The NBA has set up a blockchain advisory group to explore potential uses for emerging technology, according to a report released Friday.
Dubbed the “blockchain advisory subcommittee,” the six-member group includes billionaire Dallas Mavericks owner Mark Cuban, Washington Wizards owner Ted Leonsis and Brooklyn Nets owner Joseph Tsai, Sportico reported. The group is tasked with determining how to leverage blockchain for the benefit of NBA operations.
The group was formed amid the booming success of Dapper Labs’ NBA Top Shot, a digital marketplace that allows fans to buy and sell flagship games and collectibles using its Flow blockchain platform. Digital assets, likened to collectible cards, have already generated more than $ 230 million in sales, according to Dapper Labs.
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“It has very little to do with Top Shot,” Cuban told Sportico of the group. “These are blockchain applications, of which Flow is only one option.”
Top Shot is just a potential blockchain application, which functions as a permanent, unalterable digital ledger for online transactions. Cryptocurrency platforms use the blockchain to track and authenticate transactions.
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Some NBA franchises have already embraced blockchain-based transactions. The Mavericks and Sacramento Kings allow fans to purchase game tickets and merchandise using Bitcoin. In 2020, the Kings partnered with blockchain software company ConsenSys to launch an auction platform for gaming hardware.
Supporters of the technology note its potential to crack down on fraudulent ticket sales and false memorabilia by providing traceable ownership history.