Chiliz has emerged as the leader in the fan token market with its Socios platform, securing over 130 partners, including soccer giants FC Barcelona, Paris Saint-Germain, and Juventus, as well as UFC, F1 teams, and E-sports teams. Its new face is Lionel Messi.
In fact, Chiliz has larger ambitions than fan tokens, which is why the firm has created a blockchain for building second-generation Web3 apps alongside Socios, including games, DeFi apps, and more.
Today, Chiliz Chain 2.0 launched its first public testnet (Scoville) ahead of a planned mainnet launch later this year. Chilliz Chain 2.0, the firm’s new blockchain (built on BNB Chain, formerly known as Binance Smart Chain), replaces its existing blockchain (forked from Ethereum).
Chillyz Chief Strategy Officer said that Chiliz’s plan is to expand beyond the initial focus on fan tokens into a broader crypto ecosystem to let IP holders and other builders use CHZ tokens to access a broader platform.
Apparently, Socios.com was just the firm’s first product, and they wanted to show interest and utility in the space before moving on to bigger things. According to Rabinovitch, the company’s fan token product is similar to a “big and scalable proof-of-concept” towards its grander goal of creating a platform for sports and entertainment companies to build upon.
In addition to minting NFT collectibles, the platform allows companies to deploy play-to-earn games and even launch their own fan token initiatives independently of Socios. The platform can also be used to develop DeFi applications and loyalty programs.
A bridge will be built between the CHZ token and the new chain. Chiliz is building this platform in order to provide the token with real utility.
Tokens are currently purchased with CHZ, and Rabinovitch called it “basically…in-game currency.”
On Chiliz Chain 2.0, however, the token can provide a potentially wide range of sports and entertainment applications, and offer incentive features such as token staking on the proof-of-stake authority (PoSA) network. The new blockchain will offer CHZ holders’ ways to “be rewarded for their loyalty,” Chiliz Chief Technical Officer Pellettier said.
It offers substantially lower transaction fees than Ethereum and increased transaction throughput than Ethereum Virtual Machine (EVM). As developers tap into Chiliz ecosystems without costly fees and slow transaction confirmations, they could generate a wider variety of apps and experiences.
Chiliz did not have to build its blockchain from scratch because BNB Chain’s technology satisfied Chiliz’s needs. To bring this new chain to life, he also pointed out that the BNB chain ecosystem is deeply integrated with a Web3 infrastructure provider
According to Rabinovitch, the hook for firms to choose Chiliz Chain 2.0 is not its unique or bespoke technology, but rather the opportunity to develop a premier crypto ecosystem alongside Chiliz and as-yet unannounced sports and entertainment brands.
Chiliz Chain 2.0 has a barrier to entry that might seem cumbersome, but that’s intentional. Chiliz wants to verify and certify creators so that “scammy tokenization” doesn’t happen.
Testnet now live for Chiliz
Pelletier estimated that it should take approximately six months to launch the Chiliz Chain 2.0 mainnet after today’s launch of the Scoville testnet.
He believes that lower fees will be a “big incentive” for holders to move to the new chain, despite the fact that bridging existing assets, from CHZ to Socios fan tokens, to the new chain may take some time.
The vision is to make this a very liquid and active chain, with hundreds of people contributing to its development in music, film, and sports, etc.”