Gaming could be the Catalyst that Blockchain Needs

Whilst the blockchain star continues to rise, undoubtedly it is still looking for that perfect use-case that will catapult it into the stratosphere. Whilst many believe that the financial sector has the power to do that, issues like regulators and institutionalised ways of doing things are proving tough obstacles to overcome. Whilst it is making positive progress steadily, its widespread adoption is proving somewhat stuttered; holding it back from reaching its full potential.

Blockchain is such a versatile bit of software and it is currently being aimed at almost every sector and industry imaginable – supply chain and logistics, elections, charities, and even fine wines are all being eyed up by blockchain entrepreneurs. But, as of yet, none of these sectors have been able to push to the front as a prime example of how blockchain can be implemented completely with widespread buying and extensive adoption.

Gaming as an adoption point

This is where gaming comes in play. The gaming industry shows big potential as a real adoption point for blockchain due to the fact that it shares a number of traits with the already established global phenomenon. It is also a sector that is run and developed by individuals who have a broad understanding of technology and who are not scared of innovation.

Whilst the mainstream world may struggle to understand the gaming economy, the fact that eSports has a huge viewership and following, very much the same as blockchain, is too much of a coincidence for it to be ignored. Bearing this in mind, we must consider that blockchain could find its perfect place within the existing gaming ecosystem.

The perfect catalyst

The possibility of cryptocurrency being the perfect catalyst for blockchain was scuppered by greed. Its adoption was driven by uninformed investors and bulls who all wanted to simply get rich quick. When the market took an inevitable turn they deserted, leaving Bitcoin in tatters and miles behind in terms of adoption. Whilst there is still a possibility for cryptocurrency to work, especially as the mar- ket is now growing at a more measured pace, it seems that it might have also missed the boat.

When we consider gaming however, the potential of it to be an adoption point for blockchain technology is supported by the presence of a willing and eager target audience within a much more receptive space.

Areas such as fraud prevention, lower commission fees for in-app purchasing, play to earn gaming experiences, and true item ownership with freedom to trade at will are just a few examples of the ways that blockchain and its immutable ledgers can dovetail within the existing gaming industry.

Malta as the perfect location

Malta is also the perfect jurisdiction for businesses looking to work in either of these sectors.

Malta has offered a unique and favourable approach to the iGaming industry, ensuring that a safe and well-regulated market is maintained. Maltese legal framework emphasizes a solution to regulate, rather than restrict, the affairs of the industry.

Ever since Malta became the first EU member to regulate online gaming in 2004, the iGaming industry has steadily grown to embed itself within Malta’s economy, making Malta a world-class iGaming hub where international companies within the industry can operate. Today, online gaming comprises 12% of the Maltese economy, generating €700 million and employing around 9,000 people. Over 330 gaming companies, including giants such as Betsson, Tipico, and Paddy Power Betfair, now call Malta home.

In the recently published Malta Budget 2019, the Maltese Government announced a series of measures to encourage eSports business on the Island, as well as significant investment in supporting blockchain development. This, combined with the country’s ten-plus years as a hub for iGaming and associated industries, puts it at the forefront of this potential new sector. The EU online gambling market is also expected to grow in a stable manner to almost €25 billion by 2020, a figure which further motivates iGaming companies to expand and invest within the industry.

SiGMA

The fifth edition of SiGMA took place between the 28th and 30th of November at the Malta Fairs and Conventions Centre in Ta’ Qali. Positioned at the cutting edge of a very competitive industry, it has evolved into the definitive iGaming showcase. SiGMA 2018 welcomed over 400 sponsors and exhibitors, 200 industry-leading speakers and a record-breaking 12,500 attendees from over 80 countries – solidifying its reputation as a staple in the global iGaming calendar. E&S Group is already at the forefront of the blockchain industry with a background in assisting gaming business operations. The E&S team of experts is on hand to guide and advise those looking to break out into these new digital segments. Send an email on info@ellulschranz.com for further information.