With an increasing demand for data-driven analysis and audience engagement improvements, Blockchain technology could be a contributing factor to the overall improvement of the e-sports market. The global eSports industry has grown into a multi-million dollar industry at a tremendous pace in recent years.
According to a report published by Newzoo, global eSports raised $906 million in revenues for the year 2018. In 2016, this figure stood at $493 million, jumping to $655 million in 2017, a year-on-year growth of +38.2%. So, what is e-sports? Also, what happens when e-sports market and the blockchain industry collide?
E-sports is booming.
E-sports refers to competitive gaming organized for professional players. Just like traditional sports, there are qualifications, finals, championships, and so on. That is to say, it works just like traditional sports, as the sport becomes popular, more people play or tune in to watch live or online, and the games grow.
The eSports landscape incorporates a few different entities – publishers, events & their organizers, teams, and fanbase. To sum up, eSports generates revenues from sponsorships, advertising, selling media right, publishing, and tickets and merchandise sale. Firstly, sponsorships are driven by tech and gaming peripheral companies such as Intel and SteelSeries respectively, making it the largest contributor.
Secondly, advertising revenues from computer components and energy drinks such as Re companies. Thirdly, Twitch and YouTube Gaming pay to own the rights to broadcast live games. Fourth, game publishers such as Valve pay to host tournaments. Lastly, tickets and merchandise sales also generate significant revenues.
At the moment, eSports needs more to grow by 2021. Many brands invest a total of $694 million (77% of the total market) into eSports in one way or another. This amount is expected to grow in 2019, elevate the market to $1 billion in revenue.
How Blockchain technology can usher in a new era in the eSports market.
Blockchain for eSports would deliver a fully transparent environment. Also, the ease and transparency of financial operations would increase drastically. In the long run, a majority of the content that will be available on the blockchain-based eSports platform will be open-sourced. More precisely, players would be ranked and earn based on the player’s popularity.
The eSports blockchain platform which will act primarily as an underwriter for distributing the allocated funds. Leveraging the power of blockchain technology, smart contracts technology will guarantee the platform users automated tracking of their performance on the eSports arena.
The player’s activities will play a part in the overall rank of the player on the world stage. Once a player has become an influencer in the platform, he can begin to benefit financially from his influence. This is to say, blockchain technology for eSports resolves the complex issues of cooperation among sector players. Then, revenues in the eSports market will cease from being centralized among a few individuals, to decentralized for the entire industry will benefit financially from a decentralized infrastructure.