What is Chiliz?
By Rayna Ishihara | Crescent City Capital Market Analyst Intern
Chiliz is a blockchain platform that provides solutions for the sports and entertainment industry. Its main focus is on creating interactive experiences for fans by transforming them from passive spectators to active participants in the operations of their favorite teams. The platform uses digital assets to supercharge fan experiences and ensure scalability and security. Chiliz was founded in 2018 and aims to revolutionize the way sports are monetized in the future.
Chiliz’s Fan Tokens can be purchased with the platform’s native cryptocurrency, CHZ, through the Socios.com crowd management platform. Fan Tokens provide users with voting rights in team polls and exclusive perks. The Socios.com app also offers other crypto-backed opportunities such as earning badges, predicting game outcomes, and playing an AR-based geolocation game. Users can buy CHZ on the app or an exchange, which can then be exchanged for Fan Tokens. Chiliz received a $66 million investment from Private Placement and launched Socios at the end of 2019. It has since become available on mobile devices and has offices in several countries.
Chiliz was founded in 2012 as part of Malta-based Mediarex Group, an international sports and entertainment organization. Chiliz began actively working on the Socios platform in 2018 and launched the CHZ token in the same year, which was listed on various cryptocurrency exchanges.What makes Chiliz unique is that while Chiliz uses crypto as an enabling technology, it is not a crypto company, but a company that leverages crypto to achieve business goals unrelated to crypto.
Chiliz Tech
Fan Tokens are created and verified on the Socios sidechain using the Proof of Authority (PoA) consensus algorithm. PoA differs from other consensus algorithms as it relies on a smaller number of approved verifiers rather than a distributed network of anonymous nodes to maintain network integrity. Although PoA is less decentralized, it is often preferred by blockchain networks that prioritize scalability and efficiency.
Proof of Authority (PoA) is a form of Proof of Stake (PoS) consensus algorithm where each validator node must put up a stake to process transactions and add blocks to the blockchain. Instead of staking a cryptocurrency, PoA nodes stake their identity, which incentivizes them to behave in the network’s best interest or risk losing their transaction processing privilege and damaging their reputation. Validators are rewarded with a portion of the network fees.
Chiliz token
CHZ is the only currency accepted in the Socios NFT marketplace, and it allows fans to purchase branded NFTs, including Fan Tokens of their favorite sports teams. It operates both as an ERC20 token on the Ethereum blockchain and as a BEP2 token on the Binance Smart Chain. CHZ tokens can be bought from the Chiliz exchange or other cryptocurrency exchanges. Fan Tokens allow supporters to access exclusive rewards and abilities offered by the sports teams, and their price, supply, and distribution can be customized by each team. Additionally, Fan Tokens can be burned based on the team’s performance, making them more scarce and potentially more valuable.
Recent updates
The live CHZ price on May 3rd is $0.1299 USD with a 24-hour trading volume of $58,186,634 USD. It has a circulating supply of 6,934,647,158 CHZ tokens.
Summary
Chiliz is a blockchain company that focuses on building fan engagement and monetization solutions for sports and entertainment industries. They have created a platform called Socios, which enables sports and entertainment organizations to launch their own branded Fan Tokens, allowing fans to access exclusive content and experiences and participate in voting on certain team decisions. The CHZ token is the currency used in the Socios marketplace, allowing fans to purchase Fan Tokens of their favorite teams. Chiliz uses a Proof of Authority consensus algorithm to maintain its blockchain, and CHZ tokens operate as both ERC20 tokens on the Ethereum blockchain and as BEP2 tokens on the Binance Smart Chain.