Lack of foresight in the implementation of Web3 within the sporting industry
Traditionally, the sports industry has been perceived as conservative and slow to implement technologies. However, the industry still possesses some unique characteristics that compel it to stay at the forefront of new technology and data trends. These include mass-market appeal, high marketability, and unmatched customer loyalty. For that reason, the sports industry is perfect for post-modern innovations such as the Web3.
Web3 is an idea for an iteration of the World Wide Web-based on Blockchain technology. It has been touted as the future of the internet and its vision includes cryptocurrencies, decentralised applications, DAOs, Non-Fungible Tokens, Decentralised Finance and so much more. It offers a red/write/own version of the web in which the users have both control and a financial stake in the web communities they belong to.
Web3 visualised a decentralised internet with advanced functionalities owned by builders and users. The idea is to create a platform, which is decentralised from normal doorkeepers such as Google. By outgrowing the traditional thought of uploading content online, the application concentrates on turning people into more engaged users. In essence, the users will be some form of shareholders who will earn tokens on the Blockchain system thus gaining influence on how things are operated.
Web3 applications in sports
Fan Tokens - Fans can buy fan tokens using fiat currencies and then exchange them for merchandise, collectibles, and even exclusive interaction with sports figures.
Fan loyalty and engagement platforms - To help teams foster a sense of community and belonging among their fans.
Athlete Branding - Athletes can utilise NFTs to create digital assets related to their brands; this could be merchandise of even content.
Decentralised e-sports ecosystems - Exciting experiences similar to the traditional sporting experience, only virtual, global, and convenient.
Digital trading cards and collectibles - Clubs and the team can utilise NFT technology to design trading cards, in-game assets, and other memorabilia that fans can buy and trade.
Blockchain-based ticketing systems - An easier and more secure way of purchasing, storing, or even transferring tickets between owners or events.
Lack of foresight in the implementation of Web3 within the sporting industry
Research shows that individuals were faster to invest in Web3 sports. Sports clubs and experienced players were late to the party because most were cynical of Blockchain. The problem is that the individuals involved took up a task that may prove in the long run.
In the following segment, we will discuss some of the mistakes being made in Web3 and sport and what the people involved should be considering.
Web3 is setting an impossible pace for the current sports ecosystem - Firstly, Web3 is going to outdate Web1 and Web2 in the blink of an eye and without much preparation. Sadly, Blockchain has only been around for about a decade; most of which people spent waiting for it to fail. Our sports ecosystem needs some time to adjust to the reality of Web3.
Sports giants are being left behind which will be costly in the long run - Web3 allows individuals to be more involved in the management and ownership of sporting assets. As such, they are beating sports clubs in the purchase of the Web3 domains. This shows a lack of foresight as such domains would be better off being managed by professionals. Where there is money, there is greed so ultimately the domains will be misused and underutilised.
The implementation of Web3 in sport requires a financial commitment - Continuously raising millions is easier for sport giants than it is for small clubs. Considering that most of the current investors are individuals, things are going to take so much longer than they should. The less advanced gadgets will need to be replaced which requires money. Also, people need training on how to interact as they are, it could be a couple of decades before Web3 is fully implemented in sports.
The issue of cyber security - While Web3 is generally exciting, it is highly susceptible to hacks and thefts; no one is safe. Most of the people who are working on implementing Web3 in sports institutions, don’t understand the risks involved and how to avert them.
As an organisation, it is difficult for clubs to be truly ready for Web3. People need a couple of years to fully figure it out and then embrace it. In the meantime, they could be working closely with a specialists in the space who have already got the war wounds, leveraging their experience and execute their plans that maximises fan engagement and solidifies the club’s reputation.
Premier Sports Network are partnered with cryptocurrency broker, GlobalBlock, to provide educational advice to the sports industry.
About GlobalBlock
GlobalBlock Digital Asset Trading Limited is a publicly traded holding company (TSXV: BLOK) whose wholly owned subsidiary, GlobalBlock Limited is a United Kingdom based digital asset broker that provides a personalised telephone brokerage service, trading platform and mobile app. Established in 2018 by an experienced team of financial services professionals, GlobalBlock Limited acts as a trusted agent serving the digital asset needs of individuals, corporates, institutional financial firms and intermediaries, providing best execution trading and safe custody of digital assets.
GlobalBlock Limited has been temporarily registered under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 as a cryptoasset business until 31st March 2022, pending the determination of the application by the Financial Conduct Authority. At this time, GlobalBlock Limited only accepts United Kingdom and Ireland resident clients or customers for its digital asset broker or trading services.
For more information, visit www.globalblock.co.uk