How the relationship between NFTs and esports can thrive

Non-fungible tokens have taken over the world over the past few months and it has even breached esports. Some event orgs and even teams have shown their support for the project. Let’s dive into what needs to happen for it to thrive in this space made for gamers.

When people discovered NFTs, it’s obvious that people were sceptical of what was going on with the project. It was centred on crypto and obviously, some people were opposed to it given that crypto has a bad rep around the world. While people have talked about some problems with NFTs, it does more good than harm as opposed to what people think.

People have embraced NFTs, they have benefited from the projects that have been created in the scene. You can see some people make artworks or other kinds of NFTs and see the versatility of this product. Before we talk about the esports side of NFTs and possible free CSGO skins integration, let’s talk about the quality of NFTs and how they can be the future of content not only in crypto but in the mainstream as well. 

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What are NFTs and how does it work?

Just like cryptocurrency, NFTs are assets that come and are rooted in the blockchain. You’re probably familiar with the blockchain system through your interest in crypto since it is the one that makes the crypto space work. NFTs are normally held in the Ethereum blockchain which is one of the most well-known around the world.

An NFT is created or ‘minted’ from digital objects and they can represent tangible or intangible items. These include artworks, GIFs, collectables, video game skins, and many more. There are thousands of possibilities with NFTs and they will only keep growing in the future. 

Even tweets have shown to be an NFT just like Twitter co-founder Jack Dorsey did when he sold his first-ever tweet as an NFT. That was worth around $2.9 million which is insane and it shows the potential value. 

NFTs can be looked at just like the physical collector’s items that you see but this time it’s just digital. The user will also get exclusive ownership rights over the NFT which means they always have a unique piece. Artists can even sign the pieces which can prove their authenticity. 

NFTs are different from cryptocurrency because they are usually fungible. That means they can be traded or exchanged for one another. They are also equal in value since 1 US Dollar is always worth 1 USD and 1 Bitcoin is worth 1 BTC. Its fungibility makes it a trusted means for transactions on the blockchain. With NFTs, they have a digital signature that makes it impossible to exchange for one another.

An example of this is with the popular NBA Top Shot NFT which is not equal in value to any other NFT. There is a possibility that the Top Shot clip can be equal to another but other NFTs won’t be the same.

Are there drawbacks to NFTs?

While there are so many positives with NFTs, there are people who are not yet convinced of their validity. Prominent crypto personality Arry Yu talked about this topic. She said, ‘NFTs are risky because their future is uncertain, and we don’t yet have a lot of history to judge their performance. Since NFTs are so new, it may be worth investing small amounts to try it out for now’.

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How does one buy an NFT?

If you want to start an NFT collection, you will need some key assets. First, a digital wallet is needed since this is where you will store either your NFTs or your crypto coins. If you have the wallet already, it’s time to buy some crypto coins using a credit card on multiple platforms around the internet. When you get the coins, you can finally move them from the crypto exchange to your wallet and promptly use them.

You might want to look into NFT marketplaces where you can buy some assets. Sites like OpenSea.io, Rarible, and Foundation are all great places where you can buy NFTs. You will have thousands of choices there and you only have to search for the ones you want to buy. There are also some pages where you can browse and find the pieces you want. They are also put into categories that will be easy to browse and pick from. Let’s dive into what makes these platforms the best choice for you.

OpenSea is a peer-to-peer platform where you can buy some digital items and collectables. They have collections available and you can browse them pretty easily. There are also options to sort the order where you can see sales volumes and even find out about new artists.

Rarible is pretty similar to OpenSea because it allows people to both buy and sell NFTs. Community rules play into how it’s run, which is pretty cool since the groups are tight-knit and you can talk to some people through platforms like Discord and Telegram.

Lastly, Foundation is one of the most in-depth places in the NFT space since you can receive upvotes which signal boosts your profile to the top. You will be rated highly and the pieces you sell might get a kick-up at price too. This place is also known for the site where the Nyan Cat NFT was sold when creator Chris Torres sold it on the platform. 

You can help all of the artists or creators by buying their NFTs and possibly promoting them too. They will be grateful since they will be paid for their efforts since more people will appreciate the work they did. 

NFTs in esports

Now that we’re well aware of the basics of NFTs, let’s talk about its growing presence in esports. There have been some teams that have embraced crypto in the past but NFTs are a recent trend. One of the biggest orgs in esports, two-time Dota 2 The International winners OG broke into the scene when they minted and released a digital copy of the 2018 Dota championship ring. 

It was well-designed and represented the OG brand well. Using that, they managed to secure a partnership with Binance NFT. OG CEO JMR Luna talked about how much this means to the team since they’re committed to leaving a lasting impact on the NFT space. 

‘I am very proud that Binance.com chose OG Esport as their first Premium Esport drop for their new venture into NFTs’, Luna said. ‘This is a testament to the great work we have been doing in the organization, and in the world of NFTs and Fan Tokens. We have been working with Binance since December 2020, and they have been great to work with, and we are confident that this will be one of the many projects we will do together’.

OG is a top-tier esports team and many should follow in their footsteps since they can influence so many other teams. They are not the only team that has dipped their foot into the market since orgs like Natus Vincere, Sentinels, and 100 Thieves have also released some tokens based on images of their past achievements, cards and many more.

It should not be surprising that esports is one of the first industries that has embraced NFTs because it’s already a technologically advanced space and it will keep doing so with innovations. If they can keep this going, you can expect esports to be riddled with NFTs all over the place which will be good for the market’s growth since esports is a big scene.

Esports give NFTs a good platform because the scene’s fans are very supportive and passionate about all kinds of content these teams put out. If it can help the players they support, they will gladly buy it. As long as the org is honest and upfront with the fans, you can expect them to purchase these NFTs since it goes a long way. 

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Will there be legal issues?

Top Shot is one of the top NFTs in the market and it is that strong due to the support of the NBA. They are licensed which is why those highlight clips are given the okay to be sold as NFTs. In esports, there might be a problem with this since the licensing of highlights and in-game items might be tricky to work with. 

In the meantime, esports orgs need to find the right balance between not using too much of the content to avoid some legal trouble. There will come a time when something similar to Top Shot will happen with esports but since the NFT space is varied, you can expect more diverse content for the scene for the foreseeable future. 

Teams have shown their support for the project and it should continue to be boosted by the players and fans. It is a fun way to support the teams and it also innovates a scene that has proven to be the leader when it comes to innovation. 

In the future, anything is possible with NFTs since it has boundless potential. We might even get integration into the games themselves. Imagine a Counter-Strike game where you will see free CSGO skins that were funded and designed by the crypto and NFT space. This is just the start because there is so much to come with NFTs in esports.

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Words: Pocholo Magsino