Chiliz Chain to Empower Brands, Sporting Organizations and Supporters

[TL; DR]

- Chiliz Chain will enable sporting and entertainment organizations to develop their products on the blockchain.
- Socios will become a product on the Chiliz Chain 2.0 blockchain.
- CHZ, the blockchain’s native token, will power the entire ecosystem.
- The CHZ holders have the option to stake it and become network validators.





Introduction
By now many people are familiar with Socios, a blockchain that enables teams and clubs in the sporting and entertainment fields to engage with their fans through fan tokens. The fan tokens are digital assets that enable fans to connect meaningfully with their favorite teams or clubs.

Popular sporting teams such as PSG, Juventus, Barcelona and Manchester City have their fan tokens. In this article we explore how Chiliz Chain 2.0 functions and the role of the CHZ token in the ecosystem.

Paris St Germain Soccer team is one of the sporting teams that has its fan token.


The launch of Chiliz Chain 2.0 is imminent
Only a few games remain during this year’s edition of the Soccer World Cup tournament, taking place in Qatar. Already, the advancement of the blockchain technology is helping soccer teams to engage their fans and generate additional revenue streams through selling their fan tokens.

Four national soccer teams that participated in the tournament have fan tokens. These national teams are Portugal National Soccer Team, Brazil National Soccer Team, Argentina National Soccer Team and Spain National Soccer Team.

Now, the team behind these fan tokens, led by Alexandre Dreyfus, wants to introduce a layer-1 blockchain, Chiliz Chain 2.0 (CCC). Chiliz Chain is not replacing Socios, but integrating it into the new blockchain ecosystem. In fact, Socios will become a product on this network.

It was during the early stages of the Soccer World Cup that the team behind Socios announced its intention to launch the Chiliz Chain 2.0 test network that uses the proof of authority algorithm.


What is Chiliz 2.0 blockchain?
Chiliz Chain 2.0 (CCC) is a blockchain based on Binance Smart Chain where firms and other organizations from the sporting and entertainment sectors can develop their web3.0 protocols to support their visions. The Chiliz ecosystem provides support to these projects through its large user base and technology that enables them to create digital assets, both fungible and non-fungible ones.

Specifically, Chiliz allows brands, sporting teams and entertainment clubs to create fan tokens and other decentralized products such as play-to-earn and play-to-win games. Also, these players can create merchandized certifications for their stakeholders.

Since Chiliz Chain is a layer-1 blockchain it enables other projects to develop their decentralized applications (dApps) on its protocol. All these dApps will be able to use fan tokens and utilize its digital technology to expand brands.

One striking capability of Chiliz chain 2.0 is the use of consumer protection and intellectual property technologies which ensure digital authenticity and credibility.

Strikingly, Chiliz 2.0 is compatible with the Ethereum Virtual Machine resulting in more use cases for digital assets that exist on it. As a result of EVM compatibility, it affords sporting and entertainment brands the opportunity to develop different DeFi products.

As we know, the Ethereum Virtual Machine enables the various dApps that exist on Chiliz 2.0 to interact with ERC-20 tokens and smart contracts that exist on the Ethereum blockchain.


Historical development of Socios and Chiliz
The idea to create a blockchain system that connects entertainment and sports clubs and their fans started in 2018. That vision was actioned through socios.com, a platform that enables sports and entertainment organizations to use the blockchain technology to engage their supporters.

Since 2021, Chiliz, through Socios, introduced the technology where entertainment clubs and sports teams can create their Fan tokens. The holders of fan tokens have the right to interact closely with their teams. Currently, Socios has partnered with over 170 entertainment and sports clubs around the world.


How Chiliz 2.0 onboards innovators
Chiliz 2.0 aims to bring reliable projects on the blockchain. To achieve that, it will verify and approve all creators to prevent scammy tokenization. The network validators are the ones responsible for verifying and approving the stakeholders that want to develop their projects on the blockchain. These parties are free to develop non-fungible tokens, fan tokens and other relevant DeFi products.


How Chiliz Chain functions
Chiliz Chain 2.0 uses the Proof of Stake Authority model (PoSA) where approved stakeholders become network validators. However, the validators should stake a certain amount of the blockchain’s native token, CHZ. The role of the validators is to verify transactions and select creators.

As we know, validation of transactions is very important as it enhances the security of the network. In return, the validators get a share of the transaction fees in form of the CHZ token.
However, the blockchain will not willy-nilly onboard the validators. Instead, the validators are selected from its key stakeholders such as brands and teams that affiliate to it. Therefore, superfans, ecommerce partners and sporting teams, among others, will become the network validators. For example, all the clubs and teams that own fan tokens can become network validators.

Chiliz Token (CHZ)
The Chiliz token (CHZ), existing on the Ethereum Network and Binance Smart Chain, is the blockchain’s native token. This cryptocurrency powers the Socios app and the entire Chiliz ecosystem. It has a total supply of 8,888,888,888 (i.e slightly over 8.8 billion).

People will use CHZ when making payments on the blockchain. However, once the Chiliz Chain 2.0 is launched, the CHZ token will be more than an in-app currency. It will become the network enabler as well as the governance token

Staking
One of the best benefits of the launch of Chiliz Chain 2.0 is the staking feature. With this, the CHZ holders will be able to stake the token thereby earning passive income from that. Definitely, this will increase its demand and most likely its value when the market becomes bullish again.


Conclusion
Chiliz Chain 2.0 is the blockchain of the future as it drives the sporting and entertainment fields. This is because the projects that deal with sporting and entertainment can create fan tokens to engage their supporters. The Chiliz Chain exists on Binance Smart Chain, making it very fast, with lower transaction fees. CHZ holders can stake the token and earn rewards for that.



Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
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