Blockchain: Taking esports to the next level!
When blockchain was first introduced by researchers Stuart Haber and W. Scott Stornett in 1991 as a system to document timestamps, not a lot of people saw the potential it holds. But when Bitcoin utilised this technology in 2008 to solve issues in the traditional monetary system such as centralisation and privacy, it opened the doors for blockchain to revolutionise more industries than just finance.
One industry that is starting to incorporate blockchain into its system is esports. The esports scene has drastically evolved over the years, reaching new heights with every innovation and becoming a billion-dollar industry by the 21st century.
Now, with blockchain technology, you can experience the best of both worlds as esports gaming and betting becomes even bigger and better with decentralised solutions. Find out what the future holds for esports and how blockchain technology can take it to the next level here at Bitcasino!
Is blockchain the future of esports?
Esports is a virtual sport that celebrates skills and professionalism in playing video games wherein players are pitted against each other. There are usually spectators for esports events who can either participate by betting or simply observing the game.
Due to video games’ popularity, esports quickly gained traction and became a rapidly growing area of consumer interest. This is especially true with Millennials and Generation Z users who basically rely on their gadgets for entertainment.
However, despite being a booming industry, esports is not without its faults and this is what blockchain aims to address. Before you can decide whether blockchain really is the future of esports or not, first take a look at the challenges that esports is facing today:
- The first problem esports faces is the lack of a self-sufficient ecosystem for brands and gamers, meaning most have to rely on intermediaries that take a cut off the overall revenue.
- Secondly, since there are a lot of middlemen in esports, players lose profit and only get a small percentage of the total industry revenue despite being its core.
- There is no transparent system in esports that can provide fair rewards for the players.
- It is hard to invest in esports when there is no portal facilitating secure participation for gamblers and players.
- There is no easy way for fans to know who the players are unless they follow them on Twitch or YouTube.
- There is a need for content producers to use robust technology solutions so they can properly monetise their content.
Blockchain can solve almost all of these problems by creating a decentralised ecosystem for esports where players and content creators can monetise their works and fans can interact with them easier.
With blockchain technology in esports, there can be a fair and transparent ecosystem for both developers, corporations and gamers, rather than devolving into a commercialised one-way street market for different corporations to take advantage of online gamers.
The future is now: How blockchain can revolutionise esports!
With its technology, blockchain can turn the tables and create a better ecosystem for the gamers, fans and creators out there. Take a look at blockchain technology in esports:
1. Blockchain provides a decentralised platform
In the esports industry, players receive insufficient returns. In fact, out of 2.2 billion gamers worldwide, only 3% get rewarded and these are mostly players who are the best or at least the most popular in the field. There is no opportunity for the players at the bottom hem of the industry.
Most of the time, intermediaries only organise a few tournaments that exclusively cater to the best or more known players. This lack of monetisation value and opportunity is why gaming is often seen as a waste of time.
What blockchain can do to solve this is provide a decentralised platform where different industry stakeholders can connect and compete on a level playing field, thereby creating a more comprehensive ecosystem for gamers, developers, media and sponsors.
This is possible since blockchain’s decentralised nature lowers the cost of maintaining and operating a secured data, which in turn lowers the entry barrier for players and developers.
Amateur players can then take advantage of this space and make their name known. Meanwhile, stakeholders can use the platform to manage the distribution of prizes, media rights and transfer of players.
2. Improve the trust in the industry
Blockchain is known for being immutable. With this technology in esports, there will be increased security and trust within the esports ecosystem. Since blockchain is a public ledger, all data will be transparent and viewable to the public, eliminating the chance of under the table deals and quite possibly cheating.
Additionally, blockchain can help game developers secure their work and not let anyone use it without authorisation from the game creator. This will further improve the monetisation of a game developer’s work.
Moreover, blockchain has smart contracts that game developers can use as an agreement so they get paid first before organisers can use their games in a tournament. With smart contracts being transparent to the public, concerns about the unfair distribution of prize money would be eliminated.
3. Providing diverse payment options
A lot of bettors cannot participate in esports betting simply because of the limited payment options available. Moreover, some countries impose certain restrictions. What blockchain does is remove geographic barriers and make it possible for bettors all over the world to participate. It also allows payment through esports crypto, making it easy for unbanked communities to participate in esports staking events.
4. Provides transparency
When participating in an online stake, it would be hard not to question the authenticity of the results. Asking yourself whether the organisers are manipulating the results is a legitimate concern that blockchain can resolve for you.
The immutable ledger of blockchain stores information permanently and connects it to other blocks, making it impossible for anyone to tamper with the data.
5. Can provide privacy
There are a lot of cases wherein your personal data can fall into the hands of a third party. Not everyone likes having their personal data out in public. Using esports cryptocurrency in sports transactions can provide users with the confidence to bet anonymously since blockchain doesn’t store personal information. With this, you have no data that will be vulnerable to hackers.
Esports but better!
Esports is a growing industry that still needs a lot of improvement before it can reach another milestone. Does esports need blockchain to achieve that? Not necessarily. It has a large enough market that it accomplished all on its own. However, it needs blockchain to solve most of its biggest problems in the industry. Most importantly, blockchain can make the esport experience better for everyone and not just the gaming corporations.
Words by: Ana Gabrielle Gundran