Esports is a growing global phenomenon, and it’s quickly becoming one of the biggest industries in the world. Furthermore, within the world of esports the use of non-fungible tokens (NFTs), which are blockchain-based digital assets, is sky-rocketing. These tokens can be created using specific algorithms and can be traded on an open market.
The popularity of esports is growing at an exponential rate
Esports are organized competitive video games played by professional teams of gamers in league and cup formats on a global level. In fact, last year, more than 450 million people worldwide were watching esports events online!
This adds up to the fastest growing global entertainment franchise which is growing by 9% a year and is pulling in more revenue year on year. Furthermore, according to Newszoo, esports revenues were $856 million in 2018 and are expected to grow to $1.79 billion by 2022.
The interesting point is NFTs are changing how fans and players experience these competitions on a daily basis because they allow fans around the world to connect in ways they never have before.
What are NFTs?
NFTs are a new kind of digital asset that lives on the blockchain, meaning they’re 100% owned by you. You can think of them as a digital version of baseball cards or Pokemon cards. Each one is unique, so when you buy one, it’s yours forever.
You can also sell it if you want to, but until then it will always be yours no matter what happens. That is why they are called non-fungible tokens: they can’t be broken up into pieces like cryptocurrencies such as Bitcoin or Ethereum, because they are a one-off.
Here’s how it works:
1. NFTs are a record of ownership of digital assets on the blockchain
2. NFTs can be bought or sold through an online marketplace, just like physical goods on eBay or Amazon.
3. When you buy an NFT, you receive a smart contract that allows you to own that specific token forever (or at least until someone else buys it from you).
How NFTs impact Esports
We have seen how other sports, sports teams and fans have embraced NFTs including Formula 1 racing, UFC, and basketball. Esports fans and teams have also embraced and benefited from NFTs in Esports.
One such venture, which began in 2021 is the partnership between Yieldy and 2 of the largest organizations in esports, BOOM and Fact Revolution. This introduced their legion of fans to the NFTs on Algorand.
Another top team, Red Bull OG, dropped one of the first NFT collections on the Binance blockchain.
However, not all partnerships have gone smoothly with G2 Esports suing Bondly for $5 million.
Why are NFTs gaining Popularity in Esports?
NFTs are becoming increasingly popular in esports, as a way to allow players to sell their digital assets or trade them for other items. For example, a player could buy an NFT representing a particular character in a game like Overwatch or League of Legends and then sell it on an auction site like OPSkins.
This has led to several changes in how esports works, including:
1) Players can make money from their digital assets
2) Players can sell their characters at any time without having to negotiate with publishers first
3) Publishers can make more money by selling characters as NFTs instead of selling them directly through sales platforms like Steam or Google Play.
How are NFTs Changing Esports?
NFTs are changing Global esports in two major ways:
1. They’re making it easier for gamers to get paid – because they’re making it easier for their fans to support them financially.
2. They’re making it possible for game developers to monetize their work in new ways – by giving fans the opportunity to own a piece of the game itself.
NFTs are changing the way people interact with each other in esports. Fans can now take ownership of digital assets that they can use to connect with their favorite players, teams, and leagues. Players can also create NFTs representing themselves or their team.
They can sell these assets on secondary markets for money or trade them for other NFTs from other players or teams. In fact, a lot of the money spent on esports today goes towards buying virtual items like player skins.
NFTs are also changing the way people interact with games themselves. They allow developers to create digital assets that represent real-world items such as jerseys or sneakers from brands like Nike or Adidas.
NFTs allow creators to integrate real-world products into video games without worrying about legal issues surrounding copyright infringement or licensing fees associated with using someone else’s intellectual property (IP).
One of the best examples is Fortnite, where players can buy skins that change their characters’ appearance. These skins have different rarities, so some will cost more than others. But with NFTs, players no longer have to worry about losing their most prized possessions.
If someone steals their account or deletes their skin by accident it is not lost, everything lives on forever in its digital form on the blockchain.
NFTs could greatly impact how game developers make money off their creations because they eliminate traditional revenue. But what does all of this mean for Esports?
Well, it means that some companies are seeing the potential in using blockchain technology as an alternative payment system for esports. These could be anything from buying tickets or merchandise to paying for food at events—anything that requires payment! And we think this is great news because it means more people will be able to enjoy these kinds of experiences without worrying about carrying cash or credit cards with them everywhere they go!
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