With the recent NFT craze, many previously undervalued projects have emerged that have gained prominence in the blockchain community. One of them is Chiliz, a project to tokenise sports teams.

Its multiple platforms and its cryptocurrency, CHZ, are creating the world's first fan engagement and rewards ecosystem based on blockchain. With Chiliz, fans can buy CHZ and exchange fan tokens and use the same tokens to vote in polls and surveys related to their favourite teams.

In the future, these tokens could even provide team management, effectively decentralising and managing professional sports teams and figures.

Chiliz is a new promising cryptocurrency
Chiliz is a new promising cryptocurrency

There are three main elements to the Chiliz ecosystem:

  • Socios.com, where fan tokens are created and sold in exchange for CHZ. Management decisions are also made here, and users can receive rewards and buy CHZ.
  • Chiliz.net is the world's first cryptocurrency exchange for sports, allowing crypto-enthusiasts and traders to speculate and trade existing fan tokens.
  • The CHZ token, which powers the entire ecosystem.

The Chiliz core network and Socios platform were conceived by founder Alexander Dreyfus back in 2016, but it wasn't until 2019 that the ecosystem was finally launched.

Just 18 months later, the company employs more than 80 professionals from more than 25 countries and continues to expand rapidly. And after a modest start in 2019, the Socios platform is now home to 34 elite sports venues, most notably in football and most recently NASCAR racing.

The Socios platform and CHZ token were developed to allow fans to support their favourite sports teams through blockchain-based transactions. The ChiliZ team hopes to involve fans in the day-to-day business of running sports teams and provides sports teams themselves with the necessary blockchain tools to both attract and efficiently monetise their fans.

Chiliz (CHZ) - digital currency for sports and entertainment platforms
Chiliz (CHZ) - digital currency for sports and entertainment platforms

What is Chiliz? 

The Chiliz platform will allow hundreds of millions of sports and cyber sports fans to engage more directly with their favourite teams, giving them a say in certain decisions. The team has already forged almost three dozen partnerships with several major international football franchises. As the platform grows, it is becoming easier to attract additional partners.

Chiliz was created to give fans a voice for their favourite teams. 

While Chiliz started with football as its first sports vertical, it also plans to add other sports such as football, baseball and basketball. In addition, the platform also includes NASCAR racing and Formula 1 racing, as several racing teams have been added. For example, Aston Martin Cognizant Formula One Team and Alfa Romeo Racing ORLEN became the first Formula One teams in the world to release fan tokens.

Chiliz has seen rapid adoption and the token option is very strong, especially as NFTs are becoming increasingly popular with investors. The team can further expand the use of tokens by partnering with NFT platforms.

Chiliz will increasingly attract sports teams to see how easy it is to attract and monetise their fan base through the platform.

It is also optimistic that Chiliz has no direct competition and now has an 18-month head start for any potential competitors who might eventually adopt similar usage options if they were inclined to do so.

Fans buy tokens and vote through the platform
Fans buy tokens and vote through the platform

Technology and system architecture

The Socios platform runs on two different blockchains:

  • Enabled Sidechain.
  • The Ethereum core blockchain.

The allowed sidechain was called for centralisation reasons, as it is a private rather than public blockchain, but the use of permitted sidechain also provides superior security for Chiliz.

Everything about voting and trading takes place on this sidechain, and all data is kept on the public ledger at all times. Chiliz can significantly reduce transaction costs by using an authorised sidechain by using the Proof of Authority consensus mechanism to validate new blocks created. Sidechain also means that the platform can scale as needed.

Chiliz reduces transaction costs by using an enabled sidechain.

The Ethereum core blockchain is used for everything with CHZ ERC-20 transactions. This includes the creation and exchange of fan tokens and any exchanges of account balances that take place as part of other service functions on the platform. These transactions are permanently stored on the leading Ethereum network in a controlled form.

Connected to both blockchains is the Socios platform, which effectively acts as an oracle that connects the allowed sidechain to the Ethereum main network chain.

CHZ tokens are issued in the Ethereum blockchain, while NFT fan tokens are published in the permitted sidechain.

The public registries of both chains are indelible and contain a complete transaction history, which anyone can verify at any time.

The owner of even one Fan Token gets access to the trading platform
The owner of even one Fan Token gets access to the trading platform

Chiliz gives fans a voice

In their current form, fans of sports teams have only basic business contact with the athletes and management of their favourite teams. If the games are broadcast, they can watch their teams in person or on television.

They may also pay for licensed products sold by teams and individual athletes. However, fans have no control or influence over teams or athletes. Chiliz can change this.

It is already well known that fans are very keen to become influential in sports and cyber sport. However, the current movement for direct fan involvement and engagement was nothing more than a novelty.

Currently, there is no way to directly influence team decisions other than buying a team or creating your new team. Unfortunately, this means that there is effectively no possibility of going from being a fan to being an active team member.

Creating a new team to gain this access to influence the sports team is not an option for everyone. The barriers to entry are too high in terms of capital, time and talent. Therefore, considering the creation of a new professional sports team is simply unrealistic.

Chiliz has created a platform for fans to have a say in their favourite sports teams. The platform will also help fund and connect with new sports and cyber sports organisations.

