Table of Contents
The Chiliz network aims to provide sports and entertainment industries with blockchain technology solutions, allowing them to easily monetize and interact with their audiences. The company is particularly known for its Socios sports fan engagement platform.
Key Takeaways
Chiliz is a digital currency based on blockchain which enables users to purchase and trade special fan tokens.
Fan tokens grant holders certain levels of ownership regarding sports teams and esports organizations, such as the ability to vote on certain aspects of the team or organization.
By holding the fan token, users gain access to exclusive merchandise, experiences, and content surrounding their favorite clubs.
Chiliz.net is a platform built on blockchain infrastructure that allows sports teams and organizations to launch their own fan tokens.
Chiliz (CHZ) is a widely-used cryptocurrency for tokenizing sports, powering the platform Chiliz.net. This platform serves as the first scalable sports engagement and rewards platform.
Additionally, Chiliz operates as the first sports-based crypto exchange, where fans can trade personalized fan tokens and take part in club-based polls and pools. With these tokens, fans are granted voting rights. The greater the number of tokens held, the more voting power a fan has.
Fans also benefit from the tokens by gaining access to discounts, special offers, exclusive content, the ability to compete with other fans in sports trivia, and opportunities to win signed club merchandise as prizes.
How does Chiliz work?
The CHZ token is a digital asset that functions as both an ERC20 token on the Ethereum blockchain and a BEP2 token on the Binance Smart Chain. CHZ tokens can be acquired from Chiliz.net, the platform’s own exchange, and from reputable cryptocurrency exchanges such as Kraken.
Once a fan acquires CHZ tokens, they can then use them to purchase Fan Tokens of their preferred teams from Socios.com.
Numerous sports teams and organizations globally, such as FC Barcelona, the Golden State Warriors basketball team, and the Aston Martin Cognizant Formula1 team, have conducted Fan Token Offerings (FTOs) for their devoted supporters. Each team can customize the price, supply, distribution, and special perks and capabilities of their Fan Tokens. For example, Fan Tokens can be used to gain access to exclusive meet-and-greets, memorabilia, and direct voting rights on the direction of the team.
For instance, Juventus FC soccer club provided its fan token holders the ability to decide on the song played over loudspeakers when the team scores a goal. Previously, the team celebrated goals with a song called Chelsea Dagger, but through a fan vote, they changed it to Blur’s Song 2. Similarly, FC Barcelona soccer club’s fan token holders had an influence on the team’s dressing room by choosing a mural to hang on the wall. Paris Saint-Germain football club also empowered its fans to make decisions by letting them choose the message written on the captain’s armband during matches. Additionally, the OG esports team gave its fans access to select the in-game banner during charity events.
Fan Tokens can be taken out of circulation based on the team’s performance. This implies that outcomes such as winning games or gaining points can make the Fan Tokens more scarce and, therefore, more valuable.
Proof of Authority (PoA)
Users create and authenticate Fan Tokens on the Socios sidechain through a consensus algorithm called Proof of Authority (PoA).
Proof of Authority (PoA) functions differently compared to other consensus algorithms like Proof of Work or Proof of Stake. It relies on a limited number of authorized verifiers instead of a decentralized network of anonymous nodes to uphold the integrity of the network.
Though PoA is considered to be a less decentralized method of consensus, it is often employed by blockchain networks that are looking to be more scalable and efficient. Other platforms that use the Proof of Authority consensus mechanism include Energy Web Token (EWT) and VeChain (VET).
What is Socios?
Socios serves as the first consumer-oriented product of Chiliz. It’s a mainstream and scalable app that enables fans to acquire tokenized voting rights in their preferred clubs. The app allows fans to interact with their teams and grants access to exclusive rewards. These rewards could be one-of-a-kind experiences, prediction games, and match-day challenges.
Socios is fueled by the Chiliz side-chain, allowing teams that are interested in participating to issue fan tokens. These tokens are unique blockchain assets linked to the issuing team. They grant holders the right to vote and participate in decision-making, polls, and surveys regarding the management of the team.
