How Crypto and Esports can Benefit from Each Other
Perhaps two of the biggest trends emerging in the past decade are cryptocurrency and Esports. So it’s no wonder that these two popular forces are beginning to blend and create a transformative opportunity for both areas. Here’s a look at how the integration of cryptocurrency and Esports can benefit each other.
What are Esports?
Esports are games that are played on electronic devices such as tablets or computers. These games are usually played tournament style where players can compete individually or as a team. Players not only compete for prizes but for the prestige of being the top players in a game. In the past couple of years, Esports have become immensely popular attracting an audience in the tens of thousands in arenas such as Japan and South Korea.
What is a cryptocurrency?
A cryptocurrency is a digital asset that can be used as a medium of exchange. Cryptocurrency is exchanged on a digital ledger or a blockchain where all translations are public while keeping the identity of the cryptocurrency users private. Some of the most popular cryptocurrencies include Bitcoin, Etherum, Cardano, and Polkadot.
The challenges faced by Esports
While Esports is growing fast in popularity, this emerging sport is facing a number of challenges that could be rectified by cryptocurrency use. Here’s a look at four big issues by Esports today:
1). Players only get a small percentage of the revenue
While baseball, football, basketball and hockey players make millions of dollars, Esport athletics are not making a large salary or income compared to the amount of revenue that they generate for Esport league.
2). There is no uniform investment portal for Esports
Right now, there is no easy way for investors to take advantage of the rapid growth of Esports. Because of this, many investors are missing out on a major opportunity while smaller Esport teams and leagues are unable to get the capital they need to stay competitive with the bigger players.
3). There is not enough content to meet demand
While eSport is popular, there is not enough content to meet demand. That’s because eSports does not have a central, dominating league that can help organize major tournaments on a regular basis. In short, eSports doesn’t have its own version of the National Football League, Major League Baseball, or FIFA.
4). Fans have a hard time knowing who the players are
In order for any sports league to thrive, it needs stars. Right now, it is hard for eSport fans to learn who the players are. This will make it hard for eSports to have a face for the sport. This can make it a challenge for eSports to market itself against traditional sports.
12 ways crypto and Esports can benefit each other
Here’s a look at the 12 ways that cryptocurrency and eSports can benefit each other as both revolutionary concepts are drawn closer together:
1). Creates a decentralized platform for eSports
In order for eSports to work, there are a number of different parties that need to work together: Players, leagues, game developers, tournament promoters, team managers ect. With cryptocurrency and the blockchain, all these parties can work under one roof to easily get things done. Here are some ways that the decentralized platform can make eSports more efficient:
- Manage distribution of prize money
- Allows for arrangement of media rights
- Faster team transfer of players
- Easier to create sponsorship and advertising contracts
2). The playing field can be leveled for more players
Many sport leagues suffer from an inequity of the rich teams having too much influence versus other teams. With cryptocurrency, eSport can create a more level playing field. Cryptocurrency makes it easier to operate on decentralized apps or Dapps which allows more league and teams to do the following:
- Create a secure database
- Reach out to fans, sponsors and advertisers
- Participate in tournaments across the global remotely
3). Improves trust and integrity in eSports
One of the criticisms of eSports is that it is hard to verify if the gameplay is fair for all players and game developers. With cryptocurrency, eSports can operate on a blockchain where all play is transparent. This allows for the following benefits:
- Game developers will have better peace of mind knowing that they can get paid for their development efforts.
- Fans will know that all the gameplay is being managed on a blockchain that allows for full transparency.
- Cryptocurrency can be used with smart contracts to ensure that all players are paid fairly
4). Provides secure purchases
One of the growing revenue centers for eSports are in-app purchases via mobile or eSport web apps. With cryptocurrency, fans are able to make secure purchases and know that they will receive the product or the service that they paid for. This will elevate the trust level of eSports and allow cryptocurrency to have more use cases.
5). Prevents match fixing
There are a number of sports that have to contend with match fixing. This could be a reason why many people are skeptical about eSports. The image that a sport played online with unknown players could be easily susceptible to match fixing. Here is how cryptocurrency fixes this:
- Games are played on a blockchain facilitated by cryptocurrency. This will ensure that all matches are on the level.
- Payments to players are also handled via cryptocurrency and easily withheld if any match fixing is suspected.
- Cryptocurrency and the blockchain can prevent “bad actors” and “match fixers” from participating in future tournaments.
6). Allows players greater autonomy
In many leagues, many players do not have the freedom to play on their own terms because of the high costs of running the sport. With cryptocurrency, players can take the power into their own hands and create their own tournament. They can find their own sponsors, get other players and essentially create their own league at the drop of a hat. Also, these new tournaments will be able to pass the integrity test since cryptocurrency and blockchain will factor into the facilitation of the tournament.
7). Esports can make certain crypto more popular
One of the criticisms of cryptocurrency is that it is used more as a store of value than an actual medium of exchange. With eSprots, cryptocurrency can find many more use cases. This can allow the price of certain cryptocurrencies to rise. Here are just a few ways that cryptocurrency can be used for sports:
- In-app purchases on eSport apps and eSport web platforms
- Payment for players
- Payment for price money
- Payment from advertisers and sponsors
- Payment to tournament organizers
8). Streamline donations
Many smaller players, teams and tournaments will be able to solicit donations in order to keep their operations going. With cryptocurrency, it will be easy for any eSports participant to get funds from any supporter around the world. Also, these cryptocurrencies will arrive to the eSports participant faster and at a lower fee, than most other types of money transfers. Also,
platforms such as Youtube and Twitch can allow people to donate to their favorite player or team.
9). Create incentive system for viewers
Esport leagues and tournaments can use cryptocurrency to create incentives and rewards for participation. For instance, a participant can receive loyalty points when they use cryptocurrency to get a plug-in or a ticket to view a tournament. These loyalty points can be redeemed for a digital reward or it can be transferred to another cryptocurrency or fiat money.
10). Provides for easier crowdfunding
More and more teams are looking to get in on some of the larger eSport tournaments. However, these new teams may not have the funds needed to participate in the tournament. With cryptocurrencies, fans will be able to easily fund a team’s crowdfunding efforts. The cryptocurrency can be quickly transferred to the team for use for their next league participation.
11). Cryptocurrency can allow the creation of rare tokens for in-game assets
In-game assets can become a potentially huge profit center for eSport tournaments and leagues. With ERC20 tokens, these assets can be created and traded on Ethereum-based eSport platforms.
12). Cryptocurrency allows for private and anonymous payments for eSports participants
Finally, players, sponsors, advertisers and league tournaments can make private transactions using cryptocurrency. This can help protect their business model and allow for participants to easily move their funds around without having to deal with a third party. Here are some examples why this may be useful:
- A sponsor can pay a player without having to reveal how much was paid.
- A team can raise funds without making it publicly known that they needed the capital.
- A player transfer can be executed without making the terms of the agreement public.
A near future where crypto and Esports come together
As cryptocurrency and eSports continue to become more and more popular, it is inevitable that both of these revolutionary forces will combine and essentially help each other grow. Over the next few years, we should expect to see cryptocurrency play a larger role in the growth of eSports.