Smart Contracts for an eSports App

In the dynamic world of eSports, where competition thrives and digital prowess reigns supreme, technological advancements continue to reshape the landscape. One such innovation that has garnered significant attention is the integration of smart contracts into eSports applications. These digital agreements, powered by blockchain technology, offer a host of benefits that can revolutionize the way eSports platforms operate. 

From bolstering security and transparency to streamlining transactions and fostering trust among participants, smart contracts hold the potential to usher in a new era of efficiency and security in competitive gaming. In this blog, we’ll explore the transformative power of smart contracts within the eSports ecosystem, uncovering their diverse applications and the impact they could have on the future of competitive gaming. Join us as we delve into the realm of smart contracts and unlock the possibilities they offer for the world of eSports.

What is an Esports App?

An Esports app serves as a comprehensive platform tailored to meet the unique requirements of the competitive gaming community. It seamlessly integrates a plethora of features aimed at delivering an immersive and captivating experience for gamers. Some of its popular features can be,

  • Live Streaming: Watching tournaments and matches live, staying updated on the latest events, and following favorite teams and players in real time.
  • Tournament Organization: Easily organize and manage gaming competitions, from player registration to match scheduling and prize distribution, all in one place.
  • Player Profiles and Stats: Explore detailed player profiles with comprehensive statistics and achievements, gaining insights into performance history and fostering community engagement.
  • Social Features: Engage with the gaming community through chat functionalities, forums, and discussion boards, encouraging dialogue, collaboration, and experience sharing.
  • Content Monetization: Support content creators by offering avenues for monetization, including pay-per-view, subscriptions, and microtransactions, contributing to the vibrant Esports ecosystem.

Also read, “AR-Enabled Gaming App – Complete Walkthrough”

What are Smart Contracts?

Smart contracts facilitate the true ownership of the assets inside the game for the players. It represents them as unique digital tokens on the blockchain. These tokens are freely transferable, allowing players to acquire, sell, or trade their virtual belongings on decentralized marketplaces. This empowers players with full autonomy and control over their in-game possessions.

They are computer programs designed to autonomously manage the transfer of digital assets between parties based on predefined conditions. They operate through “if/when…then…” statements coded onto a blockchain. When specific conditions are met, a network of computers executes the contract’s actions.

Here are the key characteristics of smart contracts:

  • Distributed: All parties on the network possess a copy of the contract’s conditions, preventing unilateral changes.
  • Deterministic: Smart contracts execute only when conditions are met, ensuring consistent outcomes regardless of the executor.
  • Immutable: Once deployed, smart contracts cannot be altered, only removed if designed to allow it.
  • Autonomy: No intermediaries are involved; contracts are directly established and shared between parties.
  • Customizable: Smart contracts can be tailored to suit specific requirements before deployment.
  • Transparent: Stored on a public blockchain ledger, the smart contract code is visible to all participants.

Smart contracts automate agreement execution, ensuring immediate certainty for all involved parties without intermediary involvement or delays. They are commonly implemented on blockchain platforms like Ethereum, Solana, Polkadot, and Hyperledger Fabric, among others.

Key Market Takeaways of eSport Apps

According to FortuneBusinessInsights, The esports market has experienced remarkable growth in recent years, with a projected surge in revenue from USD 1.72 billion in 2023 to USD 6.75 billion by 2030, showcasing a robust CAGR of 21.5% during the forecast period. North America, being a frontrunner, dominated the global market in 2022 with a substantial share of 30.34%.

One of the driving forces behind this exponential growth is the escalating trend of live streaming of games. Platforms like YouTube and Twitch have witnessed a surge in viewership, contributing significantly to the revenue stream. This surge is further fueled by gaming investments, rising engagement activities, and the burgeoning demand for league tournament infrastructure.

Key Market Takeaways of eSport Apps

Source: FortuneBusinessInsights

Moreover, the esports market is capitalizing on revenue opportunities emanating from the increased participation of various stakeholders, including gamers, organizers, influencers, and game developers. The allure of international prize money and lucrative income prospects has transformed esports into a viable professional career option, particularly among the younger demographic.

