Virtual Reality (VR) Cybersecurity - An Emerging Frontier
Exploring the Intersection of Virtual Reality and Cybersecurity
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Newsletter Rundown:
Virtual Reality (VR) Cybersecurity
The Market Opportunity
Privacy Concerns
Final Word
This week, I'll reserve the broader market analysis for its own dedicated newsletter and instead delve into the world of virtual reality.
Despite VR's rapid advancement and potential for visual human connection, cybersecurity remains an underexplored area ripe for investment.
Virtual Reality (VR) Cybersecurity - An Emerging Frontier
The greatest challenge facing Virtual Reality (VR) is not a technology problem but a marketing problem.
People are visual —approximately 90% of the information transmitted to the brain is visual, and visuals are processed 60,000 times faster in the brain than text. Source.
The VR Superbowl legless launch can't compete with Midjourney's AI.
But therein lies the opportunity.
When you think of AI what do you see? What comes to mind?
Take for example the budding holographic cloud of Siri.
Siri's frequent 'I didn’t quite catch that' raises my blood pressure slightly. The bubble cloud still struggles to perform simple tasks.
Long term, AI faces an issue as advertising money follows eyeballs.
Advertising revenue, which typically targets areas with high viewer engagement, may not align with AI's development and application areas.
I believe that the unique nature of Virtual Reality (VR) taps into a desire of visual human connection that AI alone cannot meet.
I’m betting on human nature.
The Market Opportunity in VR Cybersecurity
According to Grand View Research, the global VR market size was estimated at USD $59B in 2022, with projections for a compound annual growth rate (CAGR) of 27% from 2023 to 2030. Source.
As the technology continues to expand and as businesses capitalize on the monetary angle of VR, one aspect continues to be overlooked, cybersecurity.
I believe investing in cybersecurity is the lowest hanging fruit for the space.
Many of the security risks that threaten VR are similar to the security risks of Internet users—data hacking, malware attacks, privacy problems, and spam.
However, VR has created new security challenges that include virtual identities, digital currencies, and biometric data which are new economic targets for hackers.
Privacy Concerns
I suspect every consumer tech product in the U.S. includes a surveillance backdoor—call it my inner skeptic.
This is evidenced by the U.S. government’s history of pushing for encrypted data backdoors, as detailed by Jessie Guy-Ryan’s A Brief History of the U.S. Trying to Add Backdoors Into Encrypted Data Source.
The Snowden leak proved the lengths the NSA will go.
From backdoors in Lotus Notes to persistent allegations that Microsoft routinely includes backdoors in its software, the government just can’t get away from snooping on you and me.
So my attitude is—If you can’t beat them, join them.
Apple doesn’t give much freedom with their devkits but good rule of thumb is any device is hackable with someone skilled enough.
The search for Virtual Reality development is increasing, and new technologies and libraries have surfaced in response.
The Apple Vision Pro (AVP) matches the capabilities of MacBooks and iPhones, running on a unique OS that responds to gaze and gestures, primarily using C/C# in Unity environments.
Wall Street analysts project Apple Vision Pro sales to increase to approximately 1.4 million units by the end of 2025.
This will create new vulnerabilities for global users.
As VR technology advances, there will be an increasing need for services and programs that can audit, test, and certify the security of VR applications and platforms.
LSU researchers Ibrahim “Abe” Baggili and Andrew Webb received $600K from the Defense Advanced Research Projects Agency (DARPA), to study safety aspects of virtual and augmented reality applications for U.S. military missions and training. Source.
This opens up new avenues for cybersecurity firms specializing in VR.
Final Word
Thank you for reading and I am grateful and humbled to be able to learn, grow, and invest alongside you at Tuttle Ventures.
Vision, courage, and patience leads to successful investing.
Don’t forget to follow Tuttle Ventures on Twitter, LinkedIn, or Instagram.
Check out the website or some other work here.
Best,
Darin Tuttle, CFA
This is not investment advice. Do your own due diligence. Past performance is no guarantee of future results. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Investors are encouraged to perform due diligence, consider their risk tolerance, investment goals, and consult with financial advisors before making investment decisions. I make no representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information contained in this report. Any assumptions, opinions and estimates expressed in this report constitute my judgment as of the date thereof and is subject to change without notice. Any projections contained in the report are based on a number of assumptions as to market conditions. There is no guarantee that projected outcomes will be achieved.
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Very cool read. Thanks Darin...you continue to enlighten us about new ideas and potential future opportunities. Cheers!
good stuff