Worth 138 billion dollars in 2018, the video game industry has seen a breathtaking trajectory. From the first arcade video game to the dynamic market for games for mobile phones, consoles and PCs, it has become one of the fastest growing sectors in the market.
Just three years ago, the global gaming market generated $ 93 billion in revenue. Such growth is impressive for a 50 year old industry.
It is also known as an industry likely to embrace technological advancements.
Over the years, the gaming market has incorporated new technologies, such as artificial intelligence, virtual reality, and augmented reality.
But there remains a multibillion-dollar question: is the gaming industry ripe for blockchain-powered change?
It’s no surprise that blockchain has shown the potential for disruption in the gaming industry. It effectively bridges the gap between online and offline resources and impacts not only the way gamers and developers alike. interact, but also on access to (digital) resources.
Two well-known applications of blockchain technology are impacting the industry: the immutable properties of the ledger that add a layer of trust between developers and gamers, and the secure transactions of game assets powered by the blockchain.
Some say a second ‘Pong’ moment happened when Cryptokitties exploded in popularity and momentarily crushed the Ethereum network.
Gambling has rapidly grown into an online gaming phenomenon, where users are guaranteed to 100% own their digital assets thanks to the blockchain.
By taking advantage of the technology, they have solved an old debate within the gaming community. Thanks to blockchain-secured online marketplaces, managing gaming assets has become easier. This allows for a unique experience, where players have beneficial ownership of their collectibles and can enhance their gaming experience.
Projects such as Enjin Coin, where users can create their blockchain games and crypto tokens, have started to emerge.
Esports, the global competitive gaming phenomenon
We’d only scratch the surface if we discussed how blockchain is disrupting the gaming industry and leaving the realm of Esports aside.
Lately it has gained a lot of attention – probably because it’s an industry with an estimated $ 1.5 billion in revenues.
Esports is the term used to refer to competitive games that are broadcast over the Internet and has gradually become a global phenomenon.
The 2000s saw the birth of gaming championships, such as the World Cup in esports and the World Cyber Games, and the start of sports teams, such as Team Liquid and Fnatic.
The Fortnite World Cup and the League of Legends World Championship were among the biggest Esports games of this year.
In 2018, there were 2.2 billion players worldwide. This means that one in four people is a gambler. Known as a fragmented industry, there are certain critical points in the Esports ecosystem that require the use of new technology.
Estimated at $ 1.5 billion in revenue, the sector is expected to continue to grow over the years.
One of the main problems is that only a small percentage of the revenue goes back to the players. And most of the time when that happens, it goes to elite players, leaving millions of amateur players with empty pockets. Indeed, there is no legitimate and autonomous ecosystem for players and brands ”.
How then, can blockchain be applied in Esports? Implementing blockchain-powered assets like identities and collectibles can enable meaningful new experiences while creating unprecedented net worth. But, blockchain can bring other benefits to the industry.
During tournaments there is a risk of fraud. Players need to be confident that the organizers will pay them appropriately. Organizing a tournament does not only require a considerable logistical effort, but how can it more often happen to open up professional sport to more casual players?
In such a fragmented industry, blockchain can eliminate the risk of fraud and provide a secure environment for casual and professional gamers.
Smart contracts can be used for awarding prizes, which can be triggered automatically at the end of the tournament.
Bountie, a startup from Singapore, uses blockchain to host tournaments and create opportunities for ordinary players to host theirs.
A participation or audience-based reward model may allow participants to earn tokens. A fan incentive system is already being explored in the football world and in this case digital assets in the form of tokens can add value and spread across different platforms.
Platforms like Twitch allow users to follow players and tournaments, but in such a dynamic world, a blockchain database could create opportunities.
One of the applications of technology is to serve as a decentralized public database. A DApp can create a single universal gaming profile that players can upload their profile to with stats and ranking. It can also be a key step in helping the income flow to all gamers, amateurs and professionals alike.
As mentioned above, the trading of virtual items is also a crucial and valuable aspect of sports. A blockchain-based item system can also be a solution, with non-fungible tokens playing a key role.
The Blockchain trading platform, WAX, emerged last year as a virtual object trading platform. They were part of the OPSkins system that traded CS / GO item skins before Valve Corporation shut down. OPSkins continues to trade virtual items, but without linked games.
Virtual economies have emerged as a result of the growth of multiplayer games.
Just think of World of Warcraft, where you could complete quests and kill monsters for coins and use them to purchase in-game items.
Due to tight centralized control, black markets have been developed, in which assets can be traded for real values.
As we have seen, these virtual economies have spread to the real world and digital currencies are now used to represent real value.
Digital currencies have become cryptocurrencies or tokens. So, when it comes to markets, payments, and transactions, blockchain can be deployed to provide the backbone of trusted transactions and bolster security to eliminate the risk of fraud and tournament fraud.
The impacts on Ethereum-based online betting sites have already been felt. While Etherium casinos use smart contracts to enable automatic payments and anonymity, other projects target Esports betting.
For example, DreamTeam, a blockchain company focused on team building and skills development. The platform allows players to find teams and sponsors, managers to improve their skills, find new players and tap into analysis. Blockchain technology is used for payments. Smart contracts are deployed for player salaries, tournament prizes, and sponsorship fees.
The question remains: is blockchain really essential to the growth of esports?
Truth be told, the industry is growing steadily and it looks like gamers will continue to pay to play or watch teams play with or without blockchain. There are a few issues that still need to be resolved before sports can take it to the next level.
Startups will undoubtedly continue to use new technologies such as blockchain to solve major problems. Innovation will continue to take place, but blockchain might not have such a significant impact.
Esports might not need blockchain to grow, but to improve the way things are done right now. This can allow the industry to become more transparent and secure, as well as less fragmented, giving players a better chance.
Read original article of Laisa Lopes on