Blockchain in Sport means more than Cryptocurrency

Blockchain in Sport means more than Cryptocurrency

2021-03  Application of Blockchain technology in sport means much more than the use of cryptocurrency.  When the Sacramento Kings launched a blockchain-based auction platform in early 2020 “they relied on the Ethereum blockchain to verify and authenticate their match-worn gear” 1.  With the US sports memorabilia market estimated at more than $5 billion (according to the publication Blockchainland), providing assurance to collectors and fans is seen an important feature to selling original merchandise.  As such, blockchain technology in form of smart contracts or non-fungible token (NFT) can provide a consistently secure data source.  Following the example of the Kings, multiple entities could contribute to the system where the outcome of any execution is recorded on a distributed ledger (i.e. smart contract) or entitlements represented by a digital asset (i.e. token).  Based on the fact that once data records are written and not updated or deleted, buyers and sellers could be re-assured of the originality of the merchandise they are looking to sell or buy.  Blockchain technology in form of a "distributed ledger with confirmed blocks that are organized in an append-only, sequential chain using cryptographic links" 2 would enable full transparency and traceability throughout the transaction chain and even provide the ability to trade merchandise with confidence in the future, e.g., when on-selling the item.

In a similar way, it is understood that sports and event ticketing is looking at blockchain to authenticate entry passes.  In particular, as more and more entities convert from a paper stub to electronic means, the authenticity of an event ticket is of enormous importance.  Particularly, when tickets are resold at a large or quick profit (‘scalping’), blockchain technology is seen as way to curb fraudulent transactions 3.

If you are interested to understand how blockchain technology can be deployed in sports business applications, please contact chemneera.

1 https://theblockchainland.com/2020/01/16/sacramento-kings-launch-blockchain-auction-platform/
2 ISO 22739:2020 Blockchain and distributed ledger - Vocabulary
3 https://www.ticketingbusinessforum.com/tackling-ticketing-fraud-blockchain-potential/

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