Assignment
(1.) Describe the Proof-of-Authority (PoA) protocol
(2.) Who are the partners or sponsors of Socios.com?
(3.) Download and install the Socios.com application. Create an account. Explore the application and describe its functions. Show Screenshots (If necessary use a VPN if the application is not available in your country or locality).
(4.) Make a purchase of the CHZ token for a minimum value of 10 USD from your verified account of the exchange of your choice. Describe the process. Indicate the ATH of the coin and when it was reached. Show Screenshots.
(5.) Enter the Chiliz Exchange and indicate the prices in CHZ and their equivalent in USD of the following Fan Tokens at the time of writing your assignment: FC Barcelona, Juventus and Paris Saint-Germain. Show Screenshots.
(6.) How is the value of a club or team's Fan Token affected before and after playing a match? If the result is a victory, does its value go up? On the contrary, if it suffers a defeat, does its price go down in the market? Reason for your answer and present at least one recent example, preferably in the week between Sunday 12 and Saturday 18 December.
(7.) Conclusions
(1.) Describe the Proof-of-Authority (PoA) protocol
Authority, this shows that an individual, selected or not has some power to perform some tasks. The proof of authority protocol is a consensus mechanism thats based on a users reputation as a good and trust worthy node.
That is to say the main form of leverage is rather different for that of PoW, which invloves the use of computer power to solve difficult math problems or the PoS where you have to stake some coins in the system. In POA, what is at stake is the user's reputation, which largely invloves the users identity. So validators of the block are chosen randomly based on the reputation of such users to serve as trustworthy nodes. This consensus mechanism is efficient in its mode of action and highly scalable due to the fact that it uses a limited number of validators.
Benefits of the PoA
Scalability
Well this is one of the major benefits of the proof of authority protocol, it's quite fast to reach a consensus because of the limited amount of validators of the blocks. Blocks are created in a predictable manner while taking into consideration the number of validators, this means that the blockchain will enjoy a greater amount of transactions.
Low power consumption/system power
Proof of authority doesn't require a lot of computer power to solve puzzles, complex puzzles, to show a consistent connection between nodes and this also goes a long way to reduce power consumption
Resistance to the 51% attack
The 51% attack is made incredibly difficult on the PoA because you can't easily connect 51% of the authorities who are not linked together, futher more, nodes are pre authenticated so in the case that one node isn't available for the validating process, the system can simply remove it.
Downsides of PoA
More centralization. Since the validators has to be verified, trusted and picked by the network, this leads to a rather small amount of validators.
Higher risk of corruption/manipulation. Block rewards are open for everyone to see and one can check the rewards earned by a certain validator this is why a validator needs to be an individual who is trusted.
Becoming a validator is rather daunting. To become a validator, candidates have to pass an examination which also attest that the candidate has no criminal record and has good moral standards. All these are done while also filtering out the less committed candidates.
Looks to promote centralization rather than Decentralization. The PoA works best for centralized systems due to the small amount of validators, it can be said to be an efficient way to run centralized systems but in the crpyto world, this is not much appreciated.
(2.) Who are the partners or sponsors of Socios.com?
Before talking about the partners of socios, I think knowing what socios is all about will help in understanding why they have such kind of partners they have.
So what is socios? I'll simply put it as the link( at least that's what it wants to achieve) between sport organizations and thier fans. Its an application owned by chiliz which aims to give fans more than just a voice but also some form of power to have a say in the proceedings of the sport organizations. Now I said sport because it aims to link all sportlike organizations to their fans, be it football, boxing, gaming, tennis etc.
So who are the partners of socios? Well they are simply sport organizations from all over the world. In football, we have clubs like Juventus, Barcelona, Paris saint Germain etc all partnering with socios. These are top clubs from different parts of Europe, like Italy, Spain and France respectively. In boxing we have the UFC, ultimate fight club, partnering with socios.
(3.) Download and install the Socios.com application. Create an account. Explore the application and describe its functions. Show Screenshots (If necessary use a VPN if the application is not available in your country or locality).
So I downloaded the socios app, it looked cool actually and then installed the application. I proceeded to get registered but this was where I got stucked. The verification code which was sopposed to be sent to my phone number, Nigerian phone number actually, didn't come through, so I couldn't go on with my registration and therefore couldn't explore the features of the application.
