Tech
How is the Sports Industry Using Blockchain Technology?
Everyone uses blockchain technology – can you name an industry that doesn’t use it? If you can, we can almost guarantee they will start using it soon. One of the sectors starting to heavily use blockchain technology is sports. Read on to find out how.
Overview of the sports sector
According to The Business Research Company’s Sports Global Market Report 2023, the sports sector is growing rapidly worldwide: its global market value rose from $486.61 billion in 2022 to approximately $512.14 billion in 2023. Reports show it is expected to reach (approximately) $623.63 billion by 2027. – staggering numbers indicating a compound annual growth rate (CAGR) of around 5.0%.
Blockchain integration could play an important role in driving this expansion across the metaverse’s sports innovations alone, which are projected to become an $80 billion opportunity by 2030.
The Impact of Blockchain on the Sports Industry
Blockchain is bringing new waves of innovative development to the world of sports by providing better data analytics, secure smart contracts, and revolutionizing fan engagement and monetization models.
Teams can use blockchain technology to monetize their fan base and create stronger connections with supporters. This system ensures secure management of publishing rights through transparency between publishers and consumers on everything such as membership cards and sponsorships.
Modernizing Sports Engagement Through Blockchain
ticket office
Creating a safe and transparent ticket exchange marketplace where all parties can verify the authenticity of transactions reduces fraud related to the sale of counterfeit tickets tenfold, especially for big games like NBA Finals games.
Sport bets
The global sports betting industry is huge and is expected to reach a value of $182 billion by 2023. Blockchain platforms offer tamper-proof transaction records, improving trustworthiness within different gaming spaces. A leader gambling site will need to be able to demonstrate a willingness to quickly embrace new advancements in the blockchain arena, as this is by far the most effective way to demonstrate a brand’s commitment to player security and privacy.
This trust extends to, but is not limited to, casinos such as non-gamstop casinos, online/offline establishments such as bookmakers and sports betting platforms etc. It minimizes risks associated with hacker attacks and fraudulent activities as such bets placed through this system are technically smart contracts that execute based on outcomes. No intermediary payments and risks are needed.
Fan tokens
Fan tokens are one of the most exciting ways sports are using blockchain: they increase revenue for sports teams and engage fans. With blockchain technology, fans can purchase tokens that can be redeemed for collectibles, merchandise or even voting rights within the club. This deepens the financial links between clubs and their followers and allows more people to be involved in managing the teams. Well, at least thinking that they are managing teams.
Sports governance
The adoption of blockchain for sports governance guarantees transparency in decision-making processes. When all actions taken by an organization pass over a decentralized network where they cannot be changed or deleted, trust is established.
Data management
Blockchain could transform data management in sports due to its ability to provide greater accountability and transparency capabilities. It allows for accurate tracking of performance metrics, ticket sales data and sponsorship deals, reducing the number of conflicts arising from different parties.
The integration of Blockchain in eSports and iGaming
The eSports industry, which is already predominantly digitalized, is embracing blockchain technology to improve game fairness, player transactions and audience participation. Here are some ways blockchain can be applied in eSports and iGaming:
Smart contract-enabled betting: This ensures that people only get paid when they win and do so based on verifiable results.
Digital collectibles: NFTs can create unique items within games to trade or even player cards.
Decentralized platforms: Decentralized platforms eliminate intermediaries when transferring teams or distributing prizes among winners.
These developments foster a more connected and engaging experience for players and spectators.
Important examples of the use of Blockchain in sport
Manchester City FC and FC Barcelona have integrated blockchain into their digital strategies by creating fan tokens that improve engagement with fans and open up additional revenue streams for clubs. FC Barcelona raised $1.3 million within two hours during the initial sale of its Fan Token Offering (FTO).
Blockchain has not only revolutionized traditional sports but has quickly integrated into eSports and sports gaming. Technology could completely change this space in the coming years. It will be interesting to see how integration grows.