The Fast-Growing Esports Market and Blockchain: What It Mean for Startups
The competitive video gaming industry is forecast to reach $1.5 billion in revenue by 2020, according to Newzoo research. The esports’ profitable trajectory is a matter of interest to significant investors, as well as high-profile celebrities and major tech companies.
Cryptocurrencies and blockchain are taking esports to a new level. To gamers, digital currencies are nothing new, and neither is blockchain, which enables the industry to adopt new technologies much faster than other sectors like accounting or banking.
But, what does it mean for startups and how can startups leverage on the fast-growing esports market and blockchain? These new technologies can give startups a new potential lifeline — pivoting to the blockchain.
Some forecasts say this market could grow from $50 billion in 2017 to $200 billion by 2025. It’s no surprise so many businesses, including startups, that are eager to get a slice of the pie. Fast-thinking online gaming platforms that have embraced blockchain are already seeing the advantages.
The Singaporean esports startup called Bountie has decided to set itself apart from the competition by using blockchain and cryptocurrency. This way their platform and monetization processes have become more fast and transparent. Transaction fees decrease when you write everything on the blockchain, and things go faster and smoother than ever before. In the past, it used to take 3 to 6 months for the winnings to get distributed to the winners, but now they get distributed instantly.
Bountie is only ten months old, and it is already set to expand into the neighbouring Southeast Asian region.
DreamTeam is another startup that uses blockchain technology to solve some of the most significant esport problems, and they are doing a heck of a job. They have created an infrastructure platform with a payment gateway specifically for esports games. DreamTeam achieves three main goals by using blockchain:
- Providing timely and fair compensation to players in the form of tokens
- Helping organize and completely manage teams from one platform
- Opening up esports to sponsors, advertisers and tournament organizers
The startup offers an all-in-one solution by using the advantages of blockchain technology. Smart contract templates are also featured for any agreements, which mean a lot for the players and the company because there are still no standardized contracts for players and no open transfer policies. Solving these issues places DreamTeam in a significant advantage over the competition.
Another example of a successful blockchain-powered platform is Unikrn. Their platform offers services such as team ownership, skill and spectator betting applications, a casino group and multimedia content for esports fans. They received significant funding from several reputable investors who typically pick startups working in a mix of media, entertainment, and technology.
Esports wagering is no joke. It is a significant — and still growing — a global industry that stands at the intersection between technology, gambling, and entertainment. If the growth trajectory continues at the rate it’s currently going; the esports industry is expected to blossom. Many startups are already tapping into the growing market with excellent results.
What are your thoughts on blockchain and gaming?