Is Blockchain The Future Of Esports?
Two blockchain applications can impact the esports industry: trust between developers and gamers, and securing gaming asset transactions.
Worth $ 138 billion in 2018, the video game industry has seen a breathtaking trajectory. From the first arcade video game to the dynamic market for games for mobile phones, consoles and PCs, it has become one of the fastest-growing sectors in the market.
Just three years ago, the global gaming market generated $ 93 billion in revenue. Such growth is impressive for a 50-year-old industry.
It is also known as a sector likely to adopt technological advancements.
But there remains a multibillion-dollar question: is the gaming industry ripe for blockchain-powered change?
The Emergence Of Blockchain In Games
It’s no surprise that blockchain has shown the potential for disruption in the gaming industry. It effectively bridges the gap between online and offline resources and impacts not only the way gamers and developers alike. interact, but also on access to (digital) resources.
Two well-known applications of blockchain technology are impacting the industry: the immutable properties of the ledger that add a layer of trust between developers and gamers, and the secure transactions of game assets powered by the blockchain.
Some say a second “Pong” moment happened when Cryptokitties exploded in popularity and momentarily crashed the Ethereum network.
Gambling has quickly become an online gaming phenomenon, where users are guaranteed 100% ownership of their digital assets through blockchain.
By taking advantage of the technology, they have solved an old debate within the gaming community. Thanks to blockchain-secured online marketplaces, managing gaming assets has become easier. This allows for a unique experience, where players have beneficial ownership of their collectables and can enhance their gaming experience.
Projects such as Enjin Coin, where users can create their blockchain games and crypto tokens, have started to emerge. emerge.
Esports, The Worldwide Phenomenon Of Competitive Gaming
We’d only scratch the surface if we were to discuss how blockchain is disrupting the gaming industry and leaving the realm of esports aside.
Lately, it’s been gaining a lot of attention – probably because it’s an industry with estimated revenues of $ 1.5 billion.
Esports is the term used to refer to competitive games that are broadcast over the Internet and has gradually become a global phenomenon.
The 2000s saw the birth of gaming championships, such as the World Cup in esports and the World Cyber Games, and the start of sports teams, such as Team Liquid and Fnatic.
The Fortnite World Cup and the League of Legends World Championship were among the biggest Esports games of this year.
In 2018, there were 2.2 billion players worldwide. This means that one in four people is a gamer. Known as a fragmented industry, there are certain critical points in the Esports ecosystem that require the use of new technology.
Estimated at $ 1.5 billion in revenue, the sector is expected to continue to grow over the years.
One of the main problems is that only a small percentage of the revenue goes to the players. And most of the time when that happens, it goes to elite players, leaving millions of amateur players with empty pockets. Indeed, there is no ” legitimate and autonomous ecosystem for players and brands”.
How then, can blockchain be applied in Esports? Implementing blockchain-powered assets such as identities and collectables can provide meaningful new experiences while creating unprecedented net worth. But, blockchain can bring other benefits to the industry.
During tournaments, there is a risk of fraud. Players need to be confident that the organizers will pay them appropriately. Organizing a tournament does not only require a considerable logistical effort but how can it more often happen to open up the professional sport to more casual players?
In such a fragmented industry, blockchain can eliminate the risk of fraud and provide a secure environment for casual and professional gamers.
Smart contracts can be used for awarding prizes, which can be triggered automatically at the end of the tournament.
Bountie, a startup from Singapore, uses blockchain to host tournaments and create opportunities for ordinary players to host theirs.
Loyalty And Incentive Programs
A participation or audience-based reward model may allow participants to earn tokens. A fan incentive system is already being explored in the world of football and in this case digital assets in the form of tokens can add value and spread to different platforms.
Platforms like Twitch allow users to follow players and tournaments, but in such a dynamic world, a blockchain database could create opportunities.
One of the applications of technology is to serve as a decentralized public database. A DApp can create a single universal game profile that players can upload their profile to with stats and ranking. It can also be a key step in helping the income flow to all gamers, amateurs and professionals alike.
Trading Game Items
As mentioned above, virtual item trading is also a crucial and valuable aspect of sports. A blockchain-based item system can also be a solution, with non-fungible tokens playing a key role.
The Blockchain trading platform, WAX, emerged last year as a virtual object trading platform. They were part of the OPSkins system that traded CS / GO item skins before Valve Corporation shut down. OPSkins continues to trade virtual items, but without linked games.
Virtual economies have emerged as a result of the growth of multiplayer games.
Just think of World of Warcraft, where you could complete quests and kill monsters for coins and use them to buy in-game items.
Due to tight centralized control, black markets were developed, in which the assets can be exchanged for real values.
As we have seen, these virtual economies have spread to the real world and digital currencies are now used to represent real value.
Digital currencies have become cryptocurrencies or tokens. So, when it comes to markets, payments and transactions, blockchain can be deployed to provide the backbone of trusted transactions and bolster security to eliminate the risk of fraud and tournament fraud.
The impacts on Ethereum-based online betting sites have already been felt. While Etherium casinos use smart contracts to enable automatic payments and anonymity, other projects target Esports betting.
For example, DreamTeam, a blockchain company focused on team building and skills development. The platform allows players to find teams and sponsors, managers to improve their skills, search for new players and tap into the analysis. Blockchain technology is used for payments. Smart contracts are deployed for player salaries, tournament prizes, and sponsorship fees.
Blockchain In Esport, Essential For Growth?
The question remains: is blockchain really essential to the growth of esports?
Truth be told, the industry is growing steadily and it looks like gamers will continue to pay to play or watch teams play with or without blockchain. There are a few issues that still need to be resolved before sports can take the next step.
Startups will undoubtedly continue to use new technologies such as blockchain to solve major problems. Innovation will continue to take place, but blockchain might not have such a significant impact.
Esports may not need blockchain to grow, but to improve the way things are done now. This can allow the industry to become more transparent and secure, as well as less fragmented, giving players a better chance.