The sports industry has already started making bigger and bigger efforts to welcome the usage of cryptocurrencies like Bitcoin and Ethereum amongst others in their day to day dealings. Blockchain technology has been one of the main actors in the irruption of cryptocurrencies in the world of sports. With blockchain technology, sports fans are now able to participate in various ways within the sports world, such as Bitcoin sports betting, purchasing of fan tokens and others.
Here are 3 ways in which the sports industry has already begun seeing positive results from using blockchain technology to welcome the concept of using cryptocurrencies more and more as time goes by and the world keeps evolving.
First A Brief Intro into Blockchain Technology
So, of course, the first question that should be answered here before we get to talking about how blockchain technology has become a beneficial part of the sports world is, what is this technology? Blockchain technology is a decentralized, distributed ledger that records the origins of digital assets. Given its design, the data that is recorded is unable to be modified which makes blockchain a genuine disruptor for industries like payments and cybersecurity.
This technology can be included into multiple areas of business. Its principal use is to act as a disseminated record for cryptocurrencies like bitcoin. It has also shown to have various positive effects in the fields of financial services, healthcare, video gaming and the sports industry.
Blockchain technologies can range from public blockchains which are the most popular which are the main source for dealing with the biggest cryptocurrencies like bitcoin and Ethereum, to private blockchains where services are only offered via invitation from the managers of the technology and hybrid blockchains which basically works as a mix of the two previously mentioned.
Fan Tokens, The Sports Industry Newest Way To Engage With Fans
For the sports industry being able to draw in fans, old and new, into their organizations will always be a priority. Easily explained, without fans sports are just another way to practice a healthy lifestyle, but with fans, sports become a multi-million-dollar industry. With the sports industry adopting the usage of cryptocurrencies and blockchain technologies to further broaden their assets, they have also found the perfect way to shorten the gap between the teams and their fans, creating fan tokens.
These kinds of tokens have been taken by teams like soccer giants Manchester City and FC Barcelona as well as professional teams in the top US sporting leagues like the NFL, NBA and MLB to offer their fans their own version of a cryptocurrency that is used exclusively between the fans and the team.
Fan tokens give sporting fanatics the chance to build a more personal and upfront relationship with their teams. On the one side teams benefit from this from the creation of additional revenue streams as well as being able to engage with and grow international fan bases. On the other side fans benefit from being able to be a part of an insider’s market where their tokens, which they can buy with currencies like dollars, pounds and euros as well as cryptos like bitcoin, can be exchanged for special team merchandise, collectibles, taking part in minority team decisions and getting the chance to be a part of exclusive team ridden experiences like “meet and greet” experiences with their favorite athletes and coaches.
Blockchain Tech Is Also Being Used For Ticket Purchasing
One of the main advantages that the use of cryptocurrencies and blockchain technologies have offered both the sports industry and its fans it’s the safety and security measures it offers when dealing with transactions between both parties. One of the main examples of this, is the ticket purchasing systems now offered by teams in which fans don’t need to worry anymore about having to deal with unnecessary middle men, like scalpers for example.
While before fans would have to be at the mercy of secondary actors and sometimes insecure purchasing systems where cancellations and transfers of tickets could become a penalty ridden task, now with blockchain technologies entering the arena, all this is becoming easily avoidable.
As the data managed on the blockchain systems is immutable, the possibility of false claims when it comes to buying tickets to events or disputing the prices are now a thing of the past. Also in the past is the possibility of ending up with counterfeit tickets, since all tickets are automatically validated by blockchain technology. One last advantage for fans as well as sporting organizations is the fact that if an event has to be postponed, delayed or cancelled altogether, the process for rescheduling or fee cancellations has become much more simple and easy for all parties involved. A win-win situation for teams and fans alike.