What is Fan Token, Its Future and Related Benefits

Chiliz (CHZ), the blockchain-based platform, is in a growing phase. It has made an announcement that could result in an increased adoption rate. This development could affect the price of CHZ.

Although it has shown a downward trend in August, it reached its peak last year in November. It has now dropped to a historic low of $0.060 in August this year. This platform is a fintech technology provider for the sports and entertainment industries.

About Chiliz Platform and its Token

Chiliz is the platform that associates sports clubs and celebrities with their fans with the use of the native token CHZ. This platform offers incentives, merchandise, and exclusive experience in exchange for CHZ.

The token is used for voting and to gain access to content, experience, and merchandise. The use of blockchain will permit secure transactions with transparency for both fans and the clubs they support.

The blockchain platform uses the Proof-of-Authority (PoA) consensus mechanism. This mechanism is based on a small group of pre-approved validators. It is regarded as less decentralized but helps in achieving more scalability and efficiency.

What are Chiliz Fan Tokens and their Utility

Fan tokens are a form of cryptocurrency that permits users to fan-related membership perks like voting on club decisions, rewards, unique experiences, merchandise designs, etc. They give users the team-based utility.

They can be used by fan clubs and organizations to develop the democratic organized experience and to establish leadership. The most popular fan tokens are the football team’s fan tokens. It can be a good investment for fans who wish to engage with their favorite sports team.

Owning fan tokens in Chiliz allows the user the right to decide on issues related to the club. The aim is to make the user/fan feel involved in the club’s betterment. For example, the fans of Barcelona decide on the artwork that would hang in the team’s locker room.

Similarly, other clubs also allow voting for their uniform or celebration songs. So fan tokens help and participate in making decisions related to the club. The fan token can unlock numerous benefits like discounts, exclusive content, and securing first place in the line to buy the merchandise.

Composition of Chiliz Ecosystem

The Chiliz ecosystem is made up of its native blockchain, the ChilizX fan token exchange, and Socios.com sports. The native blockchain Chiliz Chain is a Layer 1 blockchain.

It operates using a Proof-of-Authority consensus algorithm. It can reach a maximum of 400 transactions per second. This blockchain is EVM compatible which provides developers the ease and interoperability with Ethereum.

Socios.com was created to bring the fans and team together. It is a global app and is built to become the central blockchain foundation for the sports and entertainment industries.

It is the place where users can interact with popular clubs like FC Barcelona, Manchester City, and Paris Saint Germain. Here, the users can vote and take part in making decisions related to the club and team.

ChilizX is the token exchange. It facilitates the exchange of fan tokens for CHZ tokens and also provides swapping between different fan tokens. It gives users the chance to earn from the fan tokens.

How Chiliz Token Differentiates from Other Tokens

Chiliz tokens are unique from other coins because they support the needs of the fans, sports, and organizations. However, other tokens are only used for payments and transfers.

This token uses Proof-of-Authority consensus. It is similar to Proof-of-Stake used by Ethereum and many other blockchains but needs to be approved through governance before users can start validating transactions.

The power of token-gating fan communities is not just in the revenue opportunities it brings but also in the two-way relationship that it delivers between fans and the object of their loyalty. Now anything can be tokenized. It is not limited to sports but also entertainment, brands, companies, FMGC, etc. Chiliz can be a partner to any brand or organization that is ready to build its engagement with its community of fans.

The use of Chiliz tokens is varied. The user can use it for voting or polling for their teams. The token will give access to exclusive content and experience of the brand or the celebrity. The blockchain technology provides transparency with enhanced security which increases the trust of fans on the platform. This also increases engagement with the brands.

Staking Chiliz is very easy. It will help users lock crypto tokens and take part in the consensus mechanisms. For this, visit the website and link the preferred crypto wallet with the platform. Then, select a validator to represent the stake. This will increase the validator’s stake and it provides users a chance to earn a portion of their block reward. Enter the number of tokens to stake. Verify the transaction through the wallet and confirm the stake.

The future of Chiliz looks promising. It is partnering with some of the largest clubs in the sports industry. The platform is also integrating with major exchanges. It has welcomed Livelike as the first tech company to join Chiliz Chain 2.0. There are big things in store for the users.

Summary

The roadmap of Chiliz shows that many significant features will be associated. This will increase the performance and ease of the stakeholders. It is full of innovative possibilities and now it will be available to a wider audience. The fan token will allow the fans to participate in team decisions and support the team they love. Along with these interaction opportunities, it will also diversify their channels of income.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing