Expert Takes: Julie Dawson

What do you see as the biggest opportunities for identity management in the metaverse?

The metaverse can provide users with the ability to customise their digital representation through avatars, augmented reality (AR) filters, and other digital assets. This enables individuals to express different facets of their identity, ranging from real-world characteristics to entirely imaginative forms. This flexibility in representation may encourage greater self-expression and creativity.

It also generates vast amounts of data related to user interactions, preferences, and behaviours. Artificial intelligence and machine learning models bring opportunities to analyse these data points to enhance personalisation and make interactions more seamless and tailored to individual preferences.

By building on existing digital ID frameworks, the metaverse has the potential to provide interoperable spaces where users move across platforms with their digital identities. This would mean being able to carry digital assets and credentials across different environments, thereby promoting inclusivity and accessibility.

What are the biggest challenges?

Risks to minors are exacerbated in immersive environments. Today, 30% of users online are under the age of 18 and frequently do not all gravitate towards age-appropriate areas, which means they can end up facing risks related to content, contact, and conduct. Additionally, minors are not legally of age to enter into legal contracts – a challenge that is only just beginning to be addressed by regulators.

Another major challenge is user data privacy and security. Data leakage is currently much more prevalent in immersive environments. Potential traceability between digital and real-world identities raises concerns about privacy, identity theft, fraud, and other malicious activities. Implementing robust security measures and privacy-preserving technologies is crucial to protect users’ personal information.

Users may also present different aspects of their identity in various contexts within the metaverse. Managing these multiple identities and ensuring they are appropriately verified and authenticated can be complex. This is especially hard to manage for young people who are still developing and growing. Similarly, challenges exist in maintaining the balance between anonymity and traceability to ensure user safety without compromising privacy.

The representation of identity in the metaverse must also be inclusive and free from bias. Misrepresentation or exclusion of certain groups can perpetuate real-world stereotypes and marginalisation. For example, there is clear evidence women – and in particular women of colour – face disproportionate harm and abuse online. Additionally, there is a risk of digital manipulation and misinformation through fake digital entities, making it essential to establish ethical guidelines and accountability frameworks. Addressing these challenges requires a collaborative effort from stakeholders across various sectors to build a safe, inclusive, and equitable metaverse.

How can blockchain and other new forms of governance play a role in increasing trust in the metaverse?

Blockchain technology is one – but not the only – way to allow for decentralised identity verification, which means no single entity has control over user identity data. There are also private permissioned distributed ledgers—not built on the blockchain—where the private key from a reusable digital identity is given to each user on the secure module of their device, as with Yoti. These approaches can reduce the risk of identity theft and fraud because the data is distributed. Users can manage their own identities, granting access permissions as needed, fostering trust in the system.

Decentralised autonomous organisations (DAOs) are another way to leverage blockchain to create community-driven governance structures where decisions are made collectively by token holders. This can democratise control and allow users to have a direct say in the rules and policies that govern their virtual environments. Such inclusive governance models also have a role to play in increasing trust, by ensuring that decisions reflect the will of the community.

Meanwhile, Self-Sovereign Identity (SSI) frameworks empower users to own and control their digital identities without relying on central authorities, selectively disclosing identity attributes as needed. This self-governance of identity aligns with principles of autonomy and user control, while governance frameworks that incorporate privacy-preserving technologies—such as zero-knowledge proofs and selective disclosure—allow users to prove their identity or certain attributes without revealing unnecessary personal information. This protects their privacy while enabling secure interactions.

This interview is from our first opus, released in June 2024. You can read the full opus here on our website.