Last Updated on January 30, 2023 by
In the last three years, the global esports market has shrunk, but this is set to change. It is projected to increase by 50% over the next three years and exceed $1.6 billion. Analysts in the crypto industry see huge potential to tap into this market. For example, one digital research company has predicted that blockchain technology will be adopted in mass by the next two years.
Trends
The growth of cryptocurrency has brought many new opportunities to online casinos. For example, NFT-style in-game assets such as personalized branded content, limited edition player skins, and unique tokens can improve brand advocacy in esports. These innovative features can also create personalized incentives for fans.
While many people still think of cryptocurrency as a new way to invest in esports, it has already begun to have a real impact on the industry. To date, there have been several partnerships between iGaming companies and blockchain-based platforms. The latest is the FTX-TSM deal, which is the largest partnership between crypto and esports firms. The partnership started in DMs on Twitter and eventually led to a $210 million deal.
In general, cryptocurrency has a natural fit with video games in an online casino. Crypto is a digital currency that facilitates crowdsourcing, which is crucial to the success of any event or competition. This can also make it easier to raise money for tournaments. Many games will generate tokens localized to their respective regions, which can make payments easier.
Opportunities
Cryptocurrency and esports gaming are increasingly merging. In the next three years, crypto firms are expected to align with major leagues and teams. This will make it easier to create new games and monetize them. In addition, many gaming events will be built around NFT-powered games.
Cryptocurrency can help the gaming sector improve its integrity by creating a transparent network. Match-fixing, foul play, and bribery are common in the industry, and stakeholders are wary of paying their players without transparency. By using blockchain technology, eSports leagues and teams can create a secure, immutable system for their revenue sharing and payments. This technology will also make it easier for gamers to invest in games that they believe in.
While many esports teams are losing cash in the short term, many hope to become profitable over time as the industry matures. With a large global audience, online crypto gaming teams can raise capital to create new games. Many notable esports teams are supported by crypto companies. For example, Coinbase has sponsored some notable teams.
Blockchain Technology
Using blockchain technology to manage tournaments is not only a good way to ensure that prize money is distributed fairly, but it also provides better control over players’ funds. In the past, players and fans were at a disadvantage when it came to chargebacks. Blockchain can eliminate this problem because of smart contracts that act as agreements between tournament organizers and game developers. In addition, blockchain can also increase transparency, which helps marginal stakeholders and improves the overall experience for players.
Another benefit is the security of data. A blockchain can prevent fraud and identity theft. One example is the Illinois state government, which is using blockchain technology to secure documents. In addition, blockchain can reduce bureaucratic costs since it can help make government processes more efficient. Blockchain-based systems can also increase transparency and hold public officials accountable by recording public records of all activity. In addition, blockchain can revolutionize elections, as it can make the process of voting more transparent. This can improve civic engagement and make it easier for people to participate in their local government.
Blockchain is a promising technology that will change many industries. Gaming is one of the best environments for blockchain to be tested. Its transparency and security make it an ideal test bed for mass adoption. Games that use virtual assets or sensitive data are the perfect fit for blockchain.
Integration with Esports
Blockchain smart contracts are now being integrated into popular eSports disciplines. These games use blockchain technology to make betting and prize payouts more transparent and eliminate middlemen. Conventional betting methods require players to deposit their funds in an escrow agent account and then distribute the prize money, which is not always transparent. In contrast, blockchain projects allow players to bet with their own tokens and save the match results in smart contracts. This new system helps reduce fraud and unfair allocation of resources.
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