Organizers of small esports tournaments have begun using blockchain technology to host tournaments and distribute prize funds. However, don’t expect to see him in the big leagues just yet, the investor says.
Esports or e-sports is a form of organized competition through video games. Players, sometimes referred to as esports players, usually compete for prize money individually or as a team.
Dave Harris, managing director of esports investment firm Guinevere Capital, told Cryptooshala that he has begun to see blockchain being used in amateur gaming competitions.
However, he believes it will take more time before major titles and professional tournaments consider using the technology.
“Of course, there are many places where this technology can be used or used in esports, but it will take time for mainstream games and events to mainstream, and as always, the main game publishers are the main creators,” he said.
Ivy Fung, General Manager of the Esports Players League (ESPL), believes that blockchain technology is great for prize pool distribution.
The Singapore-based company operates a blockchain-based platform that distributes prize money through digital assets such as non-fungible tokens (NFTs) and crypto tokens directly into winners’ digital wallets.
The use of blockchain greatly simplifies the distribution of the prize pool, Fung says, by circumventing barriers such as cross-border transfer fees charged by traditional banks.
“When you’re talking about a global tournament, you need an efficient way to distribute the prize pool so you don’t have to wait for the winner to give us their bank account and then check and all that.”
The prizes, however, are far from the prize money of international esports tournaments, which can run into the millions of dollars.
Harris believes that blockchain and Web3 play a vital role in esports, but believes that future developments will need to look outside the box to really grab the public’s attention.
“There may be better ways to use this technology to track and display results, but I’m not sure that would really make a difference,” he said.
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“I think a model that allows commercialization of user-generated content and a fair distribution of revenue among all stakeholders is an opportunity for the industry,” he added.
NFT Gaming Trends in 2023: Industry Leaders Expect More Big Players to Join Them
Game lovers have had a love-hate relationship with cryptocurrencies, especially when it comes to NFTs.
An October poll by Coda Labs found that traditional gamers are not fans of cryptocurrencies or NFTs, scoring their sentiments at 4.5 and 4.3 out of 10, respectively.
French gaming giant Ubisoft Entertainment came under fire last year for its NFT project Quartz, forcing the company to later scrap plans to integrate NFT into its games.
Regardless, Harris said that the technology will ultimately benefit gamers, stating:
“In principle, ‘actual ownership’ of in-game items and the potential to port them to other games or environments is a good proposition for gamers.”
“Real technology will be used more and more in the future, but I think there is currently skepticism and in some cases resistance from the community where the technology to date often manifests itself in what they consider to be over-commercialization or enrichment. quick schemes,” he added.
“I think there is definitely a learning curve,” Fung said.
“There will definitely be people who will be against it, but as long as we can show them the benefits of using this system, I think they will accept it sooner or later. It will be the norm. Everyone will use it,” she added.
The total market value of the esports industry is projected to reach $1.62 billion by 2024. data released by Exploding Topics.
Credit : cointelegraph.com
