Crypto Donations in ESports – A Problem or a Solution
Over the years, Esports have risen to prominence. The younger generation has taken a liking to play Esports, and many gamers are making a living off playing their favourite Esports! Several local, and international Esports tournaments took place on an annual basis, and several popular betting sites offer odds on Esports markets based on local, and international Esports tournaments.
To put it into perspective, the Esports industry is set to breach the $1 billion mark in 2020, and generate revenue exceeding $900 million, in due course of the year. Dota 2 is among the most popular Esports out there, and the prize pool for The International (Dota 2) tournament – a premier Dota 2 tournament – stood at an incredible $34.3 million in 2019! The prize pool for this tournament has always exceeded that of the previous year, and the same is expected, come the 2020 version of this tournament.
That being said, the flow of money in Esports does not end there. Fans are allowed to donate money to players, in due course of a game. Should crypto donations be allowed? Read on to find out, and learn much more.
Crypto Donations
With the advent of the internet, and ensuring technological advancements, people were bound to take advantage of certain loopholes technology would present. While there are several trusted Esports betting sites, including the likes of Bet365, and Betway among others, there are several people running scams, and fake betting sites, in the quest of earning an easy buck as well.
People fall into this trap, and end up losing money galore. Platforms like YouTube and Twitch allow live Esports streaming, and the number of people buying into Esports is increasing exponentially. According to research, there are expected to be around 557 million Esports viewers by 2021!
307 million of these people will call themselves “Occasional Viewers”, while the remaining 250 million people will term themselves as “Esports Enthusiasts”. Along with the sums of money associated with Esports tournaments, viewers can donate money in due course of an Esports match.
While this sounds fascinating, there is a huge problem with crypto donations. While you can donate money in due course of a match, you can also request a “Chargeback”, which in essence means that you can request your donation to be given back to you. This process is not transparent, and at times players go on to lose money.
Esports fans may be playing foul when they issue a Chargeback, or may simply state that money was transferred from their accounts without their consent. This is where crypto-backed donations come into the frame. Blockchain technology offers transparency and security. With the help of blockchain technology and crypto donations, information of a transfer will be well-documented.
This will eradicate the possibility of players having to pay viewers money, in cloudy circumstances. Smart contracts could be made use of as well, with a clause to return a donation to a viewer, if a player loses a match in question, or if a viewer simply decides to redraw their donation.
The use of blockchain technology as a whole and crypto donations may present several issues as well. Cryptocurrencies are volatile in nature, and a decrease in the price of a cryptocurrency will directly affect a player. One could argue that an increase in the price of a cryptocurrency will benefit a player as well – neither of two situations is ideal for a player.
Esports-backed tokens could possibly have a large market in the future (If launched), given the numbers of viewers that are expected to be interested in the industry by 2021, and this could see large trading volumes.
Well-established cryptocurrencies like Bitcoin and trading systems like Cryptohopper too could be taken advantage of. A set of cryptocurrencies or a single cryptocurrency must be set aside for this purpose, as keeping crypto donations open for a variety of cryptocurrency options is not a viable solution.
Conclusion on Crypto Donations in ESports
Esports are on the rise, and so are the number of viewers buying into the Esports experience. There are a few loopholes when it comes to donating money to players, in due course of an Esports match, and authorities must look into these problems. The use of blockchain technology and crypto-backed donations is a viable solution.
That being said, the use of crypto-donations does present its fair share of flaws as well. Catering to these flaws could see the cryptocurrency industry emerge victorious in the general scheme of things.
