Adoption of blockchain in the sports industry
by Disha Sinha
May 26, 2021
The COVID-19 pandemic has spurred the adoption of blockchain technology in the sports industry.
The sudden outbreak of the COVID-19 pandemic in 2020 has created a drastic effect on the sports industry by imposing tight lockdowns and tough regulations to maintain protocols. There are mostly empty stadiums all over the world with only players to continue with different leagues or tournaments in various sports. COVID-19 has boosted the online gaming industry among tech-savvy millennials. Thus, the sports industry has started to adopt blockchain technology in the cryptocurrency ecosystem to improve monetary transactions between staff and fans. The future of sport is in the hands of cryptocurrencies with its blockchain technology engaging the global market. The sports industry has understood the potential of cryptocurrencies to survive in the tech-driven post-pandemic era.
How is the sports industry adopting blockchain technology?
The adoption of blockchain technology has helped the sports industry connect with popular clubs and loyal fans in a socially distant world. Blockchain technology has started to revolutionize both the currency system and the fan experience in the following ways:
Payment of salary in crypto-currencies
There is a worldwide acceptance of cryptocurrencies as a hassle-free form of payment among reputable companies. The sports industry has also started paying huge salaries to its top players using blockchain technology. NFL star Russell Okung is the very first American player to receive partial payment via Bitcoin over $ 13 million. Since there is an improvement in digital technology after the COVID-19 pandemic, the sports industry has decided to follow the new global trend of the payment system. Blockchain technology has enabled the sports industry to maintain the annual budget by reducing the transaction costs of any transfers and eliminating all third-party agents.
Fan tokens have become popular among the sports team and their respective fans. This created an opportunity for clubs to earn additional income and improve fan engagement against other competitors. Sports Team Tokens can be donated via FIAT currencies like dollars, pounds or euros which can be exchanged for multiple merchandise, tokens, VIP opportunities and much more. Popular clubs like FC Barcelona and Manchester City are using these fan tokens after the COVID-19 pandemic to earn more income online with constant interaction with their fans. Fans can go behind the scenes of their favorite clubs and players with special points and discounts using blockchain technology. Fan tokens help clubs gain a large number of votes to influence their theme songs, upcoming kits or certain games of their international fan base.
Digital Trading Cards
Non-fungible tokens (NFTs) have launched limited editions of digital collectibles known as digital collectible cards with the implementation of blockchain technology. This gives fans the opportunity to purchase or redeem their favorite club’s digital collectible cards, in-game assets such as eSports, and in-game memorabilia. Prices differ for different digital collectible cards. based on their popularity in the crypto market. Blockchain technology provides a unique digital identity to these collectible cards which have the potential to remove the third party between the club and its fans.
The advent of the COVID-19 pandemic has increased the potential of fantasy sports in the global market which has managed to attract millions of players. The implementation of blockchain technology in various fantastic sports platforms has improved the betting system among world-class players with different cryptocurrencies. The adoption of fantasy sports is still an unregulated industry, but the public platform has boosted fan engagement in several interesting sporting events.
Real-time sports betting
Advances in blockchain technology are encouraging gamers around the world to focus on real-time sports betting during live matches. Modern contracts have the ability to remove third-party intervention and winners can receive their prize instantly in their digital wallet in an efficient manner. This is one of the smart steps to earn cryptocurrency amid the COVID-19 pandemic.
Fitness data analysis
The updated blockchain technology presents several analyzes of the fitness of top players in the sports industry. It can effectively track regular performance, medical issues and club transfer history of multiple players on a highly secure platform. Players can authorize public and private data to improve management of player analytics.
Strict doping regulations
Players cannot edit or delete their past medical issues regarding injuries and doping in this advanced blockchain technology. This is useful for the management of the sports industry to have access to the appropriate medical records of any player which are stored immutably. The results of the drug test cannot be changed and fans can access the necessary data of their favorite players.
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