Esports is a growing global phenomenon that is quickly becoming one of the world's major industries. Furthermore, in the realm of esports, the use of non-fungible tokens (NFTs), which are blockchain-based digital assets, is skyrocketing. These tokens could be created using certain algorithms and traded on an open market.
Esports are organized competitive video games played by skilled groups of players in league and cup series on a global scale. In reality, over 450 million people globally watched esports events an online final year!
This is equivalent to the world's fastest-growing leisure franchise, which is growing by 9% per year and bringing in more money year after year. Furthermore, according to Newszoo, esports sales were $856 million in 2018 and are expected to grow to $1.79 billion by 2022.
The fascinating point is that NFTs are redefining how followers and gamers experience these events on a daily basis because they enable followers all around the world to connect in ways that they previously couldn't.
We've seen how various sports, sporting groups, and fans have embraced NFTs, including Formula One racing, UFC, and basketball. Esports fans and organizations have also embraced and benefited from NFTs in Esports.
One such venture, which began in 2021, is the collaboration between Yieldy with two of the most important esports groups, BOOM and Truth Revolution. This drew their legion of fans to the NFTs on Algorand.
Red Bull OG, another high workforce, launched one of the first NFT collections on the Binance blockchain.
However, not all collaborations have gone smoothly, with G2 Esports suing Bondly for $5 million.
NFTs are becoming increasingly popular in esports as a way for players to sell or trade their digital assets for other items. For example, a player may buy an NFT portraying a certain character in a game like Overwatch or League of Legends and then sell it on a public selling website like OPSkins.
This has resulted in a number of changes to the way esports operates, including:
1) Gamers can benefit from their digital possessions.
2) Gamers can market their characters at any moment without first negotiating with companies.
3) Publishers can earn more money by selling characters as NFTs as opposed to selling them instantly on sites like Steam or GOG.
Because they eliminate traditional income, NFTs have the potential to significantly impact how game developers earn from their creations. But what does all of this mean for Esports?
That is to say, some firms see the possibility in utilizing blockchain expertise as a substitute cost system for esports. These could range from purchasing tickets or items to paying for meals at special occasions—anything that takes money! And we anticipate that this is good news because it means that more people will be able to enjoy these kinds of experiences without having to carry cash or bank cards with them everywhere they go!