6 minutes
ShareWhat is Chiliz (CHZ)?
Chiliz is a type of digital currency that enables sports enthusiasts to enjoy exclusive experiences with their preferred teams.
Chiliz draws inspiration from the socios of Spanish soccer teams, which offer fans early ticket access and club voting rights through annual subscriptions. Chiliz leverages blockchain technology to create a new kind of direct engagement between fans and their preferred sports teams.
Using the CHZ token, the native cryptocurrency of the Chiliz experience, fans can purchase the Fan Tokens of their beloved sports teams. The crowd management platform that powers the Chiliz experience, socios.com, allows for the buying and selling of Fan Tokens using CHZ.
Each sports team that partners with Chiliz can personalize the real-life experiences that their Fan Tokens offer to holders. Fan Tokens can provide holders with the power to influence decisions made by the team, such as creating new uniform designs, choosing celebration songs, selecting stadium names, and, in some cases, deciding starting lineups.
Previously, sports enthusiasts could only engage with their favourite teams by watching games or purchasing merchandise. With Chiliz and its Fan Tokens, however, fans now have an active presence within their preferred team's operations and a distinct influence over its decision-making process.
By monetizing their fan base in new ways, Chiliz allows sports franchises to provide distinctive experiences to their most loyal supporters.
How Does Chiliz Work?
The CHZ token functions as both an ERC20 token on the Ethereum blockchain and as a BEP20 token on the Binance Smart Chain. CHZ tokens can be obtained from Chiliz.net, the platform's own exchange, as well as from prominent cryptocurrency exchanges like Cryptal.
After purchasing CHZ tokens, fans can utilize them to buy Fan Tokens of their preferred teams from Socios.com.
Many teams and sports organizations worldwide, such as FC Barcelona, Golden State Warriors basketball team, and Aston Martin Cognizant Formula1 team, have held Fan Token Offerings (FTOs) to reward their loyal supporters. Each franchise can customize the price, supply, and distribution of their Fan Tokens, as well as the unique rewards and abilities Fan Tokens provide. For instance, Fan Tokens can grant access to exclusive meet-and-greets, memorabilia, and the power to vote on the direction of each team.
It's noteworthy that Fan Tokens can be burned or taken out of circulation based on a team's performance, resulting in more scarce and valuable Fan Tokens when the team achieves positive outcomes such as winning games or scoring points.
Fan Tokens are established and verified on the Socios sidechain via a Proof of Authority consensus algorithm.
Proof of Authority (PoA) differs from other consensus algorithms such as Proof of Work or Proof of Stake. PoA depends on a smaller group of approved validators rather than a distributed network of anonymous nodes to maintain the accuracy of the network.
While PoA is viewed as a less decentralized consensus method, it is frequently employed by blockchain networks seeking to increase scalability and efficiency.
How is Chiliz Distinctive?
Chiliz has established itself as a unique player in the cryptocurrency world, with a clear focus on leveraging blockchain technology to build fan communities through fan tokens. Unlike many other cryptocurrencies and NFTs, Chiliz views crypto as an enabler of its core business strategy, rather than an end in itself.
This approach has enabled Chiliz to attract investors and maintain a level of stability that is often lacking in the highly volatile cryptocurrency market. Rather than being a crypto company, Chiliz is a company that uses crypto to achieve its business goals that are unrelated to crypto. Therefore it’s a perfect example of how in the future not-crypto companies can use crypto assets.
The potential of NFTs has been proven in the gaming industry, where they are widely used to personalize profiles, level up and achieve in-game goals. They are also popular in customer loyalty programs. Chiliz has positioned itself as a leader in the use of NFTs to support sports teams and their fans, offering a new level of engagement and interaction that was previously unavailable.
Summary
If you dreamed of being the owner of your favourite team as a child, now you have a real chance through Chiliz.
This asset has proven to be a long-term and functional project that offers many opportunities to its customers, both financially and in terms of obtaining a unique experience.
Chiliz can also be purchased on Cryptal using both the Instant Trade and the Spot exchange.