After infiltrating various industries, cryptocurrency has finally made a buzz in the sports industry.
The global sports industry is estimated to have a valuation of approximately 1.3 trillion USD as of now. With the implementation of blockchain technology in various markets, it is quite natural for cryptocurrency to make a place for itself in this highly anticipated and profitable industry.
The relationship between the crypto and the sports industry is still at the nascent stage. However, several clubs and organizations have already incorporated cryptocurrencies in their transaction modes to provide more flexibility to the players, fans, sponsors, and even to the betting industry. Visit Crypto engine official website for more information.
However, a majority of the sports industry is still in a dilemma about the effectiveness of the use of digital currency. Check out the various ways that cryptocurrency is affecting the world of sports.
Cryptocurrency is introducing anonymity in the sports betting
One of the main areas of the sports market where the cryptocurrency is showing a significant impact is betting. Making private transactions without anyone’s knowledge is complicated in sports betting. Perhaps this is the reason why several clubs and sports companies are now opting for cryptocurrency technology.
Cryptocurrency is based on blockchain technology, where every transaction is recorded in the ledger via data mining. Each user will have a wallet, which can be opened by two keys- the public key and the private key. Since the transactions cannot be done without the private key that has a unique combination of alphabets and numbers, the user can hide his/her identity and make anonymous payments. It offers security to the users as these transactions cannot be traced by any foreign agencies.
Help tackle the issue of doping
The international sports industry is plagued by doing issues that ultimately taint the reputation and integrity of sports as a whole. It is the main reason why players in various sports are obligated to take the doping test before they can participate. But, the clubs and the organizations can sometimes act in bad faith and attempt to tamper or alter the actual data.
However, the use of blockchain technology is effective to combat this particular issue. The encryption levels of blockchain are particularly unhackable. It makes storing the data on blockchain significantly safe from external influences.
Aid in gaining more genuine sponsorship for the sports
Every sports club needs proper sponsorship for funding of the athletes. The usage of the funds includes training the players, providing sports essentials like apparel, sports gear, medical attention, and so on. Even after knowing how vital funds are for any sports club, there seem to be issues in getting sponsors.
The reluctance mainly comes from the restrictions imposed on using traditional money. Usage of cryptocurrency has the possibility of solving this issue with ease.
Paying of players in digital currencies
It might seem far-fetched, but the possibility of paying athletes with cryptocurrencies is not absurd. There is a potential to explore this aspect. Moreover, paper contracts can easily be replaced with smart contracts. It will ensure that the player is paid his/her dues on time. It is an excellent proposition that could change the entire procedure of the sports industry.
Authentication of sports merchandise
When the sports apparels and gears of teams or athletes are put for auction, fans from all over the world become too eager to have them in their possession. But, it’s very difficult to determine the authenticity of the auctioned items. This is where blockchain technology comes into play. When combined with machine learning and artificial intelligence, an authentication system can be created where the genuineness of the sports apparel and gears are analyzed quantitatively.
No more waiting in the queue for the transactional reflections
When the betting transactions are done with banks or in cash, it takes a certain amount of time for them to be reflected on the betting platform. Even though it doesn’t sound like a huge problem, several conflicts like missing a bet have arisen due to the delay between the transaction time and the same data’s reflection time. This problem can be easily solved if the transactions are made with cryptocurrencies on the blockchain. It is a perfect alternative to using traditional fiat currencies.
The future of digital currencies in the sports industry is still a matter of debate. It is, in fact, too early to interpret its effect and form a conclusion on the successful integration. However, with the aid of key players in the sports industry, it might be possible to integrate the Blockchain technology in a way that is profitable for all. But, there is a huge potential that cryptocurrency could change the sports industry completely.