Furthermore, the integration of esports into academic institutions has added impetus to its growth trajectory. Colleges and universities are offering dedicated programs aimed at nurturing gaming skills among students, thus fostering a conducive ecosystem for talent development.

On the revenue front, advertisements targeted at esports viewers play a pivotal role. Brands are capitalizing on the burgeoning viewership on online platforms by showcasing ads during live streams. YouTube and Twitch, in particular, have witnessed a significant uptick in viewership, with respective increases of 6 million and concurrent viewership accolades.

Benefits of Smart Contracts in an Esport App

Here are some of the essential benefits of using smart contracts in an Esport app,

A. Revenue Distribution for Players

The Esports industry has witnessed a significant surge in revenue, yet players often receive only a fraction of this income. Smart contracts offer a solution by automating revenue sharing among players, teams, and organizers. 

These contracts distribute prize pool money automatically based on predefined rules, ensuring a fair distribution of revenue. Moreover, within esports teams, smart contracts allocate prize money according to predetermined conditions, thereby enhancing fairness and incentivizing professional gamers to participate actively.

  • Transparency: Smart contracts are open-source, allowing everyone to view contractual terms and conditions. This transparency fosters trust among players, teams, organizers, and sponsors, mitigating disputes over revenue distribution.
  • Efficiency: The automated nature of smart contracts streamlines revenue distribution, saving time and reducing administrative costs.
  • Security: Hosted on a blockchain, smart contracts provide a decentralized and secure platform, safeguarding against fraud and ensuring players receive their rightful share of revenue.
  • Control to Players: Smart contracts empower players with greater control over their earnings, fostering motivation and improving the quality of competition.

B. Legitimate and Self-Sustaining Ecosystem

Smart contracts play a pivotal role in establishing a legitimate and self-sustaining Esports ecosystem. They ensure transparency and enforceability in player contracts, sponsorship deals, and tournament organization.

  • Transparent Player Contracts: Smart contracts create transparent and enforceable player contracts, automatically enforcing terms related to salary, duration, and obligations.
  • Sponsorship Deals: Smart contracts manage sponsorship deals, automating payment terms to ensure sponsors fulfill their commitments promptly.
  • Tournament Organization: Automated by smart contracts, tournament organization becomes more efficient and transparent, covering aspects such as player registration, match scheduling, and prize distribution.
  • Trust and Security: The secure and tamper-proof nature of blockchain technology instills trust among stakeholders, ensuring fair dealings and fostering community engagement.
  • Community Engagement: Smart contracts facilitate community engagement, allowing fans to participate in events and decisions using blockchain-based tokens.

Also read, “Cloud-Powered Gaming: A Paradigm Shift

C. Player Visibility for Viewers

Blockchain-based platforms enhance player visibility by offering transparent, immutable, and easily verifiable player profiles, statistics, and achievements.

  • Player Profiles: Blockchain-based player profiles include comprehensive statistics and achievements, providing viewers with accurate and unalterable insights into player performance.
  • Statistics and Achievements: Recorded on the blockchain, player statistics and achievements are transparent and permanent, allowing viewers to access and verify performance history effortlessly.
  • Transparency: Smart contracts ensure the visibility of the platform and game rules, helping viewers understand the game better and follow their favorite players closely.
  • Engagement: Blockchain-based platforms incentivize viewer engagement by rewarding participation in community events with tokens.

D. Transparency and Fair Reward Systems

Smart contracts enhance transparency and integrity in Esport apps by tracking match results, preventing match-fixing, and ensuring fair reward systems.

  • Transparent Match Results: Smart contracts record match results on the blockchain, providing transparent and unalterable records for viewers and participants.
  • Preventing Match-Fixing: The immutable nature of blockchain makes altering match results nearly impossible, deterring dishonest behavior and ensuring fair competition.
  • Fair Competition: Smart contracts enforce rules and regulations, ensuring fair competition and transparent reward distribution.
  • Reward Systems: Automated by smart contracts, reward distribution follows predefined criteria, reducing disputes and building trust among participants.

