• Part I: Interoperability: definition, benefits, types
• Part II: Metaverse interoperability: definition, components, benefits & risks, technical issues, types
• Part III: Landscape: companies, standards, legal regulation
• Part IV: Trends, challenges & prospects

Part I: Interoperability: definition, types, benefits

Definition

Interoperability is the ability of different systems, devices, applications or products to connect and communicate in a coordinated way, without effort from the end user. Functions of interoperable components include data access, data transmission and cross-organizational collaboration regardless of its developer or origin. Similar to compatibility, interoperability helps organizations achieve higher efficiency and a more holistic view of information.

Techopedia explains interoperability as the property that allows for the unrestricted sharing of resources between different systems. This can refer to the ability to share data between different components or machines, both via software and hardware, or it can be defined as the exchange of information and resources between different computers through local area networks (LANs) or wide area networks (WANs). Broadly speaking, interoperability is the ability of two or more components or systems to exchange information and to use the information that has been exchanged.

Benefits of interoperability

• Lower cost associated with interoperable systems as fewer resources and additional maintenance is required.
• Access to information can be given to all appropriate stakeholders.
• Quality of data is improved as more sources can be brought together.
• Minimizes time needed to process data, thus increasing organizational efficiency.

Interoperability has the potential to transform experiences, development and economies to give providers, creators, civil society and participants value.

Main types of interoperability

• Syntactic Interoperability: Where two or more systems are able to communicate and exchange data through compatible formats and protocols. It allows different software components to cooperate, even if the interface and the programming language are different. Tools that facilitate syntactic interoperability are recognized formatting standards, such as XML and SQL. This is sometimes referred to as structural interoperability.
• Semantic Interoperability: Where the data exchanged between two or more systems is understandable to each system. This is the ability of systems to exchange and accurately interpret information automatically. The information exchanged should be meaningful, since semantic interoperability requires useful results defined by the users of the systems involved in the exchange. Semantic interoperability is achieved when the structure and codification of data is uniform among all systems involved.
• Cross-domain or cross-organization interoperability: This refers to the standardization of practices, policies, foundations and requirements of disparate systems. Rather than relating to the mechanisms behind data exchange, this type only focuses on the non-technical aspects of an interoperable organization.

Approaches to improving or achieving interoperability include conducting compatibility tests, engineering products with a common standard and using the same technology, coding language or syntax across multiple systems when appropriate. Data exchange between applications, databases and IT systems is crucial for the growth of modern technology, such as the IoT.

Interoperability by industry

• Software: Interoperability in software refers to the functionality of different programs to exchange information, share files and use the same protocols. Java is often considered a highly interoperable programming language for software as it can run and execute on any program with a Java virtual machine (JVM).
• Telecommunications: In telecommunications, interoperability is when different services are able to operate effectively and accept services from other systems. Components of telecommunication compatibility are typically signal availability, scale of the network, frequencies and equipment coverage. For example, ITU-T is the standard used in international telecommunications to achieve interoperability.

Part II: Metaverse interoperability

Overview

Metaverse is a massively scaled and interoperable network of real-time rendered 3D virtual worlds that can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.

Metaverse is supported by multiple technologies, including virtual reality, augmented reality, and blockchain (for details please check our report on the meteverses here). Metaverse projects attempt to present an amplified reality by combining the aspects of the physical and the digital world so that users can have extended capabilities, better exposure to new possibilities, control over physical limitations like geographical constraints and access to the global markets.

Metaverse interoperability refers to the ability of different virtual worlds or metaverses to communicate and interact with each other seamlessly. Metaverses are virtual environments that can include virtual reality, augmented reality, and other immersive digital experiences. Interoperability means that users in one metaverse can interact with users in another metaverse as if they were all part of the same system.

Bloomberg estimates metaverse commerce to be $800 billion by 2024. Just like the internet today, much of the metaverse’s potential depends on some forms of interoperability. Interoperability is important for the growth and success of the metaverse because it allows for the creation of a larger, more diverse virtual community. It also enables users to take their digital assets and avatars from one metaverse to another without losing their value or functionality.

Lack of interoperability is one of the major challenges that affect the mass adoption of the metaverse. It restricts users’ access in the metaverse, limiting their navigation to a specific project instead of allowing them to navigate freely across multiple virtual worlds integrated within the 3D horizon of the metaverse. Since the metaverse depicts the real world, the sense of commonness and interoperability that we experience in our real world is equally important even when we dwell on virtual space.

“It is essential that metaverse worlds are fully collaborative and easily connected via live portals, and that smart objects and components can be moved and reused across worlds,” said David Smith, founder and CTO of Croquet, a browser-based operating system for the metaverse.

People in the real world can visit different places worldwide and take their physical assets from one place to another without any trouble. Users inside a metaverse project seek the same interoperability and continuity. Their purpose of participating in the realm of the metaverse is to experience a close-to-reality digital space with various interconnected virtual worlds where users can seamlessly switch any project and leverage the benefits. Interoperability brings all these perceptions to reality and forms a globally interconnected metaverse system in which diverse projects are integrated to form a rich and real digital world.

