Blockchain technology has been around for some time now, as the concept was first introduced by Satoshi Nakamoto back in 2009.
Originally used solely for cryptocurrencies, today we are seeing a growing use for these digital ecosystems outside of the financial industry, in particular, sports and entertainment. Let’s look at some key examples of this.
Fan engagement and participation
One of the most effective ways blockchain has been used in sports is through unique fan engagement models and loyalty programs. Traditionally, fan participation in team activities has been largely symbolic (voting on public polls or sharing opinions online). However, sports blockchain platforms, such as Chiliz, are changing this with fan tokens.
Fan tokens are an official digital asset tied to a specific sports team, from football and basketball to Formula 1. Holding them gives fans access to exclusive content, VIP experiences, opportunity to win prizes and even voting rights on certain team decisions (e.g. kit designs). Thanks to the web3 infrastructure, the purchase or exchange of valid tokens is highly secure, allowing teams to implement a wider range of loyalty and reward schemes to real fans.
Digital collectables and memorabilia
Memorabilia has always been a huge part of the sports and entertainment industry, as fans purchase physical items from their favourite teams and players (i.e. a signed football shirt or a boxing glove). Blockchain sports technology has opened up a new avenue for this – digital collectables, also known as NFT (Non-Fungible Tokens). Similarly to fan tokens, certain NFTs can provide fans with exclusive perks or access.
Just like physical memorabilia, NFTs are unique, one-of-a-kind digital assets that come in various forms, from video highlight “moments” to player cards. Using dedicated blockchain platforms, fans can safely trade and collect the items, verifying their authenticity. Digital collectibles can increase or decrease in value, so they are often seen as a type of investment.
Blockchain-based event ticketing
Event access and ticketing is another area in which the web3 infrastructure is becoming increasingly influential. Traditional ticketing systems tend to deal with a lot of issues such as lack of transparency and fraud, which affects both organisers and consumers. Reselling or exchanging tickets has always been a risk, unless done through the official seller.
Blockchain-based ticketing introduces smart tickets which maintain a transparent record of ownership at all times. This means that ticket holders can securely buy or transfer tickets from fellow fans, minimising the risks of fraud. In fact, automated resale controls can be embedded within these systems (e.g. price caps can be enforced to limit scalping, while real-time tracking helps maintain the authenticity of the tickets). Not just that, smart tickets also allow original issuers to receive royals from secondary sales, creating new revenue streams too.
Transparency as a priority
It’s clear that blockchain platforms are revolutionising sports and the broader entertainment industry, opening up brand-new ways to turn viewers into highly-engaged participants. But, even more importantly, this technology is offering a level of security and transparency that has previously not been possible.
