What was completely unthinkable has suddenly become the most vibrant trend in the modernist sports ecosystem. In recent years, cryptocurrency, blockchain and non-fungible tokens (NFTs) have taken the sports world by storm. The rise of the digital fan, as well as the events of 2020, which are expected to reduce ticket revenue for live events, have pushed both sports and eSports businesses to look for new revenue streams and innovative ways to keep fans engaged while fighting fraud and corruption.
This scenario also opened the door for new players to change the course of history by using cutting edge technology. Blockchain is one such new age technological development that has changed the basic principles of the traditional sports industry. These modern technologies monetize and enhance fan engagement and sponsorship in a unique way that was only a fantasy until a few years ago. Furthermore, it has the potential to allow sports clubs to easily monetize their fan base and increase fan engagement. Blockchain is not a technology for the future, but it is also a new age technology that is required and should be fully utilized in today’s situation.
Blockchain in sports
In this rapidly changing world, blockchain technology has the potential to allow sports clubs to easily monetize their fan base and increase fan engagement. Blockchain is not a technology for the future, but it is also a new age technology that is required and should be fully utilized in today’s situation.
This 21st century technology is already being used by prominent sports clubs and leagues worldwide in their digital strategy. Furthermore, sports teams can use blockchain to uncover new revenue streams and build new ways to interact with fans. Meanwhile, the complete sports ecosystem has never been so open, smooth and easy to use for either athletes or fans, from fan tokens to fan event tracking and loyalty networks.
Fan tokens are used to increase worldwide fan engagement
One of the main ways blockchain is making a difference is through the introduction of fan tokens into the blockchain ecosystem. These digital tokens act as a club’s virtual currency, which supporters can buy with fiat (government-issued) currencies such as rupees, dollars, pounds and euros. Fans can also exchange their fan tokens for merchandise, collectibles and unforgettable experiences. A person can also use their tokens as a ticket to a safe, private inner circle of fans who share common interests and values, allowing them to participate in fan-driven decisions via a mobile voting platform. By doing this, supporters and sports fans happen to feel more connected to their teams by these distinctive emblems, even if they are watching from afar.
Fans on engagement pages are rewarded
The platforms for fan involvement can be built using blockchain technology. Using this type of platform, sports teams and clubs can create loyalty programs. They may also provide supporters with points or rewards for creating and sharing content, as well as for collecting points or prizes that can be used to purchase products, tickets and digital collectibles. These platforms also help foster a sense of community and belonging among fans, while strengthening the club’s relationship with sponsors. This is because the open nature of blockchain technology enables the frictionless sharing of fan engagement data with advertisers, helping them generate a higher return on investment.
Sort the issue of ticket fraud out of the equation
For ages, ticket sales and counterfeiting have always been problems in the sports industry. Recently, many sports teams have gradually discovered the perfect solution within blockchain in the search for more efficient solutions. Due to the transparency of blockchain technology, anyone can check a ticket’s validity and trace it back to the club to ensure its legitimacy.
What are fan tokens?
In the blockchain era, the term “fan token” is quite self-explanatory as it refers to a token, which can represent value and ownership, that a fan of a specific sports team owns and derives value from. From this clear explanation, there is a wide range of uses and benefits.
Also, these tokens are finite digital assets that can be bought, sold or traded by fans to create a team-based economy. It can also then act as a currency and be exchangeable for goods, collectibles or exclusive interactions worldwide.
In a blockchain ecosystem, there are utility tokens and there are security tokens. The fan token is usually a utility token, and this in turn gives a hint as to what these tokens can offer – utility. Tokens created on a blockchain ecosystem can be programmed to have many different uses for fans and can offer exciting benefits and bonuses not possible elsewhere.
Additionally, aside from simply monetizing these tokens for use in a fan-token economy, the blockchain aspect of these tokens means they can be used for non-critical voting and other levels of engagement.
Trading cards for the digital age
In the past, trading cards and souvenirs have traditionally been a lucrative source of income for sports teams. However, a growing digital-native fanbase (inspired by games and e-sports) requires a shift to digital collectibles. In addition, clubs can now keep up with changing consumer trends and promote a wider appeal by issuing digital trading cards and souvenirs that fans can buy and trade at will. Furthermore, the crypto collections powered by the blockchain enable the teams to build unique or limited editions that can be verified via a secure and transparent digital ledger. Meanwhile, the limited edition player cards can also be purchased or fans can receive rewards for collecting all team players.
Conclusion
The blockchain market is extremely volatile and buying such assets will always be considered a high-risk investment strategy. However, these cryptoassets are slowly becoming part of modern culture, and regulators are also giving them a closer look now.
That said, sports fans should realize that fan tokens give them a chance to interact more with their favorite teams and be part of an exclusive community. The more fan/sport tokens you own, the more influence you have on your favorite team. And you have a greater chance of earning cash rewards. All this while continuing to be entertained by watching and cheering on your favorite game or athlete. It can make you a real game changer.
(The author is Mr. Abhijit Shukla, CEO and Founder at Revolution Games and the views expressed in this article are his own)