This is done specifically through the Socios.com platform, a crowd management system powered by the CHZ token. This inspires fans and enables them to actively and constructively influence the team decision-making process. As a result, fans can now become influencers in the organisations of their favourite sports teams.

All of this is made possible by the creation of a blockchain-based NFT system that allows a limited number of fan tokens to be created, sold and exchanged. The infrastructure that makes this possible is secure, insecure and implemented through a smart contract on the platform.

In addition to simply giving fans access to decision-making for their favourite teams, the blockchain-based Chiliz solution also turns team management into an entertaining proposition, effectively playing the role of team management.

This creates a huge opportunity and could lead to a vast new industry, as fan voting rights will now directly impact the actual sports organisations and any of their partner organisations.

Invest in Chiliz in Kenya
Invest in Chiliz in Kenya

How does it work?

The first teams to use the Socios platform were Paris Saint-Germain and Juventus, who created Fan Tokens to create a mass voting economy on the platform.

Each created a predetermined number of Fan Tokens to transmit a certain number of votes to their fans. Each team that joins the platform decides what impact they will have on fans when creating their token fan base.

The fans then use the platform to buy fan tokens using their CHZ tokens. Each fan token gives fans a certain number of votes to interact with polls, surveys and decisions published by the leading team.

All required is the ownership of 1 token to be eligible to vote, and each fan token carries equal weight in the voting process. So fans speak, and teams listen.

Although football was the first vertical, Team Chiliz plans to add other sports in the future, and as of May 2021, they have already signed deals with Formula One racing teams and NASCAR racing teams.

Chiliz token $ CHZ

CHZ is an ERC-20 and BEP20 token and has the following utilities:

  • Voting on the Socios platform.
  • Serves as a bridge for fan tokens on the platform (via fan token offers). Fans must purchase CHZ to receive fan tokens.
  • Buy in-game games and challenges as well as in-game collectables.

The CHZ token was issued as part of a private placement. Approximately 3 million of the 8.9 million tokens were sold in this private placement, and the team says they have no plans for an ICO in the future.

The CHZ token exclusively powers a consumer-facing platform where fans can use their fan tokens to participate in surveys and polls and be rewarded through active participation.

CHZ tokens are needed to participate in fan token offers (FTO) for the initial sale of fan tokens and the Socios locker room. The CHZ token has high liquidity and is traded on some of the largest and globally recognised exchanges, such as Binance.

CHZ is designed to deflate over time with the following combustion mechanism:

  • 20% of the net trading fees collected in the CHZ exchange chiliz.net will be burned.
  • 10% of net proceeds from fan token offerings (FTO) from the chiliz.net platform collected in $ CHZ will be burned * + 3-month lock-in of collected $ CHZ.
  • 20% of net proceeds from NFT and collectables issued $ CHZ will be burned.
Experts predict a rise in the value of the Chiliz cryptocurrency
Experts predict a rise in the value of the Chiliz cryptocurrency

Where to buy Chiliz

If you want to buy Chiliz in Kenya, there are several options. First, keep in mind that altcoin has high liquidity. It is bought or sold on dozens of exchange websites. It is listed on major centralised exchanges and DEX. The token is listed in the top 100 by capitalisation. It is traded on its platform and other popular exchanges such as Binance. 

How to invest in Chiliz in Kenya? 

If you want to make money from it, you can invest in CHiliz in Kenya. One way to make money with Chiliz:

1. Fan Tokens transactions.

The prices of fan coins also change. Users can invest for the long term or engage in trading. Transactions are conducted on the project's exchange. Significantly fan tokens may increase value due to team successes or advertising campaigns.

Use CFD trading on online trading platforms to make money even on falling cryptocurrency prices
Use CFD trading on online trading platforms to make money even on falling cryptocurrency prices

2. Trading.

The high volatility of the altcoin allows you to make money on exchange rate movements. In addition, traders can participate in spot, margin trading (leverage size depends on the platform) - CFD. 

Formally, a CFD is a contract between a broker and a trader, the essence of which is the exchange of the difference in the value of the underlying asset arising between the initial and final price of the contract. 

CFDs allow you to use only a fraction of the amount needed to open a trade. This method is called margin trading or leveraged trading. This allows traders to work on more prominent positions with little capital. This feature of CFDs provides access to a greater number of global financial markets.

One of the main advantages of trading CFDs is opening positions in any direction. You simply buy or sell a contract depending on whether you think the price will rise or fall. Accordingly, you open a long or short position.

  • Buy.

You open a long position if you expect the chosen asset to rise; accordingly, profits arise if the price increases.

  • Sell.

If you think that the chosen instrument will fall, you sell the corresponding CFD short and make a profit when the price goes down.

Sign up on the trading platform
Sign up on the trading platform

How to Buy Chiliz right now? 

If you want to buy Chiliz, you can сhoose a safe broker and register online. Frequently, registration requires some personal details to recognise the user. Once registered, you can begin trading cryptocurrencies. 

Various platforms also allow their users to trade in a demo account with virtual money. Again, this is an excellent way to gain experience. 

If you feel empowered and self-sufficient, then, of course, move on to real trading. To do that, make a minimum deposit and start earning right now. Then, have a great time trading!

The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose