NFTs are a revolutionary technology bringing change to the industry. It started in the art world, expanded into the music industry, and now we see NFTs in sports. The use of NFTs in sports forever changes the way this sector does business. This article highlights the values NFTs in sports bring and how they contribute to the sector’s growth.
Understanding The NFT
The first step to understanding the impact of NFTs in sports is to understand NFTs. NFTs are unique digital assets found on a blockchain network. Each NFT represents an individual tangible or intangible items like artwork, audio clip, video clip, or sports collectible. The NFT has precise information that makes it easy to track on the blockchain network.
The most important thing to remember with NFTs is the authenticity, as each has a transaction log and verified data. This information helps users track their ownership history. The blockchain stores and tracks the data. The nature of blockchain makes it impossible to replicate or alter the data without alerting everyone else.
NFTs In Sports Use Cases
The potential of NFTs in sports is incredible. There are several practical applications for NFTs in this industry. Technology can change the sporting world in several ways and benefit fans and athletes. Let us look at the potentials of NFTs in sports.
NFT For Digital Collectibles
Renowned blockchain company Dapper Labs collaborated with the NBA to create NBA Top Shot. The marketplace is the ideal location for fans to purchase or sell video clips of famous basketball games. Along with these videos are NBA-licensed digital items. Users with these licenses can display these clips on their profiles.
NBA Top Shot satisfied the need for fans looking to buy and collect valuable moments. Presently, the platform received more than five hundred USD in sales, and that number shows no signs of stopping.
Another notable project of NFTs in sports is Sorare. Sorare blends blockchain, sports, and gaming into a single location. It is a global fantasy football game where users become managers and create their fantasy football team. They can buy and sell football players and compete against other players.
Sorare works with several famous football clubs and players from the MLS player association. The platform enables users to build their dream team and earn rewards through a fantasy soccer league.
NFT In Sports For Fan Engagement
Another potential of NFTs in sports is fan tokens. Fan tokens grant users exclusive access to special content, VIP rights and can influence some decisions relating to the sports team. FC Barcelona in 2020 issued the fan toke $BAR and received resounding success. In two hours, token sales surpassed the one million mark. Presently, $BAR reached more than one hundred nations and has given fans a chance to connect with their favorite football team.
Following FC Barcelona, A.C. Milan joined the bandwagon and released the $ACM token on Binance. A few hours since the release and sales have reached the six million USD mark. These fan tokens connect the football team with the fans and strengthen the bond between the sponsor and the club.
The sponsor can estimate the ROI based on the metrics transparency and insights gained from the information present on the blockchain.
NFTs In Sports For Ticketing And Virtual Real Estate
NFTs in virtual real estate is an innovative use case for NFTs. The owner can purchase several properties related to their favourite sports team. Owning a seat in a virtual stadium gives the user the right to watch exclusive stadium events. The platform is one way for athletes and sports clubs to create a valuation for their team.
NFTs in sports for ticketing has several apparent implications. The problem of ticket fraud and scalpers is a long-standing topic among participants and event organizers. However, the inclusion of NFTs in ticketing ensures fans that they are purchasing a genuine ticket. Here, users can verify their data through the blockchain and prevent fraudulent activities.
Additionally, blockchain networks help sports organizers to trace back the sale prices and scalp history. Hence, fans have a convenient and authentic way to get sports tickets and several exclusive rights.
Sports Leagues Minting NFTs
The NFT Top Shot project is one of the successful applications of NFTs in sports. Seeing this, the MLB, MLS and NFL also created similar projects but did not reach the same success as Top Shot.
In 2021, a representative of the NBA said the league is studying the application of blockchain for ticketing and collectibles. The rep also claimed that the club plans to utilize this technology to its fullest. Major League Soccer also understands the potential benefits NFTs have and as such, are taking the required steps to utilize it to the fullest. While the NBA sees success in Top Shots, the NFL is looking at other ways to utilize NFTs in sports.
Several NFT projects can benefit sports leagues like the NFL. These projects enable the NFL to build a comprehensive NFT ecosystem for commercial and financial benefits.
One such project that provides this potential is NFTify. This project is a platform for creators to create their NFT store with minimal coding knowledge and a low service fee. NFTify makes it possible for anyone to create a store. Here, a sports team and athletes can create their stores and connect with fans without starting the whole system.
NFTify supports several NFT formats, enabling athletes to come up with various ideas from player cards to virtual land assets. NFTify has a secondary marketplace for NFT creators to have an exciting platform and increase fan engagement.
Conclusion
The ideas listed above present some of the potentials of NFTs in sports. However, it is worth remembering that there are several other ways to utilize this technology for the industry’s benefit. The prospect of NFTs in sports is vast, and it will be exciting to see how the industry uses this technology.
