Chiliz - Crypto Academy S5W5 - Homework Post for @imagen

Chiliz Platform and the Proof of Authority Consensus Algorithm

Chiliz is a platform that aims at bringing sport organizations and clubs closer to their fans by giving them the right to vote on important decisions that would be undertaken by the sport organizations.

The socios.com platform was developed after the launch of the chiliz platform. The socios.com platform received a good number of partnerships from sport organizations, which caused some these organisations to create their own tokens and also develop their own blockchains using the Proof of Authority to attain consensus in these blockchains they created.

What is Proof of Authority?

The Proof of Authority is a consensus mechanism that requires that validators stake their identities to be able to be an active participator in the in the consensus of the network. This consensus mechanism was developed by Gavin Wood, who is the co-founder of Ethereum.

The PoA is said to be a modified PoS because the validators have to give their identities and not just stake tokens. A limited number of validators are required in the network, making it very scalable. Because the identity of a validator is required, two validators "A and B" would have different control on the network if A is reputed to be more capable of maintaining the consensus of the network than B.

The PoA requires a few conditions to be met so as to make it practical. These conditions include that:

• the validators should have real and trustworthy identities. In addition to being real, the validators would have only one identity each, and this must be confirmed.

• the qualifications for becoming a validator is difficult to obtain, making the position of the validator to be valued and earned.

• the standard procedure to become a validator is the same for all validators.

Partners/Sponsors of Socios.com

Socios.com, which was developed in 2018, has obtained a great number of partners and sponsors in a short amount of time. With Juventus F.C. as their first sponsor in 2019 and La Liga as their official global partner, the number of sponsors has since increased over the years.

The sponsors and partners of social are listed below:

Football: F.C. Barcelona, Juventus F.C, Paris Saint-Germain F.C, A.C. Milan, A.S. Roma, Atlético de Madrid, Club Atlético Independiente, Galatasaray S.K, İstanbul Başakşehir F.K, Manchester City F.C, Novara Calcio, Sint-Truidense V.V, Trabzonspor, Club Universidad de Chile, BSC Young Boys, Apollon Limassol F.C, Legia Warszawa, Fortuna Sittard, Göztepe S.K, Alanyaspor, Levante U.D, Argentine Football Association, Clube Atlético Mineiro, Valencia C.F, Sport Club Corinthians Paulista, Portuguese Football Federation, Arsenal F.C, Inter Milan, GNK Dinamo Zagreb, Everton F.C, Leeds United, Aston Villa F.C, Pohang Steelers, Clube de Regatas do Flamengo, Samsunspor, São Paulo F.C, Racing Club de Avellaneda, Bologna F.C. 1909, Gaziantep F.K, S.S.C. Napoli, Millonarios F.C, New England Revolution, Santos Laguna, Atlas F.C, AS Monaco, Italian Football Federation, Sociedade Esportiva Palmeiras, Crystal Palace F.C.

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Gaming: Alliance, Natus Vincere, Team Heretics, OG, Team Vitality, Endpoint Esports.

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Fighting: Professional Fighters League, Ultimate Fighting Championship.

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Motorsport: Roush Fenway Racing, Aston Martin Cognizant Formula One™ Team, PKN Orlen.

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Cricket: Royal Challengers Bangalore, Punjab Kings, Kolkata Knight Riders, 2020 Caribbean Premier League.

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Basketball: Philadelphia 76ers, Boston Celtics, Cleveland Cavaliers, Sacramento Kings, Orlando Magic, Los Angeles Clippers, Houston Rockets, Chicago Bulls, Minessota Timberwolves, Detroit Pistons, Golden State Warriors, Oklahoma City Thunder, Charlotte Hornets, Miami Heat, San Antonio Spurs, Milwaukee Bucks, Indiana Pacers, Brooklyn Nets, Utah Jazz, Phoenix Suns, Atlanta Hawks, Memphis Grizzlies, Los Angeles Lakers.

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Tennis: Davis Cup Finals.

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American Football: New England Patriots.

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Exploring the Socios.com Platform

To explore the platform, it must first be installed in a compatible device. For my illustration, I would use socios.com application for Android.

Step 1: Go to the socios.com site and select "Get the app".

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Step 2: You'll be redirect to the Play Store. Select "Install".

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Step 3: After installation is complete, select "Open".

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Step 4:Select "Get Started"

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Step 5: Input phone number select "Send Verification Code".

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I inputted my phone number and requested for a verify code but I never received it. I tried countless times but I was still unsuccessful. Because of this, I could not proceed with the task.

Purchase of CHZ Token

CHZ Token can be bought from crypto exchanges such as Binance, Huobi, Kucoin, etc. For my illustration, I would purchase the CHZ token on Huobi Pro.

Step 1: Open Huobi Pro. I'm using the application for Android in this illustration.

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Step 2: Select "Markets".

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Step 3: Select the search icon.

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Step 4: Type "CHZ" on the search bar. A list a tradable pairs for CHZ would appear. Select CHZ/USDT.

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Step 5: The market chart would be displayed. Select "Buy".

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Step 6: Input the amount in USDT and select "Buy CHZ".

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Step 7: CHZ successfully purchased.

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The current price of CHZ is $0.2902. It has an all-time high of $0.8915 and this feat was achieved on March 31, 2021.

Fan Token Prices on Chiliz Exchange

To view the fan tokens and their prices, go to the Chiliz exchange website.
https://www.chiliz.net/

On opening the Chiliz Exchange, the prices of some tokens are already displayed on the homepage. The prices of some tokens are listed below:

Fan Token	Price in CHZ	Price in USD
F.C Barcelona	29.66	$8.52
Juventus	29.74	$8.54
Paris Saint-Germain	50.34	$14.46

Is the Value of Team Token Affected Before and After a Match?

The value of a team token is affected very much before and after a match. Let's take two scenarios to explain this. On the 14th of December of this year, Manchester City went head to head against Leeds United for matchday 17 of the English Premier League. This game ended 7-0 in favour of City.

The team token for Manchester City experienced a rise before the matchday because of demand for the token. The demand was caused by massive investment in the token because Manchester City had a high chance of winning against Leeds United. On the matchday, the token experienced a drop in price as investors began to take profit. As the kickoff closer, the token experienced a rise in price again, although little. Also, as the match was in-play, the price kept increasing because City was winning. At the end of the match, the price dropped again because investors had sold off their tokens, increasing supply.

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For the Leeds token, the price began to drop as the time for the match drew closer. This was because Leeds had a very minimum chance of winning against City. After the match ended, the token continued in an uptrend.

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With this, it can be concluded that the price of a token increases before a match if the team that owns the token has a high chance of winning. The reverse is the case for a team that has a low chance of winning.

After the match, an increased token would experience a fall in price as token holders would sell off their tokens to make profit, while a decreases token would continue in its original trend before the fall occured.

Conclusion

The Proof of Authority, which is known as a modified Proof of Stake, is very efficient as it required nodes to stake their identity, making the position of a node to be more valuable.

Using this consensus mechanism, the socios.com platform was developed to enable fans of sports teams to be involved in the decision making of the teams and organizations as a whole.

Cc: @imagen