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European Council Publishes Web 4.0 Strategy

The European Commission is already setting out to tackle Web 4.0. There’s quite a bit to unpack here, including the EC approach, the 4-point plan that they recently published, and – of course – what they mean by Web 4.0.

What Is Web 4.0?

It’s not a typo and you’re not asleep at the wheel. While most of us haven’t gotten the hang of Web 3.0 yet, Europe is already setting the table for Web 4.0. Don’t worry, this is just a new terminology for something that’s already on your radar.

“Beyond the currently developing third generation of the internet, Web 3.0, whose main features are openness, decentralization, and user empowerment, the next generation, Web 4.0, will allow an integration between digital and real objects and environments and enhanced interactions between humans and machines,” reads the EC’s report.

So, essentially, “Web 4.0” is the metaverse. But, why not just call it that?

Webs and the Metaverse

The metaverse discussion at least started out as being largely a conversation within the world of immersive technology, with discussions of Web3 largely being topics within the blockchain and crypto spaces. (“Web3” and “Web 3.0” aren’t exactly the same concept, but both largely revolve around decentralization, so they’re more-or-less interchangeable for most levels of discussion.)

As voices from the cryptocurrency and blockchain communities promised that these technologies would be the future of a cross-platform, self-owned online future, Web3 and the metaverse were increasingly mentioned in the same breath with both being apparently convergent visions of the future.

A short-lived explosion of interest in the metaverse was so short-lived largely because – while the pieces are certainly falling into place – one connected metaverse hasn’t fully realized. While there are more-or-less realized metaverse spaces or use cases, the all-encompassing digital layer of reality isn’t here yet. Web3, while struggling with adoption, is largely functional today.

While some may groan at the introduction of yet another idealistic tech concept, “Web 4.0” does offer some clarity at least with regard to what the EC is talking about. First, it respects that the metaverse is still a thing of the (near?) future. Second, it ties in the themes of openness and decentralization that were lacking in many metaverse discussions.

Finally, it ties in “interactions between humans and machines.” While some technologists have long included this aspect in their discussions of the metaverse, recent developments in AI have led to increased interest in this field even since blockchain and the metaverse had their moments in the media over the last few years.

Bracing for Web 4.0

While it’s easy to feel like much of the world is still catching up with the previous generation of the internet, how is Europe planning to get ahead of the next generation of the internet? A lot of it has to do with knowing where current experts are and creating pathways for future builders.

To make that happen, the report outlines four “Key Strategy Pillars”:

  1. Empowering people and reinforcing skills to foster awareness, access to trustworthy information, and building a talent pool of virtual world specialists.
  2. Supporting a European Web 4.0 industrial ecosystem to scale up excellence and address fragmentation.
  3. Supporting local progress and virtual public services to leverage the opportunities virtual worlds can offer.
  4. Shaping global standards for open and interoperable virtual worlds and Web 4.0, ensuring they will not be dominated by a few big players.

One of the reasons that so much of the strategy has to do with ideas like “empowering people” and “leveraging opportunities” might be that much of the document was distilled from an earlier workshop of 150 randomly selected European citizens. The average person is likely feeling left behind Web 2.0 and out of the loop on Web 3.0.

The European Perspective

“Ensuring that [virtual worlds] will not be dominated by a few big players” may not be a uniquely European feeling, but it’s interesting to note. Meta, in particular, has gotten into trouble in EU member countries like Germany for the equivalent of antitrust concerns, which has opened the way for Pico to make headway in European markets free from its US political struggles.

At the most recent Augmented World Expo – just before Apple announced their first XR headset – some speakers even expressed concern that Apple will be able to throw its weight around the industry in a way that not even Meta enjoys.

Apple currently holds so much power that they could say ‘This is the way we’re going to go.’ and the Metaverse Standards Forum could stand up and say ‘No.’,” XRSI founder and CEO Kavya Pearlman said during a panel discussion at this year’s AWE.

Standards are a concern everywhere, but this is another area where the approach is somewhat different across the Atlantic. A number of standards groups have formed in the US, but all of them are independent groups rather than governmental initiatives – though some groups are calling for regulators to step into the space over concerns like privacy.

Thinking Globally About Web 4.0

“Europe is, in many ways, a first mover on metaverse policy, and it is putting forward a positive vision for the future of immersive technology,” the XRA’s VP of Public Policy Joan O’Hara said in an email to ARPost. “We very much appreciate the [European Commission’s] approach to balancing user protection and wellbeing with the desire to support innovation and adoption.”

The headquarters of Web 3.0 and Web 4.0 companies might be in one country or another, but most of them are offering international services. Unless they want to have different (and potentially incompatible) versions of those services available for different countries, it behooves those companies to have services that fit all national standards.

So, in the absence of officially codified US standards for immersive worlds, it is likely that the services offered to American audiences might fit into the shape described by groups like the European Commission. Fortunately, most of the organizations already looking at these problems are also international in nature and work with and between national governments.

