ESports Entrepreneurs Powered by Blockchain
Who will be the first Blockchain project to tap into the $50 billion gaming assets market?
The digitization of both the economy and the entertainment industries over the past 10 years has presented opportunities for tech entrepreneurs to address customer needs that didn't exist until recently - and the potential rewards are vast.
On the one hand, the online entertainment sector has been driven by a revolution in gaming that has seen the popularity of the pursuit skyrocket as of late. Over two thirds of US households have a next-gen gaming console and around half of Americans play regularly, according to the Entertainment Software Association.
Add to this the amount of revenue and transactions that flow through this sector, and you can start to see what a large market it is. Sophisticated buying and selling markets for online goods surround almost every game, with some items being sold for hundreds of thousands of dollars. Online assets are a big business in the gaming world.
Couple this with the recent cryptocurrency revolution enabling new forms of payment, and the situation is ripe for innovation. In many ways, Blockchain technology is ideally placed to disrupt the gaming industry: leveraging a digitally-native financial system like cryptos (along with their built-in features of security and immutability) is a no-brainer.
The global gaming industry is worth over $100 billion, and it is clear that it will see widespread crypto adoption in the near future. There are some unique challenges present however. One Blockchain project, WAX (short for Worldwide Asset eXchange) is hoping it can address these problems and become the standard platform for trading online assets.
Problems in the gaming asset ecosystem
Despite the fact that it is technology-based, the worldwide marketplace for gaming items is more of a segmented landscape than a seamless market.
This landscape is unexpectedly even further behind other channels like online shopping; different games have different currencies and the markets for these games are often region-specific, making a proliferation of platforms when in reality only one system is needed.
First of all, this creates obvious problems of convenience. Customers’ choices are severely limited or hindered when transacting with users in other regions. Payments and price comparisons are difficult and at times require several middlemen. This should be surprising to most, considering the amount of digitization obviously involved.
On top of this, the real issue of transparen