Why do they get along? From DailyCoin

Formula 1 and crypto: why do they get along?

• Crypto.com is the official sponsor of the 2021 F1 season.
• Formula 1 teams have joined the NFT revolution and released new digital products on the blockchain.
• The innovative nature of blockchain is similar to F1’s development ethos.

Formula 1 is the pinnacle of the motorsport industry, in which technological innovation is at the fore. Blockchain is an implemented technology in the sports industry; However, neighboring companies are eyeing potential users among F1 fans as the sport creates an amalgamation of the novelty and the unknown.

An interlocking technology

Most viewers watch Formula 1 for its competitive nature, regardless of the tremendous technological input the F1 cars display. Cryptocurrencies have made their way into the industry despite not being fully implemented as a standard. However, they are related because they are a disruptive force in their industry.

As the epicenter of the automotive industry, Formula 1 tests and develops new technologies that are then implemented in everyday cars. Paddy Lowe, director at Mercedes F1, said that Formula 1 “serves as a research laboratory for developing new solutions” and enables the direct or indirect transfer of new solutions.

Blockchain is a more disruptive technology that, despite regulatory reluctance, is indirectly approaching mass adoption. Still, blockchain is becoming a solution for supply chain management, and large companies are implementing approved versions of the blockchain. The usability of the blockchain extends to forms of payment, however, with digital banks beginning to recognize cryptocurrencies as both a transactional store of value and a means of payment.

On the downside

• There is no extensive evidence as to whether blockchain is used and implemented in F1
• F1 teams work with blockchain projects that have been criticized for their poor environmental record.

Where F1 meets crypto

Crypto companies are on a rapid rise as the mass adoption and demand for cryptocurrencies has skyrocketed. With an estimated 500 million annual viewership, Formula 1 has a very niche-oriented and upscale audience that is, to some extent, halfway in line with blockchain technology.

Large cryptocurrency exchanges are being associated with Formula 1 as new regulatory measures make it easier for users to transact and own cryptocurrencies. From 2021, Crypto.com has become the “global partner” of F1 and sponsors the new F1 sprint formats. Additionally, FTX.com has teamed up with Mercedes F1 Petronas AMG to target a new audience after signing additional partnerships with MLB.

Exchanges aren’t the only way to get involved with F1. Aston Martin, the new F1 team, has made Blockchain Algorithms its new sponsor, while McLaren has partnered with Tezos and the Bitci crypto exchange. However, it is unclear whether either company will implement blockchains or use the F1 name as an association. In addition, AlphaTauri’s Pierre Gasly tweeted that he had partnered with the Fantom Foundation, increasing the number of blockchain partnerships in the industry.

Why should you care?

Blockchain’s entry into the F1 space comes as no surprise as both industries can complement each other. Formula 1 can provide a launch pad for cryptocurrencies into the mainstream, while blockchain can serve as an adjoining research and development laboratory for new types of technology that the FIA ​​can implement.

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