What is Chiliz (CHZ)? How Does Chiliz Work?

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Are you a fan of sports or esports?

Whether your answer is "yes" or "no," we have exciting news for you.

For a long time, being a sports or esports fan meant passively watching your favorite teams compete on TV or streaming platforms. Beyond that, you could buy licensed merchandise to show support.

However, despite the entertainment value, this experience remained one-sided—fans had no influence over their favorite teams' decisions.

Chiliz aims to change this by leveraging blockchain and digital currencies to transform passive spectators into active influencers in the sports and esports industries.

What Is Chiliz?

Chiliz is a blockchain-powered fan engagement platform designed to bring mainstream consumers into the world of decentralized digital experiences.

Focused on sports, esports, and entertainment, Chiliz offers unique interactions that allow fans to monetize their engagement while influencing team decisions.

In short, Chiliz turns passive supporters into active participants. Fans can vote on merchandise designs, goal celebration songs, and even team lineups for certain events.

This is made possible through Fan Tokens, which enhance interaction between fans and their favorite clubs. The platform operates on the Ethereum blockchain via a permissioned sidechain called Socios.

Users can purchase Fan Tokens from partnered teams, granting them voting rights on the Socios platform.

Interestingly, though the Chiliz team began actively developing the project in 2018, it has gained significant mainstream adoption.

Based in Malta, Chiliz boasts a team of 80+ members and partnerships with major sports organizations like:

How Does Chiliz Work?

To understand Chiliz, let’s break down its ecosystem’s key components:

Blockchain Architecture

Chiliz uses a hybrid architecture combining:

  1. Ethereum Mainnet – Handles CHZ token (ERC-20) transactions, deposits, withdrawals, and fee aggregation.
  2. Socios Sidechain – A PoA (Proof-of-Authority) permissioned chain acting as a bridge for Fan Token transactions.

This setup ensures:

However, PoA is more centralized than PoW/PoS, a trade-off for efficiency.

Fan Tokens

Fan Tokens are vote-backed digital assets issued by teams via Fan Token Offerings (FTOs).

Key features:

Fans don’t spend tokens to vote—ownership alone grants voting power (more tokens = greater influence).

However, tokens are spent to unlock:

Socios Platform

Socios is the heart of Chiliz’s fan engagement, where:

Past decisions include:

👉 Explore Fan Token Voting on Socios

Chiliz Exchange

A centralized trading platform for:

Unlike Socios’ P2P marketplace, Chiliz Exchange operates as a traditional exchange with trading fees.

CHZ Token: Native Utility Token

CHZ (Chiliz Token) powers the ecosystem by:

Originally an ERC-20 token, CHZ also supports BEP-2 (Binance Chain).

CHZ Tokenomics

Price Performance

FAQ

1. Can I mine CHZ?

No—CHZ is pre-mined, distributed via private sales and exchanges.

2. Where can I buy Fan Tokens?

On Socios Marketplace or Chiliz Exchange.

3. Do Fan Tokens expire?

No, but teams may issue new tokens over time.

4. Is Chiliz only for football clubs?

No—it partners with esports teams, UFC, and more.

👉 Buy CHZ on Leading Exchanges

Conclusion

Chiliz bridges blockchain and mainstream sports/esports, empowering fans to:

With high-profile partnerships and a growing user base, Chiliz is redefining fan engagement.

Disclaimer: This content is for educational purposes only. Cryptocurrency investments carry risks—always research before participating.


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### Notes:  
- Removed redundant links/advertisements.