Chiliz uses blockchain technology to facilitate a new direct involvement among supporters and their major sports teams, modeled after the socios of Spanish football clubs, where a yearly subscription grants supporters access to first ticket and club voting privileges.
What Is Chiliz?
Chiliz is the most widely used crypto for sports tokenization, powering Chiliz.net, the world’s first scalable sports participation and incentives network. It’s the first cryptocurrency exchange dedicated to sports, allowing users to buy and sell specialized fan tokens and participate in polls and pools organized by individual teams. Therefore, the tokens are a kind of voting power for the fans, with the proportion of voting power according to the number of tokens held. In addition to gaining entry to contests where rewards include autographed team apparel, tokens may be used to access exclusive content and discounts.
Chiliz is primarily focused on addressing the issues of securing financial support and increasing user participation. In addition, sports and entertainment firms provide access to the platform, enabling fans to hold fractional shares in their favorite sports teams and partake in their daily operations. This allows them to expand their growth strategies and compete successfully in the international sports market.
Through the use of fan tokens and also the Socios fan interaction and incentives platform, the notion has blossomed into a booming worldwide company, a blockchain unicorn expected to number 300 by the end of 2022, and a revolutionary transformation in the entertainment and sports industries.
History of Chiliz
Chiliz was established in 2012 as a global sports and entertainment company Mediarex Group subsidiary in Malta. In 2018, the development of the Socios blockchain platform officially began. Chiliz released the CHZ token in October 2018. Shortly after, the token was made available on cryptocurrency trading platforms worldwide.
The Juventus football team in Turin, Italy, was Chiliz’s first official partner. In November 2019, the group hosted its Fan Token Offering, selling 1.5 million tokens (out of a total of 20 million) at the end of the month. As 2019 came to a close, Chiliz released the Socios mobile app and accompanying website. In addition, private Placement contributed $66 million toward the project’s development.
Millions of people worldwide are now using the Socios app released on the web. Chiliz has several overseas locations, including France, Spain, South Korea, Turkey, and Brazil, and its headquarters is in Malta. Though the business is now focused on expanding its network of soccer and esports clubs, it is hopeful that the Socios marketplace will soon host tokens for other sports and entertainment. In addition, the firm has lately declared its intention to enter the American sports industry.
How Does Chiliz Work?
Chiliz has successfully promoted widespread adoption of its fan interaction and monetization platform because it provides user-friendly, intuitive goods and services. The Socios and Chiliz trade solutions offer intuitive interfaces and quick responses from the company’s support staff. Furthermore, there have been no known security breaches. Therefore they are secure to use.
For transparency, verifiability, and immutability, Chiliz’s blockchain network is crucial for circling CHZ tokens and supporter tokens throughout the ecosystem.
Chiliz released a fixed number of 8.6 billion CHZ coins on the Ethereum network in October 2018 and dispersed a portion of them to participants in the network. Other than what was sold on crypto exchanges, the firm did not hold any public sales. Due to Binance’s involvement in issuing new fan tokens as a part of its strategic relationship with Chiliz changed the CHZ token from its original ERC-20 format to adhere to the BEP-2 token standard.
However, Socios uses a Proof-of-Authority (PoA) technique to reach an agreement on its side-chain, where fan tokens are produced. PoA systems rely on trusted authority nodes instead of miners or stakeholders to generate and confirm transactions.
The identities of the entities and people operating the nodes are made public to foster more confidence in the Chiliz blockchain’s security. However, European e-commerce behemoth Rakuten has begun running authority nodes mostly on the Chiliz network, joining the Chiliz team in controlling the vast majority of the nodes. To further protect its network, the business plans to expand into more mainstream markets to form more strategic relationships.
In contrast to Proof-of-Work (PoW) chains, which are widely used today, PoA blockchains like Chiliz are not as distributed. Even so, PoA blockchains are robust, safe, and capable of processing more transactions every second. That’s why they’re perfect for running community-based social networks like Socios.
Furthermore, instead of using the Ethereum blockchain, Socios uses the secure Chiliz side-chain to record transactions and the results of votes. The ability to control gas prices gives Chiliz the ability to guarantee quick and cheap transactions. Decisions made in Socios surveys and polls may be implemented using smart contracts that operate on the side-chain. Socios is an oracle that connects the Chiliz chain to Ethereum’s main chain. Furthermore, it’s the only tunnel that lets you trade fan tokens for CHZ.
