Friday, October 12, 2018

BLOCKCHAIN /SPORTS SPECIAL ....Football explores the power of blockchain


Football explores the power of blockchain

Leading football clubs are starting to tap the potential of blockchain technology as an innovative way to deal with longstanding issues such as ticket scalping, fan engagement and the payment of players’ salaries.

A blockchain is a database that is shared across a network of hundreds of computers. Once a record has been added to the chain it is difficult to tamper with. And to ensure all copies of the database are the same, the network makes constant checks.
Blockchains have been used most prominently as the tool behind cryptocurrency Bitcoin, but many other possible uses from medical records to banking — and now sports — are emerging.
“Blockchain has the power to be the underlying infrastructure upon which sport functions,” says Michael Broughton of Sports Investment Partners. “Much as mobile phones and apps are today a broader expression of the underlying internet so the sport can build upon blockchain.”
After French football club Paris Saint-Germain announced that they are launching their own cryptocurrency in partnership with a blockchain company, Italian giants Juventus announced they would do the same. Fans of the two clubs will be able to buy clubbranded tokens that come with voting rights as well as access to exclusive content and rewards.

Limitless potential
The technology could also have significant implications for ticket sales. European football governing body UEFA used blockchain technology to sell all the tickets for the Super Cup final in Tallinn between Real Madrid and Atletico Madrid over mobile phones, preventing the duplication of tickets.
In a sign of the growing interest of the football world in the blockchain, Lionel Messi became a brand ambassador for Israeli start-up Sirin Labs, which has developed an ultra-secure mobile phone that uses the technology.
Former Liverpool and England striker Michael Owen earlier this year invested in Hong Kongbased Global Crypto Offering Exchange (GCOX), a platform that allows celebrities to create and list their own ‘tokens’. “I believe blockchain technology holds the future. It has limitless potential that we have yet to fully explore,” Owen says.

Bring transparency
The technology is even starting — albeit on a small scale — to be used to pay players, which some believe, could help stamp out corruption in football.
Gibraltar United announced that it would become the world’s first football club to pay its players in cryptocurrency while tiny Turkish club Harunustaspor made headlines at the start of the year by announcing it had carried out the world’s first football transfer of a player in bitcoins.
“It could bring transparency to the world of football,” says Pablo Dana of Heritage Sports Holding which owns Gibraltar United and in August bought 25 per cent of Italian third division side Rimini using a digital currency.
Having a player’s identity and registration on the blockchain could provide greater transparency to the transfer and ownership systems. The technology could also be used together with big data analytics, to identify future football stars, according to Olivier Jarosz, head of club affairs at the Switzerland-based European Club Association.
— AFP


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