A serial entrepreneur wants to create the world's first professional fantasy football league, and thinks the blockchain – yes, the blockchain – is the best way to keep everyone honest while competing for real money.
When the Crown League is launched next year, fans can buy a stake in any of its 12 teams and share the profits they will earn during the season. Each team will be led by a general manager, who will deploy weekly shifts of players selected by professional collectors.
Now, you might think that this is just another case of a tech-savvy entrepreneur trying to generate a bit of enthusiasm for his startup by throwing the craziest word of order. But Dan Nissanoff, the 52-year-old business man behind the idea, says the blockchain will allow decentralized team ownership and transparency.
"We are using it to create an immutable record of competitions," said founder Dan Nissanoff, 52. "This could never be done before the blockchain".
Related: These startups are trying to save local news
A blockchain is essentially a public digital ledger of transactions that can not be changed. It is more associated with the feeding of cryptocurrencies like bitcoins, but can be applied to other areas, such as health care, voting or … sport.
For The Crown League, these transactions include the grouping of team rankings and results and serve as record of things like team payments and property shares.
Blockchain technology is certainly having a moment but many experts warn against trying to use it for every situation.
"Someone who says that blockchain can be used to solve the problem x, does not understand the problem," says Nicholas Weaver, senior researcher at the International Computer Science Institute.
Weaver also notes that blockchain technology is not new; it's just an important moment and everyone wants to launch something that uses it.
Related: IBM's app store blockchain wants to help banks reduce costs
Approximately 60 million people played football fantasy last year, according to the Fantasy Sports Trade Association. But there is not a central league: Players take part in thousands of leagues, from those that exist online to informal leagues among friends.
That's where Nissanoff saw the opportunity to create a championship that would bring fans together and give them a place to share their passion.
Nissanoff also notes that, unlike other professional leagues, Crown League fans can profit by themselves when a team does well. Fans who invest also say the way the team is led – can decide to get rid of the general managers who do not fit the bill.
He said he already raised money from investors and collaborated with big names in the world of sports and technology, but refused to comment with who he is working.
Crown League will also sell "token" security, digital assets that are regulated federally, so anyone will be able to own parts of an alloy or teams. The league's tokens will go on sale this week for $ 1. Nissanoff said the company eventually plans to launch tokens that the public can buy.
CNNMoney (New York) Published for the first time on August 14th 2018: 8:31 AM ET