Metaverse City: Conceptual Views and Formation Factors Towards the Digital Society

Definition

The “metaverse city” is defined as an immersive, interactive, and experiential digital environment that replicates or reinvents elements of physical cities, inserting them into an alternative reality. This concept involves transposing the urban, social, and cultural aspects of real cities into the metaverse, thus creating new ways of interacting with and experiencing urban space. Thus, it is not necessarily a digital replica of a physical city; however, it is invariably distinguished by its immersive nature, offering users a sensory and interactive experience. This concept goes beyond the mere digital replication of a city, evolving into a multifaceted space that integrates urban, social, cultural, and technological elements. It is shaped by digital interactions mediated by social actors (users), whose relationships in the metaverse are influenced by the power dynamics occurring in the virtual environment, much like in physical cities. The metaverse city is not merely an extension of the physical city; rather, it is a digital construct that enables alternative ways of living and relating to urban space. Consequently, it is a dynamic and ever-evolving construct, contingent on the active engagement of multiple social actors and their interactions for its consolidation. without the strategic involvement of diverse social actors, the identity and practices that characterize this contemporary urban entity—made possible by emerging technologies—risk losing their viability.

1. Introduction

The advent of novel digital technologies in recent decades has profoundly transformed the landscape of social interaction [1]. Among these emergent phenomena is the concept of the metaverse, a shared digital environment that facilitates immersive and interactive experiences, often interpreted as an extension of the physical world [2,3].

In this context, the emergence of the “metaverse city” as an innovative urban strategy is noteworthy. This strategy seeks to promote the reinvention of urban and social spaces, enabling the construction of new identities and forms of coexistence. The immersive nature of this digital city model has the potential to reshape cultural, economic, and social aspects, thereby creating a new living space that transcends the physical and temporal limitations of the real world. It interacts with the real world in complex and multifaceted ways.

Therefore, the “metaverse city” can be conceptualized as a dynamic construct, constantly evolving and dependent on the active engagement of multiple social actors and the interactions between them for its consolidation. The strategic involvement of diverse social groups is crucial for sustaining the practices that define this contemporary form of city, made possible by emerging technologies. Almeida’s study [4], entitled “Cities and Territorial Brand in the Metaverse: The Metaverse Seoul Case”, offers a comprehensive examination of Seoul, a city that has gained prominence in digital media as a pioneer in the development of the world’s first metaverse city.

The study explores how the city leverages this technological innovation to reinforce its territorial identity, while simultaneously fostering engagement both domestically and internationally, thereby enhancing its visibility and connection with diverse audiences. Furthermore, the study examines the implications of this digital strategy on urban development and the revitalization process, considering the socio-economic and cultural transformations driven by this approach. A key feature of Almeida’s study [4] is how Seoul’s local government utilizes the metaverse as a digital and immersive urban laboratory, providing a platform for experimentation and innovation in urban practices. Two central concepts arise from this analysis: the “metaverse city” and the integration of physical and virtual spaces. These concepts pave the way for new forms of interaction and urban experience.

The development of metaverse cities presents notable prospects for urban advancement and the restructuring of social and cultural interactions. However, it also introduces a multitude of complex challenges. A primary challenge relates to the effective integration of physical and virtual domains, which requires sophisticated technological solutions to ensure an immersive and seamless experience for users [5]. Furthermore, issues of accessibility and digital inclusion emerge as critical challenges, given the metaverse city’s reliance on robust digital infrastructure, which is not universally accessible to all social groups. Another significant challenge concerns digital governance, involving the establishment of regulations and policies to ensure the security, privacy, and rights of users within these virtual environments, with the goal of preventing abuse, discrimination, and data manipulation [6]. Finally, concerns regarding the sustainability of metaverse cities have emerged, particularly with respect to the environmental impact of the necessary technological infrastructure and the management of substantial digital resources. Consequently, while metaverse cities present novel opportunities, they also require critical thinking and innovative solutions to address these challenges.

