The blockchain-powered sports fan token launched its own layer 1 decentralized network on Tuesday.
Chiliz’s L1 chain is compatible with the Ethereum Virtual Machine program, allowing developers to broadcast smart contract codes on Ethereum’s blockchain.
The protocol’s token CHZ pumped as high as 20% on the news.
Blockchain sports coin Chiliz announced the launch of its brand new layer 1 decentralized chain aimed at driving growth around non-fungible tokens (NFTs) and on-chain gaming tied to reach world sports franchises.
A blog post released on Tuesday noted that Chiliz validated the genesis block of its blockchain to mark the company’s fifth (5th) anniversary. The new chain functions as a layer 1 network using Proof of Stake Authority (PoSA) consensus. There are currently 11 validators on the blockchain and they are all allowed to deploy smart contracts on the network.
Also, the PoSA blockchain from Chiliz supports a popular program known as the Ethereum Virtual Machine or EVM. EVM acts as a run-time development area that allows on-chain builders to design decentralized applications (dapps) and launch these dapps on Ethereum’s blockchain as smart contracts.
This means that CHZ developers will able to build and run dapps on Ethereum since the Chiliz blockchain is EVM-compatible. The CHZ token will power interaction on the blockchain and provider holders with staking rewards via the Socios platform, the blog post said.
Chiliz native token $CHZ will be the fuel for the entire Chiliz Blockchain ecosystem, including all the dApps that will be built on top of it. $CHZ token holders will also be able to receive rewards for staking (delegating) on the network.
Chiliz Token Pumps On L1 Blockchain Announcement
The CHZ token which will reportedly fuel the new blockchain, soared as high as 20% following the announcement. CHZ traded around $0.1656 per data from TradingView.
CHZ’s market cap was over $1.1 billion when this report was written. The Chiliz token also had a daily trading volume above $683 million across available markets.
Since launching in 2018, the blockchain-based company has sought to bridge the gap between on-chain technology and sports fan interaction. The CHZ token allows sports fans to hold assets linked to real-world teams across sports industries like the major European football leagues in Spain, France, and Italy to name a few.
As part of its latest rebrand and new blockchain, Chiliz will onboard as many as 10 start-ups. These entities will head ventures like NFT ticketing, Watch2Earn sports events, and Play2Earn games.