Formula 1 has already dipped its toes into the NFT world with F1 Delta Time, a blockchain game where players can collect, trade, and race cars and components represented as NFTs.
The Formula 1 Delta Time game is based on the blockchain Ethereum. Websites such as Yahoo Finance, The Economist, and Binance provide news on blockchains, and some provide a Ethereum price live feed, which could impact how fans engage with the entire notion of decentralized currencies. While the idea of crypto does still feel daunting and inaccessible to many internet users, these sorts of connections that provide a natural ‘entry-point’ to non-crypto users could prove revolutionary in hindsight.
As blockchain technology is becoming more talked about and accepted, the wider possibilities for motorsport are becoming clearer. Let’s look at some of the major areas in which motorsport could utilise blockchain.
Fan engagement
Blockchain can be used to create fan tokens and loyalty programs. These tokens can be earned by engaging with the sport through various activities, such as attending races, participating in online discussions, or purchasing merchandise.
Fans can then use these tokens for exclusive experiences, such as meet-and-greets with drivers and other VIP experiences, as well as to purchase race tickets.
Socios.com has successfully implemented similar systems in football, and these models could be adapted for motorsport. Formula 1 teams could issue fan tokens to allow fans to vote on team decisions and unlock exclusive content.
Ticketing systems
Blockchain-based ticketing can combat counterfeit tickets and scalping. Each ticket can be issued as a unique token on the blockchain, ensuring its authenticity and allowing fans to resell tickets in a secure and transparent manner.
In recent years, ticket reselling has contributed to heightened prices in all sorts of entertainment and sport industries. Back in 2015, Financial Times ran the headline of “Ticket reselling rules to be tightened”, but the practice is still a concern.
Blockchain enables a transparent and secure secondary market for ticket resales. By encoding smart contracts on the blockchain, original ticket issuers can better manage the resale process, set price caps, and ensure they receive a portion of resale profits.
Technologies such as Ethereum could be used to create these secure and transparent ticketing systems.
Another potential benefit could be cost-cutting for motorsport organisations. With the aid of blockchains, teams would have reduced administrative overheads and face less risk of ticket fraud.
Collectibles and NFTs
NFTs can be used to create digital collectibles, such as car liveries and driver helmets. Fans can buy, sell, and trade these unique digital assets on blockchain platforms. NFTs can also be linked to physical items, adding a layer of authenticity and ownership verification.
Back in 2022, Forbes reported on NFTs in motorsport when Artema LABS was creating three series of NFT collections.
Smart contracts
Blockchain offers the opportunity for smart contracts. These contracts better streamline sponsorship and licensing agreements by automating payments and ensuring compliance with contract terms. This can reduce teams’ administrative overheads and enhance transparency.
Sponsorship deals in motorsport are often complex, involving multiple parties and performance-based incentives. Smart contracts could automatically distribute funds based on predefined criteria, such as race results or viewership metrics.
Smart contracts, like blockchain ticket systems, could save motorsport organisations on costs. By removing intermediaries, smart contracts lower transaction costs and streamline processes in various sectors, including finance, real estate, and supply chain management.
Transparency in supply chains
Motorsport teams rely on a complex supply chain for car components and equipment. Blockchain can provide transparency and traceability in the supply chain, ensuring that parts are sourced ethically and meet quality standards.
Implementing blockchain in the supply chain can help teams track the origin of parts, verify their authenticity, and ensure compliance with environmental and ethical standards. This would enhance overall the operational efficiency and integrity of motorsport.
Esports
Blockchain can support the growth of esports and virtual racing by providing a secure platform for in-game asset ownership and transactions. Players can own virtual cars, tracks, and other assets as NFTs, enhancing the gaming experience and enabling a secondary market.
Platforms like Enjin and WAX have been used to create blockchain-based games where players can truly own and trade their digital assets. This model can be applied to motorsport esports to help fans stay engaged with their favourite sport, team, and drivers.
Blockchain’s ability to provide transparent, tamper-proof records may enhance trust and engagement in both esports and motorsport, fostering deeper fan interactions.
Data security
In motorsports, data security is paramount due to the sensitive nature of telemetry, performance analytics, and technology of motorsport teams.
Racing teams generate vast amounts of data related to car performance, telemetry, and driver health, and their performance can depend on the collecting and analysis of this data.
Blockchain can ensure secure storage and ownership of data and provide immutable records that can be accessed and shared securely.
Data from practice sessions, qualifying, and races can be securely stored on a blockchain, ensuring its integrity and availability – not only for analysis but also regulatory compliance and historical records.
The future
Blockchain technology offers many opportunities for motorsport, from enhancing fan engagement to improving operational efficiencies.
As blockchain technology evolves, it will likely play a crucial role in automating contracts, streamlining operations, and fostering a more connected and secure motorsport world. By further adopting blockchain, the motorsport industry can create a more interactive, transparent, and secure environment for teams as well as their fans.
