Five years after its inception, fan token platform Chiliz has launched its own Layer 1 Ethereum Virtual Machine (EVM) compliant blockchain ecosystem to support its growth.
The Chiliz fan token ecosystem has long been powered by Ethereum-based ERC-20 tokens, but the validation of the Chiliz 2.0 blockchain’s genesis block marks the ecosystem’s shift to its own layer 1.
The new blockchain uses a system of 11 active validators with proof-of-stake authority consensus, which is touted to provide faster block times, lower fees, and lower energy usage.
According to the project documentation, Chiliz Chain 2.0 is a hard fork of BNB Chain, a fork of Ethereum. This means that the new layer 1 supports EVM, which is intended to attract decentralized application developers to build within the environment.
Chiliz has made waves in the sports and entertainment space through its fan token app, Socios.. The platform works with some of the biggest teams and brands in the world of sports, such as Barcelona, PSG, Manchester City, Arsenal and Juventus.
The platform enables brands, teams, and individuals to mint NFTs (non-fungible tokens), fan tokens, and Web3-ready tickets, as well as develop DApps and Web3-based experiences and products.
Cointelegraph spoke with Socios CEO Alexandre Dreyfus in November 2022 at the Lisbon Web Summit about the upcoming release of the Chiliz Blockchain ‘2.0’. As he explained then, the Chiliz chain already existed, but it was deliberately kept as a private ecosystem to protect intellectual property. At the time of that conversation, he had over 1.7 million wallets participating in the issuance, minting, and trading of fan tokens.
Dreyfus also noted the importance of Ethereum in providing the foundation for its current ecosystem in the February 9 correspondence, noting that both iterations of the Chiliz blockchain were forks of Ethereum:
“We use the technology as a base, but we adjust and improve it for our needs, which is IP protection and sports property that we are working with.”
The release of Chiliz 2.0 marks the transition to a “real open layer 1,” Dreyfus told Cointelegraph, with an on-chain government having the power to whitelist certain nodes and developers to issue assets.
“What does it mean? It means you can’t have a fake NFT, fake fan token, or whatever.”
The CEO said that a patient approach, which allowed brands and franchises to maintain control of their image and property rights, was a major factor in the growth of their ecosystem over the past five years.. The launch of the Chiliz blockchain also aims to return value to ecosystem participants:
“It is a chain where mainly sports brands are going to govern, say Barcelona or PSG, they are going to become a node and play their CHZ to get rewards and participate in the growth of the network.”
The sports industry continues to see synergies with blockchain-based companies. In January 2023, blockchain fantasy sports firm Sorare sealed a deal with the English Premier League to mint Ethereum-based digital player cards on its platform.
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