Metaverse interoperability: Layers

Metaverse interoperability, as a technical definition, is the layer that a network of virtual worlds relies on to transfer the state of something or someone to its new state without the loss of time. To facilitate a simulated experience that is both playable and immersive, an optimal metaverse experience requires one thing in particular: continuity. Continuity in this case refers to the perpetual living “state” of a player or avatar (your digital identity), the surrounding world, and everything within it.

Interoperability in the metaverse works the same as interoperability works in the blockchain. Both interoperable and non-interoperable blockchains exist in the blockchain world. However, the need for interoperability is disruptive to the development of innovative and feasible use cases. Interoperability allows blockchain ecosystems to interact, share arbitrary data, and utilize each other’s features and services. Similarly, a metaverse project with interoperability features can interact with a different metaverse projects each other, utilize the services and features, and enable cross-chain social connecting, trading, and many other activities that are not possible in a siloed ecosystem. Users do not require to manage multiple wallets, and they can use a single wallet to store currency and perform transactions across various metaverse projects.

Interoperability in the metaverse could exist across various layers:

• Layer 1- Foundation layer - The Internet: The foundation layer is the internet that supports connectivity on the metaverse.
• Layer 2 - Infrastructure layer: The Infrastructure layer supports hardware components to create an authentic user experience. Other technologies forming this layer are IoT, big data, and blockchain for creating a shared ecosystem.
• Layer 3 - Content layer: Content layers include applications and platforms designed to create more natural and vivid experiences for one and more metaverse projects.
• Layer 4 - True metaverse: True metaverse forms when the lower layers develop and create a parallel virtual space.

Interoperability in the metaverse (Source: LeewayHertz)

In January 2023, the World Economic Forum published the Report Interoperability in the Metaverse. The paper aims to explain interoperability, which is founded on the ability of data to circulate via interoperable infrastructures, of participants to be able to move themselves, their assets and their creations across platforms and experiences, and of experiences being safeguarded through collaboration and guardrails such as content moderation.

Layers of interoperability and considerations (Source: WEF)

Interoperability depends on data interchange across infrastructures to enable participants’ ability to access, move, transact and create within and across digital (and physical) worlds. It is with the utmost importance that guardrails and collaboration take place at the management layer to ensure that the sub-layers — participation, and data and infrastructure — of the metaverse be safe, inclusive, equitable and economically viable.

Metaverse value levers (Source: WEF)

According to WEF, interoperability design choices must be balanced to create flexible systems that also consider privacy, security, safety, and identity needs.

Metaverse stakeholders (Source: WEF)

Components of the metaverse that can be interoperable

• Avatars and identities: Interoperability allows users to create and customize their avatars, digital identities, and virtual assets, and move them across different metaverse platforms. This can help to maintain a consistent identity and digital presence across multiple virtual worlds.
• Digital assets: Digital assets such as virtual currency, virtual real estate, and other virtual goods can be interoperable, meaning that they can be bought, sold, and used across different metaverse platforms. This can help to create a thriving economy in the metaverse.
• Communications: Interoperability can enable users to communicate with each other across different metaverse platforms, regardless of the platform they are using. This can help to foster a sense of community and social interaction in the metaverse.
• Data and information: Interoperability can allow users to transfer data and information between different metaverse platforms, enabling seamless integration of different applications and services. This can help to enhance the functionality and user experience of the metaverse.
• Virtual environments: Interoperability can enable users to move between different virtual environments seamlessly, allowing them to explore different metaverse worlds and discover new experiences. This can help to create a more diverse and vibrant metaverse ecosystem.
• Services and features: Interoperable metaverse projects can benefit from the services and features of other metaverse projects. For instance, a project can utilize other decentralized metaverse project’s smart contracts to run their specific dApp on metaverse.
• APIs: There are various APIs of different metaverse projects, each caters to unique needs. For example, a metaverse project can integrate an external API from a different metaverse project and start accepting payment in their native currency.
• Storage: A metaverse can utilize other metaverse projects’ unused hard disk space (if the project allows so) through interoperability. The extended storage will help the decentralized network extend its capacity to save more files and data.
• Gaming collectibles: Players can switch between various metaverse to participate in the gaming hosted there.
• 3D rendering. There are many levels to standardizing 3D representations of virtual worlds. 3D modeling and rendering engines need to interoperate. AR, VR, and extended reality headsets need to work across platforms. Users need to be able to share 3D objects across platforms and render them at scale.

Benefits and risks of metaverse interoperability

Metaverse interoperability has the potential to bring numerous benefits, such as:

• Expanded user base: Interoperability can enable metaverse platforms to access new users and markets by allowing users to seamlessly move between different virtual worlds.
• Increased engagement: Interoperability can enhance user engagement by providing users with more options to explore and create content in different virtual worlds.
• Greater creativity and innovation: Interoperability can foster greater creativity and innovation by enabling users to share and combine assets and experiences from different virtual worlds, leading to new and unique content.
• Cross-platform asset transfer: Interoperability can make it easier for users to transfer and exchange digital assets, such as virtual currency or virtual items, across different virtual worlds.
• Improved standardization: Interoperability can drive the development of common technical standards and protocols that can benefit the metaverse ecosystem as a whole.

