FIFA, the world’s football governing body, has decided to establish its blockchain network. The biggest new step in that process was announcing they’ll use Avalanche. The blockchain will be a custom Layer 1 (L1) network, and some of its potential uses could be designing and sharing digital content.
This announcement marks a policy shift for FIFA, as it will streamline its operations in this area and enable the creation of new products for its vast user base.
FIFA and NFTs
FIFA already has experience with the world of NFTs, as it issued one for the launch of the Qatar World Cup. This occurred during the overall craze for NFTs that many corporations experienced at the time.
However, in the meantime, interest in NFTs has waned mainly during the downturn for most currencies. Some have also thought the proposition was a bit gimmicky, and the market fell out. However, FIFA seems to believe there’s still potential in it. Its plans for Web 3.0 are long-term, and having a blockchain network to work with will make sharing NFTs easier.
Why Avalanche?
As the complexity of blockchain systems increases, large entities such as FIFA are shifting away from fragmented platforms toward unified ones, which offer greater efficiency and scalability. Avalanche is one such network, enabling higher throughput, greater control, and lower latency. FIFA will, therefore, start by migrating its current products to Avalanche – primarily its collection of NFTs.
Since FIFA plans to work with a large base of users, it will likely focus on having a network that requires the least amount of troubleshooting. Users, especially those who are not always tech-savvy, perceive a seamless experience as reliable.
Avalanche9000
Avalanche, launched in 2020, is now the tenth-largest blockchain by total value locked. At the end of 2024, it underwent one of its biggest upgrades, which caught the attention of crypto media focused on the tech side of the industry.
The preparation for adding new features lasted months, allowing for less costly transactions and the building of applications on the network. The goal was to attract developers to the network and create customized blockchains. FIFA likely viewed these changes as one of the reasons to utilize Avalanche for its new blockchain.
Changing Crypto Landscape
The cryptocurrency landscape has been undergoing rapid changes recently. They’ve become widely accepted by a variety of tradfi institutions. FIFA wants to capitalize on the enthusiasm and technology to connect with football fans.
It’s also a generational change, as fans are most engaged with the latest technologies, and those who use crypto are usually somewhat younger. For these fans, crypto and the decentralized internet have been a staple of daily life ever since they could use them, and FIFA plans to be a part of it, too.
Possible Uses for the FIFA blockchain
FIFA blockchain will be used to transfer existing NFT collections, but it will also explore many other potential uses soon. In 2022, FIFA collaborated with Roblox to create a metaverse user experience. It offered fans virtual stadiums, avatar items, and mini-games, which will probably continue with new partners.
Payments and Tickets
FIFA will utilize blockchain to charge for tickets and subscriptions. Blockchain enables fast, secure, and easy-to-track payments while maintaining user anonymity. FIFA has already allowed ticket payments to be made in cryptocurrency, and it is likely to improve this service with the introduction of the new blockchain.
Tokenized Fan Engagement
Tokenized fan engagement is another potential application of blockchain. Fan tokens commemorate moments from games and events, and some smaller teams also use them as governance tokens, allowing fans to influence how these teams are run.
Integrating eSports
eSports has taken off significantly in the last few years, growing from a niche interest into a multi-billion-dollar industry. Sports games are a significant part of eSports tournaments, and FIFA is gradually connecting its eSports ecosystem (eFIFA) with its new blockchain.
To Sum Up
FIFA has introduced its new blockchain in collaboration with Avalanche. Avalanche’s technical abilities work perfectly with FIFA’s needs, especially after its big update last year. It demonstrates that FIFA has significant ambitions related to Web 3.0 and cryptocurrency.
Blockchain will offer fans a digital collection comparable to the one FIFA developed for the most recent World Cup. It can also be used to pay for tickets using crypto and manage fan tokens. FIFA also plans to expand further into eSports, and blockchain will help facilitate this.
