Small esports tournament organizers have started dabbling in blockchain tech to host tournaments and distribute prize pools. However, don’t expect to see it in the big leagues just yet, says an investor.
Esports, or electronic sports, is a form of organized competition via video games. Players sometimes referred to as esports athletes usually compete for prize money either individually or as a team.
Dave Harris, managing director of esports investment firm Guinevere Capital, told Cointelegraph that he has begun seeing blockchain being used in amateur gaming competitions.
In his opinion, however, it will take more time before the big titles and professional tournaments will consider adopting the tech.
“There are certainly a lot of places this technology can or is being used in esports, but it will take time for mass adoption into the mainstream titles and events, and as always the major game publishers are the kingmakers,” he said.
Ivy Fung, general manager at the Esports Players League (ESPL), says she believes blockchain technology is a strong fit when it comes to distributing prize pools.
The Singapore-based company operates a blockchain-powered platform distributing prize money through digital assets like nonfungible tokens (NFTs) and crypto tokens directly into winners’ digital wallets.
According to Fung, the use of blockchain makes the distribution of the prize pool far easier because it bypasses barriers such as cross-border transfer fees charged by traditional banks.
“When you’re talking about a global tournament, you need an effective way to distribute the prize pool so you don’t have to wait for the winner to give us their bank account and then verify and all these things.”
The prizes are, however, nowhere near those of international esport tournaments, which can be in the millions of dollars.
Harris believes that blockchain and Web3 have a vital part to play in esports but thinks that future developments will need to look outside the box to really attract mainstream attention.
“There may be more efficient ways of using this technology to track and display results, but I’m not sure this is really going to shift the dial,” he said.
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