Chiliz and Sports
Chiliz’s product idea has been through many revisions since 2016. Finally, in early 2018, work began in earnest with creating both products and teams. With the help of a private sale, the firm could collect $66 million, most of which was used on developing Socios.
The Juventus football club was the first to distribute fan tokens (JUV), hold an FTO, and allow supporters to cast ballots using blockchain technology. Over 130 businesses have joined the platform since then. Then came PSG, Atletico Madrid, Galatasaray, AS Roma, and Barcelona, and since then, many other clubs have followed suit.
During 2021–2022, both Inter Milan & Valencia C.F. displayed advertisements for their fan tokens on the chests of their shirts. Chiliz has become so popular that national sides like Argentina and Portugal have jumped on board. English Premier League clubs have also used Socios to issue official fan tokens, including Manchester City F.C., Everton F.C., Liverpool, Manchester United, and Aston Villa.
Teams in other sports have also adopted chiliz. Major esports organizations, the UFC and Formula One teams, are among the many organizations that have signed up with Chiliz. Chiliz is in a good position for the 2022 expansion of its fan interaction application after forging fruitful collaborations in 2021 with several NHL and NBA clubs.
Proof of Authority (PoA)
The Socios sidechain employs a Proof of Authority consensus method to generate and validate Fan Tokens. In contrast to Proof of Work and Proof of Stake, which depends on a decentralized network of unidentified nodes to maintain network integrity, PoA relies on a trusted group of verifiers to do so.
To improve scalability and efficiency, several blockchain networks adopt PoA, which is often seen as a less distributed consensus technique. In addition to Ethereum and 0x, other systems that use the PoA consensus process include VeChain (VET) and Energy Web Token (EWT).
Why Is Chiliz Unique?
Chiliz has a well-defined business plan; its focus is on tokenizing the community’s enthusiasm for the game. Although there are many applications for crypto and NFTs, Chiliz views crypto as a means to facilitate its core activity: creating fan communities.
Chiliz’s success in luring investors and taming the wild price swings that plague the cryptocurrency industry might be attributed to this laser-like concentration. Although it leverages blockchain technology, Chiliz is not itself a cryptocurrency firm. Instead, it is focused on other non-cryptographic economic objectives.
NFTs have shown their worth in video games by facilitating character advancement, profile customization, and the completion of game objectives. They see widespread use in loyalty programs aimed at retaining and expanding consumer bases. When it comes to employing technology to benefit soccer teams and their supporters, Chiliz is in the front.
Chiliz Chain 2.0
Independent of Socios, businesses may utilize the platform to create their own NFT collectibles. They can also roll out their own play-to-earn games, and introduce their fan token campaigns. They may also create DeFi apps, loyalty schemes, and other innovations.
The current CHZ token will act as the bridge between the two networks. One of the main reasons Chiliz is developing this platform is to provide that token for actual use.
Rabinovitch has described CHZ as “basically… an in-game money” due to its current usage in purchasing fan tokens.
However, on Chiliz Chain 2.0, tokens may power a variety of entertainment and sports applications, and holders can be incentivized via mechanisms like token pledging on the PoSA network. On the new blockchain, CHZ holders may “be compensated for their devotion,” as Pelletier said.
BNB Chain is compatible with the EVM, yet it has far cheaper transaction fees and higher transaction throughput than Ethereum. As a result, developers may use the Chiliz platform without the high costs and slow transaction confirmation of other platforms, which might lead to a broader selection of applications and experiences.
The Chiliz Token (CHZ)
The Chiliz ecosystem is propelled by the CHZ token, a utility token that is both ERC-20 and BEP-2 compliant. The CHZ token is essential to the functionality of the Chiliz Exchange and Socios.com application. Not only that, but the CHZ token serves as the foundational asset for the whole Chiliz network. Since CHZ is needed for every trade on the Chiliz network, it is clear that cryptocurrency is indispensable. The fan voting system and token trades on Chiliz Exchange fall under this category.
Chiliz was funded entirely via private investors; no money was generated through a public auction. More so, there won’t be any more open sales.
