eSports and Blockchain: How Blockchain technology can disrupt this industry
Everyone involved in the crypto space is trying to figure what the technology is all about and how best to use it to optimize or disrupt several industries. Today, I am going to be looking at a key industry almost completely overlooked by the ‘crypto experts’ — the video game industry.
Within the video game industry, one of the biggest niches to emerge in recent years has been eSports. Short for electronic sports and once negatively stereotyped, this still burgeoning industry hit $696 million in 2017 in revenues — which increased by $100 million from 2016 revenues, approximately 39% increase.
Future projections estimate that the revenue for the esports market will reach $1.65 billion by 2020, and that esports will have 1 billion enthusiasts by 2023.
Despite these fascinating and ever rising numbers, there are a number of problems the industry faces, that could prove to be hurdles to its growth. Some of these include a lack of transparency and security, lack of infrastructure and lack of monetization.
Lets elaborate some of these problems and see whether blockchain technology can be a solution to any/ all of them
1. Improve security for players
In a number of cases, winning esports team members never receive payouts that are rightfully theirs. This could be because of either the tournament organizers sidestepping their commitments OR team managers and sponsors doing the same to their team players.
Despite having a signed contract with various KPIs (Key Performance Indicators e.g. number of tournaments won or placed in the top three), these contracts are quite frequently never adhered to, and when one considers the fact this is not a regulated industry, winning players are quite frequently left with no recourse and are completely at the mercy of their sponsors, team managers and/ or the various tournament organizers.
With blockchain technology — or more specifically, smart contracts — it is possible to create contracts with all these KPIs recorded within the contract and once they are met, the payment automatically takes place via the smart contract, resulting in a work enviroment where the gamers can concentrate on what they do best without having to worry about possible financial hurdles.
2. Protect player rights.
There have been numerous instances wherein teams sidestep their contractual obligations and remove players from their teams or to avoid paying their players salaries, leaving the affected player with no recourse. Again, with the absence of regulation, the inexperience of players in the space of dealing with agents and sponsors and the high cost of potential litigation, affected players have no recourse to corrective action.
This entire scenario can be mitigated with smart contracts being embedded on the blockchain. Due to the nature of everying on the blockchain being permanent, it leaves no scope forany party to amend or delete any of their contract related data, thereby giving the players some degree of protection from fraudulent elements.
3. Lack of monetization for non professional gamers
With the growth of Twitch and Youtube, there have been many video game personalities who constantly livestream themselves playing games and have money tipped to them by their viewers. But what about people like you and me, who have a day job and just want to chill back with a round or two of our favorite video game? We get absolutely nothing for doing something we enjoy — we do it because we like it. But what if there was a way to setup a gaming infrastructure with weekly leaderboards and you get rewarded in tokens simply by playing the game you like? No video streaming necessary and no depending on the generosity of others. Simply do what you like to do and would have done anyways, and get paid in tokens
As you can imagine, this is just scratching the surface of the eSports industry and specifically how blockchain technology can help all parties involved in this still nascent industry. One such blockchain based cryptocurrency — InterGalactic Gaming — is looking to tackle some of these problems and is currently in its ICO phase. More information can be found below.
Thank you for reading
TRX and IGG: TRMMDHxNQALdvGGXGGTrQyYufx5D2LHvi7