Chiliz is a platform that has revolutionized fan engagement through blockchain technology. It is responsible for uniting sports fans with their favorite teams by providing. Learn all about Chiliz, the CHZ crypto, the team behind the innovative project, and the Chiliz exchange in this guide.
KEY TAKEAWAYS
➤ Chiliz (CHZ) is a cryptocurrency that empowers sports and entertainment fans to engage directly with their favorite sports teams.
➤ Fan tokens on the Chiliz platform allow fans to participate in team decisions, access exclusive rewards, and trade on Socios.
➤ Chiliz operates on Ethereum and Binance Smart Chain, and includes fan tokens, locker tokens, and ERC-1155 NFTs.
➤ Chiliz has built strategic partnerships with major sports teams and continues to revolutionize fan engagement.
What is Chiliz?
Chiliz (CHZ) is a cryptocurrency that enables sports and entertainment fans to monetize and incentivize their activities through tokenization. As an ERC-20 token, Chiliz provides currency for the world’s first blockchain-empowered fan engagement platform, Socios.
The Socios marketplace allows fans to buy and trade branded fan tokens or non-fungible tokens (NFTs) and participate in or influence club-focused polls and surveys. Before Chiliz, sports enthusiasts had to watch games and purchase merchandise to support their favorite teams.
By leveraging blockchain technology, they now have a more active presence with direct influence on team decisions. For example, fan tokens may provide users with influence regarding starting lineup decisions, stadium names, or even uniform designs.
What is a fan token?
Before delving into the details behind the Chiliz project, it’s important to first understand the concept behind fan tokens. Fan tokens are blockchain-based digital assets or types of cryptocurrencies for entertainment and sports fans.
Do not confuse fan tokens with NFTs, since they are completely fungible — meaning they are exchangeable for other items such as sports club merchandise and other team-related benefits. In the case of Chiliz, the fan tokens are utility tokens built on the Chiliz Chain (blockchain).
How do fan tokens work?
Sports clubs, teams, and organizations issue fan tokens to users on a digital platform, which are authenticated on a public ledger. As owners of these tokens, holders gain exclusive membership perks and advantages, such as voting decisions and merchandise design.
Sports fans purchase and trade these digital tokens just like cryptocurrencies. On the Chiliz platform, CHZ is required to purchase fan tokens.
In order to be eligible for exclusive membership benefits, prizes, and the right to vote on club decisions, fan tokens are necessary. The tokens are essentially your digital pass to the teams you love and want to support.
How did Chiliz start?
The Chiliz project was founded with the aim of providing a platform for sports and entertainment fans to engage with their favorite teams. The team behind Chiliz envisioned a world in which users can gain direct influence over organizational votes, connect with others, and help monetize activities.
To do this, funding was required. In 2018, Chiliz successfully raised $66 million and was subsequently listed on major crypto exchanges, including Binance and KuCoin.
A significant amount of that sum was used to create Socios — the project’s reward and fan engagement app — which launched later in 2019. Soon thereafter, major sports clubs joined the platform, which attracted immense attention.
Some of these included Paris Saint-Germain, FC Barcelona, and Atlético de Madrid. This eventually led to international teams like Portugal and Argentina joining.
Who’s behind Chiliz?
Chiliz was founded in 2018 by Alexandre Dreyfus, who currently serves as the CEO. The project is actually a subsidiary of the Malta-based sport and entertainment organization Mediarex Group, which was formed in 2006.
The Chiliz team comprises more than 250 professionals of different nationalities and cross-industry professions. Some of these names in prominent positions include:
- Alexandre Dreyfus (CEO)
- Emma Diskin (COO)
- Max Rabinovitch (CSO)
- Fiobian Manicolo (Finance Director)
- Thibaut Pelletier (CTO)
What is Socios?
Socios is the digital interactive platform that the Chiliz (CHZ) cryptocurrency runs on. It is built on the Chiliz side-chain infrastructure, which runs on the Ethereum blockchain. Socios is considered Chiliz’s first consumer-facing product, enabling sports fans to engage with teams and be eligible for exclusive benefits and rewards.
Sports teams issue branded fan tokens on the Socios app, in which holders of the tokens can participate in major decision-making activities. To ensure the holder’s votes are honored, smart contracts are used for storing the data. Users can then trade their tokens — which are bought with CHZ — on the Socios marketplace.
How does Chiliz work?
The Chiliz fan tokens enable voting rights and offer users exclusive privileges to the team clubs on the Socios app. To acquire the fan tokens, users need to purchase CHZ on a crypto exchange. In addition, the CHZ token serves as the currency on the Socios fan engagement marketplace, which holders can use to purchase NFTs.
