How can NFT Ticketing disrupt the ticketing industry?

NFT ticketing

NFT, a new concept creating hype around digital art, is now ready to move forward to other markets. One is the event market, where NFT can connect 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, the World Cup in England, or a music festival in California.

There’s no doubt digitization had streamlined ticketing, but it seems boring with a simple QR code without any story behind it. Digital tickets cannot be keepsakes, which people want to keep and have to reminisce.

Currently, the ticketing system can’t help people reflect on special moments from past events. NFTs have arrived to make tickets more functional and memorable.

You may lose a paper-based ticket; they may get wet and ruined. Also, it’s inconvenient to travel with a paper-based ticket because it may get lost. Moreover, organizers do not get enough security with paper-based tickets—they can be easily faked. QR codes looked like a good answer for organizers, but they’re not that effective for guests purchasing them.

With NFTs, you don’t need to compromise. 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

Fraud has plagued the ticketing industry, forcing fans to pay higher prices while presenting 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. 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 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 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. This leads to lost funds and massive 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.

What are the benefits of NFT ticketing?

NFTs have the potential to enhance the ticketing experience for both ticket buyers and organizers. Let’s see how.

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.

Reduce costs

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.

Quick production

An NFT can be minted and ready to sell in less than a minute.

Perpetual revenue

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.

Conclusion

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.

NFT is an emerging technology trend that is disrupting almost every industry, including ticketing. 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.

If you are ready to leverage the benefits of NFTs in ticketing, consult our team of NFT development experts.

Webinar Details

Author’s Bio

Akash Takyar
Akash Takyar
CEO LeewayHertz
Akash Takyar is the founder and CEO at LeewayHertz. The experience of building over 100+ platforms for startups and enterprises allows Akash to rapidly architect and design solutions that are scalable and beautiful.
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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