NFTs and Sports: The Classic Pair
NFTs or non-fungible tokens are some of the most recent blockchain-based digital asset inventions that have caught the attention of the media and the tech industry. This technology provides a way to show that you own virtual or physical assets. Some non-fungible tokens examples include photos, videos, texts, code parts, papers, cars, buildings, or event tickets.
NFT assets are fast increasing in number and price, and the technology is poised to subdue new markets. The sports industry is one of these industries. There are platforms for selling moments, such as basketball dunks or goal shots.
How NFTs Work
If you know something about blockchain, non-fungible tokens’ technical element demonstrates that the technology is based on blockchain and smart contracts. The same is the same as with cryptocurrencies. If you sell or transfer NFTs, in whichever form on format, the information about the transaction is filed.
The previous and current NFT owners are added to a decentralized record. Of course, this doesn’t imply that no one can copy those files. It means that you can clearly tell the original and the copies from the blockchain records.
The NFT coinage algorithm is as follows:
- Digitization of data: As a user, you log in to an NFT platform and select the option to ‘construct an NFT.’ You need to enter your name, description of NFT, and specification.
- Data storage: The data (file) is then sent to an external database, which is often an IPFS. Some NFT platforms provide blockchain storage. However, because you normally have to pay a commission, few individuals choose the blockchain option.
- Data signing: The transaction, including cache, is signed by the NFT owner. The transaction is then sent to a smart contract.
- Coinage and sales: When the smart contract is launched, that’s when the creation or coinage of the NFT begins, allowing you to be able to put the NFT on sale.
- NFT approval.
What is the Relationship Between NFTs and Sports?
NFTs are a lucrative revenue stream for the sports business and an excellent way for fans to connect with their favorite teams, players, and past events. People have always wanted to acquire sports collectibles, and the creation of NFTs is now providing a perfect way to do it through digitization.
The growth of the NFTs has opened up numerous new opportunities that were previously only available in the physical world. Fans may now purchase highlights from amazing sporting moments, digital signatures and tickets to key sporting events, and various other innovative technologies using their digital wallet. In addition, many companies are offering NFT service, building marketplaces for people to trade.
NFT for Athletes and their Fans
The good thing with sports NFTs is that they benefit all stakeholders. Here are the different ways they benefit athletes and fans.
NFT Benefits for Athletes
NFTs offers a new business model for athletes that is more advantageous than advertising or sponsorship. It also creates a new way to connect with fans and provide them with a unique experience. The generation of the day values digital assets just as much as physical ones, so it’s no wonder that many people would prefer to pay for digital photographs or GIFs than download them for free. Particularly if they know, they’ll get something unique.
The collecting card business, for example, is distinguished by the physical scarcity of cards. A combination of uniqueness, genuineness, and scarcity is what draws fan attention, bridging the gap. Besides, starting an NFT project also provides sports brands and athletes with an additional marketing opportunity. They can set up NFTs and treat them like a different sort of eCommerce with a lot more applications. Just the same way they sell official league and team merchandise.
NFT Benefits for Fans
Fans don’t get the copyright to the NFTs of moments they buy from their favorite athletes or brand. They can’t use them outside the blockchain or divide the token. However, having a collection of these NFTs and knowing you’re the oner of a certain moment is invaluable.
Between sports brands, athletes, and their fans, NFTs in sports have bridged the gap while still allowing players to cash in in this new digital revenue stream. Fans finally have a way to prove loyalty to teams and athletes. NFTs and sports are indeed a perfect pair.