How Fantasy Sports Businesses Are Stepping Up With NFTs?
Published December 14, 2022
Almost half of the youth population today is involved in fantasy sports games. The concept of gaming entertainment came a year ago but digitalization gave it a more spurt and NFTs are a part of it.
Tokenization in the gaming industry is another level of innovation that is enticing the population and helping players to experience another level of success. With this speedy growth, a large number of people are ready to make investments in non-fungible tokens.
Keep reading the blog to explore detailed information about NFTs, their benefits, features, and how they are transforming the fantasy sports world.
What Are NFT Games?
NFT games are unique digital collectibles on the blockchain. These are used to represent the ownership of any asset in the gaming world. NFTs allow players to own gaming tools and assets and earn money out of them.
Any user can earn profits by either playing or trading their NFTs for real currencies. It is essential to note that while transferring one NFT to other, the NFT must be in a viable wallet.
Majorly Ethereum is used by NFTs but many other network platforms help in the further process i.e. NEO (Blocklords), TRON (Blockchain Cuties), and EOSIO (EOS Knights). This allows to follow the decentralized method and offers exceptional benefits to the players.
Players Have the Ownership, Control, and Ownership Transfer Rights
Unlike traditional games, the players have ownership of the game collectibles and other gaming tools while playing. These gaming NFTs help players in earning desirable profits. Players have full control over it and they cannot use or lose them as the game is over because it is kept securely in the wallet. Also, the ownership of the collectibles can be transferred easily to the buyer and the same is updated in the blockchain.
The detailed information of the NFT games are recorded in the form of codes that are kept safely in the blockchain. This information is further used to learn about the NFT creator and all other previous owners. Thus, no other player can undergo any fraudulent activity and this proves the precision of the NFT.
NFT’s In Fantasy Sports
The world of NFTs in fantasy sports is growing remarkably. This penchant comes from the tech-savvy youngsters who want a twin package of entertainment and profits altogether.
Traditional fantasy sports failed to attain the desired success. But the discovery of NFT and blockchain in sports has given it new dimensions.
NFT allows a user to get the tokens of their favorite players/teams and they can enjoy the real-life game. The performance of the real star players fluctuates with the value of their NFTs.
This field explains that users need not be part of the game to earn through it. Rather they can just enjoy other players’ performance. Having knowledge in this field helps in selecting the correct player or team as an NFT token.
NFT’s As Gaming Tokens
These are the assets used to showcase the value of the gaming tools, armor, or weapons on a blockchain. The gaming token is an attractive way of trading items as NFTs. Any asset that people want to buy, can be purchased as attractive images instead of those gloomy numbers. Users can also get access to more tournaments, locations, and customization options by earning more tokens via gaming performance.
What Are Sports NFTs and How Do They Work?
Sports NFTs are digital collectibles and trading cards of users’ favorite players in any sport. It allows users to own and engage with their favorite teams and players which was not possible physically before. NFTs in sports are known to keep records of assets and digital collectibles. These can be owned by players or teams. This helps them to monetize their own brand and directly serve their own fan base while eliminating the role of middlemen.
How Do Sports NFTs Work?
Below are some examples of how NFT’s work in sports:
Sports Fan Tokens
The fan tokens are used by users to participate in the fan game processes. The fans have the right to vote for the internal things of their favorite teams like deciding game playlist, choosing their emblem, preparation of the new training kit, etc. Moreover, the user also gets the right to easy access to the tickets and other club discounts.
Sports Video Clips
This allows users to buy the bundle of rare video clips of the players of their highlighted performances. These are usually the best moments of the play.
Metaverse Games in Sports NFT
The fans can own the tokens and interact in a much better way with the players. In this type, the users can buy racing cars as NFTs, and each player plays against the other player from all over the world.
Features In A Fantasy Sports App
User App Features
- User Registration: The user will register themselves using phone no., email id, or social media credentials.
- Home Screen: Users will get the basic information to browse their favorite players, matches, sports, etc.
- Filter: Multiple choices will be available to get customized information/details as per the user.
- View Player Statistics: Users can see the scoreboards, the number of games played, team members, and more.
- My Winnings/My Offers: User can check their achievements in past matches and offers for the upcoming ones.
- Create New/Join Leagues and Tournaments: Users can create new or join existing tournaments and leagues.
- Payment Mode for Subscription: Multiple payment options must be added for easy exit of the user.
- Check Reward Points: It allows users to check their earnings in the rewards section.
- Invite and Earn: Users can get benefits by referring the app to others.
Web Administrator Panel
- Login/Registration: Admin can register or log in using their mobile number, email, or social media credentials.
- Dashboard: Admin can check all the previous transactions done and the number of matches played. The dashboard provides all the essential information in one place.
- Manage Matches: Admin has full access to handle the ongoing events over the app.
- Manage Payment: The payment collected at the end of the period will be managed at all of their respective places.
- CRM: Integrating CRM will help in managing & getting answers to the customers. This helps in improving customer relationships.
- Manage Payment/Transactions: Admin manages and checks the error in the payment transactions.
- Manage Notifications and Requests: Admin handles all the requests and notifications and responds to them.
- Players, Players Assignments, and Leagues Management: Admin manage the number of players, assignments, and leagues performed in a particular duration.
- Manage lists of users, and transactions along with the history: Admin manages the list of users, and the transactions performed along with historical details
Way to Monetize Your NFT Fantasy Sports App
Non-fungible tokens can help users to earn a huge amount of money. Here we list down the most widespread ways:
- Rent out your NFT: Renting your NFT works better when it is already attracting others. In this way, you can earn more money.
- Charge Royalty Fees: A minimum of 8% royalty is given to the owner after the NFT is sold in the secondary market.
- Go for NFT staking: When you lock or deposit your NFT then it is known as staking it. Its income is usually distributed in the form of tokens.
- Advertisements: Market your NFTs in a user-centralized platform which will help in gaining more income.
Legal Implications in NFTs and Fantasy Sports
As NFTs deal in huge monetary terms, therefore, the transactions need to be managed very clearly. There are a few legal issues related to NFTs that are mentioned below.
It is possible that the buyer rights may not be mentioned in the contract. And this may create many legal issues like what a buyer can do or what not? Usually, the owner owns the copyrights, but it can be confusing if it is not mentioned clearly in the agreement.
Ensuring NFT security is necessary. Many times a single-owner NFT i.e. an NFT which is only purchased by a single owner may not have any security. A Howey analysis case by case must be done to check the NFT security.
The law is used to safeguard the NFT owner copyrights. When an NFT of any artwork is sold to another person then in that case only the ownership is passed and the copyrights still stay with the owner. In case, the buyer creates a copy without taking copyrights from the owner then, legal action must be taken against it.
Name, Image, and Likeness (NIL)
This allows the athlete players to promote their names, image, and likeness and capitalize on it to earn profits. This was possible after the NIL rights were issued by the state governments.
The world of NFT in fantasy sports is growing at a very rapid pace. The field of NFT sports app development requires a mindful investment as well as in-depth information to gain the expected insights. As an entrepreneur or an enthusiast business person, investing in NFT fantasy sports can give flourishing results. You must also look at the top market player’s performance and grab information to bridge your gap in the NFT fantasy sports industry.
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