In 2018, eSports value was $915.30 million, and it’s expected to grow at a CAGR of 18.35% to hit 2,976.74 million by 2026. Despite the large amounts of revenue, innovation in eSports is likely to impact gamers positively. The future of eSports is brighter given that the cosmic speed of technology development is here to stay.
The industry is booming as players get a chance to make money. Substantial incentives of about $40 million of eSports revenue are paid to compensate players and $100 million in prize money. The general population loves to compete and watch others compete. Popular eSports include Dota 2, Leagues of Legends, and Call of Duty. Read on how blockchain is used in eSports.
Decentralizes the eSports industry
The famous cryptocurrency Bitcoin rolled out blockchain as its foundation a decade ago. The peer-to-peer network has nodes where a computer network holds the complete information on a blockchain. The eSports platform involves stakeholders, including players, game developers, sponsors, media, advertisers, and many more. Blockchain technology is powerful in bringing stakeholders under one comprehensive roof. Stakeholders connect through a decentralized platform that manages the distribution of prizes, player transfers, sponsorship, advertising, and media rights. Newbies take advantage of blockchain to become professionals.
Improves trust factor in eSports
Trust is a significant concern among players in eSports. No players are willing to devote their time, energy, and resources to an activity they don’t trust. Blockchain has ironed out trust issues by introducing transparency allowing everyone involved to see what is happening on their network. Casual players sigh in relief as openness makes them more confident. In addition, game developers have something to celebrate as blockchain helps them secure their work without allowing anyone to use it in an authorized manner. Transparency in smart contracts eliminates concerns around the unfair distribution of the prize money. This transparency is also crucial where a sportsbook sign-up bonus is involved as players want assurance that they get what is promised.
Levels the playing ground
The eSports industry has exploded, and many players feel the urge to participate in major tournaments. However, newbies miss the chance to compete in games due to the lack of enough money. The cost of maintaining and operating a database is powered by blockchain technology. Blockchain uses a Peer-to-Peer network to create redundancy within the distributed database. Developers have created blockchain-based Decentralized Apps with Ethereum, EOS, Lisk, and NEO to lower the entry for newbies.
Fraud is a common challenge among many industries in the world. Fraudulent practices in eSports include illegal gambling and match-fixing. The issue where stakeholders are worried about getting paid is solved by blockchain technology. Crypto transactions are immutable; therefore, stakeholders receive their payments on time. Crypto is decentralized, thus outside the control of government and bank institutions. Blockchain DApps use smart contracts that automatically transfer cryptocurrencies when predefined conditions are fulfilled. Today eSports stakeholders’ payment is assured through blockchain technology.
Autonomy for players
There are cases where managers have pressured gamers to lose games on purpose. The eSports industry has experienced match-fixing for a long time. Managers and organizers cough large sums of money to set up a tournament making players too highly dependent. Blockchain has given players greater control by reducing the cost of running an eSports platform, thus reducing organizing tournaments and marketing them. Organizers and managers remain on board as blockchain technology offers transparent transactions. In addition, smart contracts are open-source codes; thus, agreements are available to all to view.
Streamlines donations in eSports
ESports viewers can donate money for their favorite games to flourish. Platforms such as Twitch or YouTube help in making donations. Viewers can contribute to their favorite gamers effectively through blockchain. Chargeback is not a new term in eSports; the process involves a viewer requesting the donation back. Some players claim that the donation was sent without their consent. The player has to return all the money sent whenever a viewer requests a chargeback. The industry has incorporated cryptocurrencies as a mode of payment to improve transparency. Chargeback issues with questionable justifications no longer work, making the sector more financially rewarding for players.
New Incentive models
Through blockchain, eSports marketers have introduced new loyalty models. Viewers receive rewards for their participation whenever they sign up to an eSports broadcast forum. The audience can watch a tournament through a specific website or run a browser plug-in. Loyalty points are earned using cryptocurrencies, and the fans can exchange them for fiat currencies or trade for other cryptocurrencies.
Facilitate creation and trading of rarer in-game assets
Game assets with equal valuation like other in-game assets can have their corresponding crypto tokens. With time, such investments will have equal value. ERC20 token standard can be used to develop Ethereum based eSports platform. Creating unique and rare in-game assets is also possible where each in-game asset has unique characteristics, thus making a difference in value from other in-game purchases.
The above explains how blockchain is used in eSports.