According to the source’s estimates, global eSports market revenue will reach 1.65 billion U.S. dollars in 2020. The eSports industry is expected to grow rapidly in the coming years.
This is a huge and upcoming industry, but quite similar to blockchain, it isn’t a mature industry just yet.
Let’s take a look at a popular esports game called “Fornite.” Since launch, the free-to-play game has brought in more than $1.2 billion in revenue.
So, here we are facing a bottleneck problem: we have a highly profitable business model with a good amount of limitations. Players don’t own their accounts, they can’t sell or purchase accounts, and players would need to start a brand new account from scratch when a new similar type of game is released.
There are a few reasons why Epic Games (the company behind Fornite) won’t allow users to sell their accounts.
- Epic games cannot benefit or make any money from the transactions.
- People who sell are usually players who are quitting the game.
- Players aren’t learning the game from scratch.
A study by Worldwide Asset eXchange on 1,000 gamers and 500 developers discovered that 62% of gamers feel having the flexibility to transfer virtual items from game to game would make spending money on those items more worth it.
Imagine if the virtual assets can stick with you for life and would work across multiple games. That would make buying virtual items more of an investment.
This tendency also holds true for the game developers: 84% of developers surveyed would create in-game items if they were compatible with multiple, different games.
Because of this, blockchain might just be the solution to all these problems.
Adding blockchain to esports and gaming
With blockchain for games, in-game items will have even further impact and value than they currently have. Items will be transferable between games, which gives more reasons for players to buy them when they can use them again and again across multiple games.
Not only that. The in-game items will be increased in value and we will witness a world with more gamers because they can earn in-game items and resell them for actual fiat currency.
As the market leaders, Steam, Apple, and Google have the power to charge developers high commission fees, immediately eliminating small developers from taking part and achieving success. Blockchain has the power to address these challenges and redefine the gaming industry as we know it by making it possible to process payments instantly, which will allow developers to quickly reinvest money into their businesses.
Another thing is that blockchain will be able to add a layer of fraud prevention especially when most in-game items and virtual currency comes with a lot of fraud and mistaken charges.
But, as promising as it sounds, blockchain is not that simple.
In order for users to play games on the blockchain, there would need to be some sort of universal platform for all the games to be installed on.
That way the same in-game items could be transferable. As of today, that is a difficult process, but this could be very possible in the near future as blockchain matures some more.
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