In the last two decades, fantasy sports have become one of the fastest growing and most profitable online industries, with a current market size of $ 18.6 billion and expected growth of $ 48.6 billion by 2027. The pandemic has further strengthened its sector outlook, with more than 59 million people actively participating in the game in the United States and Canada by 2020.
For those unfamiliar with this field, fantasy sports are an online competitive game, where “managers” can put together a virtual team of real sports players. After that, fantasy points will be earned based on actual statistics, and the manager will play his team against the teams of other managers. Like real professional team sports, players keep their rosters up-to-date by adding, removing, trading and selling players.
The online fantasy sports industry is expected to continue to witness high growth rates, driven primarily by the launch of new mobile applications, such as those recently launched by DraftKings, MPL and Dream11. However, these industry leaders face the same problem that is common in other similar types of online games: information asymmetry. The platform makes money based on a percentage of rake that depends on the number of players, but the number of players and their bets are unclear and require blind faith by the players.
Game creators have often been criticized for displaying high payments and boasting fake winners in order to create “fear of oversight.” As a result, fantasy sports are notorious for their tendency to bet on fraud, match-fixing, game correction, and data manipulation for the benefit of game creators. One example of this was the 2015 NFL season scandal, where DraftKings employees were suspected of using insider information to bet on rival fanduel. Employees took $ 350,000 home with a $ 25 bet and began a series of investigations into both companies by the Attorney General of New York. Both companies were suspected of using insider information to create the team.
Lack of industry transparency makes it a perfect candidate for blockchain innovation, as it helps technology track data related to teams, winners, and prizes in a timeless manner. Many of the largest brands in the gaming industry have already adopted blockchain technology to improve the user experience. Fantasy sports platforms Sorare, MLB Champions and NBA Top Shots have already generated over $ 10 million in sales by incorporating blockchain technology.
According to Messari’s Mason Nystrom “The digital native ecosystem experiences the most direct synergies with crypto networks. In the sports industry, this is the fantasy sports industry where crypto first intersects the world of e-sports and is physically adjacent. Means to intersect with. “
DeFi11, the latest player in the scene, is trying to take advantage of this trend by leveraging blockchain technology and using Ethereum Layer-2 Matic’s Polygon to check for abuse in fantasy sports. Backed by crypto accelerator TDeFi, DeFi11 has launched a decentralized gaming ecosystem to create games that are completely transparent to player data, timestamps, team selection processes and more. With smart contracts, you can see the winner without revealing your identity while maintaining your privacy. The amount of the winning pot can also be checked on the chain, eliminating the financial risk associated with betting. The company has already partnered with the popular gaming platform Vulcan Forged DeFi Gaming Coalition and the art platform Artefy.
DeFi11 is headed by New Delhi entrepreneur Ritam Gupta. He started his career with blockchain technology with limited experience and full motivation in a typical “tattered wealth” story. After graduating from Maharajas Large Mar Institute of Technology, Gupta climbed the ladder of EMEA Blockchain Labs in Banking, Cybersecurity and Deloitte. Gupta then moved the team to the UAE and built a vision at the ever-growing Dubai blockchain hub.
“DeFi 11 wasn’t just an idea for me. There was always an effort to build a real utility for blockchain. We are the best for the gaming industry to incorporate blockchain into the lives of the average consumer. I’m confident that blockchain will eventually revolutionize the game. “ Ritam Gupta, Founder and CEO of DeFi 11.
DeFi11 is backed by a global roster of investors such as GBV Capital, Kyros Ventures, Protocol Ventures, AU21 Capital and A195 Capital.
“DeFi11 is a pioneering gaming platform that offers all the best ways to enjoy fantasy sports (blockchain games, betting, NFTs, DeFi) at the fingertips of all fans. Working with DeFi11 to innovate We are pleased to be able to promote and rebuild the future of fantasy sports. ” Leslietum, a partner of GBV Capital.
As blockchain technology, NFTs and cryptocurrencies continue to become mainstream, games will become a natural touchpoint for first-time users. The best applications lay the foundation for digital ownership and monetization, provide a high level of trust, and most importantly, you won’t feel like we’re using blockchain technology. With celebrities and game giants taking the lead, this space continues to be open for innovation.