Chiliz is a Malta-based FinTech provider that is redefining the way sports fans interact with their favorite teams. Chiliz’s core offering is the Socios platform, a blockchain-enabled sports entertainment platform that provides users with a variety of ways to vote directly on decisions affecting their favorite teams. The rich variety of features on the Chiliz platform gives teams and athletes new ways to connect with their fans and generate revenue.
Chiliz: from passive spectators to active influencers
Chiliz is a Malta-based FinTech provider developing new ways for sports fans to interact with their favorite teams and athletes. Chiliz’s core offering is Socios, a blockchain-enabled sports entertainment platform that gives users a variety of ways to vote on decisions that directly affect their favorite teams. On the contrary, the wide range of features on the platform give team owners and league operators new ways to connect with their fans and generate revenue. The Socios platform is backed by Chiliz Token (CHZ), which serves as a price benchmark and medium of exchange across the Chiliz ecosystem.
Socios Fan Token: fan-driven decision-making
Chiliz has partnerships with some of the world’s most established sports institutions, including Barcelona FC, Juventus and Paris Saint-Germain in soccer, the Ultimate Fighting Championship (UFC) in mixed martial arts, and various gaming organizations. Sports fans can start by joining the Socios.com platform and earning CHZ, which can be used to purchase Fan Tokens for a particular sports organization. While CHZ tokens serve as the exclusive currency of the platform, Fan Tokens are issued by internationally recognized sports teams and organizations and are tokenized representations of the voting rights of their respective issuers. In other words, users who have Fan Tokens for a team can vote on any decision that team chooses to share with their followers on Partners.
The Partner voting process is enabled through smart contracts that run automatically and transparently on the Chiliz blockchain, and the decisions that are voted on can range from selecting a new jersey design to deciding team matchups. for upcoming exhibition games. Organizations that fully embrace this collaborative decision engine can even allow their fans to help choose which players are drafted onto the team or brainstorm new product designs to ensure maximum consumer appeal. As a result, Fan Tokens are sometimes also known as “voting tokens”.
Each sports organization using Chiliz technology has its own limited supply of Fan Tokens, and each time a new organization joins Partners, they must decide the initial sale price of their Fan Tokens, denominated in CHZ. These Fan Tokens will be available for purchase on a first-come, first-served basis at the agreed price in what is called a Fan Token Offering (FTO). Prior to launching an FTO, Socios will publicly disclose essential information relevant to the token launch, including FTO start and end dates, Fan Token opening price, and fully diluted market capitalization, allowing users to make well-informed investment decisions.
Chiliz creates new forms of participation
While Fan Tokens are primarily intended to be used to give sports fans a voice in the direction of their favorite sports organization’s decision-making process, there are other ways users can potentially benefit from these digital assets. . Once a user has publicly purchased a Fan Token through an FTO, they can exchange it with other users on the Chiliz Exchange, which is Socios’ peer-to-peer (P2P) marketplace. The Chiliz Exchange can be accessed through a simple web interface or through an iOS/Android mobile app, and this secondary marketplace helps drive user interaction, particularly when demand for Fan Tokens from certain teams fluctuates in response to news. last minute or upcoming events. In addition, Fan Tokens can be redeemed for other goods, such as VIP experiences, free tickets, and limited-edition merchandise, at the discretion of the issuing organization.
While Socios is currently Chiliz’s flagship offering, the company is continually expanding its app. This approach to blockchain implementation has led to the establishment of the Chiliz Blockchain Campus, a privately owned cryptocurrency incubator focused on accelerating the adoption of blockchain technology in Asia and Europe.
How does chiliz work?
Chiliz’s success in driving widespread adoption of its sports entertainment platform stems from the fact that users around the world can participate with minimal understanding of the system’s underlying blockchain technology. While unobtrusive, Chiliz’s use of blockchain technology plays a crucial role in ensuring that the digital assets within its ecosystem (CHZ tokens and Fan Tokens) are effortlessly traceable, verifiable, and immutable.
In October 2018, a fixed supply of 8.8 billion CHZ tokens was minted on the Ethereum mainnet and distributed to early contributors, with no public sales beyond what was available through select crypto exchanges. While CHZ started out as an ERC-20 token, the token was also designed to be BEP-2 compliant due to Binance Launchpool’s active role in launching new Fan Tokens as part of a strategic partnership with Chiliz.
Rather, Fan Tokens are minted on the Partners sidechain, which uses a Proof of Authority (PoA) consensus mechanism. Instead of relying on the decentralization of the network, PoA gives a small set of pre-approved “authority” nodes the power to create and validate new blocks. Because these authority nodes play a central role in ensuring the security and success of the network, the organizations or individuals running an authority node typically reveal themselves publicly to establish trust in the system. While the Chiliz team is currently responsible for validating most of the network’s transactions, European retail giant Rakuten recently announced that it would be running an authority node on the Chiliz blockchain. As Chiliz continues to gain traction, the team hopes to create a consortium of strategic partners willing to act as validators for the network.
As a result, permissioned PoA networks like Chiliz are not as decentralized as many other blockchain networks that follow common protocols like Proof-of-Work (PoW) and Proof-of-Stake (PoS). However, PoA networks are easily scalable, highly secure, and capable of processing a large number of transactions per second, making them a suitable choice for driving collaborative business projects as Partners. Additionally, all trading activity and Partner voting results are securely and transparently stored on this sidechain rather than on the main Ethereum network, allowing Chiliz to control network gas costs and secure transactions. faster and more easily profitable.
The Chiliz PoA sidechain is also responsible for the smart contracts used to automatically execute decisions resulting from Socios fan influencer polls. The Socios platform serves as an oracle connecting the project’s permissioned sidechain to the Ethereum mainnet and is the only bridge that allows the exchange of CHZ and Fan Tokens.
Everyone is a winner with Chiliz and CHZ
Before the advent of blockchain technology, it was nearly impossible for the average sports fan to directly participate in the decision-making process of their favorite sports teams and the organizations they follow. Chiliz’s innovative sports entertainment platform uses blockchain technology to turn passive viewers into active influencers and provides sports and esports organizations with new and exciting ways to monetize audience engagement.
Chiliz’s growing list of strategic partners and enterprise users has continued to grow, and by quietly applying blockchain technology to popular business activities, platforms like Socios and NBA Top Shot are adding a whole new dimension to the fan experience.