You may have heard and rejected the term ‘blockchain’ as a fad, a mock word, or even technical jargon. But I think that blockchain is a technological advance that will transform financial services and many other companies and industries with broad implications. Blockchain is a distributed database, which means that not everyone has a connection with a standard processor with storage devices for a database. The world of sport has begun to see a rise in the number of people investing in cryptocurrencies, and athletes have started buying cryptocurrencies.
In sports, there is a lot of potential in blockchain terms, and we are here to analyze those factors. In the sports arena, the industry has expanded, and cryptocurrency has spread. Cryptocurrency with open arms was welcome in the sports industry because the users did not hesitate. This new mode of payment has been made available to the public, and many people in the sports industry have taken a flag. Check here for more details here.
Uses of crypto and blockchain in sports
Apart from traditional physical games, clubs can expand their brand online and satisfy the requirements of younger ‘digital-born fanbases to increase fanbases and secure their long-term future. Consider the top five blockchain uses cases in the following sports and eSports.
Fan tokens are popular because they can produce additional revenue streams for teams and increase engagement dramatically. Fans may purchase tickets via the FIAT currencies, like dollars, pounds, and euros, and trade tokens, like the VIP ‘, meet the player’s experience for merchandise, collections, and exclusive interactions. Fans successfully use fan tokens to raise incomes and communicate with their supporters from Manchester City to Barcelona’s FC. The first round of fan tokens sold out in less than two hours by FC Barcelona, for example, is $1.3 million.
By using blockchain sports technology to issue their virtual currencies, fans can interact in a virtual ecosystem with the club, the players, earn points, and obtain discounts. Tokens also allow fans to feel participated by voting rights — for initiatives like the goal song or the color of the training kit — to participate in the decision-making of a club. Fans tokens can also support clubs when communicating with fans overcoming distance challenges. It is estimated that FC Barcelona has about 450 million fans worldwide who are now available through blockchain technology. This helps clubs to engage and develop international fan bases in blockchain sports technology.
Crypto collectibles and sports
Another “crypt” is the NFT, which gains momentum in sports. NFTs offers various unique tangible items, including collectible sports cards, virtuoso property, and even digital sneakers stored in digital wallets. An interchangeable NFT is not possible. Each NFT is a digital item of a single kind. NFTs also contain unique and easily verifiable information on a blockchain network – each accrual value cannot be replicated because of the absence of each specific NFT. For example:
- Top Shot of NBA providing an NBA-licensed collection of digital objects. It is a trading card system based on a blockchain system with gross sales of over US$230 million. This service allows users to purchase and sell short clips from top basketball players showing match highlights.
- FC Bayern Munich has been reporting a partnership with the Sorare fantasy Ethereum blockchain game. The platform offers players the opportunity to purchase and sell digital limited-publishing football cards and the opportunity for collectors to trade player cards.
Loyalty and fan engagement platform
Fans of loyalty and engagement platforms that help teams promote a community feeling and membership among the fans include other use blockchain cases in sports. The fans can be rewarded for taking specific measures through these blockchain platforms, like interacting with club sites, building, sharing, loving content, or collecting rewards or points on merchandise, tickets, and digital collections through loyalty programs. This not only is a great way to engage and build an entire society with fans, but clubs can also help loyalty and platforms foster relations with their sponsors. The transparent nature and immutability of blockchain act as insurance on the integrity of the metrics and insights derived from fan-related interactions.
Blockchain for ticketing
Blockchain sports technology is also applied at the ticketing level to make purchases, storage, and even transfer tickets between owners or events more straightforward and safer. Given that the data on the blockchain is unchangeable, no one can claim a ticket or a price has been bought falsely. In addition, the whole reorganization process is easier for both organizers and end-users if the sports equipment is postponed or delayed.
Challenges are met by the sports industry directly by currying their fanbases, increasing involvement, building loyalty, confidence, and efficiency with its flexible nature, and applying to almost any use case.