The development of the concept presents significant challenges, particularly in creating a virtual environment that is both functional and immersive. A key concern is the integration of physical and virtual domains, which requires sophisticated technologies to facilitate seamless transitions and ensure a consistent user experience. Building a metaverse city involves more than just creating digital spaces; it necessitates the establishment of a governance infrastructure that guarantees security, privacy, and equity within this environment. Digital inclusion becomes a crucial challenge in this context, as the metaverse city’s reliance on advanced technology could potentially restrict participation by social groups with limited resources. Sustainability also emerges as a relevant issue, both in terms of the energy consumption of digital infrastructures and the management of resources and data within the metaverse [4,7]. Consequently, the development of an immersive and virtual city requires a multidisciplinary approach that considers not only technological aspects but also social, cultural, and environmental dimensions. The goal of such an approach is to create a virtual environment that is accessible, inclusive, and sustainable.

The practical implications of establishing a “metaverse city” are manifold and entail substantial transformations in urban, social, and economic dynamics. Firstly, turning a city into a metaverse requires digital urban planning that not only replicates the physical elements of the territory but also incorporates emerging forms of interaction and coexistence among virtual citizens. The digital space must be designed to facilitate active user participation, promoting social inclusion and a diversity of experiences within the virtual environment. From an economic perspective, the concept has the potential to generate novel forms of commerce and a digital economy, such as virtual markets, digital services, and business models based on augmented reality and token systems [8]. From a social perspective, it can foster new forms of coexistence and collaboration. However, it is important to note that the digital divide—characterized by unequal access to technological resources—may exacerbate existing inequalities. Moreover, the implications for local governance warrant consideration, as while the metaverse has the potential to augment a city’s global presence, it requires ongoing regulation and oversight to ensure user security and privacy, as well as the ethical and equitable conduct of virtual interactions. Finally, the establishment of a metaverse city raises concerns about sustainability, particularly regarding the consumption of digital resources and the need for strategies to mitigate the environmental impacts caused by the technological infrastructure required to support this novel urban environment.

2. Metaverse City Conceptual Views

The term “metaverse” was first introduced in the 1992 fictional work Snow Crash. Since then, it has gained prominence in virtual games such as Second Life, Fortnite, and Roblox, as well as in films like The Matrix, Avatar, and Ready Player One. It is important to note that there are multiple metaverses, many of which are not interconnected. Almeida [7] observes a clear progression, from the initial literary use of the term to its current manifestation in multiplayer games and cinematic productions, eventually evolving into the immersive three-dimensional environments we see today—integrating extensions into everyday life.

In this context, the construction of the “metaverse city” concept emerges as a multifaceted and interdisciplinary field [9,10,11,12]. This novel urban paradigm transcends the physical boundaries of traditional cities by incorporating immersive digital technologies and integrating virtual and real worlds (Figure 1). The conceptualization of a city into a metaverse offers a range of interpretations, varying from its conception as an extension of physical space to the idea of a completely autonomous environment, disconnected from the physical world (Figure 1).

These diverse perspectives contribute to a more comprehensive understanding of the potential impact of the Metaverse City on the future of digital urban dynamics. They also inform reflections on the role of the metaverse in transforming contemporary urban life.

2.1. Metaverse City as an Extension of the Physical World

A prevalent approach in the literature is to conceptualize a digital extension of the physical world [10,11,13]. In this vision, physical cities are replicated in the metaverse as digital twins, creating a virtual mirror in which citizens can engage in immersive activities that simulate urban life. Technologies such as virtual reality (VR) and augmented reality (AR) play a pivotal role in this process, facilitating user interactions with the virtual environment in ways that mirror their physical interactions [10,13,14]. For example, citizens could engage in activities such as working, studying, shopping, and socializing within an immersive digital environment that reflects their real-world surroundings.

In this paradigm, the metaverse city serves as a complement to the physical city, introducing new layers of interaction where elements such as a city’s historical and cultural heritage can be interactively reimagined. For instance, museums, monuments, and public squares could be enhanced with immersive versions that provide more engaging and accessible experiences, reaching a global audience. In this framework, the concept of the “smart city” evolves to encompass the use of data and digital technologies not only to enhance urban services but also to broaden the everyday experiences of citizens.

2.2. Metaverse City as an Autonomous and Independent Space

Conversely, a more futuristic vision envisions the metaverse city as a space that operates independently of the physical world. In this perspective, the digital city could function as a fully isolated environment where individuals could live, work, and interact without the need to connect to the physical reality. This model would require the creation of a new form of digital governance, in which legal frameworks, policies, and regulations would be developed within the virtual environment itself, detached from the political or administrative structures of the physical world.

