With Arsenal FC closing in on the Champions League and Premier League titles, there has been a lot of talk recently in soccer about the on-field changes recently. The same went for the decline of NBA 2 pointers. What underpins these changes is data, as it drives decision making at all levels of the organization.
Further up the chain of operations and governance models, data and technology are having a similar impact. Standard, general-purpose networks often struggle to process the sudden spikes in the high traffic of match days, leading to network congestion. Similarly, blockchain infrastructure is making it possible for fans to track and reward their loyal sports habits, as well as vote on governance decisions.
An example of dedicated Layer-1 solutions designed for blockchain in sports is the Chiliz Chain. This is an architecture engineered specifically for entertainment and sports, where developers guarantee the low latency and high throughput required during live events. It is a sports technology that creates a sovereign stadium, but in the online world, connecting a global fanbase to their teams. Instead of using generic crypto for fan currency, which is more susceptible to outside shocks, a siloed sports-focused chain can mean holding a match-day poll without external gas fee spikes.
Scalability and security in a Web3 ecosystem
Web3 ecosystems means that sports teams no longer need to keep their data on private servers or generic cloud storage. Instead, self-sovereign wallets means the data, such as engagement metrics or past purchases, is truly empowering and owned by both fans and clubs.
Interaction history is important to decentralized platforms because it allows for more gamification – clubs can issue collectibles, and more dedicated fans will have a weighted advantage reflected in this economy. A club poll can also be held, and the history of the voting is clear to see. Security isn’t a worry as its cryptographic security allows sports organizations to have trustless, transparent relationships.
The way to think of the change is that fan accounts on the likes of Twitter are rented. It’s their social proof of being a fan (e.g., Tweet history, fan following), yet the account could be banned tomorrow, and the data isn’t easy to analyze. Blockchain means the data is owned by the fan – a lifelong audit trail.
Real applications of sports blockchain
Sports blockchain solutions use smart contracts to hold global fan votes for all levels of decisions, be it kit designs or something truly operational, like who the next manager should be. This sports technology has also brought in performance burns, where the supply of a digital asset is (automatically) reduced based on the team’s results – so, success introduces scarcity, which is an economic phenomenon that captivates people. Linking the team’s performance to token omics is a clever trick to driver gamified engagement, a bit like fantasy football but further reaching.
Blockchain infrastructure is already being invested in by some of the world’s biggest sports teams, most for collectibles and voting polls. While the applications of it are yet to be fully realized, the infrastructure itself is a foundation where a lot of innovation can spring off. A ledger of the fans can help reward dedicated supporters with priority access to tickets, which are otherwise bought up by rich tourists – just one example of why the technology can be used to increase authenticity within a community, rather than just a means to monetize.
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