The Electronic Sports sector has continued to grow tremendously and has shown clear signs it’s going to be the next billion-dollar industry. According to research companies such as Statista, the industry may even surpass this milestone following the increasing number of companies and investors getting in on the market. Prediction places the industry’s revenue at $1.6 billion by 2021.
This tremendous growth has attracted attention from many players in different industries, including blockchain developers. The developers have proposed several solutions to the challenges facing the eSports industry.
Let’s take a look at how Blockchain technology will impact the Esports industry.
This system is based on rewards through participation or viewership. Participants can earn tokens by signing up to a relevant gaming service, and continue to earn loyalty tokens as they take part in the games, and other relevant activities.
Once the tokens are earned, they can be redeemed through related digital marketplaces and can be used to purchase digital products, while some can be used to apply discounts to real-world partner retailers, or traded with other token users.
The tokens are part of a digital currency, thus have real value and can be used with anyone who accepts tokens. They can be traded with other digital currencies or converted back to fiat currency.
Blockchain has been hailed as a disruptive technology that could change finance and banking. Gamers have also recognized its importance in the sector.
DreamTeam is one of the pioneers in the gaming industry that have implemented blockchain solutions in its platform. The platform has more than 1 million gamers and allows them to choose teams, get lucrative sponsorship deals and set their salary.
DreamTeam launched the DREAM token used for payments and allows users to eliminate fees involved in currency conversion. Additionally, the application of blockchain technology prevents players from being dishonest regarding their gaming profile, which is vital to the success of eSports games.
Blockchain also eliminates risk and makes Esports for gamers trustless and much more secure. A blockchain is a decentralized and distributed ledger, meaning there is no centralized entity pulling the strings. Everything is recorded openly on the ledger, and the addition of smart contracts will automate winner awards.
The public can purchase shares from tokenized teams with the help of Ethereum blockchain. These ownerships also raises funds for the tokenized teams, which can be used to recruit new talent and attain their financial goals.
This type of funding eliminates the issue of margin loss to sponsors and brokers and offers a new monetization level, community and integration of the fan base.
Additionally, the owners of these tokens can participate in individual sports teams, stadiums, and organizations.
Blockchain allows less fragmentation in some Esports areas. For instance, a decentralized application (dApp) can be used to create a single gaming profile for all players. All the relevant stats for all players across different gaming platforms can be recorded and displayed nicely through an easy-to-navigate front-end user interface. This way, viewers can see the leading gamers and their stats.
Clearly, blockchain and eSports have a lot to offer each other. The growing eSports sector will provide a large user base for blockchain technology, and a new proven use case.
Likewise, blockchain technology provides several solutions to the many challenges facing the eSports sector, such as transparency, rewards, decentralization and reduced fragmentation. These industries are hot and growing tremendously, and it remains to be seen what the future holds for them.
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