Trust in digital asset transactions in a web 3 based metaverse
1University of Oulu, Oulu Business School, Department of Marketing, Marketing
|Online Access:||PDF Full Text (PDF, 1.1 MB)|
|Persistent link:|| http://urn.fi/URN:NBN:fi:oulu-202306122409
Oulu : S. Islam,
|Publish Date:|| 2023-06-13
|Thesis type:||Master's thesis
Metaverse is drawing the same attention that the internet had received during the Y2K era when internet was a new technology and still evolving. In the similar way, metaverse is still a long way from mainstream adoption and is constantly evolving. Web 3 metaverse or the open metaverse is decentralized using blockchain technology. With blockchain technology, also known as the “trustless” technology, there seems to be no need for the traditional trust concepts in exchanges made in the metaverse ecosystem. In this research, trust in transactions made in the exchange of digital assets in the Web 3 metaverse is explored.
Five traditional trust concepts, namely system trust, institution based trust, homophily trust, fast trust and performance based trust are taken into consideration and their dominance level was analyzed to know if they have an impact in purchasing decisions made in the Web 3 metaverse. To have a holistic idea of trust at play, trust in collaborations and business relations in the metaverse is also explored.
For this study, information was gathered by means of semi structured, in-depth interviews with seven respondents. These respondents are all active in the metaverse, having made some transactions in the platforms.
The findings show that institution based trust or the trust in the brand is currently the most dominant when it comes to both transactions and collaborations in the metaverse even with the new “trustless” technology.
One of the contributions of this study is that traditional trust concepts still play a major role in the metaverse and categorizes the level of dominance of each trust type. The study also further confirms the previous literature based on institution trust and other trust concepts. Furthermore, several managerial implications are presented for businesses in the metaverse based on the conclusion.
Businesses should work on reputation management and establish a trust mechanism. This can be done through smart contracts with the help of AI that ensure safety, transparency, and accountability in transactions. Creating digital twins to encourage purchases at the beginning stages of business in the metaverse as the real world trust is carried forward to the virtual world of the metaverse is also important.
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