Tokenization: Sporting Industry
More than ever, people across the globe are exploring alternative ways to access financial products and services. Although financial technology (Fintech) companies started this transformative process, the rise of blockchain technology is driving the next wave of innovation. Decentralized infrastructure enables the use of self-executing smart contracts, which replace human intermediaries with hard-coded programming. The rapid adoption of decentralized finance (DeFi) applications in 2020 highlights the demand for solutions that improve accessibility, lower fees, and unlock more value and utility for everyday consumers.
Defi Staking Explained
DeFi staking is all the rage today. According to DeFi Pulse, more than $13.62 billion has been locked in the decentralized ecosystem. By staking their cryptocurrencies, participants in a DeFi project earn governance tokens or yield for their contributions. Additionally, with popular blockchain platforms such as Ethereum and others moving towards a Proof-of-Stake consensus protocol, there has been a surge in demand for DeFi staking development services. Staking is also redefining how we approach financing. By allowing people to lend and borrow funds immediately and with very little authentication, DeFi is helping provide liquidity and utility to millions of cryptocurrency users.
DeFi Staking Workflow
Decentralized Finance leverages smart contracts to manage and operate transactions on the platform. Participants have to stake their cryptocurrency assets in a common pool and provide liquidity to millions of users. By enabling the lending and borrowing of funds, stakeholders can earn attractive interest rates and incentives in the form of governance tokens. DeFi staking solutions are instrumental in offering participants access to transparent platforms that are free of middlemen interference. This way, the stakeholders can enjoy greater control over their assets and their earnings. By listing their assets in a consolidated staking pool, a sizeable cryptocurrency fund is created, thus benefiting participants and allowing them to earn bigger yields on their investments. Make use of phenomenal DeFi staking development services to create and launch a highly profitable DEFI staking products!
The global spectator sporting industry is forecast to shrink from US$144.2 billion to US$139.5 billion in 2020, rebounding to US$171.7 billion in 2023. As a deeply entrenched part of daily life, there are several opportunities to unlock value and drive engagement — especially in regions where one sport is prevalent.
- Player Likeness: Tokenization allows fans to invest in their favorite junior-level players to support them in making it to the big leagues. This level of engagement provides players with a source of revenue and helps develop more talent in a highly competitive industry. When a player is drafted and embarks on their career, the token value would subsequently track their performance metrics — essentially a real-world video game character.
- Football Club Fan Tokens: In June 2020, the Spanish champions Barcelona raised US$1.3 million in less than two hours by selling 600,000 “fan tokens.” These tokens will give each holder exclusive voting rights in club polls and make them eligible for future rewards. Across Europe and other countries where football is popular, the issuance of a fan token might also be a viable source of revenue. These unique assets include fans in decentralized decision-making and the life of big sport and non-sport brands.
- Cricket Club Investment: Cricket accounts for 85% of the sporting economy in India. As a result of this disproportionate level of popularity, tokenization would generate substantial revenue for individual clubs while driving fan engagement — emulating the token issuance seen from football clubs.
Sportcash One offer an innovative Sports DEFI solutions for the sports industry, learn more in our official web site www.sportcash.one