A movement is taking place with blockchain technology.
Over the past few years, brands across the world have started looking at ways they can integrate blockchain within their infrastructure.
Walmart has been using blockchain to manage supply chain logistics.
Goldman Sachs is trading bonds and other debt securities for clients on blockchain-based networks.
Healthcare companies are using it for securely transferring patient medical records, clinical trials, and patient monitoring.
As a distributed, secure, and immutable ledger, blockchain technology is allowing businesses to run more efficiently and effectively.
It’s providing more transparency around transactions.
It’s improving the way we do business on a global scale.
And just like the examples provided for other industries, there is a lot of applicability for blockchain within sports given the number of parties involved such as the athletes, executives, fans, media stakeholders, etc…
Here are 6 practical use cases for blockchain technology in sports:
Ticketing
Scalping. Fraudulent tickets. Illicit reselling.
These are all significant issues in the ticketing space.
But with blockchain technology, tickets can’t be forged or duplicated.
A quick verification of a cryptographic hash can separate the real thing from a fake in seconds, and the complete history of the ticket is recorded from the moment it is minted through sale and redemption.
This in itself can assist in eliminating a lot of these issues that we’ve seen with event ticketing.
Furthermore, the concept of “dynamic tickets” can be implemented which could be digital passes that update as they are redeemed and offer additional bonuses such as airdrops of additional NFTs, access to exclusive merchandise, or free vouchers for food and beverages.
Athlete Contracts
Within the past few years, several athletes have taken their salaries in crypto even though the market has fluctuated drastically.
Athletes such as NFL’s Trevor Lawrence, O’Dell Beckham, and Russell Okung are some of the players who negotiated to be compensated in digital currencies.
Even the owner of the NBA Kings offered to pay players in Bitcoin in early 2021.
Using blockchain technology, athletes can also tokenize themselves and then raise funds by selling these tokens.
It provides another way fans can engage and crowdfund their favorite players.
In the same instance, smart contracts, which is just code that gets executed on the blockchain, can create complex agreements for funding up-and-coming athletes.
In exchange for upfront funding from investors, athletes agree to give away a certain percentage of their income for a defined number of years.
With blockchain, athletes have more options when it comes to payment and contractual obligations.
Athlete Data
Athlete data is incredibly useful to teams and other parties.
Ideally, teams can utilize blockchain technology to gather and store that data which can improve the overall performance of both individuals and teams.
Putting this data on the blockchain adds a new level of security and verification which validates its integrity.
This can include everything from general health records, and drug testing results, to performance metrics.
Fan Engagement & Interaction
Multiple teams have released various NFT collections, which are built using blockchain technology, for fan rewards and loyalty.
These collections can include utilities such as exclusive offerings, in-game experiences, and specific access.
Athletes can also create deeper connections with their fanbase using blockchain by providing AMAs for NFT holders, meet-and-greets, and other valuable interactions for fans.
NFTs aren’t just about pictures and artistry.
They’re a vehicle for rewarding super fans and building relationships using blockchain.
Memorabilia & Collectibles
Sports fans are some of the biggest collectors out there.
Whether it’s sports cards, sneakers, or jerseys, an entire market is built exclusively off of sports memorabilia.
But imagine being able to verify your collectibles on the blockchain.
Or better yet, being provided a digital NFT whenever you purchase some sort of memorabilia that verifies the item.
Not only can it provide proof that the item is real — but it can also be used as an asset that can be traded or sold in addition to the physical item.
This is one way of leveraging blockchain for sports memorabilia.
Companies such as Fanatics and Nike have started to explore pairing physical items with digital collectibles (called “phygital”) which I believe will explode in the next several years.
One prediction I have is that every athlete’s sneaker release will come with a digital version soon.
Sports Betting
Sports betting has taken off in recent years as more states begin to legalize it.
Sports betting apps are starting to adopt Blockchain technology to accurately automate real-time data by using smart contracts that can help sports betting in a variety of ways which include payments, bet confirmations, past event analytics, event recording, and monitoring.
There are even platforms that are looking at decentralized betting in which the betting platform is built on an open-source approach that incorporates blockchain technology.
Web3 sports betting services typically do not have an actual proprietor who runs the platform as all players would be actively participating and there wouldn’t be any central authority in charge.
There is a lot of potential in this space for both traditional sports betting entities and decentralized platforms that are aiming to remove central authorities.
A Better Blockchain Future
This revolution of blockchain technology is still in its infancy.
Looking at the sports landscape there are so many use cases that have a lot of upside and ability to change the industry.
Will all of them formulate as perfectly as we expect within the next few years?
Maybe they will or maybe they won’t.
Only time will tell how this all shapes out.
The bigger factor in all of this is that blockchain provides an innovative way of scaling and protecting business initiatives and assets.
For the sports space, that means more fan engagement, more efficiently run organizations, teams, and companies, and better opportunities and longevity for athletes.
To me, that’s enough to be excited about.
