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Chiliz.net has been gaining increasing popularity thanks to its sport tokenization idea.
Blockchain technology has quickly overgrown its early stage of an exclusively token-oriented framework. As a result, this technology has invaded many businesses in the modern era, creating a new economic trend.
In this guide to Chiliz.net, we summarize the essential details about its blockchain network.
What is Chiliz.net?
Chiliz.net claims to be “the leading tokenized sports and entertainment exchange.” In this regard, its popularity in the field appears to confirm the statement. Chiliz.net has active partnerships with several critical professional sports companies in the world.
The blockchain network gained initial media attention through binding agreements with a few European football brands. For example, PSG is paying a part of Lionel Messi’s salary fan-coins through Chiliz.net.
Nevertheless, the brand’s ambitions do not stop at world-famous football stars. Its management team aims at entering other sports businesses, including racing. Moreover, by making millions of fans happy, the platform is targeting the e-sport sector as well.
Owning a fan token is not only a fashionable way to support sports teams. By joining the network, you will gain access to a social influencing platform for your favourite team. This will happen through the Socios.com portal, where your vote will count on important decisions of your team.
The system relies on NFT technology, granting the possibility to each user to exchange fan tokens. Also, this feature depends on the security of smart contracts. So, it does not rely on an intermediary’s approval to function.
How Does Chiliz.net Work?
The core advantage of Chiliz.net lies within the architecture of its social platform, Socios.com. The portal operates through a dual blockchain system:
- A Permissioned sidechain, which is a private blockchain aiming to enhance the system security of Socios.com
- The Ethereum blockchain, which is one of the most famous blockchain systems operating globally. Chiliz.net mainly uses it to handle transactions among sports fans.
As is often the case on the blockchain market, Chiliz.net published a whitepaper explaining its goal and functioning. Its main discussion points include:
The Ethereum Chain
The most external layer of the Chiliz.net platform relies on the Ethereum blockchain. Several entities have access to this system, including:
- Partners – typically sport teams
- Fans of the teams that have a partnership with Chiliz.net
- The market vault consists of the public ledger of CHZ (the native token of Chiliz.net).
At this level, the network executes all the fans-to-fans token transactions. As a result, the partners earn revenue on the single exchange actions among fans. This incentivizing mechanism works thanks to the small trading fees on the CHZ market.
The Voice Trading Floor
If you are new to trading, chances are you won’t even know what a trading floor is. Instead, think of a vast room where professional traders meet daily to execute their clients’ orders. Now, replace professional traders with crypto investors and move the room into the digital space.
This is what happens on the Voice Trading Floor built by Chiliz.net. Think of it as a virtual room in which Chiliz.net oversees all the CHZ transactions. The name of this feature comes from the noble mission of Chiliz.net – giving sports fans a voice.
The Consortium Chain
Sports teams can access a superior level of the blockchain, “the consortium.” Here, the network creates and distributes the tokens so that only sports teams can access this section.
It is only through the information that the Voice trading floor collects that the token distribution can happen. While partners have a say on the token emission, the actual allocation of CHZ follows the market rules.
The Voting Engine
Finally, fans can vote on particular initiatives by their sports teams. Think of this step as a mere shareholder virtual meeting. The more tokens fans possess, the higher the relevance of their vote.
If this still seems too futuristic to be accurate, you should know that Chiliz.net is already at work. For example, fans can control the governance of the GPL, an esports league created by Chiliz.net.
What is the CHZ Token?
Chiliz.net has a native token, CHZ. While other networks allow coin holders to vote for protocol changes, Chiliz.net built its core on CHZ. Since the blockchain’s goal was to give voice to sports fans, owning coins is the essence of Chiliz.net.
You will be able to use CHZ coins to buy Voice rights or sell them to other fans. Furthermore, by freezing a portion of your holdings on the platform, you will automatically gain an amount of Voices. This part of the technical architecture relies on the famous ETH intelligent contract system.
It is entirely up to each partner to choose the matters on which fans get a voting right. For example, management issues, matchmaking, and roster selection are specific topics on Chiliz.net.
At the time of writing, CHZ was trading at $0.49, with a market cap equal to $2.95B. By looking at the market cap, CHZ ranked 62 in the crypto sector.
Where to Buy CHZ?
Popular exchanges such as Binance, Coinbase, and Huobi Global allow you to trade CHZ. In addition, you can store the token in the wallet that Chiliz.net offers through the Socios.com platform. Alternatively, you can use any ERC-20 compatible portfolio.
Is the Chiliz.net Network Safe?
Its blockchain-based NFT framework makes Chiliz.net a relatively secure platform. The ETH system is famously secure and tackles all potential threats on the cyber market through continuous updates.
Chiliz.net relies on a Proof-of-Authority (POA) chain. Hackers will find it much harder to penetrate this system than older ones. Reverting a transaction on a POA network will not be possible through an unwanted connection.
Final Thoughts on Chiliz.net
As the blockchain revolution moves forward, it expands to all the areas of our everyday lives. Chiliz.net targets one of the most lucrative of these areas, sports entertainment. It leverages the substantial economic power of sports brands and combines it with the fans’ passion. By adding crypto to the mix, it creates a highly profitable venture with equal benefits for everyone.
The prominent market cap of CHZ represents a future potential for Chiliz.net. In addition, sports fans are showing enthusiasm for this new market player. And, we will keep an eye on how this relationship will evolve in the future.