eSports on Blockchain?
Esports is becoming a prospective niche for the crypto industry
Crypto, like esports, is a global phenomenon that goes beyond traditional borders and limitations, aimed to connect people around the globe through its technologies. The history of the cryptocurrency market already has its ups and downs and despite all contradictions is considered the future of money. The popularity of crypto is growing, more and more people are looking to invest in it and benefit from its accessibility, security, transparency, and privacy.
It seems that merging of the esports and cryptocurrency industries was a question of time with a win-win outcome for everyone. 2020 saw a lack of LAN events and the global esports market shrank slightly. But with the kick-start that the Covid-19 pandemic gave and the adoption of cryptocurrency in more esports areas, the market is expected to rise up to $1.6 billion in the next couple of years.
The introduction of crypto in the world of esports bets was huge. Anyone can organize a safe betting platform through a crypto wallet and users do not have to worry about currency or the country they are in. And as the icing on the cake, stakes are usually higher on crypto betting platforms than on traditional ones.
Another example of a blockchain technology application other than in cryptocurrency is NFTs (non-fungible tokens). Often NFTs are associated with various images, however, there is actually a lot more to it. Some esports essentially revolve around games where you can purchase an NFT and play with it. Such games are not only entertaining but also can become a source of income.
Already esports organizations Astralis, NAVI, and BIG as well as esports leagues like the LCS have signed a crypto-related multi-year partnership. Esports betting platforms one by one are including cryptocurrency as one of their payment methods. Some cryptocurrency companies become official partners on Twitch events and other launch tokens for fans. And it’s only the beginning. Thus, companies related to esports that are reluctant or unable for any reason to introduce crypto in their work will struggle severely by not following the trend. Here at 27 Nerds, we have formed our opinion about crypto a long time ago. Foreseen it as a real mine of opportunities for development and cooperation. Unfortunately, we were legally back-strapped.
While crypto was going mainstream, its legal status varied significantly from country to country and was still undefined or changing in many of them. Ukrainian esports business had been isolated from the cryptocurrency market until February 17, 2022, when the law was passed, which created a legal framework for the cryptocurrency industry in the country.
The law allows foreign and Ukrainian cryptocurrencies exchanges to operate legally, according to the country’s Ministry of Digital Transformation. It allows Ukrainian banks to open accounts for crypto firms, and appoints the National Bank of Ukraine and the National Commission on Securities and Stock Market as financial watchdogs for this sector, meaning that crypto exchanges and companies that handle other virtual assets will have to register with the government. The state promises that it will protect cryptocurrency holdings with the same legal force as its national currency, the hryvnia. Worth mentioning that the signing of this law by president Volodymyr Zelenskyy is only a start and we don’t know how it will work in real life, however, this start is promising for companies like ours.
The legalization of the cryptocurrency market in Ukraine can immensely enrich esports in many ways and goes far beyond sponsorship opportunities. Esports platforms can manage the distribution of prize money, transfer of players, media rights, advertising, engagement of fans, and several other aspects. Viewers like to donate money to their favorite gamers on platforms like Twitch or YouTube. With blockchain and cryptocurrency-based payment, such donations are transparent, fast, and safe. In-game purchases using secure blockchain networks, digital signatures, and other crypto benefits will ensure both customers and sellers with high-level experience, as transactions won’t bounce back and chargebacks won’t be an issue. Also, there is a good prospect for new loyalty programs, for example, viewers can receive rewards for their participation that can further be converted into crypto. Worth mentioning that crowdfunding platforms are easier to arrange with crypto, thus some esports developers can raise money for their projects. These are only a few examples of crypto applications in esports and we, as a company, anticipate that the gap between crypto and gaming will continue to thin.
Esports and cryptocurrency have much in common: they are fairly new, fast-growing, and draw the attention of a bigger audience by every minute. Of course, nobody says that the integration of blockchain technology, i.e., tokens would be easy. There is a lot of work to be done, many things need to be completely revolutionized in order to become even greater. But the road ahead seems to be determined, the union of blockchain and crypto with gaming and esports will continue to provide immense opportunities for developers, innovators, and users.
