Why Blockchain Technology will be the Future of Sports

blockchain in sports

The sports sector has realized the opportunities cryptocurrency and the wider blockchain tech can offer the world. The blockchain, which is classified as one of the most revolutionary technologies of the 21st century, allows the sports sector to monetize fan engagement and attract a new wave of sponsors.

Many sports fans are into crypto and engage in sports content even when their favorite sports are not live on the screen. That’s why some go on platforms like CryptoBetting to compare different top crypto sportsbooks that offer great bonuses, high odds, and amazing mobile and live sports action experiences. Many sports organizations are incorporating innovative technology to stay ahead of the curve and satisfy their fans.

Cryptocurrency partnerships in the sports sector

Some partnerships have emerged in recent years between crypto and sports organizations that benefit both industries. For one, these sponsorships increase the visibility of digital currencies across sports fans of all ages. Besides crypto’s inclusion in the media and pop culture, sports partnerships have driven individuals to the mysterious world of virtual currencies. The events of 2020 have led the sports industry to find alternatives to connecting sports fans and maintaining interactions. That’s why the blockchain is being investigated as a viable avenue for enhancing revenue inflow and improving the experience of sports fans.

BitPay and ESPN

The partnership between the US bitcoin payment processor and ESPN in 2014 was one of the first of its kind. At the time, cryptocurrency was relatively unknown to many people, and the mentions it had been getting in the media were the results of its price volatility.

BitPay leveraged the ESPN partnership to further propagate the crypto industry and its business. It also sponsored the St Petersburg Bowl, a popular football game for US colleges.

Litecoin and UFC 232

Litecoin has remained one of the biggest coins in the crypto world since its inception, and it serves crypto users as a fast payment service. In 2018, Litecoin took a step further in serving the crypto space by partnering with UFC 232 to sponsor a light heavyweight title fight between Jon Jones and Alex Gustafsson.

This marketing strategy worked out for Litecoin since Litecoin UFC got almost 50 million Twitter impressions during the campaign.

Crypto.com and Aston Martin

Aston Martin was the first F1 team to partner with a digital currency organization with a deal signed in March 2021. The virtual currency exchange marketed its company to the F1 fans intending to expand its ten million user base.

Crypto’s utilization in the sports industry

Although not many countries have recognized cryptocurrency as a legal tender, individuals and firms have long understood its importance and begun to accept it as a payment option. Some sports organizations allow their fans to make purchases in crypto, and even some players get paid in digital currency. 

Sports clubs have leveraged the wider blockchain tech to introduce increased transparency for ticket exchanges.

Harunustatspor’s Player Purchase

A Turkish football club, Harunustatspor, purchased a player exclusively with bitcoin. The player, Omar Faruk, got a mix of bitcoin and fiat money due to the deal. The club bought the 22-year-old player in 2018.

Crypto payments during the 2018 FIFA World Cup

Some payment service firms allowed fans to purchase tickets to the World Cup matches in Russia with Bitcoin, Ethereum, and Litecoin. The Kaliningrad hotel chain in Russia also informed tourists that they could facilitate hotel bookings with bitcoin.

Player salaries in crypto

In July 2018, the Gibraltar United Football Club paid a percentage of its players’ wages in digital currency following a sponsorship deal with Quantocoin, a fintech platform. Although Quantocoin has delved deeper into the sports sector with its part-ownership of an Italian Serie C football club, the partnership with the Gibraltarian club was pivotal in the crypto space.

Has crypto made payments more convenient?

Although cryptocurrency is being adopted at a slower pace in the sports betting world, those that have integrated it as a payment option are experiencing higher user satisfaction. The primary reason for this is the transaction speed when utilizing cryptocurrency.

The blockchain, which is the technology the cryptocurrency is built on, facilitates quick transactions. One key reason is that no middlemen are involved in crypto transactions. The whole point of cryptocurrency was to take power from the banks and place it in the hands of the people by leveraging a democratized process. 

Hence, sports bettors don’t have to experience long waiting periods when they want to deposit funds or withdraw rewards. In contrast, payment options like bank transfers take several business days for transactions to complete. 

Using bitcoin on a platform for payments allows sportsbooks to break borders since anyone from any location in the world can use crypto. So far a user has an internet connection and a computer or smartphone, they would be able to use crypto to complete transactions.

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