NBA team introduces Ethereum-based auction platform for $5.4 billion sports memorabilia industry ๐จ This article is 5 years old...
NBA team introduces Ethereum-based auction platform for $5.4 billion sports memorabilia industry
2 min read
Updated: Mar. 10, 2022 at 7:21 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Sacramento Kings, an NBA basketball team, has partnered with ConsenSys, the leading Ethereum (ETH) development studio, to introduce a new auction platform that handles live bidding on in-game sports gear using a supply chain product called Treum.
All auctioned items will be authenticated using an Ethereum blockchain-powered platform, in order to create a transparent audit trail of product history and associated transactions. This will ensure that the fans are getting authentic NBA gear.
Basketball fans may take part in live auctions of game-worn gear during the Kingsโ home games. The platform is currently available through the Kings.com/Auction website and via the Sacramento Kings + Golden 1 Center app. It was launched on January 15 when the Kings faced off against the Dallas Mavericks in Sacramento.
Kings shooting guard Buddy Hieldโs game-worn jersey had been auctioned off during the game with the proceeds being donated to the ongoing Hurricane Dorian relief program. All other proceeds from future auctions will reportedly be managed by the Sacramento Kings Foundation.
Ethereum blockchain is increasingly being used to ensure transparency by verifying important information
Sacramento Kings CTO Ryan Montoya said:
โWe are excited to announce another blockchain first as we strive to continue to enhance the fan experience. We have integrated blockchain technology into our business across multiple platforms, including our reward program, and now our fans will have the opportunity to securely purchase authentic game-worn merchandise in real-time using an innovative blockchain-based solution.โ
Bradley Feinstein, head of ConsenSys business development, remarked:
โThe digital era has drastically increased access and optionality for many consumers, but it has also decreased verifiable provenance. How can you be sure that the physical goods delivered to your door are legitimate and as real as advertised? How can you trust the authenticity and ownership history of something you bought online?โ
Feinstein also pointed out that the Ethereum blockchain is increasingly being used to promote greater transparency by allowing users to accurately verify important information.
He added:
โWeโre unlocking more profound ways to provide visibility into complex global supply chains and empower consumer behaviors.โ
Auction winners will receive a digital token that will serve as proof of ownership
The market capitalization of the US sports memorabilia industry stands at $5.4 billion annually, however, there are no established standards for authenticating products and protecting fans from buying fake merchandise. โ
The Sacramento Kings and ConsenSys aim to increase the resale potential for authenticated items via secondary markets. Anyone can participate in the live auctions, which run on game day, beginning right before tip-off through 11:59 p.m. PT. The highest bidders will get the authenticated gear, which will be tagged and verified. Theyโll also receive a digital token that will serve as proof of ownership and as a Certificate of Authenticity.
The token will also create an official record of the item and serve as an audit trail that passes from one owner to the other. The auctionโs winner will be the sole owner of the token, which will contain time-stamped, encoded and verified data about the game, season and player.
The platform will maintain records of the merchandiseโs origin and authenticity by using โTreumโ, a ConsenSys-backed product that allows users to develop trust with their customers via โtransparency, traceability and tradability.โ
Treum product architect Constantin Kostenko noted:
โWe chose to design this specific implementation with a Kings fan in mind. The Ethereum blockchain technology provides transparency, authenticity, and fraud protection to the fan, but the technical details are hidden to offer a familiar user experience.โ
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Consensys
Consensys is a venture production studio and custom software development consultancy building decentralized applications (DApps), enterprise solutions and developer tools for blockchain ecosystems, focused primarily on Ethereum..