F1 Delta Time: Formula One on the Blockchain Explained

F1 Delta Time is an Ethereum blockchain-based game developed by Animoca Brands in partnership with motor racing championship Formula 1 ®. The game utilizes both Non-Fungible (NFT) and fungible tokens for its collectible items that can be used in its Racing Game. 

The Hong Kong-based multinational Animoca Brands isn’t new to the gaming industry; it has created numerous popular games, and is the exclusive distributor of CryptoKitties in China. 

The Collectible game contains NFTs for rare virtual items like Cars, Drivers, Racing Components, and Trinkets for collecting and trading.

Delta Time began auctioning NFTs for the game’s rarer items like cars annually beginning in 2019. 

Rare NFTs on F1 Delta TimeL

There are five unique and official Formula 1® NFTs of the “Apex” rarity level:

  1. The Landmark “1-1-1” digital car collectible was sold on May 28th, 2019 for a record price of $113,000. 
  2. Formula 1 France Edition 2019 was sold on July 15th, 2019 for $25,000  
  3. The “China Edition 2019 Azure Dragon” was sold on January 31st, 2020 for 509 ETH
  4. Formula 1 Grand Prix de Monaco 2020 1A was sold on December 2nd, 2020 sold for $223,000.
  5.  F1® Delta Time’s Apex digital car “Bahrain Edition 2020” was sold at auction for US$77,414 on December 4th, 2020.

Packaged NFT Tokens:

F1 Delta Time started selling collections of NFTs combined in its “Crates” from February 25th, 2020 to March 9th, 2020. 

According to its official press release, Crates “contain a randomized assortment of collectibles. A crate can contain driver gear, car components, and tires, as well as a chance of a car or driver collectible, with the car and driver collectibles being the rarest drops available from crates.”

The NFTs consist of collectible tokens based on Ethereum’s ERC-721 standard, and exist in both car and driver categories. Each Crate consists of a car, a driver, and three other related NFTs.

The company released the following categories and quantity of Crates, going from most common to the rarest in left-to-right columns:

The company further revealed that each Crate would have five items. The Crates are assembled according to the rarity of the NFT token and Crate price as follows:

A lucky buyer might find an NFT token above its case pricing to hype up the sale.  So, for example, a ‘Rare’ crate buyer could find one item in their crate that is ranked as ‘Epic.’

The Crates are priced from $20 – $500, ranging from Common to Legendary.

 

The Epic and Legendary Crates contain official F1® drivers and cars from the 2019 Formula 1 Season.  

The cars and drivers on the Common and Rare levels are original cars and drivers exclusive to F1® Delta Time, but not the ones from formal Formula 1 seasons.

There are also secondary NFTs that can attach to primary NFTs. For example, an NFT of a glove, boot, or helmet could attach to a driver NFT, which will impact that driver’s performance in a race. 

Similarly, some NFTs attach to the car NFT, such as fenders, throttles, or side mirrors. Each item can be associated with a particular race car, and also impact that car’s performance in the Racing game. 

The fungible token, designed as an ERC-20 token is called REV, which acts as a currency for race day activities.  

Users can use the REV token as a currency to pay for game entry fees to races, or to purchase collectible items at the races. As a currency, REV tokens may increase or decrease in value due to being staked in the race. 

The race may reward players with REV if the car they risked their REV on shows good performance at a race. 

The Racing Game: 

The F1® Delta Time Grand Prix™ announced Phase 1 of the action-based racing game on December 16th, 2020, with the event running from December 17th, 2020 to December, 21st 2020.

Phase One was open to all players, provided they had a car, a driver, and tires to compete– all NFTs to be purchased on the platform. 

The first phase was the qualifying round. Players ran qualifying laps to decide their starting position according to their times in practice with the fastest car upfront. 

Emulating real-world Formula 1 races, players would have to meet some of the benchmarks to compete in future races or to compete one-on-one with other drivers.

The First Phase of the F1 Delta Time Grand Prix was held in the Circuit de Monaco.  There are four tiers in the racing circuit at Monaco, namely A, B, C, and D.  Each racing participant receives 80 free attempts for Phase 1, which can be utilized to try out 20 times in each of the four tiers mentioned above.

The races have four different kinds of race weather, hot, dry, light rain, and heavy rain.  Each player is required to try out each weather combination in each tier. After the qualifying round, the winner of each weather and tier combination will be added to the Leaderboard—this way, a total of 16 entries will be announced for the Leaderboard for Circuit de Monaco.

Future phases will include additional locations of Spa-Francorchamps, Silverstone, and Monza.

Rewards:

The total prize pool will be 100,000 REVs.  

Players with the fastest overall times for each tier will win REVs as a reward per the position achieved. The players with the fastest times in the tier and weather combination will win the 2020 Key Trinket.

The players that have the fastest lap times overall, regardless of the weather factor, will win REVs per the following cart:

In addition to the REVs won, the top three performers in each tier with the fastest lap times overall will win a REV trophy along with the prize money in REVs.  This way, a total of 12 trophies will be distributed along with a total of 100,000 REVs.

At the lap speed level, drivers with the fastest individual laps combined with weather and tier will get 2020 Game Keys.  Drivers can still win a key for the fastest lap in their weather and tier combination even if they didn’t achieve the fastest overall speed. There will be a total of 68 Keys awarded in this phase as per the following chart per their position:

Final Thoughts:

Formula 1 is one of the most-watched and most admired motorsports in the world.  Hosted in 21 countries across five continents with television viewership of over 1.5 billion people, Formula 1 has over 500 million die-hard fans worldwide. Its race attendance tops over four million (in non-COVID times, of course.)         