(4.) Make a purchase of the CHZ token for a minimum value of 10 USD from your verified account of the exchange of your choice. Describe the process. Indicate the ATH of the coin and when it was reached. Show Screenshots.
Alright guys, so Chiliz is the native token of the socios platform and therefore one would need to acquire this token before he can acquire any fan token of choice. It's like the spending currency of the socios platform, you soend it to get your fan token, just as you spend your traditional currency notes to get goods/services.
There are different means by which you could get this token, which generally invloves buying them from exchages.
In this section, I'll show you how I managed to get some chiliz token worth over $10 from binance.
- Firstly you'll need to download the binance app and go through the KYC requirements to get you registered and ready to trade. Thisfirst step is for those who may have not used the application before. For the already registered users, you could skip that step.
- If you make use of the search icon at the top right corner of your screen, then you'll see there are quite a number of ways through which you could attain the token. This includes pairs of chz/btc, chz/trx, chz/usdt etc. For now, I'll be using the usdt to purchase the token.
- So that means I'll have make usdt available for the purchase of the chz token. This can be done by either getting from a friend or simply buying from the peer to peer feature of binance.
- Anyways, now that I have usdt available, I'll simply click on the chz/usdt. This will take me to the market/trading page of these pairs.
- on this page, you can see the buy or sell buttons as well as the different types of orders, but i simply used the market order to save time.
- I bought the Chiliz token worth 13usdt which is equivalent to 13 usd. This purchase gave me a total of 48 chz tokens which was transferred to my binance wallet immediately.
The Chiliz token recently reached an all time high of $0.9 on the 8th of march 2021.
(5.) Enter the Chiliz Exchange and indicate the prices in CHZ and their equivalent in USD of the following Fan Tokens at the time of writing your assignment: FC Barcelona, Juventus and Paris Saint-Germain. Show Screenshots.
The Chiliz exchange has a lot of fan tokens of clubs from different regions of the world. Amongst these clubs are Barcelona, Juventus and Paris Saint Germain. The are some of the top clubs of Europe and have some fan tokens of different prices. Here are the prices of these fan tokens;
Barcelona
As seen from the image, tha Barcelona fan token is worth 30.14 Chiliz which will be an equivalent of $8.074 usd.
Juventus
As seem from the image above, the Juventus fan token is worth 31.17 Chiliz which is equal to 8.303usd
Paris saint Germain
We can see that the PSG fan token worth more than 50chz tokens(51.05 chz) and is equal to about $13.63
It's important to note that all these tokens are valued against the the Chiliz token because its the native token currency of the platform, just as the USD is the native currency of the united states.
(6.) How is the value of a club or team's Fan Token affected before and after playing a match? If the result is a victory, does its value go up? On the contrary, if it suffers a defeat, does its price go down in the market? Reason for your answer and present at least one recent example, preferably in the week between Sunday 12 and Saturday 18 December.
The answer to this question is quite controversial as I've found out. What i mean is that the results of matches doesn't necessarily affect the price of the fan token but some other major club announcements or milestones/achievement will affect the price. Let me give you two examples here.
- In the first case, you can see the chart of the man city fan token against the Chiliz token. Well what's is interesting about this chart is the fact that the price movement totally ignored the fact that man city had just won a premier league match this week by thrashing Leeds united by 7 goals to nil. Rather than the price shoot upwards in excitement, it instead went on downwards in the somewhat overall trend.
The little info box on the image highlights the time the match was played and the effect on the price.
- In the second case, you can see the chart of the Inter Milan fan token. This week inter had just won a league match by 5 goals to nil, this match was a record setter, this was the first time in the history of inter Milan that they've been able to score 100 goals in a calendar year, outdoing themselves for the record they set the previous year for 99 goals scored. This was a major achievement, a mile stone reached for the club and this affected the price positively ass seen in the image.
So, with this little analysis of mine and from the examples, we can see that the results of matches doesn't necessarily affect the price of the fan tokens, except in some cases like when there are Derby matches/ el clasico etc. Major clubs achievement amd actions/activities do hava an effect on the price though. Like when PSG signed Lionel Messi, well you know the rest.
(7.) Conclusions
Well sport fan tokens are some exciting features we now have in the cryptoverse. The give fans more than just a voice over the affairs of their favorite clubs, from the music played prematch, to the dressing room activities and major decisions of the clubs also. I hope to see them partner with more clubs in the future.
Cc
@imagen.
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