Chiliz launches layer-1 blockchain to expand fan token ecosystem

by Arthur · February 9, 2023

Five years after its inception, Chiliz fan token platform has launched its own layer-1 Ethereum Virtual Machine (EVM) compatible blockchain ecosystem to support its growth.

Chiliz’s fan token ecosystem has long been powered by Ethereum-based ERC-20 tokens, but the validation of the Chiliz ‘2.0’ Blockchain genesis block sees the ecosystem shift into its own layer on 1.

The new blockchain uses a system of 11 active validators with Proof of Stake Authority (PoSA) consensus, which is touted to provide faster block times, lower fees and energy usage.

According to the project’s documentation, Chiliz Chain 2.0 is a hard fork of BSC which is itself a go-Ethereum fork. This means that the new layer-1 is EVM compatible, which aims to attract DApp developers to build in the environment.

Chiliz has been making waves in the sports and entertainment space through its fan token app Socios.com. The platform works with some of the biggest teams and brands in the world of sports, with major football teams such as Barcelona, PSG, Manchester City, Arsenal and Juventus using its fantoken platform.

Related: Socios chief’s goal? To knock crypto out of the park

The platform allows brands, teams and individuals to create non-fungible tokens (NFT), fan tokens and Web3-ready tickets, as well as develop DApps and Web3-based experiences and products.

Cointelegraph spoke with Socios CEO Alexandre Dreyfus back in November 2022 at the Web Summit in Lisbon about the upcoming launch of the Chiliz ‘2.0’ Blockchain. As he explained, the Chiliz chain already existed, but was deliberately kept as a private ecosystem. At the time, it had over 1.7 million wallets participating in the issuance, minting and trading of fan tokens.

The launch of Chiliz ‘2.0’ marks the transition to a ‘true open layer-1’ as Dreyfus told Cointelegraph, with on-chain governance having the power to whitelist certain nodes and developers to issue assets.

“What does that mean? It means you can’t have a fake NFT, a fake fan token, or whatever.”

The CEO said a patient approach, which allowed brands and franchisees to maintain control over their image and property rights, was a key factor in the growth of the ecosystem over the past five years. The launch of open Chiliz Blockchain also aims to return value to ecosystem participants:

“It is a chain where mainly sports brands are going to rule, let’s say Barcelona or PSG, are going to be a node and stake their CHZ to get rewards and participate in the growth of the network.”

The sports industry continues to see synergies with blockchain-based firms. In January 2023, blockchain fantasy sports firm Sorare entered into an agreement with the English Premier League to mint Ethereum-based digital player cards on its platform.