However, there are also risks and challenges associated with metaverse interoperability:

• Security and privacy concerns: Interoperability can increase the risk of data breaches and hacking, as well as raise concerns about privacy and data ownership.
• Intellectual property issues: Interoperability can make it easier for digital assets and virtual items to be copied or pirated, leading to potential intellectual property issues.
• Business model conflicts: Interoperability can lead to conflicts between different metaverse platforms that have different business models, user bases, and virtual economies.
• Legal and regulatory issues: Interoperability can raise complex legal and regulatory issues related to intellectual property, data privacy, and cross-border transactions.
• Technical challenges: Achieving interoperability can be technically challenging, requiring the development of common standards and protocols that enable different virtual worlds to communicate and interact with each other.

Overall, the benefits of metaverse interoperability can be significant, but there are also risks and challenges that must be addressed to ensure a safe, secure, and thriving metaverse ecosystem.

Technical issues

There are several technical issues that need to be addressed in order to achieve seamless metaverse interoperability:

• Communication protocols: Different virtual worlds and platforms use different communication protocols, which can make it difficult for them to communicate and share data. To achieve interoperability, a common communication protocol needs to be established that is supported by all virtual worlds and platforms.
• Asset transfer and compatibility: Digital assets such as 3D models and virtual items need to be transferred between different virtual worlds and platforms in a way that ensures compatibility. This requires the development of standardized asset formats and transfer protocols.
• Identity management: Maintaining a consistent user identity across different virtual worlds and platforms is essential for achieving seamless interoperability. This requires the development of a standardized identity management system that can be used across different platforms.
• Network infrastructure: Achieving metaverse interoperability requires a robust and scalable network infrastructure that can support the transfer of large amounts of data between different virtual worlds and platforms.
• Security and privacy: As virtual worlds and platforms become more interconnected, it becomes increasingly important to ensure the security and privacy of user data. This requires the development of robust security and privacy protocols that can protect user data and prevent unauthorized access.
• Technical standardization: Standardization is essential for achieving metaverse interoperability. The development of technical standards that are agreed upon by all stakeholders is key to ensuring that virtual worlds and platforms can communicate and share data seamlessly.

Thus, achieving metaverse interoperability requires the development of standardized communication protocols, asset transfer and compatibility standards, identity management systems, a robust network infrastructure, security and privacy protocols, and technical standardization.

Types of metaverse interoperability

• Spatial interoperability: The ability of virtual worlds to connect and communicate with each other in a spatial sense. For example, users may be able to travel from one virtual world to another seamlessly, or virtual objects may be able to move between different virtual worlds.
• Asset interoperability: The ability of digital assets, such as virtual items, to be shared and used across different virtual worlds. For example, a virtual item that is created in one virtual world may be able to be used or traded in another virtual world.
• Identity interoperability: The ability of users to have a consistent identity across different virtual worlds. For example, a user’s avatar may be able to travel from one virtual world to another and maintain the same identity.
• Functional interoperability: The ability of virtual worlds to share and use common functions or features. For example, a virtual world may be able to use a common messaging or chat system that is shared with other virtual worlds.
• Economic interoperability: The ability of virtual worlds to share and use common virtual economies. For example, virtual currency or virtual items may be able to be used or traded across different virtual worlds.
• Standards-based interoperability: The use of common technical standards and protocols to enable interoperability between different virtual worlds. For example, the development of common APIs or protocols that enable virtual worlds to communicate with each other.

Achieving interoperability across these different types is an important step towards creating a more connected and seamless metaverse experience for users.

Internal vs. External interoperability

• Internalized interoperability is the standardization of one or more of the domains (persistence, presentation, meaning, behavior) within the various experiences, sub-worlds and games that are created within a given walled-garden. Second Life was probably the first platform to do this on several domains. Roblox did this at a massive scale by focusing on simplicity and accessibility (250M+ MAU).
• Externalized interoperability is the standardization of certain domains across an ecosystem of cooperating products. External interoperability can happen by degrees. At one extreme, the interoperability could be “global” — for example, we already have global standards for Connectivity. At the other extreme, you could have individual worlds that don’t need to agree with others: for example, having certain meanings and behaviors that only apply only to things inside that world. In between, you could have constellations of projects that benefit by sharing certain systems: examples might include an avatar system, a market economy, or even an intellectual property that’s used as a setting.

Multi-domain vs. Targeted interoperability

• Multi-domain interoperability is the idea that a body of interrelated standards ought to be adopted by “metaverse” companies that unite multiple domains. The most comprehensive version of this would require that experiences in the metaverse agree upon the same connectivity, persistence, presentation, semantics, and behaviors.
• Targeted interoperability is the idea that one of these domains — or even just a subdomain — ought to be the target of an effort for interoperability. For example, you could have standards for the presentation of avatars that have nothing to do with standards for persisting the ownership of property in the metaverse.

