The World After DX: Smart Cities and the Metaverse

DX is progressing steadily, and digital is beginning to permeate society. In the first stage of DX, social implementation progressed with the combined use of AI, IoT, and other technologies for collecting and analyzing data for various products and services around the world.


So, what will the second stage of DX be like?


One of the triggers for the shift to the second stage is virtual technology such as XR and rendering. Virtual is often translated as "virtual," but in this article it is used in its original sense of "having the same functions and effects as reality."


Virtual technology has made it possible to reconstruct the real-world human nature and the structure of the city we live in with a resolution equal to or even higher than reality, including not only behavior but also experiences, learning, thoughts, and emotions.


This is not merely a solution to existing problems through digital technology, but can also be seen as the creation of a new world. In this world, economic activity can continue similarly to the real world, unaffected by the time and spatial constraints of the reality. Whether this worldview is considered a utopia or a dystopia depends on individual values, However, it is believed that smart cities and the metaverse will emerge as key business foundations.


At first glance, these two themes seem to be completely different fields, but smart cities can be viewed as a world where virtual technology is integrated into the real world, and the metaverse as a world where virtual technology enhances the virtual world. In this article, we will introduce the current status and future prospects of the two themes, and explore the transition towards Web3 that follows their intersection.

The concept of smart cities, which was proposed as part of the "Society 5.0" vision outlined in the 5th Science and Technology Basic Plan announced by the Cabinet Office in 2016, rapidly became a major topic in the era of DX. In response to this government-initiated megatrend, many private companies have approached urban development for the digital age based on the real world.


For instance, ...