Mainstream Adoption of Web3 Gaming via eSports
How eSports can contribute to Web 3 Gaming
TL;DR
Although Web3-driven eSports tournaments have not been fully activated yet, there is potential for the emergence of a new form of eSports industry leveraging the benefits of blockchain technology.
Through blockchain, the eSports industry can create excellent synergy by 1) attracting sponsorships using smart contracts, and 2) operating matches autonomously without middle managers or organizsers.
Moving forward, the eSports industry is expected to closely intertwine with the Web3 gaming sector, contributing to the success of upcoming AAA-grade Web3 games. This integration is likely to foster the development of large-scale eSports tournaments and ecosystems within Web3 gaming, attracting over a million spectators.
Introduction
One reason that globally acclaimed games like "League of Legends" and "StarCraft" have reached the pinnacle of gaming history is their association with eSports. These games not only attracted players but also became recognized as media content, drawing in indirect users who “just” enjoyed watching the games. Additionally, the popularity of pro players who elevated the game's strategy to an diffrent level helped introduce the term "eSports" to the general public. Finally, the emergence of fandom communities based on teams and players is believed to have expanded the industry's overall market.
eSports, which has significantly contributed to the popularization of the traditional gaming industry, is expected to be utilized in a similar way in the Web3 gaming market. Apart from continually exposing Web3 games to the media through the medium of eSports, Web3 games can also leverage blockchain technology to create synergies by (1) expanding relationships between eSports tournaments, teams, and fans, and (2) moving away from player-centric eSports to establish an infrastructure for local & regional competitions that anyone can participate.
Web3 eSports Today
We briefly discussed the positive integration between the Web3 gaming and eSports industries. Now, let's examine how these two sectors are currently being combined and utilized, focusing on specific examples.
Web3 game-based eSports can be broadly divided into two categories: (1) online/offline-based eSports, and (2) on-chain-based eSports. The first type, online/offline-based eSports, is similar to traditional Web2 game eSports, such as League of Legends, with the main difference being the utilization of Web3 games. The second type, on-chain-based eSports, refers to formats that actively use Web3 technologies like smart contracts, enabling eSports to be conducted even on a smaller online scale.
(1) Online/offline-based eSports
In the case of online/offline-based eSports, they tend to be conducted under the guidance of organizations or associations with a certain scale. This is because, like Web2 games, Web3 games require funding, venues, and human resources for management and operations. In practice, organizations with enough scale to operate offline events, sponsorships, or government support are the ones primarily utilizing Web3 games for eSports.
For instance, in October 2022, the Indonesian Presidential eSports Tournament took place, and the Web3 game "Battle of Guardians" was used as an official event. Furthermore, EAK Digital, which organized Istanbul Blockchain Week, held a Web3 game-exclusive eSports tournament called the "W3E Championships" alongside the blockchain event. Although online/offline-based Web3 game eSports may seem somewhat disappointing, as they do not differ significantly from traditional eSports and are merely consumed as one category, it is meaningful that they have been recognized as a popular game and genre.
On-chain eSports
Next, in the case of on-chain-based eSports, they are less likely to be operated under the guidance of specific organizations or associations. Instead, they are automated based on smart contracts and on-chain interactions, primarily managed by Web3-based open tournament platforms such as Community Gaming and PlayDex.
Indeed, as on-chain-based eSports are less reliant on third-party guidance and can be hosted immediately and freely based on mutual needs, more instances of this format are observed compared to online/offline-based eSports. In the future, the number of small-scale group-oriented eSports formats is expected to increase, given the infrastructure that allows for operation without intermediate management.
However, it is essential to note that not all aspects (e.g., game results) are currently recorded on the blockchain like a fully on-chain game. In other words, complete integrity is not guaranteed with everything recorded on a smart contract, so a cautious approach is necessary.
Challenges to Web3 eSports
eSports tournaments, but popularizing Web3 games through eSports still has a long way to go. The number of Web3 games adopted in current Web3 eSports competitions is significantly low, and the genre diversity is very limited. Additionally, unlike traditional PC and console-based blockbuster games, Web3 games remain at the level of hyper-casual games, posing a challenge in attracting large events and audiences.
Nonetheless, it is a fact that the anticipation for Web3 games is growing, with the planned release of AAA-grade Web3 titles in development within the next five years and the gradual expansion of the eSports industry centered in Asia. Moreover, contrary to the expectation that the eSports market would primarily focus on PC-based games, mobile games are also playing a significant role in the industry, indicating that there is potential for Web3 games to make their mark as well.
Web3 eSports Looking Ahead
As previously mentioned, it's still too early for the web3 industry to adopt MMORPGs and strategy games like StarCraft and League of Legends as major titles. Consequently, we expect a gradual approach, starting with small community-centric regional game leagues or tournaments that create familiar experiences with web3 game eSports. Eventually, large organizations may host massive events. Additionally, the emergence of a diverse ecosystem, such as securing sponsor funds and distributing prize money based on smart contracts, can be anticipated in the operation and organization of eSports.