Domains of interoperability:

• Connectivity: The connectivity level deals with the ability for various devices to connect with each other. This is largely a solved problem thanks to TCP/IP, ethernet, cell network standards, HTTP for websites, etc.
• Persistence: This domain deals with the problem of maintaining state in the metaverse. One of the most basic forms of persistence is the job of storing the state of the economy and how that relates to individual identity: who owns what? There are two main ways this can be done: 1) a centralized database where a company is trusted to preserve this state. Online games have almost always done this on their own, using owned-and-operated databases. 2) a decentralized storage system such as those created by various blockchains, where nobody needs to trust any one company.

The major domains of interoperability (Source)

• Presentation: What does everything look like? How does it appear to the metaverse user? We have technology standards for the technical interchange of presentation data: this is everything from JPG and PNG files for two-dimensional graphics, to various 3D mesh files and the Universal Scene Description format invented by Pixar, to obsolete formats like VRML.
• Meaning: How something looks doesn’t tell you what something really means; but for a virtual world, this is crucial: meaning is how an object is interpreted.
• Behavior: Finally, the meaning of things needs to be mapped towards behaviors that exist within a system; where presentation and meaning are the “nouns” in a world, behavior defines the “verbs” for how these actions change the world.

Whereas the persistence domain provides the ability to preserve the state of the economy, the actual economy rises out of all of the behaviors that happen within a world or across multiple cooperating worlds.

Interoperability: technical, usage, and jurisdictional

Technical interoperability

Technical interoperability is the ability to build seamless connections across different technologies or closed networks. Technical interoperability in the metaverse requires a strong network infrastructure foundation that allows for data interchange across varying hardware and software to deliver (near) realistic experiences.

Just like webpages require transmission control protocol (TCP)/IP to exchange data and HTML for presenting information in 2D, the metaverse will require a similar degree of standardization to enable communication and interoperability. Among others, this includes reviewing: 1) the scope of data needing to move across devices and networks, 2) the timeliness of the data exchange, 3) the file formats and data schemas, 4) the artistic and stylistic interpretation of assets, and 5) the computing power required to process transmitted data. Standards groups, like the Metaverse Standards Forum, the Open Metaverse Alliance for Web3 (OMA3), and stalwarts like the Institute of Electrical and Electronics Engineers (IEEE) and the World Wide Web Consortium (W3C) have started — and should continue — to consider these technical interchange needs.

Challenges:

• Infrastructure requirements: Accessibility and inclusivity are essential to building a human-first metaverse. From a technical approach, designers should examine how localization, latency and bandwidth can be addressed to extend a similar sense of persistence and presence across metaverse experiences. Given the differences in the availability of hardware, stakeholders should examine how data interchange can be designed to support inclusive access irrespective of device. This could be achieved through backward compatibility standards, minimum bandwidth requirements or the production of scaled experiences for global accessibility.
• Data privacy and security: Metaverse hardware technologies — such as AR glasses, VR goggles, brain-computer interfaces (BCIs) and other sensors — will produce and process a myriad of data. These data types may include (perceived) field of view (FoV), voice analysis, biometric data such as heart-rate monitoring, iris scans, pupil dilation, and inferred data like gait detection. It is critical that stakeholders consider the gravity of these data types and position privacy and security at the centre of competitive, interoperability standards.
• Identity and onboarding: Web 2.0 asked users to accept terms of service and cookies and occasionally verify age before accessing webpages — which has shown to be limited and easily bypassed. Similarly, traversing immersive spaces will require users to optin to new experiences. In 3D environments, however, beyond accepting notice and consent structures, opting in may include creating a new avatar and agreeing to net-new codes of conduct or community standards. This lengthy and tedious process can be reimagined and supported through technical interoperability design. Stakeholders should consider how individuals and associated identities, or attributes, assets and preferences may follow users across experiences to reduce recreating identities and improve the onboarding experiences while keeping users’ privacy and security rights in mind.
• Asset ownership: The economy of the metaverse will be supported by the creation, buying, selling and trading of digital assets. Owners of digital assets are likely to want to keep them in a digital wallet available across platforms and experiences. This functionality creates technical requirements around: 1) how items should be associated with, collectively managed by and interoperate across users, 2) how assets should translate and be rendered across interoperable worlds, and 3) how data should be attached to portable objects to provide provenance. Moreover, as digital objects can easily be copied, requirements must also protect intellectual property to prevent copyright infringement. Stakeholders should review how standards and common structures — like APIs and regulations from the 2D world — may translate and be enforced in immersive spaces and 3D objects.
• Payments: The metaverse economy will require technical interoperability to extend to transactions and currencies, but like the existing banking system, it will be complex and differentiated, with standardization existing as appropriate. With the rise of digital currencies, providers should consider what cross-settlement should look like and the role of digital exchanges.

Solutions: Solutions across these categories are highly varied but will rely on guidance from standards bodies. Standards are multidimensional tools — used by practitioners — to provide guidance and specifications to products and services. Standards for interoperability would provide guidance for how, when and where interoperability would, could and should, or should not, be used. A lack of standards for interoperability may result in fragmented systems.

