There is no stopping the global esports industry. Reuters even predicted that its revenues would reach 1.1 billion USD in 2019, which is greater than its previous year’s revenues by at least two billion USD. And in three years’ time, the esports market will be looking at as much as 350 million viewers worldwide.
But along the esports industry’s success are the various problems that plague both companies and players. Competition scams, identity thefts, and slow or incomplete payments are some of the major obstacles this growing market constantly faces. These problems, however, will be a thing of the past with the help of blockchain technology.
Blockchain may yet to become a household name, but market leaders are quick to adopt this technology to benefit their products, create solutions, and promise security, transparency, and efficiency. It is being utilized by various sectors, and proves to be promising even for the esports market.
Key Benefits of Blockchain in Esports
The primary solution this technology brings to the table is that it can decentralize the platform and every process involved in the business. An example of this is Xaya, an open-source decentralized platform that takes the mantle of “true blockchain gaming.” This particularly benefits tournament organizers, stakeholders, and even third-party mediators like DreamTeam as they can conveniently connect with each other through a platform powered by blockchain. This allows them to closely monitor and manage various tasks, including marketing, advertising, prize distribution, and sponsorship.
Companies that integrate blockchain into their esports system will also have the freedom to create decentralized apps (dApps) on chain. Out of all available chains, Ethereum is the most popular, followed by NEO and EOS. Those that choose to work with the Ethereum blockchain, for example, can easily set up their own esports-related dApps and forward their products to the market. But other blockchains prove to be also useful as is the case of Kronoverse’s CryptoFights, which runs on the Bitcoin SV (BSV) blockchain.
Moreover, as issues about trust and fairness surface, developers and companies can use the blockchain to establish trust and promote transparency. Smart contracts will play a vital role as these can be used by both organizers and game developers for different scenarios like copyrighting products, ensuring fair distribution of prize money, and establishing irrevocable agreements.
The esports industry can also utilize blockchain to improve payments and in-app purchases. Platforms that will opt for cryptocurrencies as the mode of payment can ensure that transactions are secure and immutable, clearly showing that blockchain brings safety to iGaming. This holds true for esports-related dApps, providing everyone involved with a quick and safe access to their money.
How Blockchain Engages the Esports Community
Getting teams and investors, as well as esports fans and followers, has been made easier through blockchain. Crowdfunding and tokenization are now faster, allowing developers to reach their target funds at a much quicker rate.
Blockchain also encourages donations in esports and removes chargebacks, leaving recipients at the advantage. It streamlines how fans and players support their favorite games through donations. The same can be said about viewers and followers supporting esports game streamers online.
Similarly, esports marketers can make use of this technology to create incentive models. Viewers are the primary target for such models, enabling them to earn rewards for participating, signing up for services, and even using cryptocurrencies, among others.
The most important and beneficial feature that blockchain can bring to the esports community is absolute ownership of in-game assets. With the popularity of CryptoKitties and the likes, players gain full ownership of the digital assets they have purchased. Even better is that these assets have real value on the market.
Blockchain is a game-changer in iGaming, and the esports industry is in dire need of a solution to the growing number of issues that may hamper the success of the global esports market. Blockchain can provide all the solutions the industry needs, highlighting speed, transparency, and trust. With blockchain on board, the esports industry can be expected to reach greater heights in the years to come.