Animoca Brands has brought this mainstream sports to the Blockchain platform to combine the mainstream world of racing with the blockchain-based world of virtual collectibles. 

NBA Top Shot: A Complete Guide to Basketball on Blockchain

NBA Top Shot is the hottest talk on the cryptocurrency of 2021 so far; the collectible, blockchain-based NFT release platform and marketplace enable users to purchase NFTs of NBA highlight reels, and some of them have sold for over $200,000.

It seems like basketball on the blockchain is a slam dunk. Let’s explore. 

NBA Top Shot History: A Dapper Labs Project

NBA Top Shot was launched in July 2019 by Dapper Labs, a blockchain startup specializing in digital collectibles.

Prior to Top Shot, Dapper Labs’ best-known project was the viral CryptoKitties– a staple of 2017 cryptocurrency culture. CryptoKitties is an NFT-based game where users can collect and “breed” collectible cats. 

NBA Top Shot’s Home Page

While NBA Top Shot and Cryptokitties share many similarities due to their non-fungible nature, CryptoKitties is unique in that each CryptoKitty is one-of-a-kind in its design. In contrast, NBA Top Shot sells thousands of copies of an individual moment, although each is marked by a unique-serial number. 

CryptoKitties were frequently being bought and sold for hundreds of thousands of dollars during the 2017/2018 bull run in secondary marketplaces. 

The Dapper Labs partnership team has been incredibly busy since CryptoKitties, forming partnerships with the NBA and NBPA, Warner Music Group, Ubisoft, and the UFC. 

“Dapper Labs’ innovation and expertise make them a perfect partner to introduce this groundbreaking game and what we believe will become coveted digital collectibles for basketball fans around the world,” said Adrienne O’Keeffe, NBA Senior Director, Consumer Products & Gaming Partnerships in a press release regarding the 2019 NBA partnership. 

Dapper Labs raised $52.5M from notable funds such as Andreessen Horowitz, Union Square Ventures, Venrock, GV (formally known as Google Ventures), and Samsung as well as the founders of AngelList, Reddit, Dreamworks, Coinbase, and  Zynga. The team recently announced it is raising $250 million in a Coatue Management-led round in 2021. 

Contrary to popular belief, Dapper Labs doesn’t use the Ethereum blockchain; it uses the Flow blockchain, citing Ethereum’s inability to cost-effectively scale as too significant an obstacle for the trading of digital collectibles. With Ethereum gas fees spiking as high as $150+, Dapper seems to have made a great decision before reaching a critical mass of users and virality.  

How Does NBA Top Shot Work?

NBA Top Shot is designed to emulate the exciting experience of buying packs of trading cards. 

  1. You can create an account at https://www.nbatopshot.com/
  2. You will be required to fill out some basic KYC profile information. You will also be asked to make a Dapper Labs profile, which facilitates the transaction process. 
  3. You will be given the option to select your favorite teams, which will help NBA Top Shot curate your home-page experience. 

Once you’ve created your account, you’ll likely need to wait for a new pack to drop. We recommend signing up for their email list to be notified as to when the packs will go live. 

They sell out very quickly, and showing up on time doesn’t guarantee you’ll get to purchase a pack. 

So far, it seems there are three standard types of pack available:

  • Base Set (Common): For $9, you will get nine common moments. Every moment has a production of 1000+ with no maximum cap. 
  • Premium: For $24, users will receive seven common moments, and one rare moment. The rare moments have a production max of 999 clips. 
  • Legendary: $230 gets you six common moments, three rare moments, and one legendary moment. The legendary moment has a production max of 99 clips. 

There are also pack drops outside of the standard pricing. For example, on March 6th, 2021, “Seeing Stars” packs dropped for $14. 

How Much are NBA Top Shot Moments Selling For?

Taking a gander at the NBA Top Shot Marketplace, you’ll see thousands of Moments being sold for anywhere from $5 to $250,000+. 

One user made waves by purchasing a LeBron James Lakers Highlight Moment for $208,000, citing that he is an enormous fan of James and believes the moment is worth $1,000,000+. 

Sold out packs on NBA Top Shot

There are over 8 NFT moments of James that sold between $48,500 to $100,000. Zion Williamson’s “Holo MMXX” Block Moment sold for $100,000. 

Final Thoughts

Are NBA Top Shot moments worth hundreds of thousands, or potentially millions, of dollars? Is it just a fad that will fizzle out once the hype dies down? 

We’ll let history decide, but for now, it’s worth exploring two antagonizing lines of thought:

  • “NBA Top Shot moments are pieces of sports history! You’ve seen trading cards sell for millions of dollars, this is just like that but maybe even better. Since these moments are NFTs, you can easily track ownership, propriety, and you can transact seamlessly with anyone all over the world. They’re digital, so you don’t have to worry about storing them or experiencing a situation like your mom throwing out your lucrative Pokemon card collection!” 

Well, yes. One can argue that value is determined by how much anyone is willing to pay for a specific item. It is difficult to gauge how well value is preserved in a purely digital ecosystem because it is so new. Speculating with NFTs is very risky, and every ounce of prudence may help in the long-run. 

  • “People are crazy to spend any amount of money on NBA Top Shot Moments. You can just save the video to your computer and watch the moment whenever you want, for free! The marketplace is highly speculative and the true value of NBA Top Shot Moments is probably much less than what people are trying to sell them for.” 

Well, yes. You can also buy a mock imitation of the Mona Lisa for about $100. Heck, the paint on it probably won’t even be chipping. The value of NBA Top Shot Moments and NFTs is in their scarcity and ownership features

In theory, more people watching and saving a particular moment will only increase the value of owning the original– it’s basically free advertising. 

Time will tell how far basketball on the blockchain will go, but it’s worth paying attention to for any sports fan or collector.