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Chiliz (CHZ): Revolutionizing the Intersection of Blockchain and Sports Fandom
Chiliz is transforming how global audiences interact with their beloved sports teams, granting each fan a say and a ballot.
Overview
Chiliz, a FinTech firm based in Malta, is reshaping the fan engagement landscape in sports. The core offering, the Socios platform, leverages blockchain to empower users to directly influence decisions affecting their favorite teams. This platform not only enhances fan-team interactions but also provides teams and athletes with new revenue streams.
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Chiliz: Empowering Fans to Influence
Chiliz, a FinTech company based in Malta, is innovating fan engagement in sports. Its main offering, Socios, is a blockchain-powered sports entertainment platform that gives users various ways to vote on decisions impacting their favorite teams. Conversely, team owners and league operators can use the platform's features to connect with fans and boost revenue. The Socios platform relies on the Chiliz Token (CHZ) as its currency and medium of exchange.
Socios Fan Token: Enabling Fan-Driven Decisions
Chiliz has partnered with major sports institutions worldwide, including Barcelona FC, Juventus, and Paris Saint-Germain in soccer, as well as the Ultimate Fighting Championship (UFC) and several gaming organizations. Fans can join Socios.com, acquire CHZ, and use it to purchase Fan Tokens for specific teams. Fan Tokens represent voting rights for their respective teams, allowing users to participate in decisions made by the teams. These tokens are also known as ‘Vote Tokens.’
The voting process on Socios is facilitated by smart contracts on the Chiliz blockchain, enabling transparent and automatic execution. Decisions range from jersey designs to team matchups. Teams can even involve fans in drafting players or creating new merchandise designs. Each organization on Chiliz has a limited supply of Fan Tokens, which are initially sold in Fan Token Offerings (FTOs) denominated in CHZ. Socios provides essential information about FTOs, such as start and end dates, opening prices, and fully diluted market cap, to help users make informed investment decisions.
Chiliz Creates Innovative Engagement Channels
While Fan Tokens primarily give fans a voice in team decisions, they also offer other benefits. After purchasing Fan Tokens via an FTO, users can trade them on Chiliz Exchange, Socios’ peer-to-peer marketplace. This exchange, accessible through web and mobile apps, drives user interaction, especially when demand for certain Fan Tokens fluctuates. Fan Tokens can also be exchanged for VIP experiences, free tickets, and limited-edition merchandise at the discretion of the issuing organization.
While Socios is Chiliz’ main offering, the company is expanding its applications. This approach has led to the creation of the Chiliz Blockchain Campus, a crypto incubator focused on accelerating blockchain technology adoption in Asia and Europe.
How Does Chiliz Work?
Chiliz’ success in driving widespread adoption of its sports entertainment platform is due to its user-friendly approach, allowing global participation with minimal blockchain knowledge. Chiliz uses blockchain to ensure that digital assets within its ecosystem — CHZ tokens and Fan Tokens — are traceable, verifiable, and immutable.
In October 2018, 8.8 billion CHZ tokens were minted on the Ethereum network and distributed to early contributors, with no public sales beyond select crypto exchanges. While originally an ERC-20 token, CHZ is also BEP-2 compatible, thanks to a partnership with Binance Launchpool.
Fan Tokens are minted on the Socios sidechain, which uses a Proof-of-Authority (PoA) consensus mechanism. While not as decentralized as other networks, PoA allows for high scalability and security. The Chiliz team currently validates most transactions, but other entities, like Rakuten, are becoming authority nodes. This permissioned approach ensures secure and transparent storage of trading activity and voting results, controlling gas costs and enabling quick transactions.
The Chiliz PoA sidechain also manages smart contracts that execute decisions from Socios’ polls. Socios serves as a bridge between the sidechain and the Ethereum network, enabling the exchange of CHZ and Fan Tokens.
Chiliz and CHZ: A Win-Win for All
Chiliz has revolutionized fan engagement by allowing fans to directly influence their favorite sports teams. With blockchain technology, platforms like Socios offer new ways for sports and esports organizations to monetize audience engagement, adding a new layer to the fan experience.
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