The notion of an autonomous city as a metaverse also suggests new forms of digital eco-economy, where virtual currency and goods could circulate independently of the physical economy, enabling a reinvention of how value is generated, distributed, and consumed. Moreover, this paradigm could potentially disrupt social and cultural norms, facilitating the formation of novel identities and lifestyles that transcend the geographical and cultural constraints of the physical world. However, this perspective also raises critical questions concerning governance, ethics, and social control. The creation of an autonomous digital city would necessitate the establishment of global regulations, a feat that remains elusive at present. Tuvalu, the first country to create its own metaverse due to climate change threatening its physical existence, serves as a case in point. Nevertheless, this perspective prompts further inquiries into the governance, ethics, and social control implications of establishing an autonomous digital city, particularly in light of the absence of global regulatory frameworks in this domain.

2.3. Metaverse City as a Laboratory of Social and Urban Experience

The metaverse city can also be conceptualized as a field of social and urban experimentation, where various solutions to the urban challenges of the physical world can be tested without the constraints imposed by real space [4]. In this model, it functions as a digital urban laboratory, enabling the exploration and real-time adjustment of new social, political, and cultural practices. This provides urban planners, government officials, and citizens with the opportunity to experiment and analyze the impact of innovations, such as new forms of urban mobility, construction technologies, and digital governance models.

For instance, the concept can be designed to assess sustainable mobility solutions, where virtual citizens can interact with various modes of transport and intelligent urban systems before their implementation in the physical world. Furthermore, this vision enables the exploration of novel forms of civic participation, providing all citizens, regardless of their geographical location, with a platform to express their opinions, vote on public decisions, or engage in digital governance processes.

2.4. Metaverse City and the Construction of Identity and Digital Culture

Another salient aspect of the metaverse city pertains to its role in the development of digital identity and culture [15]. In this paradigm, it serves as a space for cultural representation, where citizens can create, adapt, and display their digital identities in a freer and more creative manner. This freedom of expression facilitates the reconstruction of both collective and individual identities in digital form, with the resulting metaverse identity capable of overlapping or coexisting with the citizen’s physical identity in the real world [16].

The concept of the metaverse territorial brand, for instance, emerges as a strategy for creating a collective digital identity, where different cultures, territories, and nations aim to highlight their presence in the immersive digital space in an innovative and inclusive manner [17]. This paradigm offers new avenues for cultural and social expression, while simultaneously confronting the stereotypes and cultural homogenization often observed in the digital realm. The metaverse city can thus be regarded as a novel medium for diversifying and reinforcing cultural identities, promoting digital inclusion, and ensuring the equitable representation of diverse social and cultural groups.

2.5. Metaverse City as a Space for Economic Experimentation

In addition to its social and cultural impact, the metaverse city is emerging as a new arena for economic experimentation, offering a unique platform for the creation and implementation of innovative economic models [18,19]. In this digital space, concepts such as digital tokens, blockchain, and decentralized economies are gaining prominence, enabling the creation of virtual markets that operate independently of the traditional physical economy [20]. These models have the potential to transform not only how value is generated and exchanged but also the very business structures that support commercial and financial interactions within the metaverse.

The digital economy within a metaverse city can encompass a wide range of activities, from virtual marketplaces and e-commerce platforms to new entertainment and educational services designed to operate within immersive and interactive environments [18,19]. For example, digital currency businesses, such as cryptocurrencies and non-fungible tokens (NFTs), are already experimenting with new ways of exchanging and owning assets in the metaverse. These new business models have the potential to create a closed-loop economy in which virtual goods and services, such as digital clothing, virtual real estate, and exclusive experiences, are bought, sold, and exchanged between users independently of the physical economy.

In addition, the economic ecosystem within a metaverse city can expand into new business opportunities, such as providing virtual spaces for businesses or creating collaborative platforms for education and training in immersive digital environments [18,19]. The development of new digital infrastructures and services dedicated to the metaverse could generate jobs in fields such as programming, virtual environment design, artificial intelligence development, cybersecurity, and even marketing specialized in virtual platforms. This could give rise to a new industry based on the emerging needs of the metaverse, promoting the diversification of the global economy and helping local economies adapt to the digital environment.

