Back in 2022, many sports teams and events cancelled sponsorship deals with struggling crypto companies. In one year alone, over 40 divergent sponsorship deals collapse. The main measurement of sponsorship agreements’ value is their market approach and capability to cover agreed expenses.
However, when the relationship between sports and crypto was going through some dark times, McLaren decided to stick with OKX, its official partner.
Formula 1 teams cost a lot, and sponsorship agreements are a way to keep the engine running. With companies that agree to spend millions to get their logos on cars and merchandise, each sponsor helps the team get through the season.
While the money from OKX is a significant factor, McLaren has also developed an interest in blockchain and Web3 technologies. At first it was about connecting with fans and enhancing fan engagement, but continued to utilise the technology for the purposes of improving the motorsport industry.
The McLaren Artura GT4's engine performance data was recorded on the blockchain, using a data logger that provides real-time analysis during testing at Circuit de Spa-Francorchamps. Let's find out the background of this initiative.
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Minima, a blockchain company known for a lightweight design operating on mobile and device chips, partnered up with the data platform Influx Technology to create a data tracker in a McLaren Artura GT4 supercar. The main purpose of this cooperation is to improve racing performance and decrease cheating possibilities by implementing blockchain technology.
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This initiative was powered by the blockchain engine Minima, a Layer 1 blockchain designed for decentralised physical infrastructure networks (DePINs).
The system known as the ‘DePIN Data Logger’ collects real-time information on over twenty parameters such as braking, vehicle ignition timing, oil pressure, engine temperature, steering angle and gear switching. This data collection should provide a thorough analysis of the vehicle’s racing performance.
The partnership between Minima and the data platform Influx Technology enables Minima's DePin Data Logger to collect key metrics for the purposes of a real time data analysis. The data collected was analysed by a team of engineers and drivers of Race Lab, ahead of a scheduled race.
It is often mentioned that data analytics presents the lifeblood of the motorsports industry. As many major data-driven industries are adopting blockchain technology, there is no reason for motorsport to miss on the opportunity.
The new data logger comes with two important benefits – it guarantees data authenticity and eliminates the need for validator permissions since the data in question resides on the device. One of the key benefits of Minima's technology refers to its minimal validation requirements as the low threshold enables any Internet of Things (IoT) device to function as a full node, capable of collecting data.
For example, in a recent test race, the blockchain powered data tracker helped engineering detect a technical fault with the wheel's turn radius and resolve it before the upcoming races.
McLaren's bold move into blockchain-powered data analytics was praised all over the internet. By leveraging such innovative technology, they plan to gain a significant performance edge, streamline operations and unlock new opportunities for fan engagement.
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VisitOrganisers of race events are constantly overseeing whether all competitors adhere to strict regulations designed to minimise cheating and level the playing field. The regulatory mechanism, known as Balance of Performance (BoP) has been set out to ensure parity between competitors and adjust different performance parameters.
In simple terms, this mechanism prevents any manufacturer from standing out due to elements such as weight, torque and aerodynamics.
BoP is based on detailed tests, race data analysis and sometimes it even requires real-time monitoring. This is where blockchain jumps in and helps teams comply. Data related to a vehicle’s specifications could be logged on a blockchain and enable organisers to verify compliance in a timely manner.
This method could save a lot of time since traditional BoP methods mainly involved lengthy inspections and manual data verifications. With the use of blockchain and data loggers, any deviations could be quickly detected and dealt with.
A common practice involved detuning cars for testing laps and improving their capabilities subsequently. However, the process required a lot of resources and was truly only possible for well-established racing teams.
For example, traditional methods include organisers manually downloading and verifying engine data after each race, checking whether vehicles have been tampered with. However, this process can take up to three hours.
The partnership of Minima and Influx Technologies produced a data acquisition device that can provide transparency needed for the verification of competition compliance. Minima's blockchain design secures the hash of the data collected, providing an easy way to verify its integrity and history, with the actual data stored in cloud storage or on the device independent of validators' permissions.
Immutable historical data, covering engine tuning, maintenance and service history, creates a valuable and verifiable record of performance which also ensures appreciated resale value of the vehicle. Having the immutable data transferred as the vehicles cross the finish line is a very attractive possibility for the entire industry.
The main advantage of implementing blockchain technology is to ensure that data can be collected and transferred without any risks associated with modification or tampering. Immutability has always been a challenge for complying with racing regulations and maintaining fairness.
The integration in question goes beyond just secure data collection and transfer; it enables officials and fans to access information in real time. The ability to validate data as being created by the vehicle helps in getting precise data in the moment it is most needed and deal with critical decisions.
Beyond the racing space, this could be a real game changer in data analysis and validation across divergent industries. The capability of IoT devices to function as full nodes and validate pieces of information in real time can be beneficial to many fields such as healthcare, supply chain management and even smart cities.
Blockchains enable data integrity and immutability without relying on the middleman which can amount to even more transparent handling of data in the future.
If you want to step up your crypto game and learn more about the underlying blockchain technology, take a look at available courses at our Learn Crypto Academy.