Due to the immutability and the security provided through the blockchain technology, there is little surprise to its use in the financial aspect of the sporting industry. Consequently, blockchain has been used over its short period of existence as a means to carry out various sport related transactions.
Different Use Cases Of Blockchain Technology In The Sports Industry
There have been several use cases of blockchain technology in the sporting industry. Part of this includes:
One of the most essential uses of blockchain technology in sports is its smart contract feature. With this feature, several automated transactions are being carried out when some criteria are met. A smart contract is a useful tool which allows for the creation of complex arrangements for athletes.
Already, a startup company in New York, SportyCO, has a setup which allows investors to invest in professional athletes through the use of the smart contract.
The company’s primary aim is to get interested investors together to invest in professional athletes while tokenizing the professional athlete for future profit for the investors. This way, the professional athlete gets all the requirement to clock maximum potential. Above all, this also provides the investors part of the endorsement deals at an agreed upon percentage to be paid over some time.
SportyCO now boasts of endorsement deals to sports superstars like Ronaldinho Gaucho and Roberto Carlos. Not just for the tokenization and investment opportunity for interested investors alone, the blockchain technology is poised to breach the need gap between professional athletes and enthusiastic fans of the sporting industry.
Big Data Security
Blockchain technology is an immutable publicly distributed ledger has been used as a data bank for the storage and secured sharing of personal information and data between interested parties.
As concerning the sporting industry, blockchain technology can also be applied to this end. The information of teams, sports brands, and its professional athletes can be stored on this immutable distributed ledger. This will eliminate any form of incorrect data.
Interestingly, it is a source to be considered for the storage of statistics to log everything about professional athletes. These days, it all bores down to the numbers that are being produced by these athletes. These statistics and biometrics from the athletes are essential to the sporting industry. Hence, a safer and immutable data bank for these statistics is critical.
Furthermore, blockchain technology is also an excellent platform to set up a pay-per-view streaming for popular sporting events. The cryptography involved in blockchain technology can be used as an authenticating medium for online users. This will completely automate the process and remove the need for intermediaries and extra middlemen fees.
The use of doping has been on the rise, and the sporting industry has been trying to put its athletes under check. In addition, the integrity and scrutiny involved in the game have been under a lot of tests lately due to the doping allegations on athletes across various sporting activities.
Using blockchain in sports, the medical records of these athletes can be recorded and stored on the blockchain network. This secured network management on the blockchain can be the answer to the prescription and test result problem.
Due to the blockchain’s protocol, the verification process of the uploaded information has to take place. This irreversible upload cannot be alternated in any way. Of course, there will be several regulations that will guide this process; the data being uploaded will have to be tested reliably. The security of the information is left to the incorruptible strong cryptography of the blockchain technology. This is all aimed to protect the integrity of the sport and its professional athletes.
Continuous Fan Engagement
The backbone of the sporting industry is its fans and their ongoing engagements. The customer base of each business determines the success of such a company. As concerning the different sports under the sporting industry, the sale of tickets to games, TV rights, and sporting merchandise are areas where these businesses make their money. Therefore, the improvement of the engagements of this needed fan base is a critical factor.
Aside from social media, another very viable engagement point is the blockchain technology. With the tokenization feature of the blockchain, sporting organizations can now create their unique cryptocurrency which can be used to buy game tickets, merchandise, and other provided services at matches.
This could mean more efficient operations, worldwide reach to more fan without restrictions on currency, more profits for the sporting brand, ease of buying and selling to fans at games, etc. through the blockchain platform; loyalty schemes can be developed and adequately managed. This scheme is used to engage the fans and give them more reasons to be a part of the club. This has been done in sports brands like the Rakuten and a host of others.
One of the mainstream sporting events, which generated a hefty amount yearly is fantasy sports. Chiefly is a fantasy football that has reportedly made over $3 billion in revenue. There is, however, the issue of people paying their dues when they realize their selected team is no good. Furthermore, the collection of payment has always been the problem source.
Presently, there are talks to use tokens for sporting activities. For example, the token is used to unlock favorite characters on the fantasy sports platform, without which players cannot participate in their e-Sporting activities. In conclusion, these tokens will optimize the brand and increase profitability.