Blockchain Is Changing Sports: What’s in It for Fans?

Blockchain technology, despite the naysayers and occasional controversy, has found itself applied in many different sectors. One of these has been the sports industry, believe it or not. After blockchain proved that it could be used to provide value to consumers, companies in the space wasted no time experimenting with it.

Anyone not yet familiar with blockchain use in sports might wonder how this works. After all, what do distributed ledgers have to do with real-life games? More so, how does it benefit the players? We break it down in this article: 

Blockchain’s Use in Sports

First, it is worth understanding how blockchain is being used in the sports sector in the first place. 

Betting

If there is anything sports fans like to do, it is bet on various games. Sports betting is a billion-dollar industry at this point and while fiat currency used to be the dominant tool for betting, crypto is hot on its heels. Over the last few years, more consumers are opting to bet using Bitcoin, Ether, and other blockchain-based currencies. There are several reasons for this, including the chance to make more profit if their tokens go up in value, faster transactions via the blockchain, and much more. Resources now exist to meet this demand and it is not unusual to see a crypto sports betting guide floating about the internet. However, not every such e-booklet is equally reliable. Sports enthusiasts and wagerers alike should check their reputation and trust only the proven resources. 

Fan Tokens 

Sports teams have quickly gotten in on the blockchain action by releasing their own fan tokens. These tokens, based on blockchain tech, are used to engage on dedicated platforms and can even come with rewards. Fan tokens are used to unlock premium game tickets, engage with other fans on these platforms, and even engage with the players themselves. The market for fan tokens has only grown over time, with teams like FC Barcelona and Paris Saint-Germain launching their own. And given the multi-million dollar market caps that many of these tokens are seeing, it is clearly not a fad.

NFTs

Bored Apes and pixelated people might be the face of NFTs but the sports world has done some very innovative things with the asset class. Platforms like NBA Top Shot have made millions tokenizing specific moments in games as NFTs and letting players ‘own’ them. This means, essentially, that you can own a legendary dunk or pass. Besides tokenizing moments, NFTs have also been minted as collectables for fans. Players have released exclusive content and perks as NFTs and as the asset class only grows in popularity, we can expect more of these.

Merchandising 

Fake merchandise has been a major issue in the sports world, costing teams millions and swindling fans in many cases. But blockchain has the ability to combat this issue thanks to its ledger system. Teams like the Los Angeles King have launched collectables which feature scannable bar codes linked to the blockchain. By scanning these codes, fans can confirm that the merchandise they are buying is real and this has benefitted stakeholders across the board. 

How it Benefits Fans

With all the applications of blockchain in sports highlighted, it is worth exploring how exactly they benefit fans. Some of the ways are as follows:

Distribution of Rewards 

NFTs and fan tokens are commonly used to distribute rewards among fans of specific teams. By holding these assets, fans can get exclusive merchandise, experiences, and much more. And because these rewards are tied to digital assets, they can be easily traced and redeemed when due. For those who want to get an elevated fan experience, blockchain technology offers a wealth of benefits. 

Transparency and Trust 

Blockchain’s most unique feature is the fact that transactions are mostly made public and can be traced across networks. This means that the ownership and validity of blockchain-based assets can be confirmed at any given time. Fans paying for tokens, NFTs, and even physical merchandise linked to the blockchain can rest assured that they are getting the real deal.

Teams can also create more trust among customers through the transparency that blockchain offers. 

Engagement 

At the end of the day, fans want to engage with other fans and the sports teams that they support. Blockchain-based assets like NFTs and crypto allow fans to enjoy and unlock benefits and even bet on their favourite sports. The use of blockchain ledgers means that transparency can be guaranteed and trust can be increased. All in all, blockchain lets fans and companies in the sports world maximise their experience while offering the opportunity to potentially monetise their sports knowledge.