Blog Dec 30, 2022

Blockchain and AI in the Esports industry

Blockchain and AI in the Esports industry

Imagine a safe, user-friendly ecosystem for every Esport stakeholder that provides limitless opportunities for every engaged user. No matter if you are a manager in a gaming industry, a player or a fan who bets on a team fighting for a win, blockchain technology will completely change the perspective you have on Esports.

In this article we will:

  • Explain how big is the gaming industry;
  • Explore how blockchain is being used in the world of Esports;
  • Discuss the potential benefits of implementing blockchain technology in the industry;
  • Study the opportunities that Artificial Intelligence creates for Esports;



Growth of Esports

The Esports sector is one of the world’s fastest expanding, especially thanks to generation Z. According to Statista, it is predicted to be worth $196 billion in 2022. Players compete against each other, individually or in teams, in multiplayer video game tournaments across the world. With the emergence of blockchain technology and AI, which are changing the landscape of this industry, the gaming sector will grow in size and scope.

blockchain esport


Blockchain in Esports

Blockchain technology continues to significantly impact the world of Esports. This solution is a digital ledger in which transactions are recorded and verified using cryptography. Therefore, it has a potential to revolutionise multiple different industries, including the world of competitive gaming. Blockchain improves transparency, security, and fairness of the operations, thus it is an accurate tool to tackle challenges faced by Esports.



Blockchain in Esports: benefits

1. Transactional safety

One of the biggest advantages of blockchain is that there are no third parties and intermediaries when it comes to proceeding with transactions. No governments nor banks have control / influence over cryptocurrency agreements. Blockchain consensus methods provide the immutability of crypto transactions.

Blockchain Decentralised Apps (DApps) use smart contracts, which are self-executing contracts with terms of an agreement between buyer and seller directly written into lines of code. These may be used to automate the process of prize distribution, salary payments, and other common transactions within the industry.

This can help to make the Esports industry more efficient and allow for more seamless interactions between all parties involved. Moreover, users can also protect their digital assets with secure hardware wallets.

2. Trustworthiness in Esports

Among crucial obstacles encountered by the Esports industry, the issue of trust is one of the greatest significance. It can be troublesome to verify the legitimacy of various transactions and interactions, since Esports is a largely digital and decentralised industry.

Blockchain technology offers a solution to this issue. Blockchain allows for a safe and clear way to conduct business within the Esports industry due to the use of cryptographic techniques to verify transactions. They reduce the number of frauds and ensure that all parties involved in a transaction are operating in a good faith.

On top of that, there are smart contracts which eliminate the concerns about the unfair distribution of prizes. Additionally, blockchain can be used to reduce the number of match-fixing. Recording and verifying all the matches help to ensure that they were played in a fair way.

3. Decentralised Esport platforms

Not only casual gamers, but also game devs, sponsors and media are the stakeholders in the Esport industry. A decentralised platform like that may bring all of these parties together and establish beneficial connections. Such a platform could enable the creation of the tournaments and management of the distribution of prizes, media rights, sponsorships and advertising.

4. Jobs in Esports

This part may be interesting, especially for Generation Z which is the largest part of Esport consumers. Blockchain technology may provide skilled amateurs with the opportunity to earn money. It can also help in gaining recognition from sponsors or professional teams.

A reliable place where all statistics are gathered and analysed under the name and an avatar of a talented player could attract business partners and help to raise stars and build their future careers. It is a major opportunity for amateurs to become professionals.

5. Cost reduction

The use of blockchain reduces the cost of maintaining and running a secure database. The technique is built on a peer-to-peer network and includes redundancy inside the distributed database.

With blockchain platforms such as Ethereum, devs are finding it easier to create a blockchain-based DApp. Blockchain lowers the operating costs of an Esports platform and, as a result, lowers the cost of organising and managing competitions around the world.

6. Fan Engagement

Marketing specialists in the Esport industry are continuously creating new ways to reward users with different incentives and loyalty models. Using blockchain, Esport fans can be compensated for their involvement with different tokens like the NFTs.

There are many different conceptions of how to use such tokens. For example, unlike conventional loyalty points, viewers may swap tokens for fiat cash or other crypto using cryptocurrency exchanges. They can also save these digital assets hoping that their worth will rise in the future.

In addition, some businesses are using blockchain to generate digital collectables that can be utilised to engage in special events and promotions. This can contribute to the development of a more lively and engaged Esports community.





Blockchain in Esports: use cases

As it was mentioned above, there are several ways of blockchain use in Esports, but what does it look like in practice?

  • Users who are attracted by different perks and rewards provide tons of insights and data that can be very useful. An engaged community is the key for sponsors;
  • Using gathered data may help you develop an efficient marketing strategy towards the users;
  • Gaming collectables, tokens and NFTs are being purchased by the engaged community. This is a vast new source of income;
  • Smart contracts can be programmed so that the organiser gets some per cent of every next purchase on the secondary market.



AI in Esports

Just like blockchain, AI (Artificial intelligence) is also being increasingly used in the world of Esports. AI contributes to altering the way competitive video games are played and watched.

– AI data analysis

AI is being used in Esports in the analysis of game data. This can include everything from tracking the movements and actions of individual players, to analysing the overall performance of a team. By using machine learning algorithms, it is possible to identify patterns and trends in the data that can help coaches and players improve their performance.

Such an AI-powered system can assist scouting teams and efficiently judging player performance. Videos may be analysed using AI skills such as picture recognition. Machine learning is capable of analysing massive data sets and providing insights to scouting teams. In result, that may attract sponsors who want to be business partners of promising gamers.

– AI betting

AI can also be used to generate real-time stats and graphics that can help spectators understand what is happening in a game, and to make predictions about the outcome. AI and data science can work together to derive high-quality insight from these data sets. This help in data analysis may be very useful both for people who bet (betting tips based on data analysis) and for bookmakers. 

– Fan Experience

Additionally, AI is also being used to enhance the spectator experience of Esports. For example, AI-powered cameras can be used to automatically follow the action in a game, providing viewers with a more engaging and immersive experience. 

Parts of this paragraph were created by ChatGPT artificial intelligence, after entering the command “How can AI help the esports industry?”.



Esports is without a doubt one of the most promising industries for the upcoming years. With fully-digitised Generation Z and Generation Alpha coming to the market, you should know how to attract them using the newest technology. 

If you would like to know more about what TISA can offer you when it comes to ESE (Entertainment, Sports and Esports), check our Success Stories on our website or contact us directly. We will be happy to discuss your case!