In early 2021, the Chiliz token had a meteoric rise in value, which matched the increasing popularity of the cryptocurrency. Achieving a record high of almost $0.31 at the start of March, the CHZ token now has a market worth of $1.3 billion.
What Is Socios.com?
Socios.com, built on Chiliz blockchain, is the first fan interaction platform. The Socios.com platform only accepts the Chiliz token. Sports enthusiasts may use it to acquire “Fan Tokens” with the logos of major league clubs and leagues worldwide. FC Barcelona, Juventus, PSG, and AC Milan are just a few football clubs that fit this description. The UFC, the most prestigious MMA promotion, is also on board. For crypto to become more widely accepted, this is a huge breakthrough.
Fans who invest in the Socios.com ecosystem by purchasing Fan Tokens may now have a say in which teams win awards. Through the use of smart contracts, voting is made possible on the Chiliz network. Chiliz’s blockchain is also utilized to create Fan Tokens. With the Socios.com PoA side chain, smart contracts for fan surveys may be executed, and Fan Tokens can be issued.
Thanks to Socios.com, fans may have an immediate impact on club policy. Fans may have input on anything from the look of items to the name of a practice field to the anthem played when a goal is scored. Voting via Socios.com also allows fans to win prizes. It’s the future of sports entertainment!
Is Chiliz Decentralized?
Chiliz is more like an established company than the typical blockchain initiative, which often acts as a platform for DApps or DeFi solutions. Instead, Socios and its business partners promote fan tokens as a tradable asset, similar to trading cards.
An essential aspect of this highly centralized strategy is that private Chiliz stockholders have the final say over the project. One benefit is that business initiatives may significantly influence the development of the Chiliz project, which has a clearly defined use case. The corporate status of CHZ, with its stated insider trading rules, may also inspire trust among token holders.
Even though Chiliz’s senior founders don’t have direct blockchain knowledge, their business background has helped them secure token collaborations with major companies. And as the cryptocurrency market prepares for a potentially volatile season, this controlled and capitalist strategy may be a savior for the project.
Chiliz Consensus mechanism
Chiliz’s blockchain transactions are processed and kept up-to-date through the PoA consensus mechanism. To validate transactions and add new nodes to the blockchain, validator nodes in a PoA network must “stake” their resources. They may then profit from the network by taking a cut of the fees. PoA nodes, on the other hand, stake their own identities rather than a coin. In this way, nodes are incentivized to operate in the network’s best interest or risk losing their ability to execute transactions altogether.
LiveLike, a firm that uses gamification to increase fan engagement, has partnered with Chiliz, the parent organization of Socios fan token ecosystem, to provide cryptocurrency fan tokens to its sports sector partners. The Malta-based business Chiliz Chain 2.0 has announced that the first firm to get funding to join the ecosystem is LiveLike.
The Ultimate Fighting Championship (UFC) and the cryptocurrency company Chiliz have launched a fan voting & rewards scheme based on the blockchain. Socios, a digital fan token exchange operated by Chiliz, will be the new home for these fan involvement options.
In a press release, Chiliz and Socios CEO and co-founder Alexandre Dreyfus remarked that the partnership would provide UFC with a “unique chance to acquire new followers.” This is due to the app’s ability to reach users who are already fans of other major sports.
Socios.com is the first blockchain-based smartphone application for entertainment and sports fans. It was inspired by the “socios.com” membership model used by clubs like Real Madrid and Barcelona.Socios will bring Roma and the fans closer together through Roma Fan Tokens, virtual currencies that grant fans the ability to vote on decisions made by the club.
Fans can compete for a special personal experience and access exclusive games, merchandise, and leaderboards by voting and interacting with the team through the app. For example, fans can pick the title of a team facility, decide what will happen during warm-ups at Stadio Olimpico, and choose which player will participate in a Twitter Q&A. When the time comes, more ideas for polls will be given.
Chiliz, a blockchain firm, has teamed up with Man City to distribute a fan token using the Socios fan rewards platform. By purchasing the $CITY Fan Token, fans can participate in club-run polls, and have early access to club promos, games, augmented reality elements, and more.
