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Wednesday, December 1, 2021

Blockchain technology in the sports industry 

Blockchain technology has offered a lot of opportunities in various sectors, and the sports industry has been one of the winners. Sports betting using blockchain has been the catalyst for the widespread adoption and use of cryptocurrency in sports. Blockchain technology in sports is thriving as professional players get paid in Bitcoin, and fan incentive initiatives increase.  

Blockchain applications in sports betting have exploded recently, with top-tier endorsements and sponsorships boarding the moving wagon. Sports organizations have increased efficiency with timing and funding. The revolutionary technology has slowly crept into the mainstream consciousness giving a promising future. Read on how blockchain technology has impacted the sports industry. 

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Ticketing 

Counterfeits and fraud are significant challenges that affect the sports industry. Digital tickets are an additional blockchain application in the esports and sporting industry. The use of non-fungible tokens that are cryptographically and mathematically verifiable has kicked out token fraud. In addition, non-fungible token standards make it easier to exercise exclusive features or rights to VIP tickets. Tickets are safely stored using blockchain technology to show the right owner. 

Sports betting 

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Crypto has fueled the growth of sports betting to unprecedented levels. By the end of 2020, the betting industry had surpassed $203 billion in revenue. The nature of blockchain technology created an enormous market. Crypto has introduced convenience and top-notch security that never existed before. Players are confident of their winnings using crypto when participating and looking for sports and odds to enjoy the convenience and security that comes with this mode of payment. The anonymous state of crypto has helped gamblers bet without retrieving their identity. Today’s Gamblers have rushed to use crypto as it provides fast and low transaction costs compared to other traditional modes of payment. 

Crypto advertising 

Blockchain technology has used sports to advertise cryptocurrency. When you walk into a stadium or watch a match on TV, you will see crypto side sponsorship boards. During the Euro 2020 qualifier round, crypto payments from Zumbo appeared on pitch-side sponsor boards in the match between Scotland vs. Serbia. 

CoinDeal crypto exchange signed a deal with Wolverhampton Wanderers in February 2020. The agreement entitled players to wear a jersey with Coin Deal’s logo. The sponsorship also included a promotional video on YouTube that attracted about 400,000 views in a few weeks. Wolves set the pace for other crypto-related businesses to approach other teams to advertise their services. 

Athletes getting paid in Bitcoin 

Recently a top athlete received his salary in bitcoin. Russel Okung is an NFL star that became the first American footballer to receive part of his salary in Bitcoin in 2020. Okung had battled in the courtrooms for two years until he received half of his $13 million wages in crypto. People continue to accept crypto as a mode of payment, and with time other athletes will request total or partial salary in crypto. 

Anti-doping 

Doping is not a new term in the world of sports. In 2016, during the Rio Olympics, Russian hackers leaked various medical files of US athletes with evidence of doping. In Rio, top-performing and highly regarded athletes were exposed. With the adoption of blockchain technology, files are safe from leaking to the public. In addition, sports federations cannot manipulate data that hides doping cases creating fairness in sports. The answer to a structured system that records test results and prescriptions is done through blockchain technology. It is impossible to change data as its accuracy is checked with the preset protocols before being inserted in the blockchain. 

Player analytics 

The sports industry generates a massive amount of data that should be utilized to its full potential. Blockchain is used to store and view player analytics. Multiple types of data about a particular player are stored in a convenient place through immutable intelligent contracts. Player analytics information is accessed securely through a private key given to potential employers or sponsorships. A player’s information includes health data, previous club transfers, performance tracking, management fees, and payments. Players can share relevant analytics required and keep private data through a decentralized ledger. Blockchain acts as a reliable data bank of data gathered from trusted sources. 

Fan engagement 

Fans have a monetization role in sports, just as how businesses need customers to make a profit. Watching games on television and other platforms require fans to spend money on tickets and merchandise, thus boosting advertising revenues and TV rights. Sports clubs have engaged fans through social media platforms. However, blockchain technology has urged sports clubs to introduce their virtual currencies, and fan tokens, which lovers spend on tickets, beverages, and food during matches. Peer-to-peer ticket exchange among fans is now widespread. Through blockchain technology ticket re-sales market is reasonably checked between fans and clubs to avoid dealing with the fake ticket market. 

The sports industry has felt the significance of blockchain technology. The great innovation has resolved critical issues that affected the sector, such as fraud in tickets and anti-doping. Although the sports industry has not yet reached its full potential in blockchain application, the future ahead is bright.  

 

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