The metaverse city can also be viewed as an opportunity to test new economic approaches and public policies within a controlled environment [18,19]. For instance, digital taxation models, virtual wealth distribution policies, and the creation of cooperative and sustainable economic systems could be experimented with. These trials can yield valuable data on the viability of alternative economic models, aiding in policy decisions for the physical world. Additionally, the metaverse can open new frontiers for transforming local and global economies, encouraging the development of new services and infrastructures tailored to virtual environments, with direct implications for the labor market and global economic dynamics.

However, the transition to a fully immersive digital economy also raises critical issues. The lack of regulation within the metaverse’s digital economy could lead to economic imbalances, exacerbating inequalities between those who have access to the technologies required to participate and those who do not. The centralization of power within a few companies or platforms that control the economic infrastructure of the metaverse also poses a challenge, as it undermines the notion of a decentralized and equitable virtual economy. Thus, while the metaverse city offers new opportunities for economic experimentation, it also presents challenges that demand constant innovation and careful regulation to ensure its benefits are broadly distributed and accessible to all. By exploring these visions, it becomes clear that the metaverse city is not a singular reality, but rather a set of proposals that may evolve as digital technologies continue to advance and become further entrenched in society.

3. The Formation of the “Metaverse City”

Although the concept is still emerging, several academic fields have explored aspects related to the creation and development of digital cities, virtual environments, and their integration with the physical world. These disciplines provide a broad foundation for understanding the emergence of the term, covering technological, economic, social, cultural, and governance dimensions (Figure 2).

The literature is multidisciplinary, encompassing fields such as technology, urbanism, sociology, digital economy, and law, reflecting the complexity involved in creating digital cities within the metaverse [10,11,13,14,18,19].

3.1. Digital Urban Development and Virtual Cities

The literature on digital and virtual cities provides a crucial foundation for understanding and designing a metaverse city. Digital cities are defined by the integration of information technologies to transform urban experiences, while virtual cities exist entirely within digital environments. These two concepts converge in the metaverse, where cities become both digital and immersive.

The concept of virtual cities [10,21,22] examines how new technologies are reshaping physical cities and enabling innovative forms of digital interaction within urban spaces. Conversely, the concept of smart cities [23,24,25,26] focuses on the role of technologies such as sensors, the Internet of Things (IoT), and big data in transforming urban environments.

These two approaches converge in the development of a digital infrastructure that underpins the formation of the city in the metaverse. While virtual cities introduce purely digital and immersive elements, smart cities enhance efficiency and connectivity, bridging the physical and virtual realms. This intersection of digital, virtual, and smart cities highlights the metaverse’s potential to shape new forms of urbanism, governance, and social interaction.

3.2. Emerging Technologies and Digital Infrastructure

Emerging technologies such as blockchain, cryptocurrencies, NFTs, artificial intelligence (AI), and augmented reality (AR) play a pivotal role in shaping the metaverse city. The literature on these innovations offers valuable insights into the technological foundations required to create and sustain this urban model. Two key concepts in this context are blockchain and law [27,28,29], which are central to the metaverse economy and facilitate the creation of new systems of governance and ownership in digital cities. In “The Fourth Industrial Revolution”, Schwab [30] examines the impact of emerging technologies like AI and AR on the construction of new realities, underscoring their significance for the development of metaverse cities.

Another significant contribution is Metaverse(s) and Regional Development: Exploring Immersive Territories by Almeida [7], which examines the intersection of metaverses and regional development, encompassing metaverse cities. This study provides a thorough analysis of how metaverse cities can influence regional dynamics, offering new perspectives on the integration of immersive technologies in territorial development and their relationship with local communities. It emphasizes opportunities for innovation and sustainable development.

In addition, the use of NFTs has facilitated the tokenization of digital assets, thereby redefining the concept of ownership in virtual environments. Technologies like virtual reality (VR) and augmented reality (AR) are also revolutionizing how citizens interact with and experience digital urban spaces, blurring the boundaries between the physical and the virtual [31,32].

