The same difficulties that a blockchain industry faces are faced by eSports and gaming as well. A few of the difficulties confronting the gaming sector are that only a little portion of the industry's overall earnings goes to players, fans and followers lack an easy way to know who the players are unless they follow them on platforms like Twitch or YouTube, and the need for more content to reach a critical mass.
Not to mention that ads are frequently disliked by consumers, and many of them employ ad- blockers. This presents a problem for both eSports and gaming advertisers.
Before we get deeper into the industry, let’s start with the basics by answering ‘What is GameFi?’. These are blockchain-based play-to-earn games, also referred to as "play-to-earn" games, where players are playing to win and earn money from their gaming skills.
Let’s take a look at the ways that blockchain technology is successfully solving these serious challenges and revolutionizing the entire industry.
Decentralized Platforms
Many different stakeholders are involved in eSports and gaming, including players, game developers, sponsors, the media, advertisements, team managers, etc. They require a thorough blockchain eSports platform that will allow them to enjoy all the benefits and truly make the most of the platform’s features. Here is how to maximize the potential of the blockchain:
● These stakeholders can come together on a platform that runs on the blockchain.
● The decentralized platform can facilitate communication between industry stakeholders.
● This platform offers amateurs in this field the chance to go from amateurs to professionals.
● The platform is used by stakeholders to control a number of different factors, including prize money distribution, player transfers, media rights, sponsorship, advertising, and fan involvement.
Improving Trust
You won't invest time, effort, or money in a project you don't feel confident in. The same sentiment is shared by many would-be eSports competitors. The need for more trust is essential and blockchain has several answers to that challenge as well:
● Everyone can view what is happening on the network thanks to the transparency of the blockchain. Players who are new to eSports can be assured.
● The possibility of not being compensated for their work exists for game developers. They can protect their work with blockchain and prevent illegal usage of it.
● Agreements between game producers and tournament organizers may be made via smart contracts. This makes sure that participants pay the game creators before participating.
● Smart contracts' openness can put an end to worries about the prize money being distributed unfairly.
Leveling The Playing Field
eSports and gaming are growing to be significant industries. As amateurs struggle to enter large events, money matters more and more in this situation. In the following ways, blockchain can level the playing field:
● The cost of running and maintaining a secure database is reduced via blockchain. The technique incorporates redundancy inside the distributed database and is based on a P2P network.
● Blockchain platforms like Ethereum, NEO, EOS, and Lisk are making it simpler for developers to create "Decentralized Apps" (DApps) based on the blockchain. "What to plan for when beginning blockchain software development?" has more information on these platforms.
● These elements work together to lessen the barrier of entry for new competitors.
Cryptocurrency-Based Secure Payment
eSports and gaming are working to stop unethical behavior. Illegal gambling and match-fixing are widespread occurrences that are, understandably, receiving media attention. Concerns about getting rewarded for their work are shared by stakeholders. How does blockchain help?
● Governments and banks have no influence over cryptocurrency transactions.
● Blockchain consensus methods guarantee the immutability of cryptocurrency transactions. This guarantees that payments will be made and that the transaction won't fail for eSports stakeholders.
● Smart contracts, which are used by blockchain DApps, enable automatic cryptocurrency transfers in response to certain criteria being met. Read "How to install smart contract on Ethereum?" to learn more about smart contracts. Due to the certainty of their payout, this is significant for eSports stakeholders.
● Cryptocurrency users can secure their digital funds with the aid of safe hardware wallets like the Ledger Nano S.
Greater Autonomy For Players
The eSports industry faces a dilemma with match-fixing. Players are intentionally pressured by managers to lose games. Because organizing competitions requires huge financial outlays, participants, rely heavily on managers and organizers. Blockchain can increase player control in the following ways:
● It brings down the expense of maintaining an eSports platform.
● As a result, it is less expensive to plan and advertise competitions.
● Since blockchain transactions are visible, tournament organizers must uphold the law.
● As smart contracts are open-source software, agreements are available for public viewing.
● The disenfranchised stakeholders always benefit from transparency, thus thanks to blockchain, actors have more control.
Secure In-App Purchases
There is now an increasing number of eSports websites, mobile eSports apps, and web eSports apps. In-app purchases are increasing as a result. Blockchain can make it easier for consumers to make secure in-app purchases in the following ways:
● Digital signatures and secure blockchain networks are used by DApps to reassure customers about their purchases.
● Payments made using cryptocurrency could speed up the process.
In Conclusion
In fact, blockchain has the power to change the eSports and the gaming industry. Being a new technology, blockchain development expertise is still evolving and we can expect to see more value in the near future. Undoubtedly, blockchain technology is already solving some of the core challenges of this industry and all stakeholders are noticing an improvement. However, it will be a while until the entire industry is completely revolutionized.
That is why many businesses in this industry are reaching out to blockchain consulting companies that have the experience and skills needed to maximize the potential of this emerging technology. With their help, these businesses, often startups, are converting into key players in the industry paving the way for others to follow.
