Chiliz (CHZ) is a cryptocurrency and an ecosystem dedicated to uniting the world of sports with that of blockchain technology, offering a platform for the creation of fan tokens, NFTs and services related to the sports world.
Chiliz (CHZ) is a token of Ethereum that seeks to become a benchmark for all sports fans in the world blockchain. The idea has been driven by Socios.com, a popular engagement platform for sports fans, and HX Entertainment Limited, a group dedicated to the field of organizing sports and entertainment events, in order to make Chiliz the epicenter of all its operations.
To achieve this objective, Chiliz is intended to position itself as a currency for the acquisition of products and services associated with its platform. This goes from the purchase of merchandising, fans tokens, NFT, sports betting, payment solutions, among other products.
In addition, in order to deal with the escalation in the value of fees on Ethereum, Chiliz has prepared its own blockchain to boost the scalability of its token, allowing for fast transactions. The technology of this network is based on Ethereum through the protocol Proof of Authority (PoA), which allows interoperability with the network where this token was initially created.
In this way, Chiliz aspires to be a currency with global reach, with a wide range of uses linked to the sporting world and to become a benchmark in this sector.
Origin of Chiliz
Chiliz was developed by Mediarex Group, which is part of HX Entertainment Limited and in which they are associated Alexandre Dreyfus y Fiobian manicolo, together with Socios.com. With the idea already embodied, its developers achieved that in October 2018, Chiliz came to light, with an issuance of 8,8 billion tokens on the Ethereum network, under the standard ERC-20. Since then, Chiliz has begun to pool supporters and partners to advance his exciting vision.
Shortly after the launch of Chiliz, the Socios.com platform began operating. This platform debuted with the launch of interesting features such as the issuance of fan tokens.
The first of these, the fan token of the Juventus football team, was followed by the successful issue of tokens for Paris-Saint Germain, Atlético de Madrid, Galatasaray, AS Roma and FC Barcelona. With names like these, the platform quickly attracted attention, which was reflected in a significant surge in operations with this token. However, the furor did not stop there and national teams such as Argentina and Portugal joined the project, as well as other Premier League teams such as Manchester City, Arsenal, Everton, Leeds and Aston Villa.
Beyond the world of football, it has also attracted other sectors. Formula 1, the UFC and even the NBA have joined this effort to create their own Chiliz fan tokens, which shows the strong interest in this platform, which has been Powered by more than one million users and has an average of more than 140 active holders.
Why does Chiliz have such an impact?
To understand Chiliz, the first thing you need to know is what exactly a "fan token" consists of and start from there to explain the idea behind this project.
What is a fan token?
A "fan token" is nothing more than a cryptographic token that is associated with sports entities or figures. Tokens such as the PSG Token or the FC Barcelona Fan Token are just one example of this type of token and the scope they can have. For example, the PSG Token, launched in June 2020, started with a market price of $2,77 USD per token, but reached $61,23 USD at its all-time high (August 2021), which meant a return of more than 500% in its entire history.
It is clear, the reason that allows this reality in the crypto markets: the fans and followers worldwide of these teams and their tokens is very broad. This drives their price. In fact, that very reality is what has allowed fan tokens to be able to add a value greater than 2 billion dollars, and the prospects for the future are much broader.
In any case, the preferred place to deploy fan tokens is Chiliz, due to its Ethereum-compatible ecosystem, the speed and low cost of its operations.
Chiliz, a network based on Proof of Authority
Chiliz began its history as an ERC-20 type token within the Ethereum network in 2018. However, this quickly meant several problems for the expansion of the platform, the most important: the cost of commissions in Ethereum.
Faced with this reality, the Chiliz development team began working on its own blockchain to improve this situation. This is how Chiliz was born, an Ethereum-compatible network based on the Proof of Authority (PoA) consensus protocol.
The intention with this new blockchain is to allow its users to use a fast, economical (it has no commissions) and secure network for their operations with their tokens. Whereas you could deploy fan tokens in your own network and watch them evolve, while also being able to easily interact with the rest of the blockchains based on the Ethereum Virtual Machine (as in the case of Ethereum or BSC). This is clearly a very advantageous design point, since it allows easy interoperability between networks (cross-chain).
However, one of the first problems of PoA as a consensus protocol is its extensive centralization and lack of privacy when operating a validation node. Also, this protocol does not work with mining (like BTC and PoW) and does not even use staking (like Proof of Stake). Instead, to be a validator you must be accepted by other validator nodes on the network and prove your identity and authority within the system. This has meant that the Chiliz network has only eight (8) network validators for the entire operation of this system, and which can be seen by clicking on this link. If you want to know more about the Proof of Authority and how it works, we recommend you read our article dedicated to this consensus protocol, so that you know its full potential.
Smart contracts, tokens and NFT for a network made for fans
Of course, being an Ethereum-based network means that, Chiliz is capable of using advanced Turing Complete smart contracts. To do this, the network makes use of a specially modified version of the Ethereum Virtual Machine, adapted to the Proof of Authority protocol. Thus, we can see smart contracts written in Solidity within this powerful chain of blocks.
In this link, you can see a Chiliz contract, which belongs to the SSU token of the Chiliz network. Thanks to this, Chiliz is able to create fungible (using the ERC-20 standard) and non-fungible (using the ERC-721 standard) tokens within its blockchain. An example of this potential can be seen in the recent launch AC Milan NFT, which occurred on October 29, 2021, in which 100 NFTs of this team were launched.
Chiliz Token Utility (CHZ)
In this entire ecosystem, the Chiliz token plays a vital role. However, two things must be clear:
- There is a Chiliz (CHZ) token on Ethereum, with the ERC-20 standard and which depends on the resources of the ETH network.
- There is the native Chiliz token on the Chiliz Network, with the ERC-20 standard on this network and has no usage fees.
In any case, both tokens are equivalent (even if they are on different networks) and can interact with each other through internal bridges, which allow their exchange through Chile Exchange.
In any case, the Chiliz token has a maximum emission of 8.888.888.888 CHZ. And, at the time of updating this article, there are approximately 6,94 billion tokens in circulation in the ecosystem. Its main markets can be found in DEX as Uniswap y Sushi Swap, where large volumes of token transactions are made, as can be seen in this link.
As always, to operate in these spaces you only have to buy some Chiliz (CHZ) token, which you can obtain in Bit2Me, take it to your MetaMask wallet and from there operate on these DEX without complications.
Conclusions
Chiliz is a project with a very interesting objective and a future. Having practically become the exponent of fan tokens on blockchain, has earned it great popularity in the crypto community and the sports community that is interested in this type of technology and its possibilities. Chiliz and its partners are betting heavily on growing this ecosystem and therefore the prospects for this market are positive.
To this, we add the fact that Chiliz builds this entire ecosystem on top of a fast and efficient network. In addition, by having cross-chain interoperability with networks such as Polygon or BSC, the potential of the token and its network is greatly expanded.
It only remains to wait if the Chiliz developers continue to expand their possibilities and see how far the fan token boom in the crypto world can go.
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