NFT tickets: How are the event management and ticketing industry embracing this trend?
Imagine losing your ticket on the night of your favorite pop music concert. The reason why the event ticketing industry has a new buzzword: NFTs! NFT provides physical and digital ticketing capabilities for event markets. Now that NFT has created a buzz around digital art, other markets are starting to catch wind of its potential.
Digitization certainly simplified ticketing, but a QR code without context seems vapid. With the advent of NFTs, tickets are now more functional and memorable. Tickets, which were traditionally paper-based, can be lost, faked, and stolen in the highly digitized world we live in today. Organizers thought QR codes were a good idea, but guests didn’t find them compelling.
With NFTs, neither the organizers nor the guests have to compromise as the technology benefits both. To begin with, let’s discuss the basics of NFT ticketing.
What is NFT ticketing?
Digital assets are becoming more valuable as we move toward Web 3.0 (or Metaverse). Companies can sell or use digital assets to enhance their customer’s online experience. It is possible to store and exchange physical items either together or independently using their unique digital representations.
That is when the digital platforms need a secure interface like NFT ticketing. NFT tickets serve as access credentials for your events and provide exclusive perks. These assets can be sold, generating new revenue streams for the community and yourself. (In a tie-up with an event or ticketing merchandise or through the resale of purchased tickets)
The NFT tokenized tickets will allow attendees to access both the in-person and virtual experience. With everlasting digital assets, you can continue to earn royalties even after the event is over.
Let’s explore how NFT tickets work in greater detail.
How does NFT ticketing work?
Okay, let’s not get too technical. But can we take this example? You want to purchase a ticket for a pop music concert. Except for this time, the ticket is not lost yet! Let’s see how NFT ticketing works for this pop concert.
- Event organizers can select the blockchain platform they prefer to use for NFT tickets as part of the ticketing system.
- They can program the NFTs to set a sale price or run an auction to sell the tickets.
- When you book an NFT-based ticket, you have to pay the ticketing company.
- A smart contract is triggered in response to a payment, resulting in an NFT being sent to the buyer.
- Once you purchase these tickets, you can store them in customer wallets and access them from mobile devices.
- The ticketing company requests an IPFS upload of the ticket.
- IPFS calculates the hash, and tickets are stored in a database.
- These tickets are then uploaded to the respective NFT marketplace.
- Produce the NFT tokenized tickets when you attend that event.
- The NFT marketplace also allows ticket owners to resell NFT tickets.
- The resold NFT tickets are stored in smart contracts.
- An automatic payment is made to the seller from the smart contract when the buyer purchases the ticket.
Isn’t this cool? Such a well-organized, foolproof, and secure platform. But, what are the benefits of such a system?
What are the benefits of NFT ticketing?
It is possible for attendees and organizers to benefit from NFTs. Let’s find out how.
Prevent fake tickets and scams
Both ticket holders and organizers have access to a single version of information via blockchain. As a result, all parties can verify an NFT’s authenticity after transferring from initial sale to resale. If you want to prohibit resale, it’s possible to make NFTs non-transferable so they can’t be sold to another person.
Cost reduction and quick production
Compared to traditional ticketing, NFTs have negligible costs. A non-forgeable ticket allows customers and organizers to verify the authenticity and track ownership histories for less production cost. An NFT can be created and made ready for sale in under a minute.
Programmable NFTs often have built-in rules for purchases, resales, and royalty splits. It allows users to calculate profit sharing percentages and receive the funds they are due within the NFT code, preventing manipulation of these percentages from changing over time.
New revenue opportunities
With NFT-based tickets, new revenue opportunities are endless. For example, we could resell NFT tickets as collectibles, offer food and drink deals with NFT tickets, and reward fans who collect many tickets.
Not just benefits, but there are a variety of claims surrounding NFT ticketing. Let’s see how accurate they are.
What are various claims surrounding NFT ticketing?
- Both for personal use and for trading, the NFT ticket is a great keepsake. This feature, however, raises the question of how many people would actually use it.
- The NFT ticket system makes ticket forgery impossible. NFT technology has nothing to do with adequate means of preventing ticket copying today. Furthermore, criminals always look for ways to trick people.
- Although it may be more challenging to resell NFT tickets that are overpriced, it is not impossible but identity controlled tickets offer the best solution.
- Tickets for the NFT can be customized and tailored as per needs? We don’t think so. In the future, personalized tickets will be provided by digital IDs, not by blockchain.
- It is now possible for NFT tickets to be used for additional funding sources. Smart contracts enable automatic commissions with innovative concepts. It is only accessible to those who have already established a community and are willing to pay.
- Organizers can save with the implementation of NFT tickets. Ticketing hidden costs do not include data storage and collection, which organizers cannot provide.
When it comes to NFT ticketing, decentralization doesn’t work; complete digitalization does. Electronic identification will be the most significant change. With easier customization, it will be much harder to create a secondary market and engage in fraud. Organizers must nonetheless be willing to restrict the activity of ticket buyers. For instance, restricting friends from exchanging tickets among themselves. But is that feasible in the event market? Are there any possible opportunities for guests and organizers with contradictory scores? What’s in favor for whom?
How NFT ticketing will bring a favorable environment for guests and organizers?
Finally, concert promoters and ticketing companies need to watch emerging technologies like NFTs. NFTs can completely disrupt the live events industry. So the opportunities are endless. With our understanding, NFT tickets can revolutionize the existing scenarios. Why? The NFT tickets are:
- Single ownership
- Integrated payment methods
- With built-in blockchain intelligence
So are the NFTs suited for the ticketing industry? The answer seems to be a Yes, but only time can strengthen this claim.
Are you from the event management industry? Let us know what you think about this change. For more such interesting and informative updates, follow bitsCrunch!