Teresa Hoy 
Esports are a form of competition that utilizes video games, typically in the form of multiplayer video game contests between professional players who participate either individually or as part of a team. These competitions have been a part of video game culture for a long time, but were largely held among amateur players until the late 2000s, when the advent of online streaming transformed the environment forever. Some of the most popular franchises are League of Legends, Valorant, Overwatch, and Dota. Since the sector is naturally connected to computers and technology, it makes sense that it will continue to innovate and seek to integrate more technological developments as well.
Cryptocurrencies are one such noteworthy development, with some believing that their decentralized nature and blockchain-based systems have the potential to revolutionize the world of finance, making it safer and more transparent. Others believe that the ecosystem is not yet fully developed and that it wouldn’t realistically be able to adequately support this functionality. At the moment, crypto predictions clearly show that the market is still dealing with considerable volatility, making all ventures riskier than in the case of standard trading markets. These enduring fluctuations are perhaps the primary reason why the marketplace hasn’t reached mainstream notoriety yet, and why many investors continue to be reluctant about giving it a try.
Esports use
Crypto and esports are intrinsically connected to each other, as both are native to the internet, fast-paced, and rapidly evolving. Both sectors are borderless and built by their respective communities much more than by corporations, thriving on real-time feedback loops. Peer-to-peer tipping has become a standard for content creators over the last few years, but in-game economies are evolving as well. Both simple items and complex decentralized markets are included in this, with players having the ability to trade power-ups, skins, and virtual land with the help of tokens. In many cases, these assets are real and have genuine liquidity.
Esports tournaments now offer optional crypto payouts, which are significantly more than simple prize money. They serve as patronage and investments as well, allowing the users to interact with marketplaces that maintain their anonymity. The transparency of the payment processors is of tremendous help as well, with all on-chain transactions offering transparency and allowing users to verify exactly where and when their money went. Those who had to wait for a week or more to receive their tournament payment know how much of a hassle this can be.
New business models are emerging in response to this demand, including smart contracts that automatically release price pools when certain conditions are met, player-owned economies with a resale marketplace, and token-based governance that allows game communities to vote on both payouts and upgrades.
Continuous growth
Both crypto and esports have long been regarded as niche ecosystems that only those who are superfans could ever be interested in. But crypto has been gaining traction in the mainstream over the last few months, with the prices reaching previously unseen levels for several different tokens. The fact that regulators have become less likely to outright reject crypto coins is of great help as well. According to David Princay, President of the Binance.com enterprise in France, “It will be interesting to observe how an altcoin season unfolds in a more mature and regulated crypto market.” Some market researchers believe that this is only the beginning and that the prices will skyrocket to their full potential during the last months of the year.
The same can be said for esports as well. Not long ago, video games were regarded as the domain of only a few and far-between individuals, but that is certainly no longer the case. Increasingly, people are not only interested in playing games but also in watching competitions. Some of the world’s largest crypto betting platforms have begun supporting wagers on matches. So far, the volumes have been relatively modest, but this is likely to change over time.
Bringing stablecoins to the mix has the potential to lower the entry barrier for casual users, while increasing regulatory clarity enhances trust and fosters broader adoption.
The scope of the market
The esports market has been expanding as it continues to gain global popularity, with an annual growth rate of around 6%. The majority of the revenue comes from digital releases, publisher fees, streaming, merchandise, and ticket sales, with sponsorships coming in second. The largest prize pools the players can access can be worth tens of millions of dollars, and the more popular a game is, the higher its rewards as well. Funding tournaments is much simpler when you use a crypto platform, as no additional permissions are required and the entire system is fully decentralized.
Paying with crypto takes a few minutes at the most, and some players actually prefer digital assets to their local currencies. Moreover, there’s no need to worry about borders when it comes to these payments, since the blockchain operates 24/7 and isn’t hindered by geographical distances. The concept of GameFi appeared as a result of the growing integration of decentralized payment systems into the gaming world. Smaller publishers have used it to monetize their games as well, simply by issuing tokens.
GameFi
The fundamental idea behind GameFi is to provide players with the means to receive token rewards and assets for their achievements and skills. It has turned out to be a strong catalyst behind a large number of new gaming experiences referred to as play-to-earn. Digital tokens and in-game holdings can both be obtained as rewards, and every single project operates based on a unique model and economy. Non-fungible tokens are among the most common in-game assets since they can later be traded in specialized marketplaces.
To sum up, the worlds of esports and crypto are fundamentally connected and have a lot of things in common. They both rely on technological developments and a dedicated group of users to operate effectively. As time passes and brand new functionality is uncovered, the link between the two will become stronger as well.
