What Is Chiliz (CHZ)?
Chiliz is a cryptocurrency that is exclusively used for sport and entertainment by a Malta-based FinTech firm. It operates Socios, a blockchain-based sports entertainment platform that allows users to participate in the governance of their favorite sports brands. Multiple fan tokens by Socios.com are an example of that. A tokenized fan experience offers a way of connecting with fans and unlocking revenue streams for sports clubs and associations.
Chiliz technology allows sports organizations to issue a limited number of fan tokens at an initial FTO (fan token offering). Chiliz discloses the opening price and fully diluted market cap of the tokens, and they are offered on a first-come, first-served basis. The native CHZ token is used to purchase fan tokens and is used as the platform’s internal currency. With smart contracts, fans can vote on the Socios platform using their fan tokens. Clubs decide how much influence fans have. This includes everything from new jersey designs to determining team matches in exhibition games.
Chiliz Founders: Who Are They?
Its current CEO, Alexandre Dreyfus, founded Chiliz in 2001. Dreyfus has founded and grown web-based companies for over 20 years. Before founding Chiliz, he created Webcity, an interactive travel guide, Winamax, and Chilipoker, both online poker projects. As part of Fan Tokens, his goal is to “work harder than ever on our mission to fully establish Fan Tokens as the ultimate fan engagement tool and as a powerful new revenue generator for the sports industry.” Numerous clubs, including smaller ones, have signed up for fan tokens due to this aggressive expansion.
Chiliz: What Makes It Unique?
Using Chiliz technology, every sporting organization has a limited supply of fan tokens offered at an initial FTO (fan token offering). Chiliz discloses beforehand the opening price and fully diluted market capitalization of these tokens, offering them on a first-come, first-serve basis. As the platform’s internal currency, the native CHZ token is used to purchase fan tokens. Using smart contracts, fans can then vote on the Socios platform with their fan tokens. Clubs decide how much influence fans have. A variety of decisions are made, from choosing new jersey designs to deciding team matchups in exhibition games.
Through Chiliz, average sports fans could participate directly in the decision-making process of clubs and organizations. With the Chiliz Blockchain Campus, a privately-owned cryptocurrency incubator that accelerates blockchain adoption across Asia and Europe as one example, the company is continuously creating new ways for fans to engage. By the end of 2021, the company expects to have 80-100 teams as part of its network, which is still only 10% of its potential.
Circulating Chiliz (CHZ) coins: How many are there?
As of October 2018, CHZ total supply was 8.8 billion, distributed to early contributors with no public sales beyond what was made available through exchanges.
Although CHZ launched as an ERC-20 token, it was later designed to be BEP-2 compatible, taking advantage of Binance Launchpool’s role in releasing fan tokens as part of a strategic partnership. CHZ is also available on the Tron blockchain as a TRC-20 token.
How Is the Chiliz Network Secured?
CHZ can be found on several blockchains, including Ethereum, Binance Smart Chain, and Tron. Fans vote only on publicly audited polls with its proprietary crowd control mechanism on its Socios sidechain. Thanks to its crowd control mechanism, fans are in a protected environment and their tokens are minted on its Socios sidechain. The sidechain uses proof-of-authority consensus. Most proofs-of-authority are used by private organizations with closed blockchains and only users within their ecosystems. This consensus mechanism is less decentralized than other mechanisms, but it is highly scalable and secure, making it the ideal choice for a sidechain. The CHZ token was audited by Certik.