Source: disruptordaily.com

Blockchain technology in sports and e-sports use cases

Athletes may gain from blockchain-based identities by giving their teams and organisations insightful and actionable data. This makes it possible for private performance and medical data to be securely tokenised- on (using a blockchain), making this data accessible and transparent in an immutable fashion - but only available to those who have the correct permission. Information about a player's health, fitness, medical condition and performance can be crucial in player transfer markets. For team-based sports, this information frequently guides choices during transfer periods and has the power to make or break a transaction. Blockchain-powered platforms also make it possible for cross-partner loyalty programs to be implemented, which can encourage greater fan involvement. This can include special items and merchandise and more bespoke experiences, thus offering greater value for fans.

Ticketing 

Fraud and counterfeiting are major issues for sporting events. Ticketing should benefit from blockchain technology which lends itself agreeably to asset ownership - and a ticket is an asset. With the help of this technology, tickets may now be securely kept on a blockchain and able to identify their rightful owner. Digital tickets are another blockchain use case for e-sports and the sector within sport that uses non-fungible tokens (NFTs). Token fraud may soon be an affair of the past thanks to blockchain-based sports tickets that can be issued as unique, cryptographically and mathematically provable, and are immutable.

Rights (broadcasting and player rights)

Given the global interest and demand for many sports, the TV/internet has ensured that acquiring and using broadcasting rights requires enormous sums of money. For rights holders to track the rights they have leased, blockchain technology offers one way to tackle this situation. Recently, Paris Saint-Germain’s 23-year old striker, Kylian Mbappe, refused to have his picture taken with the French football team as he did not want his image to be associated with online gambling and fast food. Resultant from this is that the French FA has agreed to review the situation, and quickly, as the football World Cup approaches - thus demonstrating the importance of rights management. Additionally, digital assets can be used to make payments for the owners of these broadcasting rights in a more transparent and efficient manner. Online user authentication will become simpler and many of the current third parties will no longer be required, so helping to reduce costs for all parties. 

Unsurprisingly, player transfer contracts require careful attention to detail as typically in each such contract is the analysis of a player’s rights when joining a new club. Now, players will be able to have their club contracts supported by immutable smart contracts, potentially replacing paper-based ones. Additionally, royalties due for a player's name, trademark or picture may now be cryptographically secured in a digital fashion. In the incidence of an asset being sold, players can automatically receive a royalty payment on branded goods or collectibles thanks to non-fungible tokens (NFTs). It is also possible to program NFTS using smart contracts embedded into them so when a NFTs are resold, the player and/or their teams will automatically be paid a percentage of secondary sales. In effect, this can generate on-going royalty incomes - not dissimilar to those already enjoyed in the music and film industry.

Anti-doping

Despite the fact that performance-enhancing substances are illegal, doping is still a major problem in a variety of sports - with many often being plagued by scandals. The use of blockchain technology could be an additional tool in helping to protect sensitive data and ensuring greater transparency. Results that have been verified could be preserved and shielded against alteration.

Player and club participations

The blockchain offers specific ways to invest in sports teams, stadiums or athletes. Small investors will now be able to acquire a share in their favourite athlete or team as a type of a crowdfunding platform. The return might be a set percentage of the athlete’s or club’s future income. Due to the blockchain's ability to identify the true owner, the shares in this asset can even be exchanged in a secondary market whereby offering a degree of liquidity which may be helpful if the teams need to raise further capital at a later stage.

Fan engagement

Additionally, the blockchain is perfect for increasing fan involvement. Clubs will now have the ability to design distinctive tokens, which can be used for a variety of fan-related activities and are regarded as valuable assets. Ranging from access to restricted content, utilise these tokens as a means of electing a new club manager or perhaps making a club-specific purchase, or enrolling in a loyalty program - there are countless options. The blockchains are able to control and record every vote and transaction. With the aid of Socios.com, a few clubs which have already begun to do this include Juventus and PSG.

Sports betting and gaming

According to Statistica, it is estimated that the worldwide market for sports betting exceeded $203 billion in 2020. Due to the nature of the technology, blockchains can cost-effectively and efficiently streamline this vast business. Real-time sports betting is now possible thanks to blockchain technology in the sports sector. Furthermore, prizes may be paid directly to a wallet in a matter of seconds since smart contracts can be issued and executed almost immediately. Additionally, because smart contracts do away with the need for a third-party middleman, customers may save on typical brokerage costs and simply pay for a gas fee only.

Sports collectibles

Verifiable authentication of artifacts and collectibles has been one of the predominant ways in which blockchains have been utilised to date within the traditional sports sector. Clubs and organisations can safely offer products to their supporters without the need to use middlemen. For example, Manchester City FC has issued a range of digital art collections, whilst the Hong Kong fencing team earlier this year partnered with local citizens that owned bored Ape NFTs to act as horary advisors of the Hong Kong fencers

Source: Gold4HK

Such initiatives offer supporters a new way in which to express their devotion to and support for a club. Each piece of branded memorabilia or collectible may have its own digital identification thanks to blockchain technology - by scanning a QR code, customers and fans may see the validity of a product or outfit. Additionally, this can confirm the maximum supply and show a history of past ownership, hopefully underpinning its value in turn.

So, when adopting blockchain technology in the sports industry there are several choices. Each one provides an improvement or alternative to established infrastructures which can be advantageous to athletes, their clubs and spectators. There has been considerable interest by a wide range of sports in many jurisdictions, but arguably the sports industry is still exploring and finding new ways in which to commercialise the use of blockchain technology and digital assets.

