastheoriginalclaim–payingastrangerfortheBrooklynBridgedoesnotmakeityours.Addingcomplexity,differencesinlawacrossjurisdictionscouldresultinmultiple“owners.”ThisshouldhelppointtowhattypesofvirtualworldsbenefitfromNFTs.Aclosed,centralizedplatform(likethevideogameFortnite)candefineitsownsystemofownershipofin-worldgoods.Representingownershipofin-worldgoodsinanopenandverifiablemanner,throughtheuseofNFTs,isusefulwhenindividualswanttoporttheirgoodsacrossworlds,andwhenvirtualworldsaredesignedtomakethateasy.Suchtransferabilityofin-worldgoodsmaybeatoddswithacentralizedplatform’sbusinessmodelorvision.Outsideofthemetaverse,NFTshaveusesinthetokenizationofdocumentssuchaspropertydeedsandproofofownershipovergoodsincross-bordertransactions.Withinthemetaverse,NFTscanbeakintoowningavirtualpainting.TheuseofNFTsisnotjustlimitedtoart,andtheprinciplesbehindanNFTcanformthefoundationofownershipofallpropertyinthemetaverse.NFTscouldbethevehiclethroughwhichdigitalart,digitalrealestate,andadigitalpairofpantscanhaveapriceattachedtothemalongwithproofofownership.ThisattributeofanNFT,proofofownership,iswhatcouldmakeitusefulin

“Thereremainsanopenquestionifthemetaversewillbebuiltinacentralized,closedmannerorifitwillbeopenandintegratedtoallowforgreatercollaborationbetweenworlds.”7ReckoningwiththeMetaverse|Basicsofthemetaversethemetaverse,whereotherwiseitwouldbedifficulttoprovethatauserhasownershipofanyproperty.Howisthemetaverserelatedtocryptocurrencies?Cryptocurrencieshavemanyusesinthemetaverse,butaswithNFTs,theirusefulnesswilldependontheextenttowhichvirtualworldsdevelopalongopenandintegratedlinesratherthancentralizedmodels.Someemergingvirtualworldsmakeuseoftheirowncryptocurrenciesforin-worldpayments,useNFTsforin-worldproperty,andmayhavegovernancetokensthatgiveholdersasayinrunningthesystem.Thesevirtualworldsarethenconnectedtotherestofthecryptocurrencyecosystemthroughwalletsandexchangesasusersmovebetweenthem.Notallin-worldcurrenciesarecryptocurrencies,though.Thereareexistingvirtualworldsbuiltontopofproprietarycentralizedplatformsinsteadofblockchains,andthere’snoreasonthat

entrepreneursandcommunitieswouldn’tcontinuetoexperimentwithsuchmodelsevenifopen,integrated,anddecentralizedmodelscometodominate.WhileuserscanpurchaseDecentraland’sMANAtokenoncryptoexchanges,Roblox’sRobux,whichisaproprietarydigitalcurrencyandnotacryptocurrency,canbeobtainedongiftcardsinphysicalretailers.8InsandoutsofmetaverseuseQ:Whousesthemetaverse?TheOliverWymanForum’sGlobalConsumerSentimentinitiativerecentlypublishedeightbehavioralarchetypesthatwilldrivefutureconsumertrends.Oneofthese,the“CitizensoftheMetaverse”or“Metazens,”comprisespeoplewillingtoparticipateinthemetaversewithouthesitation.Theyrepresent13%ofthepopulationacrosstheninesurveyedcountries.9TheseconsumersarenotablefortheiradoptionofWeb3,intertwiningvirtualrealitywitheverydaylifewithoutfearofitdetractingfromtheirlifeinthephysicalworld,andinvestinginpurelyvirtualassets.Metazensseethemetaverseasanopportunitytoimprovepeople’slivesthroughsocializing,working,andgamingpossibilities.Metazensalsoputtheirmoneywheretheirmouthis:70%arewillingtopayforaccesstothemetaverse(comparedwith24%ofthegeneralpopulation)andaresignificantlymorelikelythantheaveragepersontoinvestincryptocurrencies,NFTs,andvirtualrealestate.Withusecasesinareassuchaseducationandwork,asshownbelow,theusersofthemetaversewilllikelyexpandincomingyearsbeyondtheearliestadoptersto

