Since the NFT market hit mainstream popularity in 2021, it has proven to be a revolutionary technology. While profile pictures (PFPs) and digital artwork are the most common types of NFTs, there are other use cases offering real-world utility. One of these, comes in the shape of NFT ticketing, so read on to find out everything there is to know about this highly important use of non-fungible tokens.
Before the BAYC NFT collection brought hype to NFTs, use cases such as NFT Ticketing had long existed. Even though early ideas and conceptualization didn’t fully realize the potential of NFT ticketing, later developments have shown the positive effects it could have as a whole.
Ticketing is used for exclusive and controlled access. Whether it is to an overnight concert, a world cup final, or access to an event, it is something organizers can’t do without. Early ticketing took the form of paper tickets which fans showed at entrances. With the rise of digital systems came e-tickets, QR, and barcodes.
Blockchain technology makes NFT tickets possible, offering benefits beyond other ticketing systems. What exactly are NFT Tickets? How do they work, and what can they do? Better than conventional ticketing methods? Read this article to find out.
What are NFT Tickets?
Non-Fungible Tokens, otherwise known as NFTs, are cryptographic tokens stored on the blockchain. The blockchain is a public ledger that records information about these NFTs and who owns them. NFTs allow us to tokenize physical assets – cars, houses, paintings – and store them on the blockchain. Since they are stored on the blockchain, NFTs are Immutable and act as verifiable proof of authenticity and ownership.
NFT Ticketing is simply tokenized tickets that are stored on the blockchain. They are digital assets that function as tickets issued by organizers to buyers. They serve as proof of ownership and verify the authenticity of a ticket.
Through NFT ticketing, event organizers can mint the number of tickets they need on their preferred blockchain. NFT ticketing also allows them to input codes which can affect secondary sales, resales, and use of the NFT.
On the other hand, fans also benefit from the NFT tickets. Unlike conventional tickets that lose value after an event, NFT tickets can be kept as digital assets or even flipped for profit if a rarity is attached. They can also offer perks such as meet-and-greets, exclusive merchandise, or create a memorable experience for the fans.
NFT Tickets vs. Conventional Tickets
NFT tickets do the same thing conventional tickets do; the only difference is that they do it better. When using NFT tickets, organizers have more control over the tickets and resale prices. Likewise, it gives fans an immersive experience that survives beyond the event or concert.
Simply stated, NFT tickets give organizers more control, access, and security. Traditional ticketing systems are plagued with so many defects. Let’s consider some of them.
Drawbacks of Conventional Ticketing
Black Marketing of Tickets
Even though ticketing systems moved digital years ago, they have imported many problems from early ticketing systems. One of the most popular issues is the black marketing of tickets.
Platforms that organizers use to sell tickets often get chaotic, sometimes forcing them to shut down. Ticketing platforms are constantly spammed by bots, allowing ticket scalpers to buy in bulk and resell at a higher price. Depending on how big the event is, ticket resales could be triple or quadruple times the original price.
Inability to Track Tickets
Digital ticketing systems are only good for issuing but not tracking. Immediately fans buy tickets from the organizer; it becomes difficult for the organizer to track the movement of the ticket or its resale value.
This lack of tracking systems enables fraud and high resale prices. The supplier only has the information of the first buyer, who may not attend. Thus, it is difficult for the organizer to know the details of those at the concerts.
Customer Trust
When a fan cannot get a ticket from the organizer, buying from secondary markets may come with risks. It is only possible to verify whether a ticket is authentic or fake once they need to make their way into the event.
Sometimes, customers fall victim to fraudulent platforms posing as authorized sellers. In such a case, an unsuspecting customer loses money from buying fake tickets.
Benefits of NFT ticketing
NFT ticketing systems hold so much potential and could transform the ticketing industry. They offer a different experience that outlives the event. They also give organizers more control over the use and resale of the tickets.
Here are some of the benefits of NFT ticketing systems:
Prevents fake tickets and scams
Thanks to blockchain technology, NFT ticketing systems prevent fake tickets and scams. The blockchain works like a register that can’t be altered and is easily accessible. Since NFT tickets are stored on them, anyone can quickly check to verify the value of the ticket and its connection to the event.
Not only that, but customers can also see previous owners of the tickets and the resale prices. The ability to confirm these details helps customers make better and safer choices. Likewise, it also allows organizers to input some rules into the NFT. Rules include whether buyers can resell the ticket and how owners can sell it.
Cheaper to run
NFT ticketing systems are cheaper to run compared to conventional ticketing systems. The cost of minting and selling NFTs is negligible compared to other ticketing systems. Added to that is the control it gives the organizer over the tickets. For instance, organizers can gather data on the tickers from the blockchain at no cost. But doing that in traditional systems is nearly impossible and expensive.
Furthermore, it also stops ticket resales from inflating the ticket price. The smart contract in the NFT performs this function and self-executes to halt the sale if certain conditions are not met.
