Esports arena: How esports teams can harness the power of the metaverse

The concept of the metaverse has been around for some time. However, before Meta (previously Facebook) announced that it would be launching a metaverse – a type of digital universe – the concept was not on the radar of a wider audience. Metaverses like Decentraland – where users can purchase virtual estate in the form of NFT digital collectibles – have a large following in the crypto space. However, the metaverse is not just for crypto. Metaverses hold a lot of potential for a number of industries. One industry in prime position to benefit is the esports industry. For esports teams, metaverses could actually be used to create new revenue streams and engage new and existing fans in a number of ways.

NFT wearables

NFTs – blockchain-based tokens that cannot be replicated or forged – are a key gateway to the metaverse. Having already proved extremely popular in the past 12 months in industries from music to art, NFTs aren’t going anywhere any time soon. Esports teams can take NFTs further than just standard digital collectibles within the metaverse.

For instance, teams will be able to create additional revenue streams and opportunities from NFT merchandise within the metaverse through NFT ‘wearables’, a type of NFT that can be worn by avatars in the metaverse. NFTs can be used to create original and transferable wearables, such as personalised/signed jerseys etc, that can be worn by gamers and metaverse participants across games.

For instance, esports fans could buy an NFT of a signed Team Liquid Shirt, and then wear the shirt in popular games. NFTs also give fans provable ownership of the collectibles due to blockchain’s transparent and secure nature. NFT wearables allow teams to create long-term, future-proof opportunities for fan loyalty and engagement – by providing fans with rare and exclusive collectibles that they can use digitally. Not only this, but NFTs that can be worn in the metaverse have huge potential for sponsors. Teams can create NFTs of their team’s kit, including their sponsors’ logos, which fans can then wear in games or virtual worlds.

Events

In the same way artists can stream live shows in the metaverse or in video games (like Ariana Grande’s Fortnite concert), there is potential for teams and athletes to stream live into the metaverse. Fans could watch esports on screens in digital stadiums built in the metaverse, allowing teams to further engage their global audiences who may not be able to attend stadium matches in person. Although many people already watch esports remotely, fans may still want to experience the stadium atmosphere, and digital stadiums both allow this for fans and generate a further revenue stream in the form of metaverse stadium tickets. Rather than simply watching the matches online, sitting in a virtual stadium/arena within the metaverse could allow fans to feel as though they are at the match in person. This would future-proof events against potential future pandemics – the Covid-19 reduced esports revenue in 2020 due to a lack of ticket sales from matches. NFTs could act as tokens/tickets/rewards to be able to access these events, and like in real venues, fans could buy a particular seat in a virtual stadium to get a particular view of the screen.

Rewards

Teams could also offer the kinds of virtual experiences and rewards that can be delivered in the metaverse in order to increase fan loyalty. For instance, teams could build a virtual stadium or arena in the metaverse and sell NFTs as tickets to fans to attend. Selling tickets as NFTs ensures a secure and seamless ticketing experience – the secure blockchain technology behind NFTs can help to prevent ticket fraud, but also has the added bonus of giving fans an undamageable collectible from the event, which increases loyalty and engagement.

Teams who embrace the potential of the metaverse will be able to further engage their fan bases and create new revenue streams, even after the pandemic has ended. The metaverse is likely going to become more prevalent in the next few years, and the esports industry is primed to take real advantage of the technology.

Lars Rensing is CEO and co-founder of enterprise blockchain services provider Protokol. He has more than four years’ experience in the blockchain industry, helping to lead and co-found Ark; the open-source blockchain platform which underpins Protokol’s blockchain services. He is passionate about helping everyone from start-ups to enterprises unlock the opportunities of blockchain technology for their business, and as a result currently also serves as an adviser for a number of start-ups leveraging blockchain technology. He leads the overall strategy and direction for Protokol, which is helping businesses across the world solve real challenges though custom blockchain solutions.