This is the second post of a three-part series about how blockchain technology will improve the sports industry.Each part discusses new and exciting trends at the cutting edge of blockchain technology and sports. A token is an entirely programmable digital asset that can represent anything, including shares in a bond, ownership of a piece of real estate, or participation in an investment fund.Certain types of assets, which take a long time to find a buyer, or require a long lock-up of capital are referred to as illiquid assets.Therefore, these assets usually have a liquidity premium making them more costly and challenging to sell.One of the most exciting potentials for tokenization involves fractionalizing a major or minor league sports team.There are millions of fans who jump at the opportunity to be partial owners in a sports franchise.
Tokenized licenses save money since licensors have better transparency and control over how their licenses operate, significantly reducing any risk of human error or fraud.
While the Green Bay Packers have benefited from fan ownership, tokenization offers a more robust path for other major sports organizations to follow suit.
Blockchain provides the potential to enhance existing ownership models through the inclusion of fan-driven ownership benefits both large and small.
Tokenization refers to the process of transforming real assets into tradeable digital contracts that live on a blockchain.
Blockchain technology can empower individuals to tokenize their intellectual property licenses (e.g.