Usage interoperability

Usage interoperability is the ability for different demographic groups to participate in the metaverse and to participate across different geographies at low cost, leading to inclusion without any discrimination. Usage interoperability is a core component of the metaverse and is required to deliver value-add, human-first experiences. Consideration of the following components may assist in developing and implementing meaningful decisions across interoperability layers in a way that prioritizes human needs and consequently integrates supportive design choices, tools and interactions.

Challenges:

• Designing and collaborating globally: While addressing interoperability challenges and employing human-centric design processes, it is essential to include individuals across cultures to achieve inclusive design that respects cultures, norms and practices.
• Designing across demographics: Stakeholders should not assume that all users are created equal. For example, a minor has different needs than an adult, and a young first-time user should not be treated like a seasoned cybersecurity professional; each has a different digital literacy level and tolerance for being exposed to sensitive content and other users.
• Designing for inclusivity and accessibility: Stakeholders should thoughtfully ensure that designing for accessibility does not result in a lesser experience. Stakeholders should collaborate to curate and expand developer guides for accessibility needs.
• Designs that are fit for use: Stakeholders must identify the underlying needs or problems that metaverse experiences are solving for and design the experience and community guidelines accordingly.

Solutions:

• Setting expectations for terms of service.
• Creating standardized community guidelines and codes of conduct — inclusive of content and conduct moderation mechanisms and portability of assets.
• Defining the limits of what should be interoperable to protect privacy, uphold security and ensure end-user safety.

Jurisdictional interoperability

Jurisdictional interoperability is the ability to operate within a jurisdiction or across different jurisdictions governed by differing regulatory requirements to ensure that metaverse activities are conducted in a lawful manner. Jurisdictional interoperability, also known as regulatory interoperability, centres the conversation on how to collectively curate interoperable metaverse experiences while considering stakeholders’ varied locations, regulations, and regional and cultural expectations.

Challenges:

• Data compliance: Regional localities maintain regulatory guidelines and mandates for managing the data supply chain. This scope includes acquiring, storing, disclosing, aggregating, analyzing, manipulating, using, sharing, selling and disposing of data. With a boundless metaverse built within the constructs of a physical-centric legal system, the metaverse must address data flows resulting from geographic constraints.
• Transacting and creating: The expanse of the metaverse leaves questions open to how the international community should address participants’ ability to transact and create within new 3D spaces. This brings into question topics of ownership, intellectual property, copyright, trademark and licensing laws, along with contract, security, tax and employment law. Their relation to digital currencies, assets and virtual places opens more areas to explore for metaverse law.
• Accountability: As in Web 2.0, users will experience harm, such as identity fraud, transaction fraud or other social harms. Metaverse stakeholders must create accountability models that enable recourse and redress for social and economic harms. Additionally, these must be multilateral to allow participants, creators and providers to benefit irrespective of geography.
• Identity frameworks: Digital identity is the nexus to an interoperable metaverse. It enables accountability and the capacity to traverse worlds with minimal friction. Identity is also highly contextual. For example, a punk rocker may want to disassociate from their musical persona during their workday as an attorney. Where possible, interoperability should honor the human-first need for selective anonymity and pseudonymity to protect user privacy while respecting the tension between self-expression and creating safe environments.

Solutions:

• Establishing inclusive channels across localities, industries and nations to facilitate open dialogues where competitive standards can be co-developed to address concerns.
• Reviewing existing regulatory frameworks created in Web 2.0 and analyzing how existing laws around relevant topics — like online safety and content moderation — may be applied in metaverse spaces before crafting new regulations.
• Formalizing research and development between private-public sector bodies via regulatory sandboxes, academic investment, trade organization creation and/or non-profit engagement.

Part III: Metaverse interoperability landscape

Achieving metaverse interoperability can be a complex process, as it requires the coordination and integration of various technologies, protocols, and standards. However, many companies and organizations are actively working on developing the necessary infrastructure and standards to make interoperability a reality.

Key trends that are shaping the metaverse interoperability landscape

• Increasing interest and investment: There is growing interest and investment in metaverse interoperability, with many major players in the virtual world and gaming industries actively working to develop technical standards and protocols that can enable seamless interoperability between different platforms and environments.
• Emergence of industry consortia: Several industry consortia have been formed to drive the development of metaverse interoperability standards, such as the Metaverse Standards Forum (MSF) and the Open Metaverse Interoperability Group (OMG). These organizations bring together stakeholders from across the industry to collaborate and share knowledge and resources.
• Open standards development: The development of open standards and protocols is a key driver of metaverse interoperability, as it allows different platforms and environments to communicate and share data. The development of open standards is being led by organizations such as the MSF, OMG, W3C, and Khronos Group, as well as major companies such as Epic Games.
• Focus on identity and asset interoperability: Two key areas of focus for metaverse interoperability are identity and asset interoperability. Identity interoperability involves the ability to maintain a consistent user identity across different platforms, while asset interoperability involves the ability to transfer and use digital assets such as 3D models and virtual items between different platforms.
• Use of blockchain technology: Blockchain technology is being increasingly used in the metaverse interoperability landscape, as it provides a secure and transparent way to manage digital assets and transactions between different platforms.

