NFTs in Sports | The Rise of Tokenization on Blockchain

In the same way that cryptocurrencies have exploded in popularity in recent years, we are also witnessing a new fad that is also linked to blockchain app development: NFTs. Athletes, artists, celebrities, and influencers use these tokens to not only give their audience exceptional experiences but also to issue and sell them.

What is an NFT?

The term "non-fungible token" refers to a type of data that resides on blockchain. Unlike Bitcoin and other cryptocurrencies, each token here ensures that a digital asset is unique and hence irreplaceable. 

An NFT can now come into use as a representation of artwork, concert tickets, social media posts, images, GIFs, videos, music, and other items that you might not have thought of. 

Also, Read | NFT (Non-Fungible Tokens) | Taking the Crypto Space by Storm

NFT for Athletes and their Fans

NFT Advantages for Athletes

NFTs provide a new revenue model that is more beneficial to athletes and their fans than advertising or sponsorship. It's also a new method to connect with fans and give them a one-of-a-kind experience, such as the opportunity to buy one-of-a-kind things, images from personal archives, and even a ticket to a live event.

Indeed, today's generation appreciates digital assets just as highly as real ones, so it's no surprise that many choose to buy digital images or GIFs rather than download them for free, especially when they know they're getting something unique. The physical scarcity of cards, for example, is what distinguishes the collecting card business.

The combination of scarcity and genuineness is what draws fans in and allows sportsmen to get closer to them.

Furthermore, initiating an NFT project provides leagues and sportsmen with another marketing opportunity. They can establish NFTs and treat them as another type of eCommerce, with a lot more potential applications, much like they sell official league and team products.

Also, Read | NFT Marketplace Development | Emerging Business Opportunities 

NFT Benefits for Fans

Let's pretend you bought an NFT with Michael Jordan's slam dunk on it.

You don't receive the copyright to this moment if you buy it from NBA Top Shot, and you can't use it outside of the blockchain. Moreover, users can not borrow or divide the token into parts. The buyer can only do what a moment's owners allow, in this case, the NBA and Dapper Labs.

You might be asking why such platforms are still so popular and continue to attract new followers. You can buy and save moments in your collection knowing that you are the only one who has the official version of the highlight.

NFTs can prove to be a sort of investment, as users can resell them and further profit from them. Having a one-of-a-kind NFT backed by a real item can be a joy and an unforgettable emotional experience for some.

Overall, NFT technology presents a win-win situation for sports athletes and their supporters.

Also, Read | Building An Advanced NFT (Non-Fungible Tokens) Marketplace

Why are NFTs so Expensive 

Authenticity, uniqueness, rarity, and popularity all increase the value of an item, making it more expensive. Nothing changes in the case of NFTs save the technology and method of storing information regarding a product's validity and purchase.

Because NFTs operate on blockchain technology, you can check and verify the item's legitimacy, which boosts its worth. As a result, fans and collectors can purchase authentic (mainly digital) products without having to leave their homes, and they avoid the risk of purchasing a counterfeit item.

Also, Read | Addressing the Challenges of the Sports Industry with Blockchain Technology

In Sports, NFTs Find A Variety of Use Cases

GIFs and Video Clips

Imagine these one-of-a-kind experiences being turned into valuable NFTs and ending up in a fan's digital collection.

Every moment's price is determined by the video's quality, the player's stardom level, and the card's exclusivity. When a fan buys a pack, their wallet stores it for "showcase" or resale on the NBA Top Shot Marketplace.

Collectible Cards and Games

You can choose to create your own marketplace as a league or team, which will act as a platform for selling your sports club's exclusive collection of NFT cards. You can also construct an online game in which NFT cardholders compete against each other or form teams to organize virtual competitions.

Autographs in Digital Format

In terms of non-fungible tokens, athletes can produce customized NFT signatures that they can send only to their most ardent fans. Fans may later decide to invest in these digital autographs or retain them in their treasured collections.

Memorabilia

NFTs might include sports equipment, awards, costumes, and accessories worn by famous athletes. You can create a marketplace for your club or join one that already exists, then place any type of item there and share it with your followers.

You can also work with the designer to reproduce tickets for key athletic events and sell their one-of-a-kind digital replicas as NFTs.

Photographs and Personal Things

An athlete or a team can convert images from their own archives that they have not before released on the Internet into NFTs. They can also transform photos from childhood, early training days, performances, or a first football match into NFTs. For fans and other potential buyers, this adds value and exclusivity to the token.

For sports photographers, there's good news: you may sell your work as an NFT and keep your copyright and reproduction rights. You can continue to share the photo on social media, sell prints using it, and so on even after it has been sold.

Social Media Posts and Quotes

Athletes can use quotes can as NFTs, but they must be vibrant and memorable. They also transform a photo, GIF, or video clip from their own library associated with a quote as NFTs. Consequently, the token will represent a one-of-a-kind and limited-edition digital item that fans will be ready to pay for.

Athletes can also use NFT tokens to exchange social media posts. The holder of such a token gains ownership of the post. The possibilities for minting NFTs are endless. Indeed, a sports team or individual athlete can realize any notion they have in mind.

Also, Read | A Quick Guide to NFT (Non-Fungible Token) Development

Conclusion

It is a fact that NFT is still a relatively "new" technology. However, it already appears to be very promising. It does present sportsmen and innovators with advantages they could never have imagined.

Our blockchain development experts at Oodles are skilled in the NFT sports development field. We are glad to assist athletes, sports teams, and innovators who are interested in beginning their NFT adventure.