E. No Risks of Match-Fixing

Blockchain technology addresses risks associated with match-fixing and integrity issues by ensuring transparent operations, auditable smart contracts, and immutable transaction records.

  • Transparent Operations: Blockchain ensures transparency in all operations, allowing investors to verify transactions and operations independently.
  • Auditable Smart Contracts: Smart contracts are open-source and auditable, enabling investors to verify fairness and integrity in operations.
  • Immutable Transaction Records: All transactions recorded on the blockchain are immutable, preventing manipulation and providing a reliable record of operations.
  • Preventing Match-Fixing: Smart contracts enforce game rules and reward distribution, deterring match-fixing and ensuring fair competition, thus boosting investor confidence.

F. Support for content producers

Blockchain technology of smart contracts enables content producers to explore alternative revenue streams and implement non-intrusive advertising models, addressing challenges faced in traditional advertising.

  • Alternative Revenue Streams: Smart contracts enable content producers to earn tokens for their work, providing a new revenue stream and incentivizing content creation.
  • Non-Intrusive Advertising Models: Blockchain technology facilitates non-intrusive advertising models, allowing users to opt-in for ads in exchange for tokens, enhancing user experience while ensuring fair compensation for content producers.

H. Dealing with Intrusive ads and Ad-Blockers

Blockchain technology in smart contracts addresses issues related to intrusive ads and ad-blockers by enabling non-intrusive advertising models and ensuring transparency, trust, and security in operations.

  • Non-Intrusive Advertising Models: Blockchain facilitates non-intrusive advertising models, allowing users to engage with ads voluntarily in exchange for tokens, enhancing user experience and advertiser reach.
  • Ad-Blocker Challenges: Blockchain technology mitigates ad-blocker challenges by directly rewarding users for engagement, and incentivizing ad views even amidst ad-blocking trends.
  • Transparency and Trust: Blockchain ensures transparency and trust in advertising transactions, providing verifiable records and fostering confidence among users and advertisers.

Also read, “What Is Web3 Gaming? – Expert Insights For Enthusiasts

How to Implement Smarts Contracts While Developing an eSport App?

Here’s a stepwise guide on implementing smart contracts on an esports app,

1. Addressing Challenges:

In traditional eSports, transparency issues lead to player mistrust, while match-fixing and inadequate rewards plague the industry. Blockchain technology offers solutions by providing transparent transaction records, making match-fixing nearly impossible due to immutable data, and enabling direct peer-to-peer transactions, potentially increasing player rewards.

2. Choosing the Right Blockchain Platform

Ethereum: Ethereum is the most widely used platform for developing decentralized applications (DApps). It has a large and active community, which means you can find plenty of resources and support. Ethereum also has a well-documented Solidity language for writing smart contracts.

Binance Smart Chain (BSC): BSC is becoming increasingly popular due to its lower transaction fees compared to Ethereum. It is compatible with Ethereum, meaning you can use the same tools and languages (like Solidity) for developing DApps.

Polkadot: Polkadot allows for the transfer of any type of data across different blockchains. This interoperability can be beneficial if your eSport app needs to interact with different blockchains.

Cardano: Cardano aims to provide a more balanced and sustainable ecosystem for cryptocurrencies. It uses a unique proof-of-stake consensus algorithm, which is less resource-intensive than the proof-of-work algorithm used by Ethereum.

3. Writing the Smart Contract

You can code smart contracts in an Integrated Development Environment (IDE) like Remix. The contract should be written in a way that it can manage the prize pool, give control to players, make the platform robust, streamline the donation process, and improve in-app purchases.