Thus, the metaverse interoperability landscape is characterized by a growing focus on open standards and protocols, collaborative efforts among stakeholders, and a focus on key areas such as identity and asset interoperability.

Companies working to promote the metaverse interoperability

• The Decentralized Identity Foundation (DIF): DIF is a non-profit organization that aims to promote decentralized identity solutions, which can be used for metaverse interoperability.
• The InterWork Alliance (IWA): IWA is a non-profit organization that promotes interoperability standards for blockchain-based solutions, including those used in the metaverse.
• The Open Metaverse Interoperability Group (OMG): OMG is an industry consortium that focuses on promoting open standards and interoperability between different metaverse platforms.
• Epic Games: The company behind the popular game engine, Unreal Engine, has been investing in technologies that support the creation and operation of the metaverse. Epic Games has also announced plans to develop an open metaverse platform called “Core,” which will enable interoperability between different metaverse worlds.
• Facebook: The social media giant is investing heavily in virtual reality and augmented reality technologies, with the goal of creating a metaverse.
• Nvidia: The technology company that specializes in graphics processing units (GPUs) has been working on developing technologies that can support the creation and operation of the metaverse. Nvidia is also a member of the Open Metaverse Interoperability Group.

There is a growing interest in metaverse interoperability, and many companies and organizations are actively working on developing the technologies and standards needed to make it a reality.

Leading standards organizations and companies

There are several leading standards organizations and companies that are actively working to drive open metaverse interoperability. Here are some of the most prominent ones:

• Metaverse Standards Forum (MSF): The MSF is an industry consortium that was formed in 2021 to drive the development of technical standards and protocols for metaverse interoperability. The MSF is focused on developing technical standards in areas such as identity, assets, and communication.
• Open Metaverse Interoperability Group (OMG): The OMG is a community-led organization that was established in 2021 to drive the development of open standards for metaverse interoperability. The OMG is focused on developing open standards that are accessible to all Metaverse platforms and communities, and it is committed to promoting collaboration and knowledge-sharing among its members.
• World Wide Web Consortium (W3C): The W3C is a global standards organization that is focused on the development of web technologies. While the W3C is not specifically focused on metaverse interoperability, it is involved in several initiatives that are relevant to this area, such as the WebXR Device API, which enables virtual and augmented reality experiences on the web.
• Khronos Group: The Khronos Group is a standards organization that is focused on developing open standards for 3D graphics, virtual and augmented reality, and other related areas. The Khronos Group has several initiatives that are relevant to metaverse interoperability, such as the glTF format for 3D assets and the OpenXR API for virtual and augmented reality.
• Epic Games: Epic Games is a video game company that is best known for developing the popular game engine, Unreal Engine. In 2021, Epic Games announced its support for metaverse interoperability and the development of open standards. The company is actively involved in several initiatives in this area, such as the MSF and the OMG.

These organizations and companies are playing an important role in driving open metaverse interoperability and the development of technical standards and protocols.

The Metaverse Standards Forum

The MSF is an industry consortium that includes a wide range of stakeholders from the virtual world and gaming industries, including platform providers, developers, creators, and other industry experts. The main goal of the MSF is to establish a set of technical standards and best practices that can be used to enable interoperability between different virtual worlds and platforms. The forum focuses on developing common technical standards in areas such as identity, assets, communication, and other key functions that are necessary for interoperability.

The Industry Role of the Metaverse Standards Forum

The MSF has made several achievements, including:

• The release of the first version of the Metaverse Interoperability Standard (MIS). The MIS provides a set of technical specifications and protocols that can be used to enable interoperability between different virtual worlds and platforms.
• The development of several working groups that are focused on specific areas of metaverse interoperability, including identity, assets, and communication.
• The participation of several major virtual world and gaming platforms, including Decentraland, Somnium Space, The Sandbox, and more. This indicates the strong industry support for metaverse interoperability and the MSF’s efforts.
• The engagement of key industry stakeholders and experts in the development of metaverse interoperability standards and best practices. The MSF provides a platform for industry collaboration and knowledge-sharing, which can help drive innovation and progress in this area.

Overall, the MSF plays an important role in driving the development of metaverse interoperability standards and protocols, and its achievements so far indicate that there is strong industry support for this effort. As the metaverse ecosystem continues to evolve, the MSF is well-positioned to continue leading the way in promoting interoperability and collaboration.

