Blockchain is more than just the "new kid on the block"... it could prove a revolutionary technology.
The new kids on the block
This blog forms the latter part of a two part blog considering the recent developments in technology and the impact on sport, legal and otherwise. In my previous blog. I considered wearables, in this blog I will discuss the use of blockchain technology.
Blockchain technology
What is ‘blockchain’?
Blockchain is the technology underpinning digital currency (e.g. Bitcoin). It allows digital information to be distributed and stored. The blocks (each block storing new information, or a record of transactions) link together to form a chain. Each block has a unique ID assigned to it, and this distinguishes one block from another. Blocks can only be added to a chain if they satisfy the rules and requirements that will be embedded in the network. The chain is unchangeable, once new blocks are added they can be readily viewed- meaning blockchain technology is both secure and accountable.
Blockchain has great potential in sport for example in doping cases - those of which can undermine the integrity of sport. Sports regulators require transparency from athletes, but need to respect private data. Secure record management systems built on private blockchains that can log medical records and test results would be able to do this.
In another example, sport generates a huge volume of data: for instance, event results, individual player history and performance statistics. Sports data companies have been highly successful in collecting, collating and selling sports data; FIFA have embraced the use of blockchain to share data that can be used across the board with ensured accountability. There has even been talk of players being traded on the blockchain itself via an online decentralised currency (such as bitcoin).
Yet it is crucial to take note of the potential legal issues at hand. As well as legal compliance with the processing of personal data, jurisdictional issues must be considered. The technology easily has the ability to become an international force. For example, blockchain can enable the use of smart contracts between fans and the sporting club who can use the technology to buy tickets, merchandise and food and drink at matches. But this can cause complex jurisdictional issues when considering the relevant contractual relationships created. The principles of contract differ across jurisdictions and therefore identifying the appropriate governing law is essential. If the club is at fault they could be sued and the applicable jurisdiction could be in question as the blockchain is operating in a decentralised environment. It therefore may be difficult to identify the appropriate set of rules to apply. Sports organisations need to ensure that in using this technology they have identified and outlined the jurisdiction and applicable law that would apply if a dispute ever arose and they must ensure that they make this clear to users.
Both wearable and blockchain technology are driving exciting and engaging developments in the sports sector, these innovative new methods of data collection and use is arguably creating a symbiotic relationship between sport and technology.
For more information please contact Zainab Gulamhussein or a member of our Sports team.
