Application of Blockchain in Sports

As blockchain technology advances, it is proving to be a valuable tool across various industries, including sports.

FREMONT, CA: Blockchain applications in the sports sector are generating new revenue streams and innovations in various ways, ranging from fan tokens and digital collectibles to fan loyalty and engagement platforms. Apart from traditional physical games, this enables clubs to offer an online extension of their brand and cater to the needs of a younger 'digital-native' public, thereby expanding their fan base and safeguarding their long-term survival. Consider the following blockchain applications in sports and esports.

Tokens for Fans: The appeal of fan tokens arises from their capacity to augment teams' revenue streams while also significantly increasing participation. Fans can purchase tokens using FIAT currencies such as dollars, pounds, and euros and exchange them for items, collectibles, or special experiences such as a VIP "meet the player" experience.

Fan tokens are being successfully used by many Premier League football clubs, from Manchester City to FC Barcelona, to raise cash and communicate with their followers. By implementing blockchain technology in sports and issuing their virtual currency, supporters may connect with the club and its players, earn points, receive discounts, and become a part of a virtual ecosystem.

Through voting rights, tokens also provide fans with a sense of involvement in the club's decision-making process—on issues such as the goal celebration song or the color of the training kit. Additionally, fan tokens can assist clubs in overcoming distance barriers while engaging with fans. Thus, blockchain technology assists clubs in engaging and growing their international fan groups.

e-Collectibles and e-Trading Cards (Powered by NFT Technology): Unlike conventional digital collectibles, digital collectibles powered by Non-Fungible tokens (NFTs) are typically individually unique (or provably rare) and limited in quantity. This means that NFTs can be used to produce "limited edition" collectibles, and their uniqueness can be validated using immutable blockchain technology. This makes them the ideal platform for clubs and teams to create digital trading cards, in-game assets (for Esports and the gaming industry), and game memorabilia for fans to purchase and trade.

NFTs first gained widespread attention in late 2017 when a game called CryptoKitties grew so popular that it clogged the Ethereum network. With each of the special collectible digital felines commanding a different price, the most costly one sold for an eye-watering $170K during the height of its popularity.

The possibilities for these blockchain-based sports applications are limitless. Consider the opportunity that fans may purchase limited-edition player cards or earn rewards for collecting all team members. Digital collectibles are already proving to be quite popular in Major League Baseball in the United States, where fans can purchase All-Star cards at various pricing points. This generates additional revenue and appeals to a younger generation of sports fans.