Blockchain in Sports and Esports
Blockchain in Sports and Esports
Major sports organizations around the world recognize the potential of Ethereum blockchain technology to enhance fan interaction, streamline existing operations, and provide new revenue models.
The Future of Sports
ConsenSys Sports is redefining how leagues, teams, athletes, and fans engage with each other.
Creating blockchain-based identities unlocks new and meaningful experiences while creating unprecedented net value in the form of increased fan revenue, crowdfunding of assets, digital collectibles, and verifiable superfan stardom.
Think of a verifiable superfan as a fan profile or a sports organization issued license. Sports organization would be able to gather more insightful and actionable data about their fans in order to drive engagement and revenue.
Rewarding Fan Interactions
Blockchain-based loyalty reward programs can incentivize higher levels of engagement and provide real-time reward payouts and redemptions. Blockchain enhances loyalty rewards by creating a user identity across all digital touch points while also allowing for the trading of digital assets. For example, Ethereum enabled rewards programs can create cross-partner networks that allow loyalty rewards to be used with partnered brands.
The 5 billion dollar sports memorabilia industry is predicated on a system of trust to verify the authenticity of each specialty item. This dependency will end in the near future, as trained authenticators with magnifying glasses and discerning eyes are no match for immutable mathematics. Blockchain technology has the ability to grant individual pieces of memorabilia their own identities for authenticity and verification purposes.
Organizations can generate and sell digital collectibles directly to their fans, providing a new way for fans to tangibly represent their event experience and participation.
Create even more value for collectibles by enabling:
- Scarcity: Unique digital assets created in a limited quantity
- Trading: Tradable on an open market to engage owners and reach new users
- Verification: Authenticity can be verified, including the chain of ownership
- Reputation: Ownership demonstrates affinity, dedication, and expertise
Gaming and Esports
Gaming and esports have emerged as a rapidly growing area of consumer interest, especially among millennials and generation z users. Blockchain-based games can be programmed with tokenized digital assets. These digital assets can be traded within a game or externally on the public market.
Blockchain technology can also create real-time sports betting with provably fair outcomes. Lastly, Ethereum enables for the use of smart contract based payouts which eliminates traditional intermediaries that take significant cuts.
Athlete crowdfunding through personalized, automated contracts presents a new funding source that enables fan and community investment. Traditional financing typically requires an unfavorable loss of equity, cost of capital, or revenue to third parties. However, a crowdsourcing platform built with blockchain technology enables a league and its players to better monetize and track fan engagement and loyalty.
Tokenization of Teams
Ethereum allows the public to buy shares in the team represented by tokens, opening ownership to the fanbase while directly raising funds without traditional corporate sponsors. Teams may fundraise to recruit talent, improve stadiums, or achieve other capital-intensive goals. This type of fundraising helps avoid margin loss to brokers and sponsors, while also offering a new level of community, integration, and monetization of the fanbase. Tokenized team shares can be bought and sold freely on an open market, increasing ownership liquidity for sports organizations. Token owners may have the ability to participate in the financial upside of organizations, stadiums, or individual sports teams.
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