Chiliz, the leading sports fan token platform, has launched its own layer-1 blockchain to fuel its ecosystem expansion. The chain’s genesis block is EVM compatible, and it uses a system of 11 active validators to power a Proof-of-Stake Authority consensus system.
The Chiliz blockchain enables brands, teams and individuals to mint Non Fungible Tokens (NFTs), fan tokens and Web3-ready tickets, develop DApps and web3-based experiences and products. These include in-stadia engagement experiences, watch-to-win collectibles and more.
The Socios Platform
Chiliz is an Ethereum-based platform that allows teams, creators, and artists to create Non Fungible Tokens (NFTs) that connect sports fans with their favorite teams and entertainers. These tokens are tied to specific real-life team members, artists or creators, and give token holders exclusive access to fan clubs where they can vote on decisions within their community.
Tokens can be used for rewards such as merchandise, ticket promotions, and voting in polls that decide a team's uniform or stadium details. The company also offers a service that helps verify the authenticity of sports memorabilia.
Earlier this year, Socios launched an in-app poll where fans could choose a design to be painted on the Atlanta Falcons' endzone during the Falcons' October 31 match against the Chicago Bears. The campaign was an attempt to amplify fan engagement and increase the number of token holders.
Socios has been partnering with sports teams and leagues to develop fan tokens that help them engage their fans, including FC Barcelona and Paris Saint-Germain. The platform has also partnered with the UFC to create player tokens based on the Ethereum blockchain.
The Socios Platform has grown to include more than 160 sports teams worldwide, with a total of tens of millions of token holders. While the business has a relatively small presence in the United States, Socios is actively seeking out more teams to join its network.
CHZ, the token that powers the Socios Platform, has proven resilient in the face of crypto market volatility. The native currency is compatible with both ERC-20 and BEP-20 standards, so it can be used with any Ethernet-compatible wallet. Users can also use hardware wallets to keep their funds safe from hackers, such as solutions from Ledger, Trezor, KeepKey, and Prokey.
As a result, chiliz has maintained its market cap and a healthy trading volume, which means it has the potential to outperform other popular coins in the future. In addition, the Socios Platform is built on a layer-1 blockchain with 11 active validators that are PoSA-compatible, enabling faster transactions at lower fees.
The Socios Platform will continue to expand with new features and innovations to better serve fans, teams, and their partners. For example, it will add a new sports memorabilia authentication service called GameUsed that uses NFTs to confirm the authenticity of items like tickets or match-worn shirts. Eventually, the platform will offer in-stadia experiences that let fans play games to win collectibles from their favorite sports teams.
NFT Ticketing Pilots
Ticketing has long been a sticking point in sports and entertainment. Conventional tickets are easily counterfeited and often require lengthy verification processes that can cause bottlenecks and delays at the venue. This has led to a growing demand for digitization. NFT-based ticketing eliminates the threat of counterfeiting and provides fans with a variety of exclusive experiences.
A recent pilot program from soccer club Lazio aims to address this issue by using NFTs to authenticate and validate event tickets. NFTs contain unique QR codes that can be used to verify a buyer’s identity. They can also be used to gain access to specific areas of the stadium.
This system is said to significantly reduce the risk of fraud at sporting events, as well as increase revenue for teams and promoters by funneling a percentage of future secondary sales into tickets owned by team owners. The NFT-based system also makes it easier for consumers to verify the authenticity of their ticket.
For example, after a NBA game, fans can trade their NFT “ticket stubs” for other tickets, allowing them to earn passive income from future secondary market activity. It’s a win-win situation for the league and fans alike.
Another NFT-based pilot is the NFT Digital Fan Store, a virtual storefront that offers club products in the form of NFTs. This will allow clubs to sell NFTs directly to their fans, and is similar to the way that digital t-shirts are offered on Metaverse.
While these NFT-based pilots are only in their early stages, they offer a glimpse into the potential of blockchain-based fan tokens. NFTs can be issued as collectibles, member passes or perks to a variety of communities and can accrue value over time.
As these pilots grow in popularity, NFT-based memorabilia could become a viable way for artists and promoters to reward fans for attending their shows or buying their products. This could be done by incorporating NFTs into existing fan-club membership models, which would reward holders for their loyalty and encourage them to purchase NFTs for their next show.
