The NFT has been changing a lot of industries in the world. For the sports industry, the growth is markedly astounding in such a small space of time.
Sports, one of the most conservative industries globally, is also one of the industries that have experienced the revolutionary power of the NFT. There are billions of sports fans worldwide, with the introduction of the NFT stretching the use of the technology.
This article explores the different ways that NFTs are revolutionizing the sports industry.
The Power of NFTs
NFTs are not a recent phenomenon that many people will expect. It has been around since 2014 when Kevin Mccoy made what is regarded as the first NFT. However, its growth has been slow as other aspects of blockchain technology like cryptocurrency.
Throughout this period, the technology was for those on the margins as most people involved with it were just early adopters. These early adopters were primarily hobbyists pr those experimenting with various aspects of the crypto technology. However, the introduction of Ethereum led to an enormous shift in technology. This is because Ethereum, unlike the earlier Bitcoin blockchain, emphasized using different technologies as applications on it.
The introduction of Ethereum and other blockchains that can power NFTs has led to innovation in many industries. NFTS has helped games to have a better immersive experience for gamers. Also, it has made the integration of finance into gaming through the Play to Earn model, which rewards players for their playing. Also, the NFTs are making it easy for game characters to move from one game to another, primarily through the Metaverse.
NFTs are also redefining the way people interact with sports. Let us look at how they are changing the world of sports.
NFTs and the World of Sports
Sports is one of the most conservative industries globally with only minimal changes to the basics across the years. However, NFTs are changing the way fans are consuming sports in recent years. According to a report by Deloitte, it is poised to become a 2 billion dollar part of the blockchain industry in 2022.
Many sports leagues and bodies are beginning to adopt NFTs in various forms. This has seen it becoming projected to be one of the main sources of revenue for teams and the sports league.
There are several ways in which NFTs are changing the sporting industry.
NFTs are changing the concept of sports memorabilia by introducing new dimensions that allow the fans to own players' cards and video clips from games. The NBA was one of the first sports leagues to do this by introducing the NBA Topshot, which is making NFTs out of essential highlights of NBA games. According to a report in CNBC, that has garnered around $230 million as of March 2021.
The success of the NBA Topshot has led to many leagues and teams experimenting with various ways of integrating NFTs into their activity.
NFTs are also revolutionizing how fans engage with their favorite sports or teams. Fans tokens are one of the ways that these clubs and leagues engage with their fans. Fans tokens are mostly like membership cards, but it gives the fans access to what non-holders or ordinary fans can't get.
Socios.com is a platform that allows fans to engage with their favorite teams and leagues at many levels. It will enable fans to buy a portion of their team, interact with the players, and have other special features. It has partnered with many groups and leagues to offer this to fans.
Many forms of fan engagement by sports teams offer the fans access that is tiered based on the level of the fans and the NFTs that the fans are holding. This can also be used for other things.
Individual Athletes NFTs
NFTs also make it possible for individual athletes to sell their rights to produce NFTs. It can be a way to engage with their fans or to control their image rights which have been a thorny issue in the world of sports for a long time.
Sports athletes have access to more money while controlling some aspects of their image. Some athletes have partnered with different companies to produce their NFTs, including Lebron James. Controlling this offers the players more control and gives them a reasonable leeway and wealth for when they retire from sports.
Future of NFTs in Sports
The rise of Sports NFTs has increased the possibility of what can happen in sports. It is a new source of revenue for teams, leagues, and players. However, the technology and possibility are still very nascent, and the growth potential is massive. We see tremendous potential happening in various ways. These include:
Greater Integration of NFT into the Sports
Sports NFTs are fascinating times for the sports industry as it provides new opportunities while revolutionizing the old ways of doing things. The change that NFTs can offer to sports in the future will go beyond the issuance of NFTs for ticketing or memorabilia.
There will be the rise of NFTs that have functionalities beyond these and will help integrate the sports into other parts of the blockchain technology like the Metaverse. We may even have NFT sports games in the future or a game in the Metaverse.
Fantasy Sports NFTs
Fantasy sports is one aspect of sports where information about players' performance is used to represent gaming performance. It is essentially a form of gaming and has been one of the ways fans engage with most sports over the years.
NFTs can be integrated into it so that each representation of a player can be some NFT and that the player's NFTs offer an advantage to the holder over the regular NFTs. The potential of NFTs in fantasy sports is vast, and it needs to be explored for more utility.
The growth of the NFT industry has been tremendous across the years. This growth has revolutionized many industries, and one of the industries that have seen its revolutionary powers is the sports industry.
The sports industry is very conservative, but it has accepted the use of NFTs with both hands. NFTs have become one of the primary sources of revenue for the sports industry.
It has changed the memorabilia and collectibles aspects of sports by introducing a new way of doing this with NFTs. Also, NFTs are being utilized to build more engagement with fans and offer them more utility. Athletes are also using NFTs to have greater control over their image rights.
The future of NFTs in sports is very bright. The integration of NFTs into the sports industry can be greater than what it is now as more and more levels of integration are optimized. Also, specialized NFTs can offer the sports industry more potential to reach their various targets.
NFTS in sports, is revolutionary, but the change is just starting.