Legal regulation addressing metaverse interoperability

Currently, there is no comprehensive legal regulation specifically addressing metaverse interoperability. However, there are existing legal and regulatory frameworks that may apply to certain aspects of metaverse interoperability. For example:

• Intellectual property law: Metaverse interoperability involves the transfer of digital assets and virtual goods between different platforms, which can raise complex legal issues related to intellectual property. Companies may need to consider issues such as copyright, trademark, and patent law when developing interoperability solutions.
• Consumer protection law: Metaverse interoperability also raises issues related to consumer protection, such as data privacy and online safety. Existing consumer protection laws may apply to metaverse platforms and interoperability solutions, depending on the jurisdiction and nature of the service provided.
• Cross-border transactions: Metaverse interoperability can involve cross-border transactions, which may be subject to international trade and commerce regulations. Companies may need to consider issues such as customs duties, import/export controls, and trade agreements when developing interoperability solutions.
• Standards and industry codes of conduct: While not legally binding, industry standards and codes of conduct can play an important role in promoting metaverse interoperability. Industry groups such as the OMG and the IWA are developing interoperability standards and best practices for the metaverse.

Metaverse interoperability is still a relatively new and rapidly evolving area, and the legal and regulatory frameworks that govern it are still developing.

Part IV: Trends, challenges & prospects

The GlobalData in their report TMT Predictions 2023 predicted that the tech industry will be characterized by a high level of centralization. This trend will continue in the metaverse, where interoperability will not be achieved in 2023. Cooling interest, economic obstacles, and the immaturity of enabling technologies will lead to a metaverse winter.

In 2023, digital twins will be the first foray into the metaverse for many businesses, especially industrials. The focus will be on collaboration, enterprise design, data visualization, product simulation, and process optimization.

Trends in metaverse interoperability:

• Increased collaboration among metaverse platforms: Many metaverse platforms are now working together to develop common technical standards and protocols for interoperability. This includes groups such as the OMG and IWA. At the same time, enterprises will not agree on a single vision of the metaverse, as they are developing different versions of the metaverse, which is a major barrier to future interoperability. This is because the platforms will be dependent on disparate software, making an online world where avatars can traverse different platforms more difficult. Big Tech is leading the charge in metaverse development, and they are not working in close conjunction with other platforms. For example, Microsoft’s vision of the metaverse focuses more on potential enterprise use cases, whereas Meta is focusing on the social aspect. However, there are some glimmers of a willingness to cooperate, with Meta and Microsoft partnering to include Microsoft enterprise applications in Meta’s metaverse platform.
• Emergence of cross-platform digital asset marketplaces: Some metaverse platforms are now creating digital asset marketplaces that enable users to buy, sell, and trade virtual items across different virtual worlds.
• Development of blockchain-based solutions: Blockchain technology is being explored as a potential solution to some of the technical challenges of metaverse interoperability. Blockchain-based platforms such as Decentraland and Somnium Space are working on interoperability solutions that use blockchain technology to enable cross-platform transactions and asset transfers.
• Consumers will be a driving force for interoperability: A more interoperable metaverse platform will only be realized when supply-and-demand-side pressure demands it. In the consumer market, an early attention driver of the metaverse has been the involvement and promotion exhibited by brands like Gucci and NIKE. There will initially be multiple different walled garden metaverses, which will confine an advertising campaign to a single audience. Consumers will be dismayed by the inability to use the same avatar across different platforms and will push for this to be possible. This feature would only initially be available on decentralized platforms. For instance, the blockchain-based platform Somnium Space allows users to transfer custom avatars from external platforms like Ready Player Me. Decentralized platforms are seen as the antidote to the control exhibited by closed ecosystem platforms, but they are suffering from a chronic lack of users, as demonstrated by Decentraland and The Sandbox.
• Growth of Web3 technologies: Web3 technologies, which aim to create a more decentralized and user-controlled internet, are also being explored as a potential solution to metaverse interoperability. Web3 protocols such as IPFS and Ethereum are being used to develop interoperability solutions that are more decentralized and user-controlled.
• Increasing attention from investors and venture capitalists: Metaverse interoperability is attracting significant investment and attention from investors and venture capitalists, who see the potential for new business models and revenue streams in a more interconnected metaverse ecosystem.
• Hardware immaturity curbs the prospects of an interoperable metaverse: New user interfaces (i.e., VR and AR headsets) will also hinder the concept of a single metaverse. This is because no user devices have scaled significantly to create large user bases. Big Tech has largely confined the utility of these headsets to private use cases like workplace collaboration, training applications, social collaborations, and gaming.

Metaverse interoperability is a rapidly evolving field, and continued innovation and experimentation in this area is expected in the coming years.

Challenges that slow down the process of achieving metaverse interoperability

Interoperability seems a simple, or at least a straightforward need. When a single group or company makes a series of completely disparate worlds, they also provide connective tissue to seamlessly link objects, activities, motion, and more without great difficulty. However, when trying to enable interoperability between various companies and developers, each with their own separate worlds and systems, problems arise. This is because each company may use different, proprietary, and closed sets of standards and methods to develop unique experiences for their users.

Fundamental problems of interoperability:

• Engineering problem: Technology — the systems for enabling systems to interoperate.
• Social and business problem: Economic alignment — providing the economic incentives so that groups and creators gain mutual benefits by participating in an interoperable ecosystem.
• Design problem: Making it fun — even if you have the technology and the economic incentives in place, it doesn’t mean it is fun and that consumers will want it.