includegroupssuchaschildrenandless-technologicallyinclined,olderadultsintheworkforceasitbecomesmoremainstream.Howisthemetaversecurrentlyused?Themostdevelopedactivitiesinthemetaversetodayareinthegamingandentertainmentindustries.Fortnite,Roblox,andDecentralandarejustafewmetaverseworldsusedingaminganddigitalexploration.Theseplatformsmakeuseofvirtuallandswhererealworldcompaniescansetupshop.Forexample,JPMorganestablishedametaverseofficewithinDecentralandwithitsFebruary2022launchoftheOnyxLounge.10Otherfirmshavemadesimilarmoves.Whilestillinitsinfancy,thepotentialofthemetaverseisbeingexploredandwillundoubtedlygrowovertime.Currentusecasesinclude:Play-to-Earn(P2E)Playerscanmakemoneybasedontheamountoftimetheyspendplaying9ReckoningwiththeMetaverse|Insandoutsofmetaverseuseametaversegame.SomeofthemostprominentP2EgamesincludeAxieInfinity,AlienWorlds,andSplinterlands.11P2EisaparticularlyhottopicinSoutheastAsia.A2021reportfromtheBlockchainGameAlliancefoundthatthesegameshada22%shareofallNFTtradingvolume,withNFTgamesgenerating$2.3billionofrevenuebetweenJulyandSeptember2021.AsofOctober2021,SkyMavis,thecompanythatpioneeredP2EinVietnam,raised$152milliontodevelopAxieInfinity,anextendedgamingecosystemwithbackingfroma16z.WithSoutheastAsiangamingmarketsrangingfromSingapore’s$327milliontoIndonesia’s$1.7billion,P2Ehassignificantpotentialtogrow.12

OnequestionrelatedtoP2Eishowthegamedevelopersmakemoneywhentheyarepayinguserstoplaythegame.Whilebusinessmodelscanvary,themostcommonapproachistochargetransactionfeesfornewuserspurchasingthein-gamecurrency.Thegameismostprofitableforthedeveloperifnewusersarealwaysjoining,andiftheusersdonotconvertthein-gamecurrencyintoadifferenttokenandinsteadcontinuetouseitforin-gamepurchasesfromthedevelopers.13Commerceforin-worldgoods/skinsforavatarsinvideogamesPaymentsforadd-onsinvideogames,likeoutfitsanditemsforavatars,areexpectedtoExhibit2:ActivitiesMetazensareinterestedindoinginthemetaverseandmaypayforSource:OliverWymanForumGlobalConsumerSentimentSurvey202110grow.Consumersspentover$15billiononrandomized“l(fā)ootboxes”in2020andthatnumberisexpectedtoexceed$20billionby2025.14Akeygoalistomakein-gametokensandNFTsavailableacrossdifferentworldstounlockvalue.MusicandEntertainmentMovingbeyondPhilCollins’renditionof“IntheAirTonight”inRockstar’s2006gameGrandTheftAuto:ViceCityStories,metaversevirtualconcertsallowforunrestrictednumbersofpeopletowatchartistsperform.ThishasalreadyhappenedinFortnitewithTravisScottandArianaGrandeparticipatinginvirtual,liveconcerts.15MarketingAspeoplespendtimeinavirtualworld,theywillbeexposedtoproductsandservicesinawaythathasn’tbeenexperiencedbefore,openinganewavenueforadvertising,particularlytoyoungerusers.TourismExperiencingunique,farawaylocationsfromthecomfortofyourlivingroomallowsfortheexcitementoftravelingwithoutleavinghome.WorkplacesWorkingfromhomehasgrowninpopularityduringthepandemic,butthathasledtocolleagueslosingthebenefitsofworkingside-by-sideintheoffice.Virtualofficeenvironmentsmaybeametaversesolutiontothisproblem.Severalcompaniesarebuilding

