NFTs, or non-fungible tokens, are taking the world by storm with a trading volume of $24.9 billion, according to data presented by DappRadar. While NFTs are disrupting various industries, the event market is leading the way in using NFTs to connect physical and digital ticketing. In this article, we will explore how NFT ticketing can revolutionize the event industry, replacing traditional ticketing systems with more secure and innovative methods.
Challenges with Traditional Ticketing Systems
Before we delve into how NFT ticketing can transform the event industry, let’s discuss the challenges that traditional ticketing systems face.
Black Marketing of Tickets
Fraud has plagued the ticketing industry, forcing fans to pay exorbitant prices and raising security threats for event organizers. Misuse of technology, including ticketing bots, causes chaos, enabling online users to purchase tickets in bulk and sell them on secondary markets at inflated prices.
Lack of Exchange Protocol
Tracking customers or exchanging data beyond the boundaries of a supplier is impossible with traditional ticketing systems. 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 When a ticket is sold again on the secondary market, it no longer represents any ownership of the original buyer, and event organizers are unaware of who is attending their event. There is no ability to change the ticket holder’s name, nor control how many times the ticket will change hands.
Customer Trust
Customers are often concerned about whether they have paid for a genuine ticket or a fake one. Fake tickets are sold on websites posing as legitimate authorized ticketing agents, leading to lost funds and disappointment.
How does NFT work for Ticketing?
NFTs, or non-fungible tokens, are a type of unique digital asset that are stored on a blockchain. Once created on the blockchain, they can be sold to customers digitally, and are then stored in a secure wallet that can be accessed from any device.
In the realm of event ticketing, organizers can mint the required number of NFT tickets on their preferred blockchain platform. These NFTs can be coded to set a specific sale price or run as an auction where potential buyers can bid on the tickets.
Interested buyers can purchase NFT-based tickets directly from the ticketing company. Upon receipt of payment, a smart contract is triggered, and a ticketing database sends the NFT ticket to the buyer.
To ensure security, the ticketing company requests that the NFT ticket be uploaded to IPFS. A hash is then calculated by IPFS, and the tickets are stored in the database. NFT tickets are then created and uploaded to the requested NFT marketplace.
In addition, ticket owners can resell their NFT tickets on the NFT marketplace. The ticket is stored in a smart contract, and once a buyer purchases the ticket from the ticket owner, the smart contract is triggered, and payment is automatically sent to the seller.
What are the Advantages of NFT Ticketing?
NFTs have the potential to revolutionize the ticketing process for both event attendees and organizers. Here are some of the key benefits that NFTs offer:
1- Preventing Fraud and Scams
Blockchain technology provides a trustworthy source of information for ticket holders and organizers. The transfer of NFTs from the initial sale to resale is recorded on the blockchain, ensuring that all parties can confirm the ticket’s authenticity. NFTs can also be programmed as non-transferable, preventing resale in cases where it is forbidden.
2- Reduced Costs
The expenses associated with selling and creating NFTs are minimal when compared to traditional ticketing systems. NFTs can be produced at a lower cost, and both customers and organizers can verify the authenticity of each ticket on the blockchain and trace the ownership history.
3- Quick Production
The process of creating and minting NFTs is much faster than the traditional method of digitizing tickets. NFTs can be created and made available for sale in less than a minute.
4- Perpetual Revenue
Programmable NFTs can include rules for merchandise, content, resale, and royalty splits. This means that organizers can analyze profit-sharing percentages for future resale or creative content on secondary markets and receive funds with the knowledge that the tickets are unalterable within the NFT’s code.
5- New Revenue Opportunities
NFT-based tickets act as programmable money, providing unlimited potential for new revenue opportunities. For example, NFT tickets can be resold as collectibles, used to provide food and drink deals, and used to reward fans who have accumulated many event tickets.
What Are the Opportunities of NFT Ticketing for Guests?
NFT ticketing offers guests various benefits and opportunities, including receiving perks and incentives from event organizers, the ability to sell tickets for events they cannot attend, the opportunity to sell rare tickets that collectors desire, and the ability to store tickets safely as a memory. Additionally, guests can engage with the event organizer’s community.
What Are the Opportunities of NFT Ticketing for Organizers?
NFT ticketing offers organizers numerous benefits and opportunities, including the ability to create art-like tickets that represent the story of an event that people will want to collect. NFT ticketing also provides proof of ticket authenticity and ownership verification. Furthermore, organizers can earn a percentage of the profit when a ticket owner resells their NFT ticket. Organizers can also access valuable data to improve subsequent events and easily distribute NFT tickets via email or SMS.
Conclusion
NFTs are driving significant changes in various industries, including ticketing. The live events industry is one that NFTs could revolutionize. Ticketing companies and concert promoters should closely monitor the industry for potential opportunities and emerging technologies to enhance the live events experience. NFT ticketing brings transparency to the ticketing platform and ensures that secondary buyers receive a valid ticket for the event they are excited about.
At Etelligens, we have a team of NFT experts and over 250 full-stack developers who specialize in building future-ready NFT ticketing platforms on advanced blockchain ecosystems. Our NFT development services include NFT ticketing platform development, wallet development, NFT token development, fractionalized NFTs, and Metaverse NFTs.