Main challenges:

• Technical barriers: One of the most significant challenges to metaverse interoperability is the lack of technical standards and infrastructure that can enable different virtual worlds to communicate and interact with each other. Achieving interoperability requires developing standardized protocols for communication, data exchange, and asset transfer between different metaverse platforms.
• Business models: Different metaverse platforms may have different business models, user bases, and virtual economies, which can make it difficult to create a common interoperability framework. Companies may be reluctant to share their user data, intellectual property, and virtual assets with other platforms, especially if they see it as a threat to their competitive advantage.
• Security and privacy concerns: Interoperability also raises security and privacy concerns, especially with regard to identity management, data sharing, and asset transfer. Ensuring that users can maintain control over their digital identity, virtual assets, and personal information while still enjoying the benefits of interoperability will be a critical challenge.
• Legal and regulatory issues: The metaverse is still a relatively new and uncharted territory, and the legal and regulatory frameworks that govern it are still evolving. Achieving interoperability will require addressing complex legal and regulatory issues related to intellectual property, data ownership, cross-border transactions, and online safety.
• User adoption: Finally, interoperability will only be successful if there is widespread adoption by users. Achieving this will require creating compelling use cases, user-friendly interfaces, and seamless user experiences across different metaverse platforms.
• Sharing behavior: Sharing smart components, including avatar capabilities, is essential to the growth and expansion of the metaverse. This is particularly important in collaborative worlds where these components should instantly and perfectly interoperate with multiple users as if they are a single local object.
• Vendor lock-in: Many metaverse platforms are being constructed to lock in customers. Even though the platforms claim to be decentralized and open, their legal terms and conditions are different. As a result, if the platform decides to shut down, users could lose their assets forever.

Thus, achieving metaverse interoperability will require addressing these and other challenges through collaboration, standardization, innovation, and user education.

Opportunities

According o the WEF’s Report, the metaverse can present enormous opportunities and value for frictionless experiences, development and economies:

• Frictionless experiences enable users to move across and between the physical and digital world with relevant data, digital assets and identity(s). This could facilitate greater consumer engagement but also provide efficiencies in an enterprise, as well as industrial applications.
• The standardization of tools and both the formation and adoption of uniform development practices resulting from interoperability could allow stakeholders to benefit from frictionless development — or network effects that provide efficiencies and cost savings across consumer, enterprise and industrial interaction paradigms.
• Frictionless economies allow for greater access, marketplace engagement through healthy competition, transactional efficiencies and trust if interoperability balances privacy, security and safety. Such new market opportunities will be able to make use of existing economies of scale while providing new potential revenue streams, access to new audiences and possible points of connection for enterprise partnerships and industrial logistics.

To enable responsible metaverse interoperability, stakeholders must consider technical, usage and jurisdictional aspects:

• Technical interoperability design addresses topics such as network constraints, asset ownership, intellectual property protection, payments, identity, data privacy and security concerns at both hardware and software levels.
• Usage interoperability keeps users at the center of design, creating the metaverse globally, inclusively and across demographics to ensure equitable experiences.
• Jurisdictional interoperability must include best practices and standards for the entire data supply chain and across localities, industries and nations.

Given the borderless nature of the metaverse, multistakeholder and multilateral collaboration will be required to reach a consensus on design choices, best practices, standards and management activities.

Prospects

The prospects of metaverse interoperability are significant, with the potential to drive innovation, growth, and new opportunities in the virtual world ecosystem. Here are some of the prospects:

• Increased user engagement: Interoperability can enable users to explore and interact with different virtual worlds and communities, leading to increased user engagement and retention.
• Expanded market opportunities: Interoperability can allow metaverse platforms to tap into new markets and user bases, leading to increased revenue and growth.
• Improved content creation: Interoperability can enable creators to share and combine assets and experiences from different virtual worlds, leading to new and unique content.
• Enhanced user experiences: Interoperability can provide users with more options and flexibility to customize and personalize their virtual world experience.
• Greater social connections: Interoperability can allow users to connect and socialize with people across different virtual worlds and communities, leading to greater social connections and collaboration.
• Standardization and collaboration: Interoperability can drive the development of common technical standards and protocols, leading to greater collaboration and standardization across the metaverse ecosystem.

Despite the challenges that need to be addressed in achieving metaverse interoperability, such as technical complexities, security and privacy concerns, and legal and regulatory issues, the prospects of metaverse interoperability are promising, and as the technology and ecosystem continue to evolve, new innovations and opportunities emerge.

References

• Designing the metaverse: A study on inclusion, diversity, equity, accessibility and safety for digital immersive environments by Matteo Zallio, P. John Clarkson
• Interoperability in the Metaverse, the World Economic Forum
• Interoperability and the Future of the Metaverse by Akash Takyar
• Metaverse beyond the hype: Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy by Yogesh K. Dwivedi, Laurie Hughes
• Metaverse Interoperability Challenges and Impact by George Lawton
• Metaverse Interoperability, Part 1: Challenges by Jon Radoff
• Metaverse interoperability is a distant ambition — Verdict, GlobalData Thematic Research
• The future of the metaverse hinges on interoperability by Ash Koosha

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