How the Blockchain Is Revolutionizing ESports
A Newzoo research study indicates that revenue from eSports will grow to $700m in 2017. That’s a 41.3% increase from last year. By 2020, it is projected that the industry will reach $1.5 billion in revenue. It is little wonder major companies and celebrities are taking a keen interest in eSports.
Although we are only now having a conversation regarding blockchain technology and eSports, the idea is not new to gamers. Gamers and indeed the eSports community at large tend to quickly embrace new technologies. Even as the debate rages on if and how blockchain technology should influence eSports, gamers and eSports enthusiasts are already using cryptocurrencies.
Demographics largely comes to play with this easy transition. Millennials are more likely to be gamers or eSports enthusiasts, and this age group is already synonymous with the quick and early adoption of new technologies. It makes sense that the eSports industry would be at the forefront of the blockchain and digital currency conversation.
The growth of the eSports sector can also be attributed to the benefits that can be derived from blockchain’s ability to leverage smart contracts to make the purchase of virtual assets easier. This is why many eSports start-ups are turning to blockchain technology now more than ever.
With over 500 million people gathering to watch eSports tournaments regularly, there’s clearly a giant market ripe for evolution. Currently, most of the revenue from eSports is generated from advertising and sponsorship — even when eSports betting could easily surpass NFL betting (which currently stands at $13 million a year).
There are a few problems that eSports betting has to overcome in order to successfully encourage enthusiasts to participate more. The current eSports betting platforms suffer from a complete lack of transparency and user-friendliness. These are issues that blockchain technology innovations could easily fix.
A blockchain-based platform could provide a decentralized and incorruptible way for eSports enthusiasts to place bets by using smart contracts. The current betting platforms don’t offer any kind of transparency on how betting is handled or how much the platform takes in commissions. Bettors are never sure what their returns on their bets will be.
With more digital currencies adopting the smart contract-technology, eSports betting is bound to go mainstream. Take Etherecash for instance. A bettor using Etherecash tokens to place bets can expect transparency since the system will detail all transactions in a transparent manner. They can also expect to place bets without involving a third-party financial service thanks to Etherecash’s smart contracts.
The transparency provided by blockchain technology means that the industry can grow into its potential. ESports enthusiasts can safely place bets and amateur gamers can have the opportunity to become pros with extra revenue easily. The profitable tournament environment means that gamers can sharpen their skills since blockchain technology will remove barriers to entry and allow for teams to come together more easily.
Blockchain technology further opens up opportunities in eSports by fostering contractual financial relations between players and enthusiasts without the need for third-party institutions. This is made possible by smart contracts much like the one Etherecash employs.
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