With NFTs growing in extreme popularity, the NFT market reached a trading volume of $24.9 billion, according to data presented by DappRadar. While NFTs are driving transformations across various industries, the event market is the forerunner in using NFTs to connect physical and digital ticketing.
Before the advent of digital ticketing, people used to collect old-school tickets. Each of those tickets was unique, reviving memories, whether it was an opera night in Vienna, the World Cup in England, or a music festival in California.
Now that digitization has streamlined ticketing; ticketing systems have become efficient and reliable for anyone. However, using a simple QR code without any story behind it seems boring. Digital tickets cannot be keepsakes people want to keep and have to reminisce.
Currently, the ticketing system can’t help people reflect on special moments from past events. Hence, NFTs have arrived to make tickets more functional and easy to collect for memories.
A paper-based ticket may be lost, ruined due to water, and destroyed. Moreover, organizers do not get enough security with paper-based tickets—they can be easily faked. QR codes solve this challenge for organizers, but they’re not that effective for guests purchasing them.
With NFTs, you don’t need to compromise, and the technology benefits organizers and guests. But let’s first discuss some of the problems in traditional event ticketing.
- What are the challenges with the traditional ticketing system?
- How does NFT work for Ticketing?
- What are the benefits of NFT ticketing?
- What opportunities does NFT ticketing provide to guests?
- What opportunities does NFT Ticketing provide to organizers?
What are the challenges with the traditional ticketing system?
Black marketing of tickets
Fraud has plagued the ticketing industry, forcing fans to pay higher prices while raising security threats for event organizers. Through misuse of technology, ticketing bots cause chaos, enabling those online 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 supplier, and the lack of exchange protocol enables fraud in the secondary market. When a ticket is sold again on the secondary market, it no longer represents any ownership of the original buyer whose details the event organizer has. Therefore, event organizers do not know who is at their event. Because tickets are issued in a way that does not allow for exchanges on the secondary market, there is no ability to change the ticket holder’s name nor control how many times the ticket will change hands.
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, leading to lost funds and disappointment.
How does NFT work for Ticketing?
NFTs are unique digital tokens stored on a blockchain. Once they are created on the blockchain, they can be sold to customers digitally. Customers then store NFTs in a secure wallet that they can access 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 bid for tickets.
A buyer purchases NFT-based tickets directly from the ticketing company. On receiving payment, a smart contract triggers and a ticketing database sends an NFT ticket to the buyer.
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 from the ticket owner, the smart contract triggers, and the payment is sent to the seller automatically.
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What are the benefits of NFT ticketing?
NFTs can potentially transform the ticketing experience for both ticket buyers and organizers. Following are some of the main benefits NFT brings:
Preventing fake tickets and scams
Blockchain provides a trusted source 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 nontransferable, not to be moved to another buyer.
Costs associated with selling and minting NFTs are negligible compared to the traditional ticketing system. You can produce an unforgeable ticket for less production cost, and customers and organizers can validate the authenticity of every ticket on the chain and track the history of ownership.
Contrary to the traditional way of digitizing tickets, the approach to creating and minting NFTs in minimal time. NFT can be minted and ready to put for sale in less than a minute.
Because programmable NFTs can have built-in rules for merchandise, content, resale, and royalty splits, it means that the organizer can analyze profit sharing percentages for future resale or creative content on secondary markets and receive funds knowing the tickets 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?
- They receive perks and incentives from event organizers.
- They can sell tickets for upcoming events that they cannot attend.
- They can sell rare tickets that collectors desire.
- They can store tickets safely to keep memories alive.
- They can engage in an event organizer’s community.
What opportunities does NFT Ticketing provide to organizers?
- They can create art-like tickets representing the story of an event so that people will want to collect them.
- They can prove the authenticity of each ticket and verify the owner.
- They earn a piece of the profit when a ticket owner resells the NFT ticket.
- They can access potential data to make subsequent events better.
- They can distribute NFT tickets easily via email or SMS.
NFT has been driving radical changes across various industries, including ticketing. Live events space is one of the industries that could be disrupted by NFTs completely. It is an industry that ticketing companies and concert promoters should keep an eye on for potential opportunities and emerging tech to make live events better than before. NFTs for ticketing bring transparency to the ticketing platform and assure the secondary buyer that they are getting a valid ticket to the event they are excited about.
With a panel of NFT experts and 250+ full stack developers, LeewayHertz specializes in building future-ready NFT ticketing platforms on top of advanced blockchain ecosystems. We combine the power of web3 with NFTs to create a platform that supports seamless minting, tracking, management and distribution of NFT-powered tickets. We offer NFT development services, including NFT ticketing platform development, wallet development, NFT token development, fractionalized NFTs and Metaverse NFTs.
If you are looking for NFTs-related services or want to build a customized NFT ticketing platform, learn more about our NFT market development services.
Akash’s ability to build enterprise-grade technology solutions has attracted over 30 Fortune 500 companies, including Siemens, 3M, P&G and Hershey’s.
Akash is an early adopter of new technology, a passionate technology enthusiast, and an investor in AI and IoT startups.
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