Quick production
One of the exciting features of NFTs is their fast production. NFTs can be minted and put for sale in little time. NFT collections, for instance, are made in a few minutes. Some collections often hold over 10,000. That shows how effective NFTs are.
Secondary sale royalties
NFT tickets allow organizers to make money through secondary sale royalties. Royalty is a percentage of the resale price given to the creator of the NFTs. In this case, the organizers of the events.
How it works is that creators can program the royalties into the NFT. Thus, when a customer buys from the creator and sells to another person, a percentage of that resale price goes to the organizer.
New revenue opportunities
Another edge NFT-based tickets have is that they provide revenue opportunities. The tickets are NFTs that can be put to other uses. Organizers can also use them to reward fans who have attended many events.
Also, the organizers can add rarity features to the tickets, which gives them extra value. The rare NFTs with unique features would fetch high resale value and give the holder more than they got it. That improves the experience for the fans and the organizer.
Use Cases
NFT-based tickets are fast gaining popularity across multiple sectors. Events within the metaverse have utilized NFT tickets to add to the user experience. In the same way, sporting leagues like the NFL recorded huge success with NFT tickets. The entertainment industry is fast catching on as organizers seek to reduce ticket scalping and inflated prices.
Here are some of the use cases of NFT tickets:
Sports
The sports industry is one of the platforms embracing NFT-based tickets. Not only does it create a unique experience for its fans, but it also solves many of the issues that sporting leagues face. Last year’s UEFA Champions League saw ridiculous ticket resale prices. Tickets went as high as thousands of dollars.
Following the Champion’s league final events, France revealed plans to adopt NFT-based tickets. Likewise, NFT-based tickets are planned for the 2024 Paris Olympics. Whether that is possible depends on the success of the Rugby Final scheduled to take place in October 2023.
The National Football League (NFL) is one sporting association that has hit massive success with NFT tickets. The league in the 2021 season minted over half a million NFT tickets. The tickets detail the section, row, and seat. They are also exchangeable over secondary marketplace platforms.
Music
The entertainment industry was the first to utilize NFT ticketing. Popular DJ 3LAU made the first move as early as 2018, but at that time, the idea of NFT ticketing was still in its infancy. Since then, many artists and festivals have used NFT-based tickets for their events.
Travel and Tourism
NFT ticketing has made its way into the travel and tourism industry. In most cases, airline tickets can not be resold or exchanged with any other person. This is because every ticket contains the passenger’s information, which another passenger cannot use to board the airline. Ultimately, the passenger that is unable to travel loses their money.
But with NFT ticketing, passengers can quickly sell their tickets if they wouldn’t be able to make the trip. Per the nature of NFTs, once the NFT changes hands, it registers the buyer as its new owner. Likewise, it adds credibility to the system as passengers can easily verify whether the ticket is fake.
TravelX is one of the companies working to develop NFT-based tickets for airlines. Built on Algorand, the company allows the tokenization of tickets and easier purchases.
Hospitality
The hospitality sector is one of the industries NFT ticketing can change. Most tourists visiting new places often book their accommodation ahead, acting on website information to confirm authenticity. However, there are instances where they fall victim to fraudulent platforms. Another issue is when they cancel their trip, and the accommodation provider isn’t willing to make a refund.
With NFT tickets, users can verify legitimate platforms and see public records of their past activities. They would be able to avoid scams, frauds, or overpaying for their residences. Finally, in situations where they are unable to travel, they can sell the ticket on secondary marketplaces.
Popular NFT ticketing platforms
NFT ticketing platforms help organizers or companies through the NFT ticketing process. They create the infrastructure that makes NFT ticketing possible. While many startups and platforms tried and failed, some have excelled. Here are some of the leading NFT ticketing platforms.
SeatLabNFT
SeatlabNFT is one of the foremost NFT ticketing platforms. The platform hopes to connect artists to their fans, reduce fraud and create an immersive experience. SeatlabNFT has an NFT-powered event ticket that organizers can use for their program. In addition, the platform supports organizers and artists through a £1,000,000 Creators Fund to help with live event costs.
YellowHeart
YellowHeart uses NFT-based tickets to create a unique experience for organizers and fans. The platform offers bespoke tickets, tickets that can change color, and tickets providing exclusive benefits and perks. Beyond the event, the tickets also give fans access to discounts, special events, and opportunities from Polygon’s partners.
Relic Tickets
Relic Tickets take the NFT ticketing experience an extra mile, offering organizers marketing tools and perks. The platform allows organizers to track, target specific customers and follow sales within the primary and secondary markets.
GUTS Tickets
Last on the list is GUTS Tickets. Aside from improving the event experience for organizers and users, the platform wants to eradicate dishonest practices associated with ticketing systems. The platform allows organizers to track ticket ownership and set a cap to resale prices. In addition, it will enable buyers to sell these tickets on secondary markets but within the price set by the organizer.
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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
The post Everything You Need to Know About NFT Ticketing appeared first on NFT Plazas.
