Chiliz provides sports and entertainment organizations with blockchain-based tools that help them engage and monetize their audience. It's also one of the most popular coins in the digital collectibles market. With the hype around the NFT market, CHZ has found its niche as a digital asset for sports fans.
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Introduction to Chiliz Blockchain
Chiliz is classified as a virtual financial asset under Malta's Virtual Financial Assets Act. As the Socios fan engagement platform is built from the ground up, it uses CHZ as the exclusive currency on the platform.
Socios allows fans to buy branded fan tokens from some of the biggest and most well-known sports teams in the world, including FC Barcelona, Juventus, Paris Saint-Germain, AS Roma, Galatasaray, and UFC. Fans must purchase CHZ through a cryptocurrency exchange to buy tokens. These team or club-specific tokens are ultimate digital assets that provide access to an encrypted voting registry and ownership rights to membership. Chiliz was founded by Alexander Dreyfus in 2018 as a subsidiary of the Maltese company Mediаrex Grоup. It operates in the sports and entertainment industry. In 2018, developers raised over $66 million through private auctions. Key investors included Binаnce Lаbs, CеYuan Venturеs, Jumр Cаpital, and Kosmоs Capital. The Chiliz.nеt cryptocurrency exchange for sports and entertainment events started operating in early 2020 and is positioned as "one of the first in the world". The Chiliz team currently has over 220 employees, with offices in various countries such as Switzerland, Spain, and Malta, as well as representations in the United States, Turkey, France, South Korea, England, and Brazil.
Uniqueness of the System
Chiliz is a promising digital asset for passionate sports fans and crypto enthusiasts. It allows users to buy fan tokens, offering them exclusive benefits and helping support their favorite sports teams. The main advantages of the system are:
1 Team management itself becomes an entertainment offering. 2 Voting rights enhance the trading experience and improve it. 3 Every fan's voting decision directly impacts real sports and esports teams, as well as other partner organizations.
In late October 2019, Chiliz launched a project called Chiliz Chаin for the operation of Sосios.com. The average time it takes to create blocks is 5 seconds, and transactions on the platform are free. Its main goal is the issuance and circulation of fan tokens. Over seventy have already been issued. To achieve maximum performance in the Chiliz blockchain, the Proоf-of-Authority (PoA) consensus protocol is used. This variant of the Prоof-of-Stake algorithm is unique in that a small number of trusted network nodes (masternodes) participate in the creation of blocks and resolution of transactions. No rewards are given for approving such blocks. However, the platform had to sacrifice decentralization for performance. Chiliz Chаin is served by only seven network nodes, which belong to the company and its major partners.
Platform Token
CHZ is an ERC20 utility token on the Ethereum blockchain. This digital asset can be used to purchase branded fan tokens on the Socios.com platform. Such tokens are issued by many popular sports clubs and teams. Fan tokens bought with CHZ allow users to influence their teams through voting and receive the right to rewards and recognition from the team based on participation. Part of the CHZ obtained from the sale of fan tokens, NFTs, and collected trading commissions on the Chiliz.net cryptocurrency exchange is burned. More than 65 million tokens have already been burned in this way. Chiliz is used for all calculations and transactions on the Sоcios.com platform: both buying and selling fan tokens can only be done for CHZ. In the future, the token is planned to be reissued in Chiliz Chain 2.0, after which it will also be used for network management, staking, and paying transaction fees.
