eSports and gaming in general are massive industries with high growth trajectories. Leveraging blockchain technology presents wholly new gaming environments previously not possible. I believe gaming has obvious use cases for a blockchain; however it’s still largely unproven—which makes investing in the space both risky and potentially very lucrative.
Advances in non-fungible token technology present opportunities to create digital scarcity in unique ways. We’ve got a long way to go but many reasons to be optimistic
The competitive gaming industry is growing by 20-40% annually and by 2020, it will be valued at over $1.5 billion.
According to technology consulting firm Activate:
By 2020, 70 million people will watch an esports final, which is more than the viewership for the American professional baseball, soccer, and hockey finals.
Big companies are taking notice. In 2014, Amazon bought Twitch.com, the largest video game streaming site. The world’s biggest brands such as Mercedes-Benz and T-Mobile are sponsoring eSports teams and events.
How Blockchain Will Disrupt the Video Game Industry
I happily played World of Warcraft during 2007–2010, but one day Blizzard removed the damage component from my beloved warlock’s Siphon Life spell.
I cried myself to sleep, and on that day I realized what horrors centralized services can bring. I soon decided to quit.
By leveraging blockchain technology, here’s a list of potential benefits for the gaming industry:
- Virtual items, true ownership – blockchain provides provably scarce items to acquire, buy, and trade. Think rare items such as magic armour or trading cards.
- Provable heritage of items – who owned them and what happened with them over time? Have celebrity gamers/streamers used them? Was this item used to win a championship?
- Increases the potential income streams for the non-pro gamers who can go find rare items and sell them to the highest bidder.
- Blockchain prevents games from being shut down – companies change their mind, go out of business, and shut down games all the time.
- Persistent game worlds – in other words, you could take your character/assets from one game and bring them over to a completely separate game that uses the same underlying blockchain assets in-game.