Today, Chiliz is used as a standard for many tokens in sports clubs. The entire network depends on the Ethereum blockchain, which secures and calculates all the transactions that take place. The CHZ cryptocurrency is then converted into ERC-721 NFTs when fan tokens are purchased on Socios.
Consensus
Chiliz uses the proof-of-authority (PoA) consensus, which allows for a smaller number of verifiers. This algorithm is responsible for verifying the tokens on the Socios app and helps support interoperability. To be accepted as a validator on this protocol, you need to be accepted by other validated nodes.
What makes Chiliz unique?
Chiliz is the first of its kind to introduce a scalable fan engagement and rewards platform. Contrary to ordinary fan-based apps, its main goal is to turn “passive” fans into “active” fans with direct engagement. Some of the features that set Chiliz apart include the following:
- NFT integration
- Fan tokens
- Blockchain-based fan engagement
- Exclusive voting rights
- Decision-making rights
- Crypto trading marketplace
Chiliz exchange
The Chiliz exchange is the world’s first tokenized exchange specifically for sports fans. On this exchange, users can buy, sell, and trade a number of big sports teams using the CHZ cryptocurrency.
Just choose the trading pair you want to trade (e.g., BAR/CHZ if you want to trade Barcelona for Chiliz), and set your limit or market orders just as you would do on any other crypto exchange.
The Chiliz ecosystem
The Chiliz token operates on both the Ethereum network as an ERC-20 token as well as a BEP2 token on the Binance Smart Chain. Apart from CHZ tokens, Chiliz also offers three other tokens that serve their own role.
Fan tokens
Fan tokens are digital assets on the Chiliz blockchain that you can purchase on the Socios app. Token holders have special rights to vote on team polls, which help with fan-related decisions. And they also become eligible for rewards engagement-based recognition.
Locker tokens
When sports teams wish to join Chiliz, they must fill out an application. Upon approval, a locker is created where investors hold their CHZ tokens after four months and exchange them for locker tokens. The locker tokens can then be swapped for fan tokens with a 10% CHZ cashback. These are usually worth more than the CHZ token. The platform refunds the CHZ if the platform fails to launch its fan tokens.
Chiliz ERC-1155 NFTs
ERC-1155 is a standard for creating both fungible and non-fungible tokens in one protocol. In 2020, Chiliz collaborated with blockchain developer Enjin to create branded collectibles for sports clubs. This resulted in the Ethereum-based NFTs Chiliz mints for their users.
The goal of the ERC-1155 is to enhance the functionality of a token that can function as both an ERC-20 and ERC-721 simultaneously. You can buy Chiliz digital collectibles on the Enjin marketplace using either CHZ or Enjin’s native token ENJ.
Chiliz token (CHZ)
The Chiliz (CHZ) token has a circulating supply of 6 billion and a maximum supply of 8,888,888,888. It was distributed as follows:
- Token Sale and Pre-Sale: 34.5%
- Userbase Reserve: 22.5%
- Marketing Operations: 15%
- Strategic Acquisitions: 15%
- Team: 5%
- Seed Investors: 5%
- Advisory Board: 3%
How to buy Chiliz (CHZ)
To buy Chiliz (CHZ), follow these simple steps:
- Register an account using a cryptocurrency exchange.
- Download and open the app.
- Register a debit or credit card.
- Create a buy order for Chiliz (CHZ).
We will walk you through the step-by-step process of buying CHZ using Coinbase as an example in this tutorial.
Step 1: Register a free account on Coinbase
You can sign up for a Coinbase account on either the mobile app or via the website. You will need to verify your identity with an ID and other personal information.
Step 2: Open the app and search for Chiliz (CHZ)
After you have signed up for Coinbase, download and open the app. Go to the search bar and look for Chiliz. You can also select the hamburger menu and press buy to search for CHZ.
Step 3: Buy crypto with a bank deposit or a credit card
There are several options available for purchasing crypto. The fastest way is buying with a credit card or crypto. You can also do a bank transfer and transfer your local currency to the app itself. To complete your purchase, select “Review Order” then “Buy now.”
Chiliz is setting a standard for fan engagement
By empowering fans with a way to engage and participate in their favorite teams and events through tokenization, Chiliz has redefined the fan experience. Through its consumer-facing product, Socios, teams can issue fan tokens that allow holders to make decisions regarding the team.
Chiliz has left an impact on the world of sports and entertainment fans. As a result, the company has been successful in maintaining strategic partnerships with major sports brands and clubs globally.
This article is not financial advice, it is for informational purposes only. Trading cryptocurrency is inherently risky and you could lose money. Invest wisely.
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