Through Socios, fans can directly participate in the decision-making processes of their preferred teams. For instance, fans of the Arsenal Football Club can vote on merchandise designs, in-game banners, naming playgrounds, or selecting a goal celebration song through the AFC fan token while receiving rewards and exclusive experiences. The platform guarantees that the club honors the outcome of the fans’ voting through smart contracts.
Socios has six key features:
The ability to purchase the Chiliz token using a credit card.
A trading section where users utilize Chiliz (CHZ) to buy and exchange various fan tokens.
A polls section where fan token holders can influence team decisions.
A rewards section that offers discounted merchandise and other perks to fan token holders.
A virtual reality feature similar to Pokémon Go for earning free CHZ tokens.
A locker room feature that helps teams track demand for potential fan tokens.
Chiliz Development
Chiliz established itself in 2012 as a subsidiary of Malta-based Mediarex Group, an international sports, and entertainment company. The development of its blockchain-powered Socios platform began in 2018. In October of that year, Chiliz introduced the CHZ token, which quickly became available on various cryptocurrency exchanges worldwide.
The first partnership for Chiliz was with Juventus, an Italian soccer club based in Turin. The club conducted its Fan Token Offering in November 2019. They sold 1.3 million tokens – a portion of the total 20 million available – by the end of the month.
Chiliz launched its Socios app and website in December 2019, following a $66 million investment through Private Placement. Today, the Socios app is accessible online and on millions of mobile devices. Chiliz has a main office in Malta and several offices in France, Turkey, Spain, South Korea, and Brazil.
The company currently has a strong focus on adding soccer and esports teams as partners and expanding the range of sports and entertainment tokens available on the Socios marketplace. Recently announced an expansion in the American sports market.
Some notable achievements of Chiliz since its creation include:
In early 2020, FC Barcelona announced the launch of its Fan Tokens. This made the platform available to over 300 million fans of the club worldwide.
In early 2021, AC Milan listed its Fan Tokens and generated $6 million in revenue in a matter of hours.
Mid to late 2021, Socios.com formed partnerships with several NBA teams, starting with the Philadelphia 76ers.
In late 2021, Chiliz announced a partnership with the New England Patriots, the first NFL team to join the platform.
Chiliz FAQ
Who are the founders of Chiliz (CHZ)?
As the founder and current CEO, Alexandre Dreyfus is at the helm of Chiliz, a unit of the Malta-based Mediarex Group, a sport, and entertainment organization established in 2006. In 2018, the company raised more than $66 million via private placement. Dreyfus’s professional background also includes founding Webcity.com, a city guide website, and Winamax, an online platform for poker and sports betting.
What Makes Chiliz (CHZ) Unique?
Chiliz has a clear mission and a structured business model centered around fan tokens. While cryptocurrency and NFTs can apply to various industries, Chiliz sees them as a key technology for its core business of creating fan communities.
This concentrated approach has helped Chiliz attract investors and mitigate the volatility commonly seen in the cryptocurrency market. Chiliz is not just a cryptocurrency company, but rather a company that utilizes cryptocurrency as a crucial tool to attain business objectives unrelated to cryptocurrency.
NFTs have demonstrated their potential in the gaming industry, such as allowing users to level up, customize their profiles, and complete in-game objectives. Customer loyalty programs also utilize them commonly. Chiliz is pioneering the use of this technology to support sports teams and their fans.
How do I use Chiliz (CHZ)?
Sports fans can utilize CHZ to take part in the fan token economy of Socios by visiting its marketplace to purchase branded fan tokens of their preferred teams and build a relationship with them. Users can buy Chiliz (CHZ) and fan tokens in the Chiliz Exchange. Additionally, one can earn tokens by functioning as a connector between Socios and new team associates.
How do I buy Chiliz (CHZ)?
Buying Chiliz can be easy through the exchanges that trade it. These are Binance, KuCoin and Coinbase. Same applies when you want to sell Chiliz. The market cap and circulating supply determines the Chiliz price.