Non-fungible token (NFT) ticketing is becoming more mainstream. Here’s information about what they are and how you can use them.
Non-fungible tokens are unique digital assets recorded on a blockchain, unlike a fungible token such as Bitcoin. You can replace one fungible Bitcoin with another that still holds the same value. Non-fungible means it is one-of-a-kind, so if you trade it, you'll have something else entirely.
Each NFT is a smart contract that works like a standard verbal or paper contract. The difference here is that contract conditions are met digitally, and once the digital requirements are fulfilled, the contract executes automatically. The contracts are immutable and don't require someone sitting behind a desk to push a button and complete the transaction. That feature makes them appealing in the world of ticketing.
An ownership record of each unique NFT is kept on the publicly distributed ledger called a blockchain. Others can see and verify who has the NFT in their digital wallet.
Similarities Between NFTs and Ticketing
NFTs and tickets have similarities, so combining the two acts as a deterrent to fraud. Airline tickets and music concert tickets are non-fungible items. Each one is unique because of the seating assignment, so if you trade your ticket with someone else, you will end up with a new product. Another similarity is that both NFTs and tickets are limited in supply.
How NFTs Shape the Ticketing Market
In drawing these parallels, it's easy to see why the ticketing market wants to convert to NFT ticketing. Digitization brings efficiency and reliability to the ticketing market. Traditional ticketing has been overrun by scalpers and the secondary market remains unregulated, leaving fans and performers disappointed and angry.
Challenges with Traditional Ticketing Systems
When you take a chance and purchase tickets to an event from a secondary seller, you're taking a risk. You can’t authenticate the ticket until it's scanned at the venue when you enter. Until then, you're holding your breath and crossing your fingers, hoping to get inside. The traditional ticketing system has flaws NFT platforms can help repair.
Fraud runs rampant on the secondary market since you can't track customers or change data after the supplier has sold the ticket. Even after the ticket is resold, the original owner's information is still attached to the ticket. With no exchange protocol, the organizer doesn’t know who is attending. The ticket holder's personal information can’t be changed, and the ticket issuer doesn’t know how many times the ticket has been resold.
Ticket Black Markets
You've seen the people standing outside of live events asking if anyone is buying or selling tickets. The prices charged by these scalpers are steep, and they'll get the high markup they're asking for since they're playing on the buyer's desperation to attend the event.
Bots can send the ticketing world into complete chaos. The bots purchase the bulk of available tickets and resell them on the secondary markets at extremely high rates. Scammers have been taking advantage of the ticketing market for years, and NFTs look to level the playing field and restore the customer trust in the system.
How Do NFT Ticketing Platforms Work?
An NFT ticketing platform allows event organizers to create, or mint, the number of tickets needed for their event. The NFT tickets are coded to be sold or auctioned to the public. The tickets are purchased from the ticketing company, which triggers the smart contract to execute and send the ticket to the buyer.
The ticket can be resold on the NFT marketplace, and the process is repeated; only the ticket's owner receives the payment, and the transaction is visible on the blockchain. An NFT ticketing platform gives organizers and event attendees a trusted source through which they can connect and conduct legitimate business.
Why Events are Turning to NFTs
NFTs are the future, and many organizers see the benefit of using them to sell event tickets. Not only are NFT tickets preventing fraudulent sale activity, but they're quicker and cheaper to produce. Below are a few more reasons why event organizers are turning to NFTs.
Brands are constantly looking for a way to engage with customers. NFT tickets are a great way to interact and build loyalty with a consumer. The blockchain records each scanned ticket so they know who entered the event. Organizers can use that data to identify loyal fans and send them loyalty perks and rewards. Giving random prizes, big or small, is sure to keep consumers returning.
Turn Tickets into Collectibles
Many concertgoers like to keep their tickets to remind them of the great time they had when attending. If it was a high-profile event, the tickets may even increase in value over time and become a much sought-after collector's item. If the ticket is personalized with individual content, the value increases. Even though the ticket is digital, you won't lose the aspect of memorabilia many are looking for.
New Fan Experiences
As an organizer, you can level up and enhance the buyers' experience with an NFT ticket. For example, organizers can take a video clip or event poster and turn it into an NFT for the event guests only. Fans can also receive unannounced airdrops with exclusive NFT assets. Images, videos, and live audio recordings of the event can be turned into NFTs issued to event-goers.
New Forms of Merchandise
NFTs are growing in popularity, and when something is popular, everyone has to have it. Right now, it's trendy to have NFTs, especially those that have the potential to become high-priced items desired by collectors. Event organizers know this, and providing NFT tickets makes them seem cool and in touch with changes in the digital space. That means people are likelier to flock to an NFT ticketing platform selling event tickets than a traditional ticket agency.
New Revenue Streams
Because NFTs can be programmed to behave in certain ways based on preset criteria, the potential for new revenue streams is broadened. NFT tickets can be sold as collectibles and used to reward fans with food and drink deals. Superfans who collect a certain number of event tickets can also be awarded perks, incentives, and discounts on products and services.
The Future of NFTs in Ticketing
The benefits NFT tickets offer, such as increased security and new fan experiences, are too great to pass up. The technology is relatively new, so there's plenty of room to expand on the features offered.
Introducing NFTs to a mainstream audience has been challenging, but NFT ticketing is an ideal way to introduce the average person to the NFT world. Many experts believe NFT ticketing platforms will overtake the biggest players in the ticketing industry. Companies are beginning to realize that NFTs are here to stay and not a fad. Using the underlying technology opens up a world of possibilities for industries as they move into the next phase of the digital revolution.
NFT Ticketing is the New Wave to Ride
Whether you love attending live events or enjoy putting them together for others to have a good time, ticketing is a source of concern. The technology incorporated into NFT tickets provides a layer of security for those throwing the event and offers a new way to look back at fond memories for concert-goers. The next time you plan to attend a live event, check if NFT tickets are being sold, and if so, enjoy this new experience.
Q: How do NFT events work?
A: NFT tickets are used as a unique representation to prove you have the right to attend the show.
Q: Do NFTs have a future?
A: More people are adopting NFTs for everyday use. Crypto job postings have surged in the past year.
Q: Does Ticketmaster use NFTs?
A: Yes, it has a deal with the NFL to create NFTs and other corporations to offer NFT tickets on its site. Ticketmaster also recently announced that it is allowing event organizers to create NFT tickets on the Flow blockchain.