Source: economictimes

What is the metaverse?

The term ‘metaverse’ combines the terms ‘meta’ (which means ‘beyond’) and ‘verse’ (which means ‘universe’) to simply mean ‘beyond the universe’. The phrase, "Virtual Reality space in which users may interact with a computer-generated environment and other users”, may be used to define the metaverse.

Metaverse transforming the e-commerce landscape

There is a widespread belief that this futuristic technology represents the mobile internet of the future and, for people not taking it seriously, they could find their competitors able to steal a march over them. The attention of regular internet customers has already been aroused, encouraging brands and online merchants to enter this new digital frontier. Unsurprisingly, online shopping has increased dramatically over the past several years thanks to the World Wide Web. According to Statista: “The overall number of digital shoppers globally increased by over one billion between 2014 and 2021, and this growth is anticipated to continue”. It could even be argued that our lives are now simpler than ever thanks to a successful entry into the digital age where technology is ever developing and replacing old processes. And now blockchain, NFTs, virtual reality and virtual money have evolved as recent technical breakthroughs, in turn anticipating a more immersive online experience - the so-called ‘metaverse’. Moreover, Web 3.0 is also just around the corner. So, with the metaverse already taking shape, businesses and brands should anticipate some of the following changes in order to be a part of the new e-commerce landscape:

• innovations in AR and VR 

The most recent incarnations of interactive content that companies are pursuing to offer cutting-edge experiences are augmented and virtual. The predicted compound annual growth rate (CAGR) for the worldwide market for augmented and mixed reality is 79.2% - to be worth over $100billion by 2026. For instance, Amazon has developed a program called Room Decorator that enables users to see furniture in their own rooms. Elsewhere, customers may browse Charlotte Tilbury's online store at their convenience. Nevertheless due, in part, to the large and expensive hardware and technology needed to participate, we are yet to fully realise the potential of AR and VR. However, companies such as Meta are already providing VR headsets and related technology at ever-lower prices, indicating that these technologies will become more widely available and eventually gain critical mass acceptance.

• tailored experiences (personalised shopping) 

Customised client experiences are gradually taking over as essential components of increasing consumer loyalty. But, even as e-commerce and technology advance, personalisation frequently ends at product recommendations and exclusive member discounts. However, businesses which see the potential of giving customers improved on-line experiences have now developed cutting-edge, digitally empowered selling strategies. Nike is one such instance. Nike consumers will soon be able to style customised items (such as virtual footwear and clothing according to their tastes) after investing in the metaverse, so moving forward with these tailored virtual experiences. The metaverse would be able to help increase customer trust in a product whilst maintaining the best speed and access by fusing the concrete experience of buying in a real store with the unmatched convenience of e-commerce. Forget about viewing prepared images of models wearing clothing - the ability for avatars to try things on in the metaverse could potentially strengthen the emotional bond between the customer and the product. Inadvertently, this would lower shipping costs and returns for retailers thus driving margins higher and supporting ongoing investment in the metaverse.

• tight-structured community 

Customer buzz and referrals could significantly impact a brand's performance in comparison to other types of marketing. Companies have long begun to establish a social media presence after realising the value of community-building activities. The gap between social media and e-commerce is yet to be closed, and the metaverse could provide the ability to bridge it. Social evidence in the metaverse will go beyond positive social media tags and reviews with five stars. Customers' real-time interactions with companies and other fans are made possible by the devoted following that has been established.

Source: Insiderintelligence

• expanded social commerce

According to a report from accenture.com: “By 2025, it's expected that sales of goods purchased directly through social media platforms will total $1.2 trillion globally.” Similar to how businesses are implementing the tools to permit direct purchases on Facebook, Instagram and TikTok, the metaverse is likely to feature new marketplaces in which to conduct business. Although it cannot be said for sure what those platforms will look like, companies will certainly require the necessary technologies to keep their social stores updated with the most recent inventory and e-commerce info. To guarantee that clients receive the finest service on the platform of their choice, brands should also be ready with chatbots that can offer customer care, right within the social media platform. 

• dynamic online shops 

Online shoppers will be able to interact with items in real time from the comfort of their homes, thanks to the metaverse. Customers will be able to explore, buy and engage in a digital storefront - fundamentally changing how people now think of virtual and real businesses. Additionally, e-commerce in the metaverse will eliminate many of the physical restrictions currently present in commerce. Brands wanting to implement an omnichannel strategy will be able to synchronise experiences on all channels - from e-commerce to social media - if expenses are kept as low as possible.

Consequently, the next decade will probably witness several iterations of metaverse growth. Without doubt, organisations should be preparing for this next era of online interaction without delay by investing in AR, VR, social commerce and those other platforms that allow for seamless, multichannel and customised experiences. Those companies able to create a coherent metaverse strategy more quickly than their competitors may dominate this new market by their first mover advantage. Yes, unquestionably there are challenges in terms of the adoption of any new approach in doing business. There are new technology skill and market strategies that business will need to develop, and management will need to be ever more agile and flexible in finding capital - likely to be a challenge against a slowing economic back drop. However, the metaverse could potentially create a new type of economy and marketplace and it could certainly prove to be a costly mistake to ignore this, especially as we see more global brands engaging and transforming their business models.