DecentralandLet’stakeadeepdiveintoDecentraland.Marketingitselfasthe“first-evervirtualworldownedbyitsusers,”Decentralandgivesits18,000activedailyusersavirtualdestinationontheEthereumblockchainwheretheycanbuyandsellLAND,avatarwearables,andnamesusingMANA.16WithinDecentraland,userscanexplorethelandscapefrommoreruralareastourbanones,interactingwithobjects,buildings,art,games,andattendingdifferenttypesofevents.Decentralandhascomealongwaysinceitsproof-of-conceptin2015:Theplatformnowincludesgames,interactiveapps,in?worldpayments,andpeer-to-peercommunicationsforusers.IfyouarewonderingwhyMANAandLANDarecapitalized,itisbecausetheyarethetwotokensthathelpmakeDecentralandrun.LANDisanNFTthatdefinestheownershipofvirtuallandparcels.MANAisthecryptocurrencyusedforpurchasesofLANDandallothergoodsandservicesinDecentraland.ThenumberofindividualparcelsofLANDispermanentlyfixedat90,601.AsofJanuary2022,themostexpensiveplotofLANDwasworth$3.5millionworthofMANA,withtheaverage16mx16mvirtualparcelgoingfor$14,440.17Likereal?worldrealestate,locationiswhatmakesoneplotofLANDmorevaluablethananother;beingnearcertaincommunityamenitieslikeGenesisPlaza(thecentralpublicspawnarea)isseenasdesirable.WhilesomemayquestionthevalueinDecentraland,theamountofmoneypeoplearewillingtopayforLANDshowsthatthereisamarketforit.11ReckoningwiththeMetaverse|Insandoutsofmetaverseusemetaverseworkplaceplatforms,rangingfromMicrosoftTeams’explorationof“immersivespaces”withvirtualreality/augmentedrealityplatformMeshtoMeta’sHorizonWorkroomsthatusetheOculusheadset.18RealEstateLandcanbeboughtandsoldinthemetaversewithlocationbeingaprimarydriverofvalue,asisthecaseinthephysicalworld.Locationmakesthegamingaspectsofcertainplatformsmoreconvenientbybeingclosetovirtualamenitiesandmakesthevirtualpropertymorevaluableforuseinadvertisingandrenting.In2021,metaverserealestatesalesreached$500million,andanalystssaythatitmaydoubleto$1billionbytheendof2022.19Theso-calledBigFourmetaverserealestateplatformsareDecentraland,Sandbox,Cryptovoxels,andSomnium.20Collectively,theycontain268,645parcels.Oneoftheleadingopportunitiesformetaverserealestateisrentingspacetocompaniestryingtoadvertisetoayounger,moredigitallysavvycrowd.FinancialServicesVirtualsocietiesarealreadytransactingandengaginginfinancialservicesinthemetaverse.Financingcanbeprovidedforvirtualgoods,suchasrealestate.Forexample,banksinAsiaarecreatingvirtualspacesforeducationandproductdevelopmentwhileotherinstitutionsareusingthemetaversefortrainingemployeesandclientsalike.NFTsarealreadyabigpartofthis,butasweexplainfurtherbelow,inthefuturetherewillbemultiplefinancialservicesusecasesforthemetaverse.21

