eSports has taken the sports industry to the next level; giving everyone the comfort of convenience and personalization. But, how far can it go when collaborating with blockchain technology? Let’s find it here.

There was a time when sports was all about making marks on the ground and playing cricket, and running to catch each other.

Today, with the introduction of technology, the sports industry has transformed completely to eSports (electronic sports). It has shifted from the outdoor places to our smartphones and video games players; making us clung to our favorite couches and play different game levels.

The eSports market has provided users with multitude of benefits, including convenience, global reach, healthy competitions, and much more. A result of which is that a wide range of entrepreneurs, investors, and developers have taken a step towards entering this market. The one that is anticipated to grow from USD 694.2 Mn to USD 2,174.8 Mn with a CAGR of 18.61% between 2018 and 2023. (Source)

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However, the industry is still facing various challenges. It is still struggling to reach a global audience and impart a remarkable impression on everyone.

This is when Blockchain came into the limelight.

The technology, which has already revamped the healthcare, fintech, education, supply chain, and numerous other industries and business processes, has indicated to have the potential to take the eSports industry to the next level.

But, how true is this statement? Can the convergence of the blockchain and eSports industry actually give us an exceptional experience?

Let’s find out in this article.

But before that, let’s dive deeper in the eSports industry and see what issues are prevalent in the marketplace.

Challenges eSports companies are facing in the spectrum

No Legitimate ecosystem

In the eSports industry, every brand and game player set their own rules and regulations for playing. Meaning, there’s no legitimate and self-sufficient ecosystem.

Lower revenue share

Though the industry is prospering, players get only a small fraction of its revenue share. And this is basically because of the involvement of multiple people in the process.

Less transparency

In the eSports ecosystem, fans and followers have no way to get detailed information about their players, unless they follow them on social media platforms. Besides, there’s no fixed and transparent system to offer fare rewards to the service providers.

Difficulty in investment in eSports

Another major challenge that eSports business is facing is investment issues. Due to lack of uniformity in the industry, only people with a huge amount to invest can participate in the process; restricting others from entering into the marketplace.

Minimal monetization possibilities

In the eSports industry, consumers often neglect web and mobile apps introducing ads within the process. In fact, many of them have installed ad-blockers into their system. This makes it challenging for eSports marketers to earn money from in-app advertising models. Likewise, the content produced by the companies for promotion purposes does not reach a global audience. This again lowers the chances of revenue generation by the companies.

Now as you are familiar with what challenges are prevailing in the eSports industry, let’s focus on how blockchain technology can aid in mitigating all these issues and build a better and prosperous future.

Decentralized platform

In the world of eSports, various stakeholders like players, sponsors, fantasy sport app development companies, media, advertisers, team managers, and so on, are involved. However, they are not fully connected to each other.

Blockchain, by offering a decentralized ecosystem, brings all the stakeholders under one roof. This makes it easier for all to connect with each other and take advantage of the collaboration. Especially in terms of distribution of prize money and transferring media rights.

Trustability

Another eSports challenge that Blockchain is mitigating these days is lack of trust in the ecosystem. The technology provides a decentralized ecosystem where all the activities are publicly accessible yet immutable. Besides, the introduction of smart contracts, have replaced third party intermediaries and added a tint of security into the process.

Lower barrier to entry

By cutting down the cost of creating, operating, and maintaining a secure and distributed database, Blockchain technology has also set the foundation of an ecosystem where anyone can enter and invest in.

Seamless and secure payment

Blockchain is also revolutionizing the eSports industry in the form of seamless and secure payment. The technologies, in the form of consensus mechanism and cryptocurrencies, are ensuring that users get cross-border payment without paying an additional tax or involving multiple people into the process.

So, as we have seen in this article, blockchain is bringing forth different sets of opportunities and advantages in the eSports category. It is reforming new business models and acting as a bridge between users, sports players, and eSports companies. So, in case you are someone wishing to enter this industry or take your eSports business to the next level, look ahead to introducing Blockchain into your business process.

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