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Chiliz: a blockchain for sports fans
Education
March 24, 2022

Chiliz: a blockchain for sports fans

Chiliz is a blockchain solution for the sports sector enabling unique experiences for sports fans through direct engagement between the fanatics and their favorite teams.

Chiliz is a blockchain solution for the sports sector enabling unique experiences for sports fans through direct engagement between the fanatics and their favorite teams. Through the Chiliz CHZ token, fans can buy Fan Tokens for their favorite sports teams. The teams that partner with Chiliz provide real-world experiences to the Fan Token holders. In some cases, Fan Token ownership provides the token owners a right to influence the decisions made over the team, leveraging the fandom experience to a whole new level. Would you perhaps want to participate in the decision-making revolving around the player outfits for next season? This is just one of the multiple ways you can engage in your favorite team’s business.

The compact history of Chiliz

The history of Chiliz is very compact, as the story goes back to 2018 only. Founded in Malta by Alexander Dreyfus, Chiliz has partnered with numerous notable public figures, especially in the sports scene. In 2018, Chiliz managed to raise a whopping 66 million dollars in the project's private token sale working as a nice kickstart to this innovative idea.

Chiliz software trivia

On a blockchain basis, CHZ token utilizes both ERC20 tokens connected to Ethereum blockchain and BEP2 tokens connected to the Binance Smart Chain. 

And what comes to the verification system, the CHZ-based Fan Tokens are verified on Socios sidechain executing a Proof of Authority (PoA) algorithm. This algorithm differs from its Proof of Work (PoW) and Proof of Stake (PoS) rivals by requiring fewer verifiers for transactions. This system makes the protocol less decentralized than many other blockchain solutions, but on the other hand, PoA can be seen as more scalable and efficient. Besides scalability, customizability is a crucial requirement for this blockchain technology, as each sports franchise offers its’ unique Fan token supply, price, and distribution besides the more niche options.

Chiliz has also participated in the non-fungible token (NFT) game intending to connect the blockchain with special sports events. In addition, Chiliz has tied a partnership with Chainlink, a service providing decentralized oracle network solutions to enable these goals. 

CHZ, the token

What comes to CHZ, the token has a limited total supply of 8.8 billion tokens. The token is traded on common crypto exchanges. Besides enabling the Fan Token purchases, the CHZ token can be purchased from a pure investment point of view if you believe in the perspectives of this project. As we learned above, through purchasing CHZ tokens, fans can further purchase Fan Tokens connected to their favorite teams. The Fan Tokens can be purchased on Socios.com, and these Tokens are more customized to fit each unique sports-related use case. Some of the biggest football clubs have launched their own Fan Tokens, among them are:

The future of CHZ

Chiliz makes a lot of sense for sports teams; firstly, it offers the fans a whole new level of engagement to their favorite teams. Secondly, the project enables sports franchises to monetize their fan base in an entirely new way. An actual win-win situation! The potential of this idea hasn’t gone unnoticed either, as multiple sports organizations worldwide have already adopted this blockchain-based solution. Some of these names are very well known, including giants such as FC Barcelona and Aston Martin Cognizant Formula1 team. 



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