The horse racing industry had one big flaw dragging itself throughout the years. – The high barrier of entry for new investments.
It was almost impossible to own a racehorse a few decades ago since you’d have to spend hundreds of thousands of dollars, and for someone who doesn’t know much about taking care of horses sounded like a recipe for disaster.
But what about if you are interested in the sport, and want to invest, but want other people to take care of the horse?
Well, thanks to Blockchain technology that has become possible. In the past couple of years, we’ve seen many new startups that use Blockchain technology to provide fractional shares of real-world horses. This means that the average horse racing fan can purchase a percentage of a horse and become a racehorse owner.
Considering this year marks the 150th anniversary of the iconic Kentucky Derby, one of the most important horse racing events in the world, investing in racehorses might become even more popular. If you don’t know what the buzz about the Kentucky Derby is find more information here:https://www.twinspires.com/edge/racing/kentucky-derby/
Going back to blockchain technologyit is safe to say that it brought many new and still unexplored benefits to this world. Apart from being a more secure, safer, and easier-to-use system, it also unlocks many new opportunities that will open new revenue streams for industries.
In the case of horse racing, we can see that Blockchain technology can increase the interest in racehorse investment.
Table of Contents
Benefits of Blockchain to the Horse Racing Industry
Trustworthiness: Blockchain is based on the ideas of decentralization and public ledgers, which increase trustworthiness and transparency. All information stored on the blockchain cannot be modified or erased, providing a solid platform for data tracking and verification.
Secure and easy transactions: Blockchain allows for direct transactions between parties, eliminating the need for traditional middlemen. This saves money and time while improving the security and safety of industrial transactions.
Blockchain can enable relevant parties to monitor information regarding horse racing, including breeding, training, ownership, and racing history. This increases openness and confidence in the sector.
Fractional ownership management: Blockchain may be used to track horse ownership and record ownership rights in a decentralized and accurate manner. Each horse may be assigned a unique identification on the blockchain, allowing for transparent monitoring of ownership and an immutable ownership history.
Medical and genetic records: Blockchain technology can be used to store medical information and genetic features associated with racehorses. This allows owners and veterinarians to access and exchange information in a safe and efficient manner.
Transactions and payments: Blockchain technology can help to develop a safe and transparent payment system in the horse racing business. Smart contracts on the blockchain may be used to conduct transactions including horse sales, training services, racing wins, and sponsorship agreements.
Blockchain may be used to trace and authenticate the provenance of racehorses throughout their breeding, nurturing, and training phases, as well as at racing events. This guarantees that the information regarding racehorses is accurate and reliable.
How Blockchain Can”Democratize” Racehorse Ownership
Historically, racehorse ownership was seen to be a luxury reserved for a tiny group of nobility. However, the rise of syndicates has made this thrilling experience more “democratized.” A racehorse syndicate is a collection of people who share “ownership” or “financial benefits” of a racehorse, often known as “fractional ownership.”
Members of a syndicate not only enjoy financial rewards, but they also have the ability to engage directly with the horse and even vote on critical issues such as horse naming or breeding decisions. As a result, before joining a syndicate, it is critical to understand how the organization distributes its benefits.
When horse racing ownership rights are broken into smaller pieces, the only thing that remains is emotional sensations.
A racehorse’s worth is determined by a variety of variables, including race prize money, stud fees, insurance, and the emotional pleasures that owners derive from horse racing activities.
In most circumstances, stockholders of a certain racehorse only receive prize money and experience advantages. However, the winning percentage among thousands of racehorses is extremely low, while the true economic worth is derived from stud fees and sponsorship contracts, particularly if the horse acquires a reputation on the track.
Using blockchain technology and smart contracts to handle racehorses’ fractional ownership rights. Each ownership element is stored on the blockchain and validated via smart contracts. This provides security and transparency in ownership transfers.
What Does This Mean for the Industry?
Well, according to some statistics, there are 1.4 billion fans of horse racing. Can you imagine if only 10% of them invest $100 in the horse racing industry?
That’s 140 million people investing $100. That’s 14 billion right there. This will be a huge boost for the entire horse racing industry as it unlocks many new revenue streams that the horse racing industry can benefit from.
After all, it all comes down to money. If the sport is popular and makes money, it will feature more entertaining races and more spectators, countries will build more racing venues, and so on.
Basically, Blockchain will minimize the barrier of entry for every horse racing enthusiast who wants to become a racehorse owner. This will significantly boost the overall value of the horse racing industry in the future.