The video game industry has grown exponentially in recent years - benefitting many players in its industry. Video game owners are among the beneficiaries of this boom, generating new streams of revenue from the willingness of players to spend money on more premium assets.
The video gaming industry is spread mainly across mobile, PC and console platforms. Previous business models that relied heavily on the purchase of devices and hardware are not as relevant as they once were especially in the era of online and multiplayer gaming. Therefore it has become imperative that video game developers find new revenue streams and monetisation methods to stay competitive in a rapidly expanding market.
The current ownership models used to record and keep track of the ownership of digital goods rely on outdated systems of trust and single points of failure. This extends well into video games which have long relied on creating digital scarcity in order to market virtual products from consumables to collectibles as part of their gameplay experience.
NFTs, or Non-fungible tokens, are a groundbreaking solution to the problem of digital ownership. By tying ownership of digital assets to an entry in a public, immutable ledger, blockchain technology can provide a level of ownership and security that was previously impossible. NFTs allow users to buy, sell and trade digital assets without a middleman while significantly reducing the possibility of fraud and forgery. In addition, utility-based NFTs can bridge the gap between physical and digital worlds. Blockchain technology also protects NFT ownership, giving the owner the exclusive right to conduct transactions and transfer the token. This concept of digital ownership offers immense benefits to buyers and sellers alike.
Aside from NFTs, blockchains are able to keep track of fungible assets as well, opening the horizon for games to implement robust, transparent economies deeply within gameplay. This gives players true digital ownership over their assets and extends the freedom to buy, sell and trade them across a variety of platforms and protocols.
With ESPL Arena, we are combining the powerful advantages of digital assets and ownership with the world of esports to usher in a new era of competitive gaming and to ultimately give power to the players to participate not just as gamers but also as tournament organisers within and also beyond the ESPL ecosystem.