In the last few months Metaverse updates have made headlines. With companies like Facebook, Nike, Tinder, Tencent, Roblox, and many more entering the space, Metaverse has attracted some serious attention.
Amongst these giants, Facebook has shifted its focus from primarily being a social media platform to building a metaverse altogether. However, Facebook’s colossal leap has attracted a fair share of concerns while also creating a sense of unrest amongst the promoters of the decentralized Metaverse.
Is Facebook a Threat to the Envisioned Metaverse?
Facebook is not so well received in the metaverse sector for its political tiffs and a notorious backtrack of data insensitivity. The company has found itself in yet another political pickle with governments in Europe due to its data processing conflicts. The believers of decentralized metaverse say that Facebook can threaten everything the metaverse stands for.
The most recent Facebook trifle is fuming the lack of confidence of the masses and projecting it on a formidable political scale. The company’s recent political trouble started with fierce pushback from the European government over its data processing policies. Until 2020, Facebook relied on SCC, i.e., Standard Contractual Clauses, to migrate EU user base data to the US.
However, the European Court of Justice struck off the EU-US privacy shield pact by stating that the data saved and processed in the US is not safe and the citizens of the EU have no practical way to challenge American Government surveillance. Theoretically, NSA can demand from any US data processing company to surrender the user’s data. The data transfer does not adequately protect European citizens’ privacy, and the EU is creating a new set of legislation that will decide the fate of data processing of European citizens.
The new legislation of the European Union demands higher accountability and responsibility from data importers, and Facebook does not want to reciprocate the burden of responsibility, abide by the regulation and spend more on data processing.
In response to the new legislation, Meta, although not in many words, threatened the European Union to discontinue Facebook and Instagram in Europe unless the EU allows them to process the data in the United States. The EU ministers have not budged against the threats and have redeemed their position on toughening the regulatory environment.
The regulators are no longer as forgiving as they were a few years ago and Facebook is no longer in a position of power. Experts from the EU claim that the chances of Facebook acting upon such threats are slim given their recent plummet in daily users in history and the 30% plunge in share price. In the grand scheme of things. Facebook is no more in a position of power.
Given Facebook’s track record of failure in building software and hardware, it is evident that Facebook cannot just buy its way to metaverse now. Its trail of failures and unaccountable tempo has also started forcing people to question its pivot to metaverse. Nevertheless, this shows a metaverse by a centralized entity was never really a thing to be excited about!
Decentralization – The Only Fuel That Will Run Metaverse
Facebook has had an unprecedented amount of control. The credentials of having a centralized authority to have power over people’s data are conspicuously quite bizarre. At a Reuter Next Conference, Yat Siu, Co-founder, and Chairman of Animoca Brands, who is a builder of metaverse platforms too, said, “What Facebook is doing with Meta is a ‘Fake Metaverse,” unless they have an accurate description as to how we can truly own it. Until then, it’s just Disneyland”. As long as Facebook’s data-mongering business model does not change, metaverse would be a much more terrifying version of Facebook.
To make web3 what it was envisioned to be for its users, decentralization, and sovereignty need to be at the core of its construction. Decentralization is the only sustainable route for the growth of metaverse. There is no way centralized companies can achieve this without any compromise. Young companies like LUDO, a Georanker-backed platform, build metaverse search engines differently, not just unifying data like central agencies but by offering solutions for aggregating data ON CHAIN from different websites, chains, companies and optimizing the collected data in users’ and individual’s best interest.
With many companies coming into Metaverse space, companies like LUDO are there to make Metaverse search engines more effective focusing on its users’ interests.