Chiliz – a layer-1 blockchain fan token ecosystem – recently validated its genesis block, paving the way for a variety of new uses cases. The chain, which is EVM-compatible, will focus on non-fungible tokens (NFT), Play2Earn games, Watch2Earn sports events and live event ticketing payments. It features a system of 11 validators with a consensus PoSA (Proof of Stake Authority), allowing it to process transactions faster, lower fees and reduce energy consumption.
In-Stadia Engagement Experiences
A stadium is a place of celebration and belonging. It’s where team chants and banners abound, where the atmosphere is charged with fervor and where fans can share in an unforgettable experience. But the COVID-19 pandemic sucked a lot of sports fans away from stadiums and into their couches - leaving teams struggling to fill empty bleachers and generate interest in live sports.
As a result, many stadiums are looking to invest in new technology that will make games more immersive and entertaining – aiming to attract more fans back to the big screen. Whether it’s new LED screens, augmented reality or crowd control, there’s a lot of innovation taking place around the world to re-invigorate fan engagement at sports venues.
With smart sensors, displays and a mobile app, stadiums can streamline crowd flow, keeping the lines short and eliminating bottlenecks and delays. They can also display real-time information to inform visitors where they’ll find the shortest entry point for a game and where parking is available.
Meanwhile, teams can use gaming and polling technologies to engage directly with their fans via their smartphones. It’s a way to reward loyal supporters and boost concession sales. For example, a quiz might ask fans to answer a question about their favorite player to win a prize such as a free pretzel or beer purchase.
The Chiliz layer-1 blockchain fan token ecosystem is expanding to include a range of new features, such as non-fungible tokens (NFTs) and Play2Earn games. It will also allow teams to issue branded fan tokens that can be traded for exclusive benefits on the Socios app.
A key element in the ecosystem is the native token CHZ, which will power all decentralized applications and smart contracts running on the platform. It’ll pay gas fees and enable cross-chain operations, such as transferring token assets between Chiliz Chain 2.0 and Ethereum.
As the stadiums of the future are reimagined to make it easier than ever for teams to entice and engage their fans, they need to ensure that every touchpoint is connected under one ecosystem to deliver a unified experience. This is key to building brand trust and loyalty – satisfied fans attend 40% more in-person games and spend 25% more per ticket.
Watch-to-Win Collectibles
Non-Fungible Tokens (NFTs) are a fast-growing category of blockchain technology, with sales surging again in August to reach $1.9 billion. The market is dominated by digital collectibles, and the appetite for these items seems insatiable.
Despite their popularity, NFTs are only one use case for blockchain technology. However, the ability to mint NFTs that are based on key gameplay moments is a very powerful option for content creators.
NFTs are also used to reward fans for their support, offering them perks such as special team event access or autographed items. Fan tokens have been gaining massive popularity in the football world, but they are also being offered across other sports such as racing, tennis and esports.
On Chiliz’ Socios platform, clubs can partner with Chiliz to create a unique fan token, which can then be offered for sale to fans on the Socios marketplace. Clubs can also use their fan token to participate, influence and vote in club-focused surveys and polls.
In addition to the Socios Platform, Chiliz also offers a Watch-to-Win Collectibles ecosystem that fuels the platform and allows fans to earn NFTs for watching their favorite content creators. These NFTs are backed by a PGEM token, which powers the broader ecosystem and powers the community.
As the number of NFTs continues to increase, Chiliz is working on ways to expand its ecosystem and add more use cases for its layer-1 blockchain. In order to do this, Chiliz will be partnering with a variety of sports and entertainment brands.
With the help of these partners, Chiliz will be able to add new types of sports and entertainment-related NFTs to its Socios platform. These will include sports-related branded tokens, which can be exchanged between users in a secure and transparent way.
For example, the NHL has partnered with Chiliz to create a watch-to-win collectibles ecosystem for its NHL Winter Games. The NHL will be using the platform to release NFTs based on specific game moments during the event.
Additionally, Chiliz is partnering with Sony to create a watch-to-win crypto collectibles ecosystem for its PlayStation Stars loyalty program. This will allow PlayStation Stars members to earn PGEM for watching videos, listening to podcasts and participating in other activities on the platform.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.