These innovations, when integrated, enable the infrastructure of the metaverse city, thereby redefining social interaction, governance, and territorial development in immersive digital contexts. Technological convergence is thus laying the groundwork for the expansion of fully immersive cities, with the potential to reshape urban dynamics in the 21st century. This, in turn, is giving rise to new lines of scientific inquiry and alternative ways of perceiving urban space and territory. This scenario is particularly significant, as the integration of emerging technologies and the creation of immersive spaces like the metaverse city provoke a rethinking of traditional concepts of urbanism, urban development, and territory, opening up new avenues for academic exploration. The emphasis on “new ways of perceiving urban and territorial space” is crucial, as it underscores that the metaverse and its implications extend beyond technology, influencing how society comprehends and interacts with both physical and digital space—what can be described as the phygital.

3.3. Urban Governance and Regulation in the Metaverse

The governance of metaverse cities requires the development of novel regulatory frameworks, as the immersive nature of digital environments presents significant challenges to traditional governance structures and established legal systems [33]. Digital governance, therefore, emerges as a central concept within the existing literature on metaverse cities, offering valuable insights into how regulatory mechanisms can be adapted and designed to address the unique complexities of this new context [33,34,35].

In addition to the perspectives already mentioned, the governance of the metaverse must incorporate collaborative and participatory approaches, actively engaging virtual citizens in collective decision-making through technologies such as blockchain [34,35,36]. The establishment of decentralized decision-making systems promotes enhanced transparency and active participation in processes related to economic management and urban planning [34,35,36]. Furthermore, the regulation of ethical and social issues, such as privacy and the responsible use of data, will be crucial for ensuring the legitimacy and functionality of the metaverse city.

It is clear that the challenges and opportunities posed by governance in the metaverse represent a paradigm shift in the interaction between citizens and digital authorities, setting new standards for the future of public administration in virtual environments. The need for effective and innovative regulation positions the metaverse city as an experimental laboratory for novel governance models, with the potential to influence society on a global scale [33,34,35,36].

3.4. Smart Cities and Social Participation in the Metaverse

Smart cities are a concept closely related to the metaverse city, exploring how digital technologies can foster more efficient, interactive, and participatory urban environments. These concepts are directly applicable to the metaverse, offering a framework for developing collaborative and inclusive spaces where virtual citizens actively participate in managing and transforming the digital landscape [37,38].

In the context of the metaverse city, social participation extends beyond the physical world, enabling digital citizens to leverage technologies such as blockchain, artificial intelligence, and virtual reality to engage in planning and governance processes. This paradigm holds the potential to establish interconnected global communities that can collaborate in real time to address shared challenges [37,38,39,40].

Furthermore, the incorporation of civic hacking practices within the metaverse environment has the potential to catalyze community-driven technological innovations, fostering the development of creative and sustainable solutions for managing digital urban spaces. Integrating smart city principles into the metaverse city expands the scope of interaction and participation, establishing an inclusive model that can transform the role of citizens in shaping digital environments [39,40].

Smart cities are intrinsically linked to the concept of metaverse cities, as both explore how digital technologies can create more efficient, interactive, and participatory urban environments. Within the metaverse, these principles can be applied to design virtual cities where citizens actively contribute to managing and transforming the digital landscape using technologies such as blockchain, artificial intelligence, and virtual reality [37,38].

The future of metaverse cities will likely be shaped by several factors that also influence the development of smart cities. Key among these are:

• Technological advancements: Innovations such as quantum computing are expected to significantly impact metaverse cities, enabling more sophisticated simulations, AI-driven urban planning, and improved cybersecurity for digital spaces.
• Economic factors: Investments from both the public and private sectors in metaverse infrastructure will play a pivotal role in the development of virtual urban environments. The rise of virtual real estate markets, digital commerce, and decentralized finance will likely reshape the economic dynamics of metaverse cities, creating new opportunities for virtual architects, AI developers, and digital asset managers.
• Legal frameworks: Just as with smart cities, metaverse cities will be governed by evolving legal structures. Issues such as data privacy, intellectual property rights, and cybersecurity policies will be essential for the smooth functioning of these virtual environments.
• Environmental and sustainability considerations: Balancing high computational demands with sustainable energy sources will be crucial for the long-term viability of metaverse cities, just as sustainable energy practices are integral to smart cities.
• User acceptance: The success of metaverse cities will depend largely on the willingness of users to engage with these virtual spaces. As with smart cities, public adoption and trust in digital systems will drive the growth and effectiveness of metaverse cities.

