Bitcoin, a controversial cryptocurrency whose value peaked at hundreds of millions of rupiah in 2018, has indirectly contributed to educating the public about the presence of blockchain technology. Even though the price has dropped, many people have realized the blockchain’s potential is racing to create their version of the “Bitcoin” sensation. Blockchain development itself has now entered the world of esports. Many new use cases are being developed, more and more portals of payments accept crypto now, including its uses in online eSports betting. Try these ethereum bookies for your favorite team when you are planning to win some money on esports tournaments.
What Is Blockchain?
Moving on from the popularity of Bitcoin, blockchain itself has existed since 2008. To this day, the author believes that many people out there still think that blockchain and Bitcoin are the same. However, so that we do not fall into the trend of ignorance, let us examine this definition. The term blockchain can be divided into imaginable blocks and chains such as:
- Block: note rom
- Chain: the chain that connects
- Slightly deviating from esports (because you have to explain the concept of blockchain first), the block referred to earlier can be likened to ancient humans who carved on stone to record all information or history that happened or will happen.
Then the word chain comes from the “chain” internet connection system that connects all the stones (re: blocks) earlier and ensures that the contents are always the same.
This block storage area is not only limited to one unit. Everyone who has a computer with ample capacity storage can also have their block. With their internet connection, the contents of this block will always be the same as the blocks on other people’s computers. And most importantly, everyone is free to view the contents in this block.
The central concept of blockchain is designed to build a great sense of trust for its users. This is the main feature of why blockchain-based applications or platforms continue to be developed. Anyone can see the history of the flow of information or transactions to hide no data from all connected block holders.
Incentive Scheme
This scheme provides rewards based on participation; for example, participants can get token tips when registering or watching streaming from that platform.
For example, in 2018, a cryptocurrency called Incent teamed up with Gfinity Australia to create the INCNT token. This token was distributed to those watching the tournament from their official website.
Tencent Games is also working with SLIVER.tv so that streamers can get Theta tokens when playing Ring of Elysium. You use this token later to buy exclusive in-game items.
Simply put, the digital tokens obtained can later be taken to a marketplace to be exchanged for in-game items or converted into a coupon that you can use in the real world. You can also exchange tokens with other users or cash them into traditional money.
The blockchain concept in esports is here to create a new value where this cryptocurrency is used on a platform and multi-platform. This certainly provides an advantage for its users, especially in the cooperative relationship between tokens and brands.
Item Trading Games
Usually, if we want to buy an in-game item with real-world money, we can only do this transaction through several platforms or auction houses that the game publisher has set.
The establishment of this auction house requires cooperation and great trust from game publishers because they have to maintain the security element of the goods exchange system. Moreover, they also have to monitor how many of their in-game items have been exchanged for real-world money.
By implementing blockchain, each in-game item will be unique (re: like having the item’s parent number) so that the movement of this item is transparent for everyone.
Every item, such as weapons, cards, skins, or player characters, can be protected from fraudulent techniques and other illegal data changes because the history of the exchange of these items is publicly monitored.
This element of openness provides an opportunity for many people who want to create their own auction house without strict supervision or interference from the game publisher because they can monitor this system together.
The method used to regulate the movement of in-game items is slightly different from the method used in cryptocurrencies. For this, there is a concept called non-fungible token or NFT.
Unlike the case of digital money, which has several fractions and can be sent in small units, the NFT system maintains the whole (whole) value of an in-game item. For example, if you want to sell an object such as a sword that the player’s character can use, you can only sell this sword in its entirety.
For in-game merchandise, it is said that there is a blockchain-based WAX trading platform, which was created to exchange weapon skins for CS: GO esports titles, but this did not last long because Valve blocked it.
On the other hand, the OPSkins trading platform also does not use a blockchain system and is not tied to just one video game. OPSkins still exist today.
The existence of OPSkins and WAX has driven the popularity of blockchain-based digital item trading platforms. There are already many places to buy and sell that offer services for exchanging items from different game titles or in-game items that can trade for real-world money.
The presence of blockchain provides an added value so that when players migrate games, they can still bring their “capital” to other games. Game developer Fuel Games created their digital card game called Gods Unchained, where the items in this game have been designed from the start to be traded based on the Ethereum blockchain. Not only Gods Unchained, but there are also many other game titles based on Ethereum.