Blockchain, AI leading the future of skill-based gaming in India

With over 954 million internet users, India is witnessing a massive transition toward mobile-first experiences. The skill-based gaming industry has seen significant growth thanks to rapid technological advancements and a tech-savvy youth population.

Artificial intelligence (AI) and blockchain technologies will be game-changers, making these platforms more engaging, secure, and transparent. They are helping create an ecosystem that resonates with a growing, diverse player base.

How AI elevates user experience and personalisation

AI has managed to transform the gaming experience in India significantly by offering players personalised experiences. Skill-based games rely heavily on strategic decision-making and player reflexes, and hence, AI’s role in understanding user behaviour becomes especially valuable.

AI algorithms can analyse players’ habits, preferences, and skill levels to provide a customised experience. AI can suggest game challenges and content that aligns with individual skill levels, keeping engagement high by tracking player progression.

Fair play is a challenge in India’s skill-based gaming market, especially when cash prizes are involved. AI can help detect and prevent fraud, identify unusual patterns or gameplay that suggest cheating, and encourage a level playing field.

AI-powered chatbots also enhance customer service by providing personalised assistance. 

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How blockchain brings transparency and security

Recording gameplay moves on a public blockchain ledger and creates an immutable record that ensures fairness, particularly in games that involve financial transactions.

In gaming, players often lack true ownership of in-game assets. Blockchain’s decentralised nature allows players to securely own and trade virtual assets like skins, points, or special abilities. It enriches the gaming experience and creates a new market for digital assets within the gaming community, offering players the freedom to monetise their gaming achievements.

When it comes to instant and transparent payouts through smart contracts, blockchain plays an important role. This is especially beneficial in skill-based games, where prize money is involved.

Instant automated payouts provide players with trust and assurance that they will receive their rewards without delays or hidden fees. Blockchain also helps minimise tampering and fraud by storing player actions and game results on an immutable ledger—a necessary ask for the gaming audience who demand fairness in competitive gameplay.

Why blockchain is the solution

Blockchain is a secure, tamper-resistant digital ledger that operates across millions of interconnected nodes, each storing encrypted copies of records. Rather than relying on a single record keeper, blockchain disperses data storage across these "nodes", creating a vast network of decentralised record-keepers.

Recognising blockchain’s potential, several state governments and regulatory bodies in India have already started to implement and adopt this innovative technology. On May 29, 2018, the Telecom Regulatory Authority of India (TRAI) issued the draft Telecom Commercial Communication Customer Preference Regulations, 2018, to tackle unsolicited commercial communication (spam) for telecom users.

TRAI adopted the Distributed Ledger Technology—commonly known as blockchain—as the regulatory technology for these regulations. TRAI noted it as the first large-scale application of blockchain technology in the telecom sector.

Tamil Nadu's Blockchain Policy 2020 recognised blockchain’s immutability and introduced a state-wide Blockchain Backbone, offering Blockchain-as-a-Service (BaaS) for decentralised applications. Managed by the Tamil Nadu e-Governance Agency, the policy included committees for security standards, guidelines for government blockchain use, and creating a sandbox environment for testing e-governance applications.

The Securities and Exchange Board of India (SEBI) has directed all its depositories to create, host, and maintain records of all its users and transactions using blockchain technology to record and monitor the creation of securities and the covenants of non-convertible securities. 

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Combined power of AI and blockchain: A synergistic future

AI and blockchain together create a dynamic, fair, and personalised gaming experience. AI can analyse data in real time, while blockchain ensures the security and transparency of that data, leading to a better environment for players and developers alike.

AI can dynamically provide the most tailormade experience for a user, while blockchain ensures that tournament results are secure and rewards are distributed transparently.

Blockchain allows game providers to tokenise rewards, creating a micro-economy where players can earn, trade, or invest their in-game rewards. AI can personalise these rewards based on player engagement, providing incentives to keep players invested in the game.

India’s regional diversity poses unique challenges to user engagement. AI can cater to regional preferences, languages, and gaming styles, while blockchain technology ensures access to games with consistent, fair rules across the board.

The path ahead for India’s skill-based gaming ecosystem

While AI and blockchain hold immense potential, the journey isn’t without its challenges. India’s regulatory landscape for online gaming is still evolving, and integrating AI and blockchain requires investment in technology and education for users.

Despite these hurdles, the market is projected to grow significantly with the help of digital adoption, high smartphone penetration, and increasing acceptance of online gaming.

AI and blockchain technologies are setting the stage for a tech-first future in India’s skill-based gaming sector, creating a transparent, secure, and immersive experience. With the potential to engage millions of players, enhance fair play, and create economic value, India’s gaming ecosystem will transform entertainment and contribute meaningfully to the digital economy.

Sai Mushyam is the SVP - Data and Strategic Initiatives at Zupee.