How Blockchain can redefine the landscape of eSports Industry

eSports are the new Massive Digital Phenomenon of our era, and they are frequently referred to as “the new sports of XXI century”. Started in 1997, they have exploded in the last 5 years, when more than 203.8M people watched eSports in 2016, generating a market above $696M that will reach $1.5B by 2020. As a new and young industry, lots of opportunities are arising, not only in pure terms of competition, but also in collateral markets (streaming IP Rights, education, laws, etc.). Big brands are entering this industry as they see a new niche opportunity to expand their base of users, but there are specific needs for a unique industry that gathers elements from culture, sports and technology at the same time.

The main problem of this industry is related to business models, the same way it happens with other creative content areas. Without a legal framework to operate due to its unprecedented growth speed, lots of companies are trying to force their original models to the eSports market, as a fast way of generating income, without proposing sustainable business models for the long term and for all the stakeholders of the sector and its particularities.

Blockchain is here to redefine the landscape of eSports 

Smart contracts can protect copyright and automate the process of generating revenue depending on different factors. This will allow eSports streaming to create a fair model, where ALL stakeholders can be represented (developers included) to generate a more sustainable lifecycle for the industry allowing it to grow organically.

With blockchain professionalization of eSports can be reached. Smart Contracts will allow a legal situation between players and teams, but also at other levels of the industry: players transfers, team sponsors, tournament prizes, streaming IP rights, Identity Management to stop fraud in competitions, etc.

Betting has always been seen as some kind of taboo, specially in eSports due to the age of the people participating (high % under 18 years). With blockchain not only betting gets to a higher level in terms of  lowering regulations barriers, it also makes betting more secure and controlled so as to ensure best practices are met.