According to SportBusiness, the Premier League football club and Chiliz have reached an agreement wherein the latter would get a portion of the proceeds from selling the $CITY Fan Token. Socios.com’s parent company, Chiliz, has released digital assets for 24 sports teams, including Barcelona, AC Milan, PSG and Juventus, four of the world’s best soccer teams. Additionally, Manchester City is working with a digital entertainment firm called Animoca to develop blockchain-based video games and collectibles.
Chiliz, the world’s top blockchain company for the entertainment and sports industries, announced a collaboration with FTX.com to list Fan Tokens on the crypto exchange. This will give holders of $CHZ and Fan Tokens access to FTX’s industry-leading technology.
Fan Tokens are digital assets that can be collected and traded. People who own them can use the Chiliz fan interaction forum Socios.com to access VIP experiences, influence, rewards, exclusive content, games, and competitions. Since the beginning of 2021, they’ve gone through a period of rapid growth, with significant teams and fans across the world supporting them. Chiliz has teamed up with 60 of the biggest sports teams, like FC Barcelona, Paris Saint-Germain, Juventus, Arsenal, AC Milan and Manchester City.
Binance was one of the first investors in Chiliz, and it has now added more money to the pioneering enterprise in the fintech sporting events space, ensuring that the partnership will last for a long time. The Fan Tokens will be given out through Binance Launchpool as the first step in the partnership.
With Binance Launchpool, customers can stake different tokens to get new tokens as rewards. PSG and Juventus Fan Tokens are the first Socios.com collaborators to profit from Binance LaunchPool.
Chiliz Active Wallets
Over the last week, the Chiliz team has declared on Twitter that it has reached 1.6 million wallet addresses. The team is pleased with this recent achievement and looks forward to incorporating the wallet IDs into the upcoming version 2.0 of the Chiliz Chain. Currently, one CHZ coin is worth $0.1219, a gain of 1.67% in the previous 24 hours.
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Future Of Chiliz
Through careful negotiation, Chiliz has established long-term agreements with some of the world’s most prestigious sports organizations and companies. As a result, offices may be found in Spain, Malta, France, Brazil, Turkey, and South Korea. The company employs people from almost every continent. Furthermore, they want to expand its worldwide network by opening new US and UK offices.
Furthermore, Chiliz is confident that other teams and sponsors will soon join them. The introduction of CHZ will hasten this sea shift in how sports fans interact with their teams. Chiliz’s first consumer-facing innovative initiative, Socios, aims to raise awareness of fan tokens throughout the globe.
Chiliz Use Cases
Football supporters may now have a say in the direction of their favorite teams courtesy of Blockchain technology. Chiliz is an example of a blockchain platform that has enabled this. Below are some of the Chiliz use cases.
Trading Of Fan Tokens
You may trade your Fan Tokens for other cryptocurrencies on Chiliz Exchange. The “first tokenized sports exchange in the world” is a common claim for this platform. This website lets crypto enthusiasts and sports lovers exchange tokens based on famous athletes. The Chiliz token (CHZ) serves as the exchange’s primary asset, and all Fan Tokens are pegged to it.
Buying Fan Tokens For Voting
With CHZ, thousands of sports and gaming fans may have a voice in the governance of their beloved football teams via a decentralized voting system. It transforms supporters into an integral part of the club’s management rather than passive observers. Supporters of any team may participate in the club’s decision-making process by going to the Socios.com website, purchasing fan tokens using CHZ, and then using those tokens to cast votes.
Impact Of Chiliz
The business of entertainment and sports is one such illustration. Chiliz’s platform for fan interaction with their favorite clubs has been a game-changer. As a result of blockchain technology, all of this is now possible.
Chiliz has profoundly influenced fans of many kinds of sports and shows. Therefore, the organization has maintained its strategic alliances with the world’s leading major sports brands and clubs. However, a lot of work remains to be done with Chiliz. Among them is the development of Chiliz Chain Mainnet 2.0, the completion of smart contracts, delegates, and a cross-chain bridge for fan tokens.
The existence of Chiliz can be boiled down to one thing: watching sports for entertainment. It’s a way for sports fans to feel more connected to the action, have a voice in in-game strategy, and learn more about the people they root for. Many supporters directly directing top-level choices have been explored in traditional sports, but workable alternatives have yet to emerge. Those who desire to engage their fans in more action may do so today, thanks to CHZ & their Fan Tokens.
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