Last updated on January 20th, 2022 at 03:27 pm
Non-Fungible Tokens (NFTs) are disrupting several sectors with their innovations. Companies like Nike are attaching NFTs to their products, as a way of buyers identifying if they are genuine or not. With CryptoKicks, users can check if a pair of shoes are from Nike.
Transparency and traceability are two crucial elements that attract brands and individuals to NFTs. The traditional ticketing sector is plagued with issues that a transparent mechanism will solve. Event organizers and stakeholders lose money to counterfeiters. They also do not benefit from resellers that buy a large number of tickets and sell them to others for a high profit.
How Can NFTs Function in The Context of Ticketing?
Non-Fungible Tokens are unique tokens that can encode digital information from music and sports to art and event tickets. They can be traded on a marketplace. Digital tickets may be minted as NFTs and sold in a marketplace or on an NFT platform that focuses on musical assets. As long as it can be digitized, it is easy to turn it into an NFT.
A good thing about this technology is that it can work for traditional offline events and metaverse events. In the case of a metaverse event, the organizer can mint a certain number of NFT tickets, and they will act as gate passes to enjoy the show on the metaverse. The same thing can be done with a brick-and-mortar event. When an NFT ticket is minted, the creator can decide to either auction it to the highest bidder or sell it on a first come first serve basis.
When the fan purchases the NFT, they can use them during the metaverse or traditional events. The NFT remains in the wallet of the buyer until they decide to resell or transfer it in the future.
Problems With Traditional Ticketing Systems
Event organizers and other stakeholders have experienced some issues in the traditional ticketing sector, and that is one reason some are using NFT tickets.
- Hoarding of tickets
Fans are unable to find tickets at the designated ticket points because resellers buy them in bulk and hoard them, driving up their value. By doing this, the organizers do not benefit from the resale value. The fans have to spend more to see their favorite artists. This is not a fair system to the different stakeholders. Using NFT tickets incorporates a fairer sharing method that reduces the chance of resellers hijacking a large number of tickets from fans. An NFT ticketing mechanism could use a fair distribution model similar to those used by launchpads during an IDO to achieve this.
- Counterfeiting of tickets
Regularly, event organizers and stakeholders lose money to counterfeiters, especially in the case of paper tickets. Some are skilled in forging these tickets and removing the stream of income from the genuine owners. In the case of an NFT ticket, fans can check on the relevant blockchain platform if the ticket was minted by the organizers or a fraudulent party. This will reduce the cases of counterfeit tickets.
- Inability to track data
Usually, in the traditional ticketing system, it is difficult for organizers to gather data surrounding the attendees of an event to allow them to make rational decisions. An event organizer can, through the data gathered, find out the demography of the attendees and other crucial information, which can then help with planning future events.
- Restricted revenue streams
Paper-based tickets and other traditional tickets are restrictive in their revenue opportunities. Event organizers access revenue through the sales of the ticket but do not benefit from the reselling process.
Advantages of NFT Ticketing
NFT ticketing system comes with a lot of perks to those involved, improving the purchase experience down to the resale value.
- Easy production
Minting NFTs is quite simple with the numerous tools available in marketplaces and music NFT platforms. The NFT ticket can be minted in a split second.
- Reduction in Counterfeiting
With NFT tickets, event organizers do not have to worry about expending a lot to curb ticket counterfeiting or lose money to forgers. With the NFT ticket, buyers can confirm if the tickets were minted by the event organizers.
- Extra revenue streams
With NFT tickets, event organizers can add a code in their smart contract to benefit from any reselling done by others. Numerous opportunities have opened up with this innovation.
Opportunities Provided By NFT Ticketing
NFTs are changing the traditional ticketing system in multiple ways. It has different use cases for the varying stakeholders in an event, from the event organizers to the customers. NFT ticketing is solving the issues noticeable in the traditional systems and creating opportunities that didn’t exist.
A. For Event Organizers
Event organizers spend time, effort, and money ensuring that the event runs without a hitch. For a concert, they have to interact with the performing artists, set up the stage, network with the law enforcement authorities, promote the events, create a ticketing platform, and much more. Organizing an event is a Herculean task, and it gets worse with an increase in the size and expectations of the event. With the issues linked to the traditional ticketing system, the stress that organizers have to face increases. For instance, the organizer has to create strategies to ensure that most of the tickets are not hoarded by resellers. In some cases, the resellers may be unable to sell them, which degenerates into bad publicity for the organizers, the performing artists, and stakeholders. NFTs are creating opportunities for Event organizers through the following ways:
- Incorporates storytelling
With NFT tickets, an organizer can incorporate storytelling into their ticket sales. They can mint an NFT art piece as a ticket, which represents what the event stands for, and what the potential audience stands to enjoy when they attend the event. Storytelling is a crucial aspect of sales, and NFTs make it easy for organizers to incorporate this in their sales and marketing strategy.
- Authenticate a ticket
The entertainment industry is plagued with piracy from the releasing of music, streaming of movies to ticketing. Unscrupulous elements try to forge tickets to popular shows and sell them to unsuspecting victims. The buyer may not know that they have been duped until they try to use it to enter an event. With NFT tickets, a potential buyer can view if the ticket originated from the event organizers, thereby reducing the money lost to fraudsters.
- Data sourcing
Data is an important element in every industry, and the entertainment sector is not left out of those that need the right data to make rational decisions. When event organizer sells tickets as NFTs, they can gather data more easily and analyze the transaction information stored on the blockchain to make better decisions in the future.
- Benefit from resales
When a popular musician is about to host a concert, resellers tend to buy numerous tickets to sell at a higher price. When this happens, the organizer does not benefit from the resale value. NFT ticketing allows the organizing company to incorporate clauses in the smart contract to give a percentage of the resale value to them once their tickets are resold.
B. For Customers
Event organizers are not the only ones that benefit when ticketing systems are migrated from the traditional ways to NFTs.
- Easily sell unique tickets of past events
Rare tickets, especially when they are linked to a popular musician, are valuable. Collectors are ready to pay the top dollar to have them in their collections. With an NFT ticket, the holder can advertise it on NFT marketplaces like OpenSea and watch collectors bid for it.
- Resell tickets for upcoming events
Trust is a big issue that resellers face. Potential buyers may be scared that they may be defrauded by the reselling party. NFTs have made the process a lot easier for fans that may be unable to attend an event to sell their tickets to others. Buyers can view the history of ownership to see if the ticket is genuine or not before a transaction occurs.
- Enjoy benefits and exclusive access to incentives
During the sales of an NFT ticket, event organizers may throw in a freebie like the autograph of the performing musician, as a way to encourage people to purchase a higher ticket package.
- Safeguard memories
Events tend to make a part of our memories. For instance, the ticket to a Michael Jackson concert was an important piece of memory that fans would have wanted to safeguard. Usually, the traditional ticket may be misplaced easily, but the same can’t be said for an NFT ticket. It can be accessed at any time in the future and may even be inherited by others.
- NFTs will change the ticketing industry.
- It will solve piracy and counterfeiting issues.
- Event organizers will seamlessly track ticket sales, and analyze the data surrounding them.
- It is opening up opportunities for both organizers and clients.
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