How can NFT Ticketing disrupt the ticketing industry?
NFT, a new concept that created hype around digital art, is now ready to move forward to various other markets. One such destination is an event market where NFT can connect the physical and digital ticketing.
Do you remember old school tickets that people used to collect? Each ticket was unique, reviving memories whether it was an opera night in Vienna, World Cup in England or a music festival in California.
No doubt that digitization made ticketing streamlined, but it seems boring with a simple QR code without any story behind them. Nowadays, Tickets do not have the memory part, which people wanted to keep with them when they move or travel.
Currently, the ticketing system lacks memories that they reflect on remembering special moments from past events. NFTs have come into the picture to make tickets more functional and memorable.
You may lose a paper-based ticket; they may get wet and ruined. Also, it’s hard to travel with a paper-based ticket as it may get lost. Moreover, organizers do not get enough security with paper-based tickets as they can be quickly faked. QR codes looked like a good answer for organizers but not that effective for guests purchasing them.
With NFTs, you don’t need to compromise as the technology benefits both organizers and guests. But let’s first discuss some of the problems that exist in traditional event ticketing.
What are the problems with the traditional ticketing system?
- Black marketing of tickets
Frauds have plagued the ticketing industry, forcing real fans to pay additional prices while presenting security threats for event organizers. Misusing the technological advances, ticketing bots cause chaos, enabling online touts to purchase tickets in bulk and sell them on secondary markets at high prices.
- Lack of exchange protocol
It is impossible to track customers or exchange data beyond the boundaries of a provided supplier. The lack of exchange protocol enables fraud on the secondary market. When a ticket is sold again on the secondary market, it no longer belongs to the actual buyer whose details the event organizer has.
Therefore, event organizers do not have an idea who is at their event. Because tickets are issued in a way that cannot be used for exchanges on the secondary market, you can neither change the name of the ticket holder nor control how many times the ticket will change hands.
- Customer Trust
One of the major concerns for guests is whether they have paid for a real ticket or a fake one. Sometimes, customers buy fake tickets on websites posing as legitimate authorized ticketing agents. It leads to loss of money and massive disappointment.
How does NFT work for Ticketing?
NFTs are unique digital tokens stored on the blockchain. Once they are created on the blockchain, they can be sold to customers digitally. Customers then store NFTs in a secure wallet that can be accessed on any device.
In the ticketing system, event organizers can mint the required number of NFT tickets on their choice of a blockchain platform. They can code the NFTs to set a sale price or run the sale as an auction where people can start a bid for tickets.
Customers then purchase NFT tickets and keep them in their wallets that can be accessed from their mobile devices. Once they visit the event, they produce NFTs.
A buyer books the NFT-based ticket and pays the ticketing amount to the ticketing company. On receiving the payment, the smart contract triggers and an NFT ticket is sent to the buyer from the ticketing database.
The ticketing company requests to upload the ticket on the IPFS. Hash is calculated by IPFS and tickets get stored on the database. NFT tickets are created and uploaded to the requested NFT marketplace.
Ticket owners can also resell NFT tickets on the NFT marketplace. The ticket is stored in a smart contract. Once a buyer buys the ticket, the smart contract triggers and the payment is sent to the seller automatically.
What are the benefits of NFT Ticketing?
NFTs have the potential to enhance the ticketing experience for both attendees and organizers. Let’s understand how.
- Preventing fake tickets and scams
Blockchain provides a single source of truth for both ticket holders and organizers. The transfer of NFTs from the initial sale to resale is stored on the blockchain immutably so that all parties can prove the ticket’s authenticity.
In cases where the resale of tickets is forbidden, NFTs can be developed as non-transferrable, not to be moved to another buyer physically.
- Reduce costs
Costs associated with selling and minting NFTs are negligible as compared to the traditional ticketing system. You can get an unforgeable ticket for less production cost so that customers and organizers can validate the authenticity of every ticket on the chain and track the history of ownership.
- Quick production
An NFT can be minted and ready to sell in less than a minute.
- Perpetual revenue
Since programmable NFTs can have built-in rules for merchandise, content, resales and royalty splits, it means that the organizer can analyze profit sharing percentages for future resales or creative content on secondary markets and receive funds knowing they are unalterable within the NFT’s coding.
- New revenue opportunities
NFT-based tickets act as programmable money, providing unlimited potential for new revenue opportunities. For example, the resale of NFT tickets as collectibles, using NFT tickets to provide food and drink deals and rewarding fans who have gathered many event tickets.
What opportunities does NFT Ticketing provide to guests?
- Receive perks and incentives from event organizers.
- Sell tickets for upcoming events that you cannot go to.
- Sell rare past tickets that other people would love to collect.
- Store tickets safely to keep memories alive.
- Engage and be a part of event organizer’s communities.
What opportunities does NFT Ticketing provide to organizers?
- Create art-like tickets representing the story of an event so that people would like to collect them.
- Prove the authenticity of each ticket and verify the owner.
- Earn a part of reward when a ticket owner resells the NFT ticket.
- Access potential data to make subsequent events better.
- Distribute NFT tickets easily via email or SMS.
Live events space is one of the industries that could be disrupted by NFTs completely. It is an industry where ticketing companies and concert promoters should keep an eye on potential opportunities and emerging tech to make live events better than before.
NFT is also one of the emerging technology trends that is disrupting almost every industry, including ticketing. NFTs for ticketing brings transparency to the ticketing platform and assures the secondary buyer that they are getting a valid ticket to the event they are excited about.
If you are ready to leverage the benefits of NFTs in ticketing, consult our team of NFT development experts.
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