The esports sector is one of the fastest growing worldwide and it’s expected to only get bigger in the following years as more and more people are interested in joining it.
Unsurprisingly, blockchain technology has touched the esports industry in several ways and offers several advantages to developers and players alike. For example, games relying on blockchain technology are more secure than traditional ones because blockchain enables developers to reduce fraudulent activities like cheating and hacking. The innovative technology enables gamers to use digital currencies like Ethereum to make in-game purchases, which triggered a boost in Ethereum price and strengthened the connection between esports and cryptocurrencies. Most esports enthusiasts are young individuals who are also avid crypto investors, so it’s only logical that they want to use digital cash to fund their endeavors.Â
Blockchain is transforming the esports sector – for the better. Those who are into online gaming will definitely find this article more than interesting because it talks about the developments blockchain brings to this new industry.
Blockchain offers a decentralized ecosystem for esports
Esports involves several participants, from game developers to players, team managers, media, and sponsors. For all these participants to collaborate for a flawless esports experience, they need a comprehensive platform that meets their individual needs. Blockchain can offer a decentralized platform that brings them together under the same roof and enables them to connect. Beginner players can take advantage of blockchain technology to improve their skills because they have access to a wide range of tools and broad information. Investors use the blockchain network to transfer players, distribute funds, advertise services, sponsor, engage with the audience, and complete numerous other tasks.
Blockchain boosts esports reliability
Even if many people engage in esports, they don’t find it the most trustworthy sector. They devote their time, resources, and skills to something they don’t find very reliable. If the trust factor would improve, passionates would be willing to invest more funds and new players would join the trend. Blockchain could prove very useful for esports because it could enhance its reliability.
Blockchain was created as a highly transparent system so all users can see what’s happening on the network. Therefore, esports players could feel more confident. Game developers also benefit from integrating blockchain technology because they’re no longer exposed to the risk of not getting paid for their services. Blockchain allows them to secure their work and prevent unauthorized people from benefiting from it.
Blockchain has brought smart contracts that work as agreements between game developers, investors, and event organizers. They guarantee that every participant respects their part of the deal before benefiting from any service. The transparency associated with the blockchain eliminates the concerns regarding the unfair use of the system. Smart contracts, cryptocurrency, and blockchain can improve trust and reliability in several areas of the esports sector.
Blockchain enables crypto-based payments
The online gaming industry is making efforts to prevent fraudulent activities, but it’s quite challenging to do it when people use traditional cash. In the esports sector match-fixing and illegal playing are common, but blockchain could put an end to them. Stakeholders will no longer have to worry they lose funds due to fraudulent activities because blockchain enables secure cryptocurrency payments. Digital currencies are built on the blockchain network and are gaining more popularity daily. No authority like banks or governmental organizations can control crypto transactions, so they are more decentralized than those involving fiat resources. All transactions completed on the blockchain are immutable due to the consensus algorithms used to develop cryptocurrencies. All esports participants benefit from blockchain decentralization because they can end transactions without worrying about bouncing payments.
As mentioned earlier, the blockchain enables people to use smart contracts to transfer assets automatically when a set of conditions is met.
Blockchain improves security of in-app purchases
Gamers usually make in-game purchases to improve their skills and experience. They can purchase new items via esports websites, apps, or platforms, but they often fear becoming scam victims because most platforms are novel to the market, and no one can guarantee their reliability. Blockchain offers them secure in-game purchases due to crypto-based payments and secure networks. People must provide a digital signature when they make transactions so all activities are tracked and registered on the blockchain.
Blockchain allows game providers to create unique incentive programs
Esports developers must earn their clients’ loyalty to achieve success in the sector, which could prove challenging in a highly competitive sector. However, those employing blockchain technology could get a step ahead because they can employ innovative incentive models. Game developers can motivate their public to watch events and tournaments by offering rewards for participation. Those using digital currencies can gain loyalty points they can use later to improve their game experience. It’s easy nowadays to exchange cryptocurrency for fiat money; suppose the holders want to convert their resources.
Blockchain facilitates the development and trade of in-game items
Similarly, to any other online game, esports require the use of items and assets to improve performance. Therefore, players buy assets to gain an advantage against their competitors. Blockchain technology enables game developers to create more diversified assets and sell them for crypto tokens to players interested in leveling up their aptitudes.
If game developers use a blockchain like Ethereum, they can use a protocol like ERC20 to develop esports items and assets, which they can later sell on exchanges. Each esports game contains unique assets, which have different values according to their properties.
Blockchain enables the creation of non-fungible tokens
Play-to-earn games enable gamers to make a profit from playing metaverse games. The game developers usually reward them with digital tokens or non-fungible tokens when meeting particular requirements. NFTs have also become a means to trade in-game items so that players can improve their experience and create avatars. Non-fungible tokens offer players ownership over particular assets, they can later trade via a smart contract. Professional esports gamers find this quite useful because they can earn from online gaming.Â
Final words
The crypto sector has gained great popularity over the last few years and has been adopted by numerous industries. It was a natural step for the esports sector to welcome the innovative technology and put it to great use.
