Chiliz launches layer-1 blockchain to expand fan token ecosystem – Crypto News

Five years on from its inception, fan token platform Chiliz has launched its own layer-1 Ethereum Virtual Machine (EVM) compatible blockchain ecosystem to support its growth.

Chiliz’s fan token ecosystem has long been powered by Ethereum-based ERC-20 tokens, but the validation of the Chiliz ‘2.0’ Blockchain genesis block sees the ecosystem shift to its own layer 1.

The new blockchain uses a system of 11 active validators with Proof of Stake Authority (PoSA) consensus, which is touted to provide faster block times, lower fees and energy usage.

According to the project’s DocumentationChiliz Chain 2.0 is a hard fork of BSC which itself is a go-Ethereum fork. This means that the new layer-1 is EVM compatible, which is aimed to attract DApp developers to build within the environment.

Chiliz has made waves in the sports and entertainment space through its fan token app Socios.com. The platform works with some of the biggest teams and brands in the sporting world, with major football teams like Barcelona, ​​PSG, Manchester City, Arsenal and Juventus making use of its fan token platform.

Related: Socios boss’ goal? To knock crypto out of the park

The platform allows brands, teams and individuals to mint nonfungible tokens (NFTs), fan tokens and Web3-ready tickets as well as develop DApps and Web3 based experiences and products.

Cointelegraph spoke to Socios CEO Alexandre Dreyfus back in November 2022 at Web Summit in Lisbon about the upcoming launch of the Chiliz ‘2.0’ Blockchain. As he explained, the Chiliz chain already existed but was deliberately kept as a private ecosystem. At the time, it had over 1.7 million wallets that participated in the issuance, minting and trading of fan tokens.

The launch of Chiliz ‘2.0’ marks the transition to a ‘real open layer-1’ as Dreyfus told Cointelegraph, with on-chain governance holding the power to whitelist certain nodes and developers to issue assets.

“What does it mean? It means that you cannot have a fake NFT, a fake fan token or whatever.”

The CEO said that a patient approach, which allowed brands and franchises to maintain control of their image and property rights, was an important factor in the growth of its ecosystem over the past five years. The launch of open Chiliz Blockchain is also aimed to hand back value to ecosystem participants:

“It’s a chain where mainly sports brands are going to govern, let’s say Barcelona or PSG, are going to become a node and stake their CHZ to get rewards and participate in the growth of the network.”

The sports industry continues to see synergies with blockchain-based firms. In January 2023, blockchain fantasy sports firm Sorare seal a deal with the English Premier League to mint Ethereum-based digital player cards on its platform.