For example, the smart contract could include functions to:

  • Manage the Prize Pool: The contract could have a function to accept entry fees from players and add them to the prize pool. It could also have a function to distribute the prize money to the winners based on the game results.
  • Give Control to Players: The contract could include functions that allow players to join a game, submit their game results, and withdraw their winnings.
  • Make the Platform Robust: The contract should include checks and balances to prevent fraudulent activities. For example, it could require multiple confirmations before a transaction is approved.
  • Streamline the Donation Process: If your app accepts donations, the contract could include a function to accept donations and keep track of the total amount of donations received.
  • Improve In-App Purchases: The contract could include functions to handle in-app purchases. For example, it could have a function to transfer a digital asset from the app to a player’s account upon purchase.

4. Testing and Debugging

After writing the contract, it’s important to conduct unit tests and simulate different scenarios to ensure the contract’s functionality. Tools like Truffle Suite can be used for testing and debugging. Truffle provides a development environment, testing framework, and asset pipeline for Ethereum, making it easier to manage complex projects. Any bugs or issues in the code should be identified and fixed.

For example, you could write unit tests to check if the functions in your contract are working as expected. You could also simulate different scenarios, such as a player joining a game, submitting their game results, and withdrawing their winnings. If any issues are found during testing, they should be fixed before deploying the contract.

5. Deploying the Smart Contract

Once the contract is tested and debugged, it can be deployed on the chosen blockchain platform. If you’re using the Ethereum platform, you can use Remix IDE to deploy the contract. Remix IDE is an open-source tool that allows you to write Solidity contracts straight from the browser. It also provides features for smart contract deployment and interaction.

During the deployment process, it’s important to:

  • Verify the Contract: This involves checking the bytecode of the contract on the blockchain against the local bytecode. Tools like Etherscan can be used for contract verification.
  • Validate the Deployment Process: This involves checking whether the contract has been properly deployed and whether it’s interacting correctly with the blockchain. You can use the Remix IDE to interact with the contract and validate its functions.

6. Monitoring and Maintenance

After deployment, the performance and usage of the smart contract should be tracked. Tools like Etherscan can be used for this purpose. Etherscan is a Block Explorer and Analytics Platform for Ethereum. It allows you to explore and search the Ethereum blockchain for transactions, addresses, tokens, prices, and other activities taking place on Ethereum (ETH).

During the monitoring and maintenance phase, it’s important to:

  • Monitor the Contract: This involves tracking the usage of the contract and its performance. You can set up alerts on Etherscan to notify you when certain events occur.
  • Maintain the Contract: This involves responding to any reported issues or vulnerabilities. If a vulnerability is found, the contract should be updated as needed. This might sometimes involve deploying a new contract and migrating the state from the old one.

Some Important Case Studies of eSports Apps Using Smart Contracts

Here are some important case studies, you need to know, 

1. eByte eSports Blockchain

eByte Sports Blockchain

eByte utilizes a consortium blockchain, a partially private blockchain where only a select group of nodes can validate transactions. This approach offers advantages for eSports applications, allowing control over transaction validation while maintaining transparency and security. eByte’s innovative use of blockchain technology aims to revolutionize the eSports industry. Key technical aspects include

  • Consortium Blockchain: eByte employs a consortium blockchain, ensuring that only designated nodes can validate transactions, enhancing security and control.
  • eByte Cryptocurrency: Built on the ERC20 token standard, eByte’s cryptocurrency ensures interoperability with other tokens and decentralized applications (DApps) on the Ethereum blockchain.
  • Smart Contracts: eByte leverages smart contracts to automate various platform processes, such as prize money distribution, player transfers, media rights, sponsorship, advertising, and fan engagement.

2. Intergalactic Gaming (IG)

Intergalactic Gaming (IG) is an eSports platform at the forefront of leveraging blockchain technology and smart contracts to revolutionize the eSports industry. Here’s a detailed overview of its technical features:

Intergalactic Gaming

TRON Blockchain: IG operates on the TRON blockchain, a dedicated network tailored for the digital entertainment sector. TRON offers high throughput, scalability, and availability, making it an ideal ecosystem for hosting Decentralized Applications (DApps) like IG.

IGG Token: At the core of IG’s platform is the Intergalactic Gaming Gold (IGG) token, a central token built on the TRON blockchain. IGG serves as a tradable asset within the platform, facilitating various activities such as contributing to prize pools, compensating players, purchasing merchandise, and more.

