FIFA World Cup and the Quiet Blockchain Adoption
The upcoming FIFA World Cup, estimated to attract over 3.5 million stadium attendees, is subtly leveraging blockchain technology for some of its ticketing transactions. For this edition, FIFA allowed fans to purchase so-called “Right to Buy” (RTB) digital assets, securing their slot to purchase tickets for any match through FIFA Connect, a digital platform built on top of Avalanche, a blockchain allowing the creation of custom Layer 1 blockchains.
Explosive Activity Surge on Avalanche
Usage and adoption of Avalanche have exploded as ticketing transactions for the FIFA World Cup surge. Arielle Pennington, SVP of Growth at Avalanche, reported a significant spike in activity.
- Over the last few days alone, FIFA ticket activity generated more than 60,000 transactions on Avalanche.
- Transaction volume increased as much as 24x above normal levels.
- Active addresses grew roughly 10x.
“Over the last few days alone, FIFA ticket activity has generated more than 60,000 transactions on Avalanche. Transaction volume increased as much as 24x above normal levels. Active addresses grew roughly 10x,” she disclosed, highlighting that the tournament had not even started.
Seamless User Experience is Key
Pennington argues that this scenario shows blockchain tech can be adopted for different use cases in the background, as users don’t necessarily care about the inner workings of their apps. She critiques the prior approach where tech proposers focused too heavily on convincing people to care about blockchains.
“Millions of fans from around the world are interacting with a ticketing system powered by Avalanche. Most of them will never know or care what blockchain is running underneath. And honestly, that is a good thing,” she concluded.
According to Pennington, users and institutions seek to build apps or services offering “speed, reliability, security, transparency, and global accessibility.” If blockchain can deliver these benefits better than existing systems, people will use products powered by it without ever thinking about the underlying technology.
Regulatory Scrutiny and Concerns
Despite the technological success, the surge of these RTB options has been condemned by global regulators. In October, Swiss gambling regulator Gespa introduced a complaint claiming that these tokens could constitute illegal gambling services. Also, New York Attorney General Letitia James and New Jersey Attorney General Jennifer Davenport recently launched a probe into FIFA’s ticketing practices.
FIFA Blockchain Ticketing FAQs
- What are ‘Right to Buy’ (RTB) digital assets?
These are digital assets fans can purchase to secure their slot to buy actual FIFA World Cup match tickets through the FIFA Connect platform. - Why is FIFA using the Avalanche blockchain?
FIFA is leveraging Avalanche to power its FIFA Connect platform, providing scalability, reliability, and transparency for handling a high volume of ticketing transactions. - What are the regulatory concerns regarding RTBs?
Regulators, such as Switzerland’s Gespa, have raised concerns that these digital assets could constitute illegal gambling services, leading to investigations. - Do users need to understand blockchain to buy tickets?
No, the core idea is that the blockchain operates in the background, providing a seamless and efficient user experience without requiring an understanding of the underlying technology.
