The history of sports extends back to the Ancient world, the first Olympic Games in Greece, marked a turning point in human history. But as civilization gradually evolved, sports have evolved from athletic contests to big business. The sports industry has expanded tremendously from a mere recreational activity to a multi-billion dollar industry. The value of the sports industry is estimated at 458 billion dollars.
Since the crypto space has been gaining its demand, around tokenization of different spheres has been a lot of discourse.Many blockchain applications (dApp) that were originally created to solve traditional finance problems have proven to have countless potential uses outside legacy systems.
The sports industry has not lagged behind and has actively begun to benefit from tokenization. Many sports clubs and various teams have been successfully using blockchain for a long time now, by constantly attracting fans and increasing revenue.
The COVID-19 pandemic couldn’t help but affect our topic today. Lockdown has specifically affected the habits and hobbies of consumers, who have massively started to become interested in the blockchain industry. As the survival of the “out-door” sports area suffered during the pandemic and revenues from ticket sales for different ranges of matches decreased significantly, blockchain became an important part of this industry.
Like sports, the world of cryptocurrency has its own strong and large community of users and enthusiasts. The merging of blockchain and sports means the emergence of a new era.
Is tokenization just another fancy word?
Generally speaking, a token is a representation of a particular asset or utility. Within the context of blockchain technology, tokenization is the process of converting something of value into a digital token that’s usable on a blockchain application. Tether (USDT) reflects ownership of one asset worth one US dollar. These tokens can fully or partially own the asset, can be easily transferred from one person to another and the user can easily buy/pay a great variety of different services.
The tokenization process unlocks illiquid assets and converts them into marketable and tradable tokens that can be used by anyone without intermediaries, reducing market friction and opening up limitless possibilities.
Practically anything can be tokenized if it is considered an asset that can be owned and has value to someone, and can be incorporated into a larger asset market. As more and more people and governments around the world come to terms with the incredible power and utility of blockchain, the tokenized future is very quickly becoming a reality.
Tokenization of sports
The opportunity to easily create different kinds of low cost tokens has opened up a unique ability for sport-amateurs to sell tokens, which include ownership rights and functions that are not available via traditional ways. Tokenized supplies and facilities are produced, distributed and consumed, which stands as the foundation for the token economy.
New ways of generation constitute the major goal of competitive business, sports clubs and different organizations. Due to massive lockdown, people’s preferences have significantly changed and the amount of online events has increased. This is one of the reasons why people need daily obtaining fascinating experiences to encourage the attendance of online sport events. That is still a constant issue.
The other factors that have influenced the sports tokenization is the influx of eSports and the lack of demand of out-door sporting activities. These factors have led to the fact that most sporting events are held without spectators. Thus, clubs need to spice up activities and find out a way to successfully boost the engagement, membership, and loyalty of fans.
All the above mentioned, and even more, is achievable thanks to blockchain technology and its implementation into the sports industry.
In the next part we will find out the different ways of using decentralized technologies in the sports industry to attract as many fans as possible and analyze how Oracula will change for the better the future of betting.
Stay tuned!