AutomotiveandManufacturingEverythingfromfactorytrainingtotestingthecustomerexperiencecouldhappeninthemetaverse,leveragingVRandARtechnology.EducationThepandemicdisplayedtheshortcomingsofawebcam-basedremoteeducationexperience.Therealismofthemetaversecanimproveonthisandallowforabettereducationalexperienceforchildreninaremoteenvironment.PublicservicesGovernments,particularlyinSouthKorea,areexploringusingthemetaverseforpublicservices.Examplesincludemakingcivilcomplaintsandreservingpublicspaces.22BarbadosannouncedinNovember2021thatitwouldopentheworld’sfirstmetaverseembassyinDecentraland.23Formoreonhowsomeofthesesectorsmayimpactbusinessinthenextfiveyears,seethisBRINKarticlefromOliverWyman.Whataretheemergingfinancialproductsrelatedtothemetaverse?Expandingonthefinancialservicesusecasesofthemetaverse,anumberoffinancialproductshavebeguntoemerge.TheseproductsareacomplementtothepresenceoffinancialinstitutionsinthemetaversesuchasJPMorgan’sOnyxLoungeandKookminBank’sexpansivemetaversetownwithafullyfunctionalbankbranch,telecomscenter,andrecreationcenter.2412MortgagesforvirtuallandandhousesarebeginningTerraZeroTechnologiesissuedoneofthefirstmetaversemortgagesinDecentralandinFebruary2022fora$45,000parcelofLANDwithanundisclosedinterestrateanddownpayment.25TerraZeroalsoispreparingtolaunchapropertysearchwebsitecalledAMADEAthatwillprovidemortgagepaymentestimatesformetaverseproperty.26Whilevirtualhomesareimmunetofiresandfloods,theycanstillbesusceptibletotheft.Insuranceagainsttheftofvirtualrealestate,NFTs,andintellectualpropertymaygrowinlinewiththemetaverse’sincreasingprominence.27Financialproductscantakeonmanydifferentforms.Asillustratedinthefigurebelow,financialproductsthatexistinboththephysicalworldfordigitalactivitiesorsolelywithinthedigitalrealmcanhavearoleinthemetaverse.Itisnostretchtoimaginealoantoanartistdevelopingin-worldNFTsortoaP2Egamerwhowillpaybacktheloan,withinterest,basedontheirgamingearnings.TheuseofNFTscanalsohaveimpactsonfinancialtransactionsoutsidethemetaverse.BusinessescanraisecapitalbyprovidinginvestorswithaNFTthatcangivediscountsonfutureproductswithoutresortingtothetypicalfundraisingtoolsofdebtandequity.28TheycanuseNFTsintradefinancetotokenizedocumentsthatproveownershipofgoodsandtofacilitatethetransferofphysicalpossession,29andtheycanborrowusingNFTsascollateral.30EntirelynewfinancialproductsmayemergegiventhericherecosystemsthatWeb3canfosterinsmartmanufacturing,telemedicine,andrealestate,providingfinancialinstitutionswithricherdataandopportunities.

Exhibit3:MetaverseFinancialProducts????????????-?Source:OliverWymanForum13ReckoningwiththeMetaverse|InsandoutsofmetaverseuseWhataresomeofthechallengestometaverseadoption?Aswementioned,someoftheprojectionsofthemetaverse’smarketsizeareextraordinary:ashighas$13trillioninCiti’slatestreport.31Thesenumbersmaybeoptimisticgivenmanyofthechallengestogrowinguseradoption.AstheOliverWymanForumfound,76%ofsurveyrespondentsin10majorcountries(including79%intheUKand80%intheUS)areunwillingtopaymoneytoparticipateinthemetaverse.32Obviouslythereisworktodoinshowingordinarypeoplethebenefitsitmaybring.Morespecifically,otherchallengesinclude:HardwareVirtualworldsdependontheirgraphicalinterfaceandrequirehavehighcomputationalpower,aswellasfastinternet,todeliveraninteractiveexperience.UsersinteractwithvirtualworldsthroughcomputersornewVRdevices.VRsetsarebeingbuiltforuse,butthoseinteractingthroughtheircomputersmayfindtheirdevicesarenotuptosnuff,whilefindingVRsetstooexpensiveofaninvestment.