Furthermore, incorporating principles of smart cities into the metaverse city not only enables the development of collaborative spaces but also offers a model of inclusion and participation that can be scaled globally. The incorporation of civic hacking and community-based innovations within the metaverse can stimulate creative solutions for managing digital urban environments, just as they have done in the context of physical smart cities.

By expanding these factors, metaverse cities can act as a bridge to future smart cities, allowing digital and physical spaces to evolve in harmony, fostering interconnected global communities that collaboratively address shared challenges in real time [37,38,39,40].

3.5. Theories About the Nature of the Metaverse

The body of literature on the metaverse and its associated philosophies has been steadily expanding, offering a solid theoretical foundation for understanding how and why people engage with virtual worlds [40,41,42]. These studies provide valuable insights into the nature of the metaverse, examining its technological foundations as well as its social, cultural, and economic implications, along with future prospects for digital urban life.

Theorists argue that the metaverse city goes beyond being a mere extension of physical cities, representing a radical shift into a space where the boundaries between reality and virtuality are constantly in flux. This scenario invites philosophical reflection on various issues, including the authenticity of human interactions, the construction of digital identities, and the ethical principles that should guide the development of virtual communities.

Moreover, the existing literature emphasizes the crucial role of immersive and interactive experiences in cultivating social and cultural connections within the metaverse. As a key component of this ecosystem, the metaverse city serves as a multifaceted space that merges technological innovation with the complexities of human relationships, fostering new forms of belonging and collaboration [40,41,42].

3.6. Social and Cultural Aspects

The social and cultural dimensions of metaverse cities are increasingly the subject of research, particularly in relation to identity construction, social interactions, and new forms of coexistence facilitated by digital environments. These aspects are crucial for understanding how immersive digital spaces are reshaping human dynamics, thereby redefining traditional concepts of community, belonging, and social participation. It is important to note that the metaverse city goes beyond being merely a digital extension of physical cities; it acts as a catalyst for profound transformations in social and cultural relations. The experience of inhabiting digital and immersive spaces has been shown to significantly influence how individuals and groups construct their identities, navigate cultural differences, and engage in collaborative practices.

Research has also highlighted the emergence of alternative forms of belonging that transcend geographical and cultural boundaries, as demonstrated by studies on Seoul and Tuvalu [4,7]. This situation provides opportunities for fluid and diverse social interactions, while simultaneously challenging the boundaries between public and private spheres. It fosters hybrid and phygital spaces that integrate technological innovation with cultural expressions.

Therefore, the factors involved in the formation of a metaverse city are both dependent and independent, depending on the interests of the social actors involved in this immersive virtual construction. Figure 3 illustrates the discussions in this study, highlighting the complexity of the points of view of the concept and the interdependence of the factors that make it up, which confirms that the subject is more complex than it seems at first glance.

However, this study on the metaverse city also advances the debate by introducing the concept of “digital city 2.0”, which marks a shift towards a more interactive and immersive urban experience, where emerging technologies, especially the metaverse, play a central role in reshaping urban interactions. In this way, the concept of “digital city 2.0” introduces a distinct phase in urban digitalization, setting this research apart from existing discussions.

It is important to note that the emergence of the metaverse city has accelerated the transition from a traditional society to one that is increasingly focused on immersive virtual spaces, which would lead to an evolution from “digital city 1.0” to a new stage, here introduced as “digital city 2.0”, due to the digitalization of immersive and interactive spaces. The initial phase, referred to as “digital city 1.0”, is characterized by the implementation of information and communication technologies (ICTs) in urban infrastructure, enabling solutions such as e-government, urban sensors, and digital connectivity [43,44]. However, this study advances the debate by introducing the concept of “digital city 2.0”, which marks a shift towards a more interactive and immersive urban experience, where technologies such as virtual reality (VR), augmented reality (AR), artificial intelligence (AI), and the metaverse play a central role in reshaping urban interactions. Thus, this study introduces also the concept of “digital city 2.0” as a new stage in urban digitalization, characterized by the deep integration of immersive and intelligent technologies.