Smart Contracts

Smart contracts play a pivotal role in IG’s operations, enabling seamless execution of various platform functions. For example:

  • Tournament Sign-ups: Upon a player’s registration for a tournament, a smart contract is triggered to deduct the entry fee from their wallet and allocate it to the prize pool.
  • Prize Distribution: When a player emerges victorious in a match, another smart contract initiates the transfer of winnings from the prize pool to the player’s wallet.

By harnessing the capabilities of the TRON blockchain and smart contracts, IG offers a transparent, secure, and efficient platform for eSports enthusiasts, players, and stakeholders alike.

Also read, “Consider these things before implementing web3 gaming into your web2 strategy


The incorporation of smart contracts into eSports applications marks a significant stride forward in the industry, offering unparalleled transparency, security, and efficacy. Through the utilization of blockchain technology, platforms such as eByte, Twitch, and Intergalactic Gaming are reshaping various facets of eSports, ranging from prize allocation to player remuneration. Smart contracts streamline operations, guaranteeing smooth functionality and cultivating trust among participants. As the eSports sector continues its rapid expansion, the adoption of smart contracts stands poised to further transform the landscape, ushering in a new era of innovation and opportunity.

Looking To Integrate Smart Contracts in Your Esports App?

If you’re interested in integrating smart contracts into your eSports app, IdeaUsher provides comprehensive development solutions tailored to your specifications. Whether you need mobile or web app development, our team of experts can turn your vision into reality. With a focus on cutting-edge technologies like blockchain and smart contracts, we ensure that your eSports platform stands out in the competitive market, delivering unrivaled value to users and stakeholders. Contact IdeaUsher today to embark on your journey towards creating the next big thing in eSports.

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Q1: What are the benefits of smart contracts?

A1: Smart contracts offer numerous advantages, foremost among them being automation. Through the automated execution of predefined actions upon meeting specific conditions, smart contracts eliminate the need for intermediaries, thereby streamlining processes and reducing the risk of errors or delays. Furthermore, by operating on a decentralized ledger, smart contracts ensure transparent and immutable records of transactions and agreements, fostering trust among the parties involved. Additionally, the utilization of cryptographic techniques enhances the security of transactions, bolstering integrity and mitigating the risk of fraud or manipulation. Overall, the efficiency, transparency, and security afforded by smart contracts make them a valuable asset across various industries.

Q2: What is the best use case for smart contracts?

A2: One of the most compelling applications of smart contracts lies in supply chain management. Within this context, smart contracts can automate and authenticate the entire process, from production to distribution. By doing so, they guarantee transparency, traceability, and adherence to contractual obligations among all supply chain participants. Smart contracts facilitate real-time tracking of goods, automate payments upon delivery, and verify product authenticity, thereby optimizing operations, cutting costs, and enhancing trust and accountability.

Q3: Are smart contracts cost-effective?

A3: While there may be initial expenses associated with developing smart contracts, their long-term benefits often justify the investment. Smart contracts reduce reliance on intermediaries and minimize administrative overhead by automating processes and enforcing agreements. This leads to significant savings in both time and resources. Additionally, the transparency and security inherent in smart contracts mitigate the risk of errors, disputes, and fraudulent activities, further contributing to cost-effectiveness. Despite upfront development costs, the potential long-term advantages of increased efficiency and risk mitigation typically outweigh these initial expenditures.

Q4: What are the keys to a smart contract?

A4: Smart contracts operate based on several fundamental components. Firstly, the code defines the logic and behavior of the contract, specifying conditions under which it executes actions. Upon deployment, the contract is assigned a unique address on the blockchain, facilitating access and interaction. Transactions serve as the means of initiating interactions with the smart contract, containing instructions for executing specific functions outlined in the contract’s code. Access to the contract’s functions and data is controlled by cryptographic keys, including public keys for identification and private keys for authorization and transaction signing. These keys ensure the security and integrity of the contract’s operations, safeguarding against unauthorized access and tampering.

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