Crypto and eSports are two of the world’s fastest-growing industries, so it’s no surprise that they’ve joined forces considering the substantial overlap between them. From eSports prizes awarded in cryptocurrencies, to partnerships between eSports and crypto giants, there’s no slowing the momentum of their collaboration.
Betting has become a central part of the eSports experience for many fans, who can use crypto to place bets on their favorite teams in certain contexts. Many of the top sportsbooks include the option of betting on esports, and offer no deposit free bets to new customers. Keep reading to learn more about how eSports and crypto are changing the gaming industry.
A Perfect Match
Bitcoin debuted in 2009, and within a decade, the cryptocurrency had become a household name. Early investors in the digital coin became millionaires overnight, but many believed its success was a fad that would soon pass. Fast forward to 2021, and there are thousands of cryptocurrencies and millions of people investing in digital money in hopes of making a quick buck.
While digital assets can make investors a lot of money, their volatility makes them a risky investment. This is because their value is attached to public sentiment. According to industry experts, cryptocurrencies need to move beyond speculation to become accepted as a mainstream currency.
Enter eSports and the massive popularity, and jaw-dropping growth, it has experienced over the past few years. Esports revenues broke the billion-dollar mark in 2021, and the industry is poised to continue its exponential growth, hitting $1.5 by 2023 thanks to the success of eSports favorites like like Call of Duty: Warzone, Dota 2, and League of Legends. Almost 4.5 million people tune in to their favorite players on Twitch every month, adding up to 900 billion minutes viewed in 2020.
The demographics of the eSports and cryptocurrency communities are similar, with most subjects being digitally savvy males between the ages of 18 and 44. Given the similarities and overlapping interests, the crypto industry is in a strong position to help fuel the continued expansion of eSports.
Blockchain Technology and eSports
Although the popularity of eSports seems unstoppable, several areas are not yet functioning optimally. Esports players rake in the big bucks, but the sector has not found an efficient way to deliver prize money to winners. Tournament sponsors often require participants to use costly payment processors to receive their money. Amateur players who don’t compete as part of an established team have an even harder time, limiting their access to tournaments.
Blockchain technology is one possible solution to the payment problems that have plagued eSports. When tournaments take place on the blockchain, professional and amateur players can participate, and tournament results can be tracked securely and transparently. Blockchain makes this possible because it maintains a complete record of all data from start to finish, with everything that happens on the blockchain recorded and unalterable. Whether players win or lose, they can track their stats and follow their competitors on a verifiable leaderboard.
One of the core tenets of blockchain is decentralization. This decentralization allows players to receive their winnings immediately in crypto without a middleman charging a commission to process the transaction, significantly decreasing the chances of fraud or cheating since the funds are distributed using automated smart contracts.
Crypto Entrepreneurs Making a Mark
Esports personalities are already seeking to capitalize on the popularity of cryptocurrencies. One example is eSports personality Suzie Kim who recently launched her very own cryptocurrency, SUSIE, on the Rally platform to give her fans another way to engage. Fans can use SUSIE to access her private chats on Discord, and get a shoutout from her social media accounts.
Suzie isn’t the only eSport personality helping to merge the worlds of crypto and competitive gaming. The Rally platform counts 30 gamers, creators, and influencers among those who’ve created a unique cryptocurrency on their platform. First Blood Technologies has held online tournaments on its blockchain-based gaming platform since 2016 and recently entered a partnership to allow players to participate in eSports competitions to win stable coins.
These are just a few examples of how the crypto and eSports world are coming together. With plans underway to build more strategic partnerships, we can expect crypto to become an integral player in the eSports world.