The notion of “digital city 2.0” may initially appear premature, given that we are still in the nascent stages of “digital city 1.0”. In this inaugural phase, there is a progressive integration of digital technologies into various aspects of everyday life, such as communication, commerce, education, and entertainment. However, the introduction of the “digital city 2.0” concept in this study serves as a cutting-edge framework that anticipates the evolution of urban digitalization, paving the way for future research in this area. These innovations would not only enhance the digital experience but also profoundly transform the ways in which we interact, work, and live in society [23,45]. Artificial intelligence, for example, has been widely used in the optimization of urban processes, from the personalization of public services to the predictive analysis of urban data [46]. Similarly, virtual reality and the metaverse emerge as new platforms for civic participation and immersive urban planning, allowing citizens to interact with digital urban spaces even before their implementation in the physical world. This transformation is central to the concept of “digital city 2.0”, which this study also proposes as a theoretical innovation within the context of urban digitalization.

The notion that this new phase will be consolidated with the maturation of the Beta generation is particularly salient. This generation, being born immersed in the digital ecosystem, experiences an even more natural and integrated connection with these technologies. This generational shift is key to understanding the eventual realization of “digital city 2.0”. Consequently, it becomes more accurate to talk about the transition to a “digital society 1.0” and then discuss the prospects for a “digital society 2.0” as these technologies become more mature and integrated.

Furthermore, an analysis of the connections between the conceptual visions and the factors that contribute to the formation of cities with a high degree of virtual immersion and interactivity is necessary to understand the complexity and interdependence of these elements and the transitions between digital society 1.0 and 2.0. For example, the vision of the city as a laboratory for social and urban experiences is directly linked to the use of emerging technologies and digital governance. This paradigm enables the exploration of novel social and urban practices within a controlled environment, facilitating real-time adjustments and promoting digital inclusion. However, it is imperative to acknowledge the limitations imposed by physical space, such as the absence of full sensory interaction, which can impede users’ sense of presence and perception of reality.

The evolution of digital identities and cultures within the metaverse is contingent upon the establishment of a robust digital infrastructure and the implementation of regulatory frameworks that are designed to safeguard user privacy and rights. These elements are currently in development and characterize “digital city 1.0”. It is therefore vital to emphasize that issues such as these underscore the significance of social and cultural aspects in the formation of metaverse cities. Indeed, these aspects facilitate cultural expression and the development of identities in a secure and inclusive environment. However, this inherent complexity also underscores a fundamental challenge: the persistent digital divide, characterized by unequal access to technologies. While many continue to lack even basic Internet 2.0 connectivity, the imminent transition to Web3—where digital immersion will reach unprecedented levels and metaverse cities will undergo substantial consolidation—could further exacerbate these inequalities, thereby limiting the participation of specific social groups.

In the context of economic considerations, the advent of experimentation in the metaverse has given rise to novel prospects for the formulation of innovative economic systems. This encompasses the implementation of cryptocurrencies and immersive virtual markets, which are inextricably linked to the evolution of an immersive digital economy and the imperative for effective digital governance. The latter is designed to ensure the integrity and security of transactions, thereby fostering confidence in economic activities. To illustrate, the utilization of blockchain technologies ensures the transparency and integrity of financial transactions, thereby mitigating the risk of fraud and facilitating the traceability of digital assets.

Furthermore, advancements in technology, such as virtual reality (VR) and artificial intelligence (AI), are profoundly altering the manner in which users engage with digital environments. The advent of VR has enabled the development of immersive experiences, including simulations of urban environments that are utilized in planning and design applications. Moreover, the field of artificial intelligence has witnessed significant progress, leading to the development of systems capable of personalizing services and enhancing system security through the monitoring of suspicious behavior. However, it is imperative to acknowledge the limitations inherent in these technological applications.

Therefore, the connections illustrated in Figure 3 demonstrate that the concept of a city in the metaverse is a dynamic and multifaceted one, situated within the initial phase of digital society. Its consolidation is contingent not only on the integration of emerging technologies, digital governance, and social inclusion, but also on the capacity to comprehend the impact of these technologies on society. Consequently, the maturation of these processes will be pivotal in propelling the transition to digital society 2.0, a process that is known to intensify with the development of the Beta generation.