InterfaceUserinterfacesarestillbeingdeveloped.Themetaverserequiresaninterfacethatiseasytouseandengaging.Twitter,aquintessentialWeb2.0platform,quicklygainedusersinsubstantialpartdrivenbyitsattractiveinterface.Bywayofexample,asofthethirdquarterof2021,Twitterhadaveragemonetizabledailyactiveusers(mDAU)of211millionwhereasDecentralandhasonly18,000dailyusers.33IntegrationIntegratingmetaverseworldssuchthatavatarsandpropertycanmovefreelyandeasilybetweenthemisessentialtogrowinguseradoptionwithoutsiloingbetweenplatforms.SafetyUsersmustfeelthattheirdataandtransactionsaresecure,beingconfidentthatlawsandregulationsthatprotectthemstillapplyinthemetaverse,andthatidentityverificationissecureenoughthattheyarenotinteractingwithscammersorothermaliciousactors.3414“Usersmustfeelthattheirdataandtransactionsaresecure,beingconfidentthatlawsandregulationsthatprotectthemstillapplyinthemetaverse.”ReckoningwiththeMetaverse|ImportanceofthemetaverseImportanceofthemetaverseHowdoesthemetaverserelatetotherealworld?Whilethemetaverseexistsvirtually,itcanhaveaconcreteimpactontherealworldinalloftheareaswhereithasusecases,notjustgaming.Education,officework,andperhapsevenattendingreligiousservicesmaytakeonnewformsandmeanings.Thegrowthofthemetaversemayleadtofundamentalchangesinhowlifewillbelived.Withanewwayoflifecomesnewrisksandobstaclestokeepinmindaspolicyismade.Theblendingandblurringofthephysicalanddigitalworldssoundsexciting,butitalsocomeswithrisksforsociety,commerce,andpolicy.Thereisariskthatwithoutproperregulationandgovernance,themetaversewillbecomeaWildWestwherefraud,manipulation,anddigitalcrimerunrampant,perhapsevenmoresothanonthecurrentinternet.Privacycanbeinvaded,intellectualpropertycanbestolen,andchildrencanbeexploitedinthisunregulatedscenario.

WhataresomeofthelegalandregulatoryissuesrelatedtothemetaverseandNFTs?Justasthinkingonbuildingthemetaverseisbeingdeveloped,thinkingonregulatingitisbeingdevelopedintandem.Addressingsomeoftheseissueswillnotbestraightforwardandaddressingallofthesemaynotbenecessarytohaveafullyoperationalmetaverse.Aslawshavedevelopedovertimeinthephysicalworld,theywillbeappliedtothemetaverseandNFTsamongthefollowingcategories.Someoftheseregulatoryissuesinclude:PropertyRightsandTransferabilityAswedescribeinthenextsection,justaspropertylawdevelopedinthephysicalworld,itmustadapttothevirtualoneaswell.Thereareanumberofopenquestionspertainingtoapplyingexistingintellectualpropertyrightstometaverseintellectualproperty.Atamorefundamentallevel,therearequestionssurroundingthedifferenttypesofpropertyinthemetaverse:Metaverseintellectualpropertylikeacompany’slogomayrequireadifferent16regulatoryregimethanthevirtualproperty,likeanavatar’shat,thatitisplacedon.IntegrityandVerificationNFTsarevaluabletotheextentthattheirownershipcanbeverifiedonapublicledger,buteveniftheowner’sidentitycanbeverified,theremaybeissueswithwhereitishosted.IfanNFTdisappearsfromOpenSea,forexample,itdisappearsfromtheowner’swalletaswell.InteroperabilityandDataSharingIntegrationacrossvirtualworlds,andbetweenthedigitalandphysical,willrequireinteroperabilityacrossthe“technologystack,”includingdigitalplatformsandhardwaredevices.Interoperabilityrequirescoordinatedactionandcouldbefacilitatedthroughpolicyandregulation.JurisdictionalConsiderationsThereisaneedtodeterminethejurisdictionalboundariesofthemetaverse,asvirtualborderscouldbejustasimportantasphysicalborderswhenformulatingpolicies.Policymakersandexecutiveswillalsoneedtounderstandtheboundariesbetweenmetaversesandanyconsequentialregulation.IndividualRisksIndividualrisksinthedigitaleconomyandonlineharmsmaybeexacerbatedinthemetaverse.Theseproblemsincludeprivacy,discrimination,mentalhealth,andmisinformation.Additionally,politicaland

societalproblemscouldbeexacerbated.Theexistingdigitaldivideofunequalinternetaccesswillaffectaccesstothemetaverseaswell,andnetworkeffectsinthedigitalrealmcouldincreasewealthinequality.Contentmoderation,andtheconcentrationofmoderationpower,hasbeenasourceofcontroversyonWeb2.0platforms,anditwilllikelypersistinthemetaverse.MarketandPrudentialRisksManyoftheworldswithinthemetaversehavetheirowncoins,andintegrationacrossworlds(andwithothercryptocurrencies)willdepe