Most early crypto tokens were created only as alternative payment systems. These include projects like Bitcoin and Litecoin. But today’s crypto projects can have very different use cases, like gaming, movies or even sports. One such example is Chiliz, which helps bring sports fans closer to the teams they love and support. So what is it and how does Chiliz work?
What is Chiliz?
Chiliz is a blockchain-based platform that connects sports clubs and celebrities with their fans through the use of its native cryptocurrency, Chiliz (CHZ). The platform allows brands and celebrities to offer their fans exclusive experiences, merchandise, and other incentives in exchange for Chiliz tokens.
The Chiliz network operates through a digital asset management platform, Chiliz.com. It also includes a fan voting & rewards platform, Socios.com, which has partnerships with some of the world’s biggest sports organizations, including FC Barcelona, Juventus, Paris Saint-Germain and others.
The Chiliz token (CHZ) can be used to vote in polls, access exclusive content and experiences, and purchase merchandise. The use of blockchain technology allows for secure transactions and provides transparency for both fans and the clubs they support.
How Does Chiliz Work?
Chiliz is not just another crypto token to collect. The CHZ token used to operate on both Ethereum and the BNB Chain, but it has recently transitioned to the independent Chiliz blockchain. This blockchain is built to cater to the needs of sports and entertainment companies, such as safeguarding IP rights and developer whitelisting.
The platform uses the Proof of Authority (PoA) consensus mechanism. Unlike other algorithms, this process relies on a small group of pre-approved validators. It is considered less decentralized but helps in achieving more scalability and efficiency.
How Do Fan Tokens Work?
Owning a fan token gives you the right to decide on issues related to your club. The intention is to make you feel involved in the club’s success and its future. As an example, fans of FC Barcelona voted to decide on the artwork that would hang in the team’s locker room. Other clubs allow you to vote on their uniforms or their celebration songs. Thus, fan tokens act as your stake in the club’s decision-making.
What is the Chiliz (CHZ) Ecosystem?
The Chiliz ecosystem includes its native blockchain, the Socios.com sports network and the ChilizX fan token exchange.
- Chiliz Chain – As mentioned above, the Chiliz Chain is an independent, layer-1 blockchain that operates using a Proof of Authority consensus algorithm. It can achieve a maximum of 400 transactions per second. It is also fully EVM compatible, which means developer ease and interoperability with Ethereum.
- Socios.com – This platform was created to bring together sports fans and their teams. It is where you can use your fan tokens to interact with popular clubs like Manchester City, Paris Saint-Germain and FC Barcelona. Users can vote and make decisions on items like team uniforms, locker room artwork and other such issues.
- ChilizX – This is the ecosystem’s token exchange. It enables you to exchange your fan tokens for CHZ tokens or even swap between various fan tokens. It greatly opens up the ecosystem and allows you to earn from your fan tokens.
How is Chiliz Coin Unique from Other Coins?
Most other tokens are generally used for payments or transfers between users. CHZ and its blockchain are built from the ground up to support the needs of sports fans and organizations. This makes it well-suited for its use in the fan token space.
Another difference is the use of Proof of Authority consensus. This is similar to Proof of Stake used by Ethereum and many other blockchains but requires you to be approved through governance before you can start validating transactions.
How To Use Chiliz (CHZ)?
Here is how you can use your Chiliz tokens.
- Brands and celebrities partner with Chiliz to create fan engagement initiatives on the Chiliz platform.
- Fans purchase Chiliz tokens and use them to participate in voting polls and access exclusive experiences and content offered by the brand or celebrity.
- The Chiliz token (CHZ) is used as a currency within the Chiliz platform, allowing for secure transactions and seamless access to the exclusive experiences and merchandise offered. You can also stake your tokens to earn more rewards.
- The blockchain technology behind Chiliz provides transparency and security, ensuring that fans can trust the platform and the brands they engage with.
How To Stake Chiliz?
Staking your CHZ allows you to lock in your crypto tokens and participate in the consensus process. In return, you can earn tokens as rewards for your deposit, while also helping secure the network.
- Visit the Chiliz staking website at scoville-governance.chiliz.com
- Link your preferred crypto wallet with the platform.
- Choose a validator to delegate your stake to. This increases the validator’s stake and allows you to earn a portion of their block reward.
- Enter the number of tokens you wish to stake and submit.
- Finally, open your wallet to verify the transaction and confirm the stake.
What is Chiliz Coin Future?
The future looks promising for Chiliz. From partnering with some of the largest clubs in the sports industry to launching the Chiliz Chain 2.0, there are big things in store for users of the ecosystem.
Additionally, their roadmap mentions many important features coming in 2023, from wrapped stablecoin support to smart contract asset bridging. This is bound to increase the performance and ease of use for all stakeholders in the Chiliz ecosystem.
Chiliz is a fascinating platform that shows the innovative possibilities of the crypto field. It introduces a much wider audience to crypto tokens and allows them to actively participate in the teams they love and support. Chiliz also provides sports and entertainment clubs many more opportunities to interact with their fans and diversify their streams of income. Its upcoming upgrades and improvements will further increase its appeal as an ecosystem and an investment.
You can now trade Chiliz (CHZ) on ZebPay India. Learn more about Crypto on ZebPay blogs.