3.7. The Future of Metaverse Cities

The future of metaverse cities will undoubtedly be shaped by a range of interconnected factors that will determine their development and large-scale use. Among the key aspects are technological advancements such as quantum computing, which promises to revolutionize the simulation of virtual cities and enhance cybersecurity through artificial intelligence (AI). Additionally, economic factors will play a crucial role, with increased public and private investments in metaverse infrastructure, the growth of virtual property markets, digital commerce, and decentralized finance, all of which will likely reshape the economy of these cities. The job market will also be affected by the growing demand for specialized professionals, such as metaverse architects, AI developers, and digital asset managers. In terms of legal frameworks, issues related to data privacy, intellectual property rights, and cybersecurity will define the operational standards of these virtual cities.

User acceptance will also be a crucial factor in the success of the concept, as the public’s willingness to adopt complex virtual spaces will directly influence their large-scale adoption. In the field of sustainability, balancing the high computational power requirements with sustainable energy sources will represent a significant challenge. Finally, digital twins will provide a valuable resource for smart urban planning, enabling metaverse cities to integrate efficiently with physical cities. Meanwhile, cybersecurity and data privacy challenges must be addressed to ensure user trust and data integrity. Within the context of smart cities, it is essential to explore how metaverse cities can interact with and influence physical cities, particularly in terms of integrating smart technologies, managing data, and enhancing urban quality of life.

4. Final Considerations

The metaverse city represents a paradigm shift in how urban spaces, governance, and social interactions are conceptualized. By enabling digital infrastructures that support interaction, employment, and residence within virtual environments, these cities introduce new possibilities for fully immersive urban settings. Although still in development, their implications for the future of digital society are profound, influencing economic structures, identity formation, social belonging, and the delivery of public services.

A particularly notable aspect of this concept is its ability to foster a self-sustaining digital economy, where virtual assets—such as cryptocurrencies and digital tokens—can be traded, stored, and utilized without reliance on traditional intermediaries. This emerging economic system has the potential to democratize access to resources, create diverse income streams, and drive innovation across sectors like education, healthcare, and entertainment. At the same time, the metaverse economy is reshaping traditional models of work, commerce, and consumption by generating new job opportunities and specialized markets within immersive digital environments.

Nevertheless, the concept presents significant challenges. Issues related to digital governance, privacy, and security are paramount and must be effectively addressed to ensure that the metaverse city remains inclusive and equitable for all its citizens. The lack of global regulations for immersive digital spaces remains a critical obstacle, compounded by the risk of monopolization, where large corporations could exert disproportionate control over digital platforms. Additionally, achieving a universally accessible metaverse city requires the development of a robust technological infrastructure capable of supporting high connectivity and extensive data processing. Furthermore, as Almeida [7] highlights, the challenge extends beyond digital or virtual illiteracy to what he defines as “metaverse illiteracy”, underscoring the need for new forms of digital literacy adapted to immersive environments.

From a sociological perspective, it has the potential to reshape power relations and identity formation. By transcending physical barriers that limit access and interaction in the tangible world, it fosters diverse forms of identity and community. However, the transition to an immersive digital reality may also deepen social inequalities, particularly by excluding groups without access to advanced technologies or familiarity with the digital dynamics of the metaverse. Additionally, the metaverse could generate fragmented urban experiences, creating virtual spaces that certain social groups may struggle to identify with or feel excluded from.

In envisioning the future, the metaverse city stands both as an extension of physical cities and as an alternative framework for understanding urbanization and citizenship within an increasingly interconnected global landscape. Its inherent complexity highlights its multifaceted nature, emphasizing the need for robust regulatory frameworks, digital literacy initiatives, and the development of advanced technological solutions. These elements are crucial in ensuring the ethical and inclusive evolution of metaverse cities, fostering environments that are accessible, secure, and socially equitable.

It is essential to recognize that while metaverse cities present numerous opportunities, they also demand careful consideration of their social, environmental, cultural, economic, and political implications. By challenging traditional urban paradigms, the metaverse city prompts reflection on the transformative potential of immersive digital technologies in reshaping how we live, work, and interact. Although still in development, the concept is already exerting a significant societal influence, and its future evolution will require a collaborative effort among governments, businesses, and citizens to ensure that it becomes an inclusive and equitable space within the metaverse.