Blockchain tech still far from hitting the esport big leagues, says investor

February 13, 2023 Coin Telegraph

Blockchain

Smaller-scale esports organizations have started using blockchain tech for distributing prize pools, but the tech is yet to be adopted by the big tournament organizers.

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.

Screenshot of some upcoming tournaments listed on ESPL. Source: ESPL

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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"I think a model that allows user-generated content to be commercialized and revenue fairly distributed amongst all stakeholders is an opportunity for the industry," he added.

Gaming enthusiasts have had a love-hate relationship with crypto, particularly when NFTs are involved.

An October survey from Coda Labs found traditional gamers weren’t a fan of cryptocurrencies or NFTs, rating their feeling at 4.5 and 4.3 out of 10 respectively.

French gaming giant Ubisoft Entertainment was slammed last year over its NFT project Quartz, forcing the company to later backpedal on plans to integrate NFTs into its games.

Despite this, Harris said that ultimately, the tech will benefit gamers, stating:

“In principle, ‘actually owning’ in-game items and potentially being able to transfer them to other games or environments is a good proposition for gamers.”

“The actual technology will be used more and more in the future, but I think there is currently skepticism and in some cases pushback from the community where the tech to date has often manifested in what they see as over-commercialization or get-rich-quick schemes,” he added.

“I think the learning curve is definitely there,” said Fung.

“There will definitely be people who go against it, but as long as we can show them the benefits of using this system, I think they will adopt it sooner or later. That will be the norm. Everybody will be using it,” she added.

The total market value of the esports industry is forecast to reach $1.62 billion in 2024, according to data released by Exploding Topics.

Web3 gaming still a long way from mainstream adoption: Survey

October 6, 2022 Coin Telegraph

Big Time

In a survey commissioned by Coda Labs, 6,921 people from five countries were asked a series of questions to determine their perception of crypto, NFTs, and Web3 gaming.

A new survey commissioned by blockchain entertainment provider Coda Labs suggests that despite the huge amount of money being poured into Web3 gaming, traditional gamers are still yet to warm up to crypto or NFTs and have little interest in Web3 games.

According to the survey, gamers pointed to practical barriers as their main reason for shying away from Web3 games, with gamers often not knowing how they might work and lacking a blockchain wallet.

The survey found that only 12% of non-crypto gamers have tried Web3 games, while just 15% of those yet to try were interested in doing so in the future.

The survey pointed to play-to-earn (P2E) as the most recognized term associated with Web3 games, and crypto earnings as the most commonly perceived benefit of playing them.

When these two factors are considered in tandem, the findings reinforce what many industry players have been saying recently — that gamers are more interested in playing a "fun game" than the tokenomics associated with many Web3 games.

*Respondents’ perception of the main challenges associated with Web3 games. Source: Coda Labs.*

The survey data suggests that those who had played Web3 games ended up being positive about them, with traditional gamers giving them a rating of 7.1 out of ten while gamers who are active within the crypto space rated them at 8.3.

Speaking to Cointelegraph last week during Asia Crypto Week, the executive president of the Asia Blockchain Gaming Alliance (ABGA), Kevin Shao suggested the focus on the P2E and NFTs aspect of blockchain games may be what is holding back mainstream adoption of GameFi.

Shao believes the release of “triple-A” titles like Phantom Galaxies and Big Time can help shift gamers' perspective of Web3 games away from the P2E features and onboard people who are looking to play games purely for fun.

Conducted throughout June 2022, the survey saw responses from 6,921 people across five different countries.

To be eligible to participate in the survey, the respondent needed to play video games at least twice per month, have used a crypto wallet, traded via a decentralized exchange, or traded an NFT in the last 30 days.

The survey was conducted by data creation platform WALR, which is a member organization of the Market Research Society and complies with its Code of Conduct.