Esports is a rapidly growing industry, with viewership and revenue expected to continue to increase in the years to come. Web3 technology has the potential to revolutionize esports, making it more accessible, transparent, and rewarding for both players and viewers.

What is Web3?

Web3 is a new iteration of the internet that is built on blockchain technology. This means that data is stored in a decentralized manner, rather than on a centralized server. This decentralization gives users more control over their data and makes it more difficult for it to be censored or manipulated.

How can Web3 impact esports?

Web3 has the potential to impact esports in a number of ways. Here are a few examples:

• More accessible: Web3 can make esports more accessible to players in developing countries. This is because blockchain technology can be used to create games that can be played on low-cost devices.
• More transparent: Web3 can make esports more transparent by providing players with a clear view of how their data is being used. This can help to build trust between players and game developers.
• More rewarding: Web3 can make esports more rewarding for players by allowing them to earn cryptocurrency or other digital assets for their participation. This can help to create a more sustainable ecosystem for esports.

Globally, there are over 3.09 billion active gamers in the gaming & esports market & the number of gamers is expected to reach 3.32 billion by 2024 .

The Gaming narrative will hit up as We move on🔥🎮 as some of this Gamers will flock into #Web3 Gaming (“PLAY2EARN” )

This…

— MR.BULL🦬🐂 (@Mrbullemmy) July 16, 2023

How is Web3 being used in esports today?

There are a number of ways that Web3 is being used in esports today. Here are a few examples:

NFT-based In-Game Items and Skins:

Web3’s most prominent application in esports revolves around non-fungible tokens (NFTs). NFTs are unique digital assets that can represent in-game items, skins, and collectibles. With Web3, players can truly own and trade these assets on blockchain networks. Instead of relying on centralized servers, NFTs provide true ownership, enabling players to buy, sell, and use in-game items across different games and platforms.

For example, a professional esports player could mint an NFT to commemorate a significant achievement or in-game milestone. Fans could then buy and own these limited-edition NFTs, giving them a sense of ownership and connection to their favorite players and teams.

Play-to-Earn and Tokenized Rewards:

Web3 introduces the concept of “play-to-earn,” where players can earn real cryptocurrency rewards by participating in esports competitions and other gaming-related activities. This model has the potential to revolutionize esports by providing tangible economic incentives for players to improve their skills and engage more actively in the gaming ecosystem.

By integrating blockchain and smart contracts, esports platforms can distribute rewards automatically and transparently based on players’ performance. These rewards can be in the form of native tokens or cryptocurrencies, which players can use or trade within the gaming ecosystem or exchange for real-world value.

Decentralized Gaming Leagues and Tournaments:

Web3’s decentralized autonomous organizations (DAOs) can be utilized to create more transparent and community-driven esports leagues and tournaments. By forming DAO-based governance structures, stakeholders, including players, fans, and sponsors, can participate in decision-making processes, such as setting rules, selecting venues, and determining prize distributions.

Decentralized tournaments could also enable players from different regions to participate without facing geographical limitations, promoting greater inclusivity and global participation.

Fan Tokens and Voting:

Web3 enables the creation of fan tokens, allowing esports organizations to offer fans a stake in their favorite teams. Holders of these tokens may get voting rights on certain decisions, access to exclusive content, or participation in fan-driven events.

Fan tokens can be bought, sold, and traded on various blockchain-powered platforms, fostering a sense of community and involvement among esports enthusiasts.

Tokenized Crowdfunding for Esports Teams:

Tokenized crowdfunding is another Web3 application that can revolutionize the way esports teams are funded. Instead of relying solely on traditional investments or sponsorships, teams can issue tokens that represent ownership or revenue-sharing rights in the team. Investors and fans can purchase these tokens to support their favorite teams and share in the team’s successes, financially benefiting from their growth and achievements.

Web3-powered Virtual Reality (VR) and Augmented Reality (AR) Experiences:

Web3 technologies can enhance the immersive experiences of esports by integrating virtual reality and augmented reality. Through blockchain-based ownership of virtual assets and NFTs, players and fans can interact with in-game items and experiences in a more tangible way.

For instance, NFTs representing unique in-game events or skins can be integrated into VR experiences, making the gaming universe more immersive and engaging.

Decentralized Betting and Prediction Markets:

Web3 can address some of the challenges associated with traditional esports betting and prediction markets. By leveraging blockchain’s transparency and smart contracts, users can place bets and engage in prediction markets with confidence.

Decentralized betting platforms can eliminate the risk of fraudulent practices, improve payout systems, and ensure that betting outcomes are tamper-proof.

Tokenized Merchandise and Digital Collectibles:

Esports merchandise and digital collectibles can be tokenized using NFTs, enabling fans to own rare and unique items related to their favorite teams and players.

For example, limited-edition jerseys, in-game memorabilia, or digital artworks can be tokenized and sold as NFTs, offering fans a new way to support their esports idols.

Token-Backed Sponsorships and Partnerships:

Web3 enables creative sponsorship models, where brands can engage with esports organizations and players through token-backed partnerships. Brands could issue their tokens or participate in tokenized campaigns, providing fans with unique rewards and experiences.

These partnerships can foster stronger connections between brands and their target audiences, enhancing brand loyalty and recognition within the esports community.

Decentralized Streaming Platforms:

Web3 could disrupt the traditional streaming landscape by introducing decentralized streaming platforms. These platforms can leverage blockchain to ensure content creators’ fair compensation, offer transparent revenue-sharing models, and protect against copyright infringement. Esports streamers and content creators can benefit from decentralized platforms, as they gain more control over their content, monetization, and interactions with their audiences.

It’s essential to note that the esports industry is continually evolving, and the adoption of Web3 concepts may have advanced significantly by the current date of July 2023. For the most up-to-date information on how Web3 is being used in esports, it’s best to refer to the latest industry news, reports, and developments.

Also, read – The Top 10 Web3 Companies That Are Making The Web3 Future Bright

The future of Web3 in esports

Web3 is still in its early stages, but it has the potential to revolutionize esports. In the future, we can expect to see more esports games that use Web3 technology. We can also expect to see more tournaments and leagues that are organized by DAOs. As Web3 continues to develop, it is likely to have a profound impact on the esports industry.

Here are some additional thoughts on the future of Web3 in esports:

• Web3 can help to create a more immersive and engaging esports experience for viewers. For example, viewers could use VR headsets to watch esports matches from the perspective of the players.
• Web3 can help to create a more sustainable ecosystem for esports. For example, NFTs can be used to create a secondary market for in-game items, which can help to reduce the costs of esports teams and tournaments.
• Web3 can help to bring esports to a wider audience. For example, blockchain technology can be used to create games that can be played on low-cost devices. This can make esports more accessible to players in developing countries.

Overall, Web3 has the potential to revolutionize esports. It can make esports more accessible, transparent, and rewarding for both players and viewers. It is still early days for Web3 in esports, but the future looks bright.