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Amid the excitement and anticipation of the FIFA World Cup Qatar 2022TM, sport remains a business. Like other global industries, the adoption of technology innovations is driving greater efficiency and transparency to generate benefits for sports organizations, leagues, clubs, and fans.
Researchers at the College of Science and Engineering (CSE), Hamad Bin Khalifa University (HBKU), make the case for adopting blockchain-powered solutions in delivering seamless sport mega events by outlining some of the top use cases.
Understanding blockchain
“Blockchain can solve many real-world problems,” explains Dr. Mohamed Abdallah, Associate Professor in the Division of Information and Computing Technology (ICT) at CSE.
“For mega sport events, the benefits can be exceptional. Because of its transparent data structure, blockchain can facilitate secure and reliable data exchange at the individual, institutional, or national systems level as needed, without the need for intermediaries to ensure mutual trust and the authenticity of the data exchanged.”
The chaos of the UEFA Champions League final between English team Liverpool and Spanish club Real Madrid in May 2022, which resulted from the illegal distribution of non-validated tickets, is likely to have accelerated the recognition of blockchain’s benefits for the sport industry. The ensuing government inquiry unequivocally called for using blockchain for ticketing to prevent a similar fiasco at future events. A closer look at the nature of this cutting-edge technology reveals why.
How blockchain works
By its functional nature, a blockchain is a distributed (or shared) digital ledger that stores encrypted blocks of transaction data securely chained together in chronological order. Unlike other ledgers or databases, blockchain combines unique security features based on cryptographic techniques and its chronological chain structure.
In its standard form, blockchain provides immutability (data entered is permanently recorded), transparency (data is visible to everyone involved), and decentralization (all computers in the network have a copy of the blockchain to collectively maintain control). These features facilitate a tamper-proof, reliable way of storing, exchanging, and tracking information.
A key use case for mega events: preventing ticketing scandals
Dr. Abdallah and Dr. Aiman Erbad, Associate Professor and Head of ICT at CSE, add their expert voices to arguments that the UEFA Champions League final chaos could have been prevented using a blockchain platform with a self-enforcing contract capability to facilitate a secure ticket purchase process.
In practical terms, tickets can be stored on the blockchain denoted with unique cryptographic tokens. Each ticket can be linked to the authentic owner, providing traceability and accountability that prevents forgery. In this way, it can effectively reduce the impact of bots and/or scammers buying large numbers of tickets for illegal resale.
Using blockchain-based “smart contract” technology, ticketing entities can set the required resale rules to ensure a fair and secure market. These digital contracts can facilitate transactions between buyers and sellers while maintaining data accountability and traceability.
A related use case is storing the chain of ticket ownership. These records cannot be forged since changes are verified and tracked, ensuring data integrity. It can help customers validate the authenticity of tickets to avoid being trapped by ticketing scams.
Other use cases in sport
Blockchain-powered fan engagement is a growing use case for the sports industry. Several professional leagues and clubs are using blockchain to establish trustworthy fan databases that facilitate the distribution of “fan tokens”. With the status of a digital asset (created on a blockchain), the tokens can be redeemed by fans for rewards such as VIP experiences or ticket promotions. The increased fan engagement can potentially create new revenue streams for clubs; for example, incentivizing them to attend more events in person. Fan tokens have been rolled out by professional sports teams all over the world, including Paris Saint-Germain and FC Barcelona.
In another use case, the market for sports collectibles and memorabilia can leverage blockchain to establish trust and traceability. Experts have warned that fraud is rampant in the sports collectibles and memorabilia market. Blockchain can ensure the authenticity of special items through the use of digital identities.
CSE’s own blockchain-based applications
CSE faculty members are developing innovative use cases for blockchain in a range of applied settings.
“Our research focuses on the applicability of blockchain in solving real-world problems, such as securing data access in healthcare and decentralized trading,” says Dr. Erbad.
“We also study the technical aspects of blockchain to enhance its security, privacy, and efficiency. We have investigated the possibility of reducing energy consumption in public blockchains and developed an energy-efficient consensus algorithm. In other areas, we have also investigated using artificial intelligence in combination with blockchain smart contracts, called Rational Contracts, to provide smart resource trading with optimal prices in smart city applications.”
Among CSE’s blockchain-based applications are a trading platform for electric vehicle charging in smart cities, a decentralized ride-sharing service, a privacy-preserving decentralized stock exchange platform, a scalable energy trading sealed-bid auction mechanism, real-time secure health data exchange system, and a cooperative spectrum management system for 5G networks.
A national blueprint for Qatar
CSE had a leading role in developing the Qatar National Blockchain Blueprint in collaboration with the Communications Regulatory Authority and Qatar University. The blueprint highlights how blockchain can advance Qatar’s innovative and growing IT sector.
Essential blockchain requirements and recommendations for building a solid regulatory framework drive its pivotal goal of facilitating blockchain’s adoption at the national level, in support of Qatar National Vision 2030 and Qatar National Development Strategy. To achieve this, the blueprint outlines the conditions and incentives each sector must provide for the level of technology adoption needed to allow start-ups, pilot projects, and new companies to emerge. The strategy is an important step for Qatar, its sports, and other leading industries, to reap the societal benefits of this innovative technology.
For more information on the work of the College of Science and Engineering, please visit cse.hbku.edu.qa. To know more about Qatar National Blockchain Blueprint, please visit: https://www.cra.gov.qa/document/national-blockchain-blueprint