Metaverse Open and Closed Ecosystems Explained and Compared

Players already play in the metaverse when using platforms like Roblox (RBLX) – Get Roblox Corp Class A Report. or Fortnite. 3D virtual worlds can be persistently experienced by an unlimited number of users. Each user has a very unique experience, story and identity,

Roblox and Fortnite, for example, are built on what’s called a closed metaverse. Matthew Sigel, Head of Digital Assets Research, VanEck, explains what it is and how it differs from an open metaverse, why it could create a more dynamic market, and how it fits into the scheme of emerging crypto categorization which includes DeFi, infrastructure applications, smart contracts and much more.

While the open metaverse suggests a diverse range of worlds all interconnected, it’s not as seamless as it sounds, you still have to convince developers, networks, businesses and creators to work together to enable use everywhere .

Watch the video above or read the transcript below.

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Editor’s Note: The webinar was recorded on January 28, 2021.

Video transcript below:

Bob Lang: Media entertainment is quite an exciting field. NFTs of course offer the first steps in monetizing the metaverse. Can you explain this category to us?

Matthew Sigel: Consumers are already playing in the metaverse when using platforms like Roblox or Fortnite. They are 3D virtual worlds rendered in real time, which can be persistently experienced by an effectively unlimited number of users with an individual sense of presence, with continuity of identity and history, and even some ability to payment.

The difference between the closed Metaverse, the Roblox and Fortnite ecosystems, and the open Metaverse is that in the open Metaverse, all of these platforms can talk to each other, and they can all run on a common unit of account. Whether it’s a stablecoin like a US dollar coin or a more traditional cryptocurrency like Bitcoin

And in the open metaverse, all of these platforms being interoperable with each other will create a much more dynamic marketplace where consumers will have a lot more choice. And as we’ve seen in technology, generally open-source systems tend to beat closed systems, and we think the same is going to happen with the Metaverse.

So think of it like Robloxor or Fortnite, but on the blockchain and interoperable due to the global nature of cryptocurrencies. So each of these metaverse platforms can have their own token and can use that token to incentivize certain behaviors, whether it’s building interesting architecture, displaying NFTs, lingering for a while , to make certain goods and services available to customers. All of this will happen in each ecosystem’s token, but these tokens will be interchangeable through bitcoin or ethereum or US dollar coins, or other stablecoins.

So it really creates a very scalable ecosystem, where users will share currencies in common. And we think it’s a more attractive business proposition than walled garden ecosystems, which tend to charge higher participation rates and are smaller.

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Editor’s Note: Zach Faulds of TheStreet produced this video.