Chiliz is an Ethereum-based crypto token designed for sports and E-sports fans. Sports fans are always willing to have some exciting experiences with their favorite players and teams. They can’t have such experiences in the traditional world because it’s difficult enough to connect with sports clubs.
Even sports clubs often complain about the difficulties they have to face when trying to interact with friends. Chiliz provides an innovative solution to the problem.
Chiliz is an ERC-20 token designed to build a direct connection between sports fans and sports clubs. Chiliz is dedicated to providing an opportunity for sports fans to become active participants in the sports club. It was primarily designed as an official cryptocurrency of the Socios.com platform where users can get direct voting power in their favorite club.
They also get access to early tickets through an annual subscription. The users can also visit Socios’s NFT marketplace to buy the branded NFTs of their favorite brands. The NFTs of more than two dozen sports and esports teams are currently registered on this platform.
The sports clubs can also offer rewards and perks to their NFT token holders through this platform. The sports clubs may also ask the token holders to vote for certain decisions such as stadium names, celebration songs, and new uniform designs.
Chiliz enables users to have an active presence in their favorite sports team. Furthermore, they have the right to participate in the decision-making process. Surprisingly, Chiliz isn’t a crypto company. It has just incorporated crypto to achieve its specific goals.
Chiliz team decided to use NFTs in sports after observing their success in gaming and other industries.
Malta-based Medirex Group founded Chiliz in 2012. The blockchain-based project was officially launched in 2018 in collaboration with Alexander Dreyfus. Dreyfus has an extensive experience in the tourism and entertainment industry.
Chiliz’s team organized a private token sale in 2018 and raised around $66 million. The team sold 1.3 million tokens during this sale. Several capital ventures firms like Binance, FBG Capital, and OK Blockchain Capital participated in this sale.
Over the years, Chiliz has partnered with popular figures from the sports industry including Nicolas Maurer (CEO of Vitality esports team), Sam Li (NBA’s former vice president), and Dr.Disrespect (A renowned video game streamer).
The Socios app has millions of downloads globally and the Chiliz team has now established its offices in Turkey, Brazil, Spain, France, and South Korea. The company is now planning to expand its operations in the American sports market.
As it’s mentioned, Chiliz is primarily designed for Socios.com where users can buy the fan tokens of their favorite sports teams. First of all, the users need to buy CHZ tokens from Chiliz.net, the platform’s own exchange. The users can also purchase CHZ tokens from other cryptocurrency exchanges like Binance and Coinbase.
After purchasing these tokens, they can purchase the fan tokens of their favorite sports team. Currently, a number of popular sports teams including Barca, FC Barcelona, Juventus, Paris Saint Germain, Aston Martin Cognizant Formula1 team, Atletico De Madrid, and Golden State Warriors are registered on this platform.
The teams can ask token holders to vote for certain actions. These token holders can get priority access to meet and greets. The teams have the authority to manage the total circulation of fan tokens. If a team scores a certain number of points or wins the game, the club can burn a certain amount of fan tokens.
Thus, the token holders can also earn benefits from their team’s performance. However, some investors believe that sports clubs shouldn’t be given any such authority as they can use it to manipulate prices. Chiliz needs to introduce a decentralized solution to ensure security.
Chiliz has incorporated a proof-of-authority consensus mechanism for validating transactions. Proof-of-Authority is a bit different from Proof-of-Work and Proof-of-Stake consensus mechanisms because only a limited number of users are responsible for verifying transactions in this method.
Thus, it consumes less energy and verifies transactions faster. Although it offers more scalability and efficiency, it’s considered less decentralized because only a few people have control over the network.
However, there are a few other popular blockchain networks like VeChain and Energy Web Token that use the Proof-of-Authority consensus mechanism.
Chiliz is going to launch a unique kind of Non-fungible token in collaboration with Chainlink, a decentralized Oracle network. Through these tokens, they’re planning to commemorate special events after collecting real-world data with the help of Chainlink.
CHZ is the native token of the Chiliz network that is required to purchase fan tokens from socios.com. The users can also trade their NFTs for CHZ on the platform. Similarly, sports clubs can use CHZ tokens to reward their fan token holders.
With a circulating supply of 6 billion tokens, CHZ has a market cap of $656 million. It has a total supply of 8.8 billion tokens that will be released over time. It ranks among the 70 best cryptocurrencies in terms of market cap. Unlike other cryptocurrencies, CHZ can’t be mined. The Chiliz team releases the tokens to manage inflation.
Chiliz is a unique kind of blockchain project designed for sports and esports lovers. The users can obtain voting rights for their favorite sports team through this project. They can also get other perks by purchasing fan tokens for their favorite team. If you need more information about how Chiliz works, feel free to get in touch with us.