Unlike finances, government control and banking sector where the blockchain and cryptocurrencies have been accepted cautiously, the new technology has become widely used in eSports. Online movies, new gaming projects and multiplayer game platforms conduct ICOs, integrate their own digital currency, accept payments in bitcoins and altcoins as well as use smart contracts.

Blockchain-based gaming platform

For instance, the FirstBlood gaming platform allows to hold tournaments among recognized sports athletes with token prize pools. At the same time, its competitor – Gilgam.es – has completed its ICO and is preparing a beta version that will also offer bets on matches.

The Eloplay platform, which functionality allows to form prize pools and conduct matches, is integrating the blockchain right now, two years after its launch. As opposed to new decentralized platforms, it provides a wide range of games.

Decentralized tournament: operation concept

A concept of establishing a prize pool and adding winnings to users’ accounts are similar on all resources. An organizer, one of teams, announces a tournament and establishes an admission fee. Fees transferred by all players create the prize pool (platform’s commission deducted) that is allocated among winners.

Distinguishing features of platforms are distribution methods and bonuses. For example, Eloplay users, organizing smart tournaments, obtain 8% of the prize pool each.

Other ways of blockchain application in eSports

Smart contracts and blockchain are used in eSports not only for allocating prize pools but also for betting, purchasing gaming items, depositing on game accounts etc. Some enthusiasts believe that the industry will fully shift to cryptocurrency in several years.

One of recent examples of the integration of virtual currencies into the gaming service is the CSGOSU startup. It allows Counter-Strike: GO players to obtain Gosu Points tokens that can be exchanged for unique gaming weapon.

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