6 min read
What is Chiliz ($CHZ) and how does it work?
Today I will tell you about a very novel token that, thanks to blockchain technology, has managed to change and revolutionize the sports industry (mainly soccer).
It is Chiliz, also known as the ‘fan’ token, and today we will see what its features are and I will try to answer that many people ask: “How to mine Chiliz?“.
Based on the Ethereum protocol, Chiliz ($CHZ) is an ERC20 utility token, a leader in sports tokenization.
CHZ serves as a digital currency for the Chiliz.net and Socios.com platforms that allow soccer fans to buy Chiliz tokens and exchange them on these platforms and then use them as fan tokens. Another feature of Chiliz is that its supply is limited and its tokens are fungible, meaning that their ownership can be traded and their price is determined by the market.
What an original idea, right? Well, let’s see in detail how Chiliz works and how to get the Fan Token.
What is a Fan Token?
Fan Tokens are digital assets that give fans who own them the right to vote in club polls and give access to a wide range of benefits on the Socios.com platform, including voting rights, VIP rewards and exclusive promotions.
Fan Token holders can also enjoy games, competitions and be recognized as the number 1 “super fan” in their region.
Each club has its own limited supply of Fan Tokens, their price is determined by the market and they can be exchanged for other ‘goods’ such as VIP experiences, official merchandise, free tickets and more.
Fan Tokens are distributed on Socios.com private, licensed sidechain and are allocated to fans through Fan Token Offers, or acquired through exchange on the Socios.com marketplace.
So what is Chiliz for?
Once you have purchased $CHZ tokens, you can purchase Fan Tokens on the Partners.com application, where club members host a Fan Token Offer (FTO).
Once you have acquired Fan tokens, owning them gives you the right to make decisions for your favorite soccer team. This is why they are also called Vote Tokens.
Each vote is executed as a group of smart contracts. Once a certain threshold of participation is reached, all voting results become valid and all votes and voting results are stored in the Socios.com sidechain for transparency.
Proof of Authority: the algorithm used by Chiliz
The Chiliz blockchain infrastructure uses the Proof of Authority (POA) consensus mechanism. As the partners.com platform itself explains, this is a replacement for Proof of Work (PoW).
While PoW works through network nodes having to solve mathematical problems to validate blocks, POA is less intensive from a computational perspective. This is because, unlike Pow, it uses a set of “authorities,” i.e., nodes that are explicitly allowed to create new blocks and secure the blockchain.
In addition, PoA-based consensus provides lower transaction acceptance latency and proves to be more secure.
But, above all, Proof of Stake helps to solve the scalability problem that Proof of Stake had not solved either, being able to perform many more transactions per second.
How does the Proof of Authority work?
Proof of Authority (PoA) is a reputation-based consensus method that gives a small number of actors (called authorities) the power to validate transactions with the network.
The term was proposed in 2017 by Ethereum co-founder Gavin Wood.
The PoA works as follows: depending on the chosen scheme, one or more validation machines are responsible for generating the transactions to be included in the Blockchain.
The new block can be accepted directly without verification, or by unanimous vote of the block generators, or simply by majority vote, depending on the configuration chosen for the Blockchain.
PoA’s consensus algorithm leverages the value of identities. This means that block validators are not betting coins, but their own reputation. Therefore, PoA-based blockchain are secured by pre-approved participants that are selected as trusted entities.
It is a model that allows companies and their private networks to maintain their privacy while leveraging the benefits of blockchain technology.
Although decentralization is highly valued within the crypto community, PoA’s consensus mechanism sacrifices decentralization to achieve high performance and scalability.
How to mine Chiliz ($CHZ)?
As I mentioned earlier, the supply of $CHZ is limited and is 8,888,888 CHZ (8.8 billion).
At the time of this writing, the circulating supply of CHZ is 5,441,101,150 CHZ.
Chiliz raised all funds through a private placement in 2018.
So, wanting to answer the question ‘how to mine chiliz‘, I have to tell you that unfortunately CHZ cannot be mined because its tokens have already been created, although not all of them are in circulation.
How to get Chiliz (CHZ) tokens?
The good news is that, if you want to get your CHZ tokens to become a top fan, you can count on Bitnovo’s platform and buy Chiliz tokens online easily, quickly and securely or in cash in thousands of stores distributed in Spain, Italy, France and Portugal.