Cryptocurrency has taken the world by storm over the past few months, and big names like Bitcoin and Ethereum have skyrocketed in their values and notoriety. The value in these currencies is primarily based on blockchain technology, a digital and distributed ledger of transactions or decentralized database that keeps continuously updated digital records in real-time across a network of computers. If those words made no sense to you, have no fear because the one thing to understand about blockchain is that it makes tracing transactions and government regulations challenging to manifest. In today’s world, investors and currency users see value in this technology and what it brings to the table.
New currencies are emerging day after day, and the crypto scene seems to keep getting bigger. A new cryptocurrency has recently made headlines by capitalizing on one of America’s most popular sports, basketball. Specifically, finding a place in the NBA. “NBA Top Shot” is a blockchain-based platform that allows fans to buy and sell video clips of highlights; it’s almost like trading cards but for video clips. Over just the past week, Top Shot has generated a whopping $53.9 million, attracted 33,000 new users, and hosted 475,000 transactions, proving the platform is more than just an idea.
NBA Top-Shot found its origins in 2019 when the NBA teamed up with Dapper Labs. Although Top Shot went live just five months ago, in October of 2020, its popularity is already immense and growing. So how does it work? Well, you can make an account on the website, and from there, you can pretty much buy and sell highlights. There are tiers of highlight levels determined by how good the highlight is. When you buy a highlight, you own it like a trading card. Highlights are also finite, keeping supply and demand in check and fostering an environment where these highlights gain value from fan interest and limited supply. Top Shots has received support from big names like Mark Cuban and shows how blockchain technology is evolving to encompass more than just traditional cryptocurrency.
Will you be joining NBA Top Shot? And what do you think blockchain will revolutionize next?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.