“This will serve as a model going forward,” said O’Hara. “The XRA has been actively engaged with both European and British colleagues on these issues, and we believe the US interests are largely aligned with those of our friends across the Atlantic.”

Thinking Ahead

US discussions of Web 3.0 have largely spiraled around the nation’s failure to prepare for or recover from Web 2.0. The fact that Europe is already looking forward to Web 4.0 is definitely something to consider. In emerging tech, looking backward instead of forward is a dangerous strategy.

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Perkins Coie Releases 6th Annual Industry Report on Immersive Technology

The sixth annual Perkins Coie XR Report is out. The theme: “The Rise of Web3 Technologies to Accelerate XR.” While some people are skeptical of some of the goings-on in Web3, new ideas about connecting people are putting immersive technology into a context that highlights its value.

Is Web3 the Same as the Metaverse?

So far, ARPost has been largely silent on the idea of “Web3” because it brings in a lot of ideas that aren’t really central to immersive technology while not necessarily bringing in the immersive technology itself. For a quick and dirty shortcut, some people define the metaverse as “the next generation of the internet” and that’s exactly what Web3 means.

However, the metaverse movement is more focused on spatial computing while the Web3 movement is more focused on the mechanics of publication and ownership. So, the two aren’t necessarily mutually exclusive, but they are also not exactly the same thing. This issue was addressed in the report’s executive statement both as it benefits and potentially harms XR:

“Accelerated by . . . the emergence of NextGen technologies like Web3 and the metaverse, XR has hit the mainstream. Yet, new audiences, technologies, and products bring new challenges. When we add in the economic volatility that has at least temporarily affected many in the tech industry, the question becomes: What does the future have in store for XR?”

Overall, almost all of the respondents (significantly more than last year) expect to see growth in the immersive technology market, but the growth that they expect to see is more modest. Just under half of all respondents expect widespread adoption of the metaverse and Web3 in the next five years.

Insights on Investment

More people talking at a more reasonable volume was a trend in this year’s report. For example, 70% of respondents said that they would increase spending on XR for remote collaboration and training “to a moderate extent.” Last year, 51% said that they would increase this category of spending “to a large extent.”

Another 36% of respondents said that they expected the pace of investment to be “slightly higher” this year, while 32% percent expected that it would stay the same. This is significantly lower than the numbers for a similar question in last year’s survey.

Given otherwise growing positive sentiment, this might be less a reflection on immersive technology and more a reflection on the current state of the economy. Not only is the enterprise world increasingly returning to something like normal in terms of how internal communication happens, but rising costs in other sectors may lead to decreasing experimental budgets.

There are also remaining barriers to adoption of immersive technology.

Barriers to Adopting Immersive Technology

“Roughly half of respondents named user experience (e.g. bulky headwear and technical glitches) and content offering (e.g. lack of quality content) as barriers to mass adoption,” says the report. “Respondents expressed less concern on these fronts than they did in 2021, indicating that they perceive that the industry is making substantial progress.”

Respondents also said that improving data security, improving infrastructure, and improving affordability could all help to attract more consumers. Respondents also revisited one of the most interesting portions of last year’s report: the question of whether consumers or developers have a better understanding of compelling content when it comes to immersive technology.

This year, 43% of respondents agreed or strongly agreed that developers “do not yet understand what makes compelling content from a consumer standpoint” while 46% of respondents agreed or strongly agreed that consumers don’t understand where or how to find compelling content. Both of these numbers are down from last year.

“Respondents’ top recommendations [for improving immersive technology content] were the same as in 2021: Produce more interactive and immersive content (52%), as well as content that is compatible across platforms (49%).”

Who Benefits (Really)?

One of the biggest questions around emerging technology is who stands to benefit the most. At least right now, when we’re still early and a lot of buy-in is relatively high, it stands to reason that “high-income individuals” are most likely to benefit. This was the top answer (58%) when respondents were polled about who benefits the most from XR and NextGen technology.

While a handful of tech companies are wooing consumers, a great deal of the energy in the space is directed toward enterprise. Desk workers are having meetings in VR, deskless workers are benefiting from AR-enabled remote assistance. So, it may not be surprising that half of the respondents listed working professionals as among those most likely to benefit.

So, we have an understanding of who is benefiting. But, who is really benefiting? Many in the emerging technology space are concerned that the market may be perpetuating some classic workplace problems, like the exclusion of women and marginalized racial or ethnic groups. Fortunately, this doesn’t seem to be the case.

Just over half of the 150 respondents identified as being from minority/female-owned organizations. Of those respondents, nearly 80% agreed or strongly agreed that “funding for such founders is proportional to their white male peers.”

More People Talking

For much of XR’s history, a lot of the most meaningful sentiment has come from a fairly small number of people with particularly strong feelings.

One of the key takeaways of this report was that, while the immersive technology space still has its zealots, more people are warming up to the technology. This is potentially a huge sign of market maturity, even if it’s not the most exciting headline.

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