Blockchain technology is broadening its functionality and utility across all industries, not only the finance sector. Its essence to eliminate central authority has been a game-changer in every sector, particularly in the entertainment industry.
Imagine your favorite musician performing in your city, and you went through the stress of acquiring a ticket to experience a wonderful night in which you are singing the lyrics of your favorite song word for word. But, unfortunately, arriving at the ticket collector after a long wait only to discover your ticket is missing! When you can't find your ticket, a rush of anxiety flows through you, and you begin furiously looking, wondering, and perplexed as to how the ticket vanished.
Consequently, introducing digital tickets solved the problem of paper tickets, which get misplaced or stolen. However, a significant challenge faced by the digitized ticketing system whereby ticket sellers use bots to acquire as many tickets as possible before reselling them to the general public on the secondary market for a high price, making the system fully centralized. Additionally, digital tickets employ QR codes, which are easily duplicated and cannot be used to capture priceless memories and memorable moments from past events.
However, blockchain technology combats the drawbacks of the traditional ticketing system by tokenizing event tickets and selling them as NFTs, thereby eliminating the need for a middleman. Furthermore, with NFTs evolving in different industries, the technology can aid in solving the inadequacies of the traditional ticketing system. Therefore, to improve ticket functionality and ease of collection for memory, NFT tickets were developed.
What is an NFT Ticket?
NFT tickets are digital assets that store your event entry information. NFT tickets offer unique benefits and act as access credentials to your events. NFT holders can benefit from features like meet-ups and special items using these tickets, making the fan experience even more engaging. Also, these assets can be sold, creating fresh revenue streams for you. Since NFT tickets are stored on the blockchain, they provide proof of authenticity and ensure event legitimacy.
How Does NFT Ticketing work?
NFTs are one-of-a-kind digital tokens that are kept on a blockchain. An NFT is a digital certificate of authenticity that binds ownership to unique physical or digital assets. Similarly, a traditional event ticket is regarded as a one-of-a-kind, non-fungible asset because it is a singular item with a single use. This indicates that they are unique assets only suitable for a single occasion.
For instance, if you purchase a ticket for a performance in October, you cannot use that ticket for that performance or any other performance by the producers in December. Nevertheless, because they are both distinctive assets, the procedure of a typical event ticket and NFT are comparable.
Using their preferred blockchain protocol, event organizers can create the necessary amount of NFT tickets for the ticketing system. Then, they can either program the sale of the NFTs ticket to a fixed price or hold an auction-style sale where buyers can place bids for tickets. The buyer (event participant) may buy NFT tickets and keep them in their wallet. A ticketing database sends an NFT ticket to the buyer after a smart contract is triggered by payment. After a buyer purchases an NFT ticket, it is saved in their digital wallet, where they can access it at any time using their smart device. Similarly, you can resell your NFT ticket on the NFT marketplace chosen by the event organizer because the NFT ticket is kept on a blockchain network. Once a buyer is matched on the marketplace, a smart contract is triggered when he purchases your ticket, and you will be paid while the buyer receives the ticket.
Also, with NFT tickets, anyone can monitor the transactions on a blockchain ledger, making it easier for everyone to see when and where the ticket was acquired.
Benefits of NFT Ticketing
Preventing fraudulent tickets and forgery
Using the blockchain, ticket holders and organizers can access a reliable source and a single version of the information. All parties involved can verify and certify the legitimacy of every ticket, track the transfer of NFTs from the first sale to resale, and any other history of ownership. NFT tickets, on the other hand, can be made non-transferable. This prevents the ticket from being sold to another person.
Difficulty in selling for ticket scalpers
The event creator can lock in the ticket prices to avoid secondary sales. This is because NFT Ticketing's adopting sophisticated price-capping technology. Because of this, it is harder for scalpers to demand higher prices for the NFT tickets they try to sell.
Quick production and reduced cost
Since the authenticity of each ticket is checked on-chain, NFT tickets eliminate the costs associated with the traditional ticketing system, which requires production and distribution. In addition, unlike conventional ticketing systems, NFT tickets frequently require substantially less production time, allowing organizers to mint and sell tickets in minutes.
Extra income revenue
The immutable nature of NFTs makes it easier for the organizers to determine the profit margin of the tickets and plan for their potential future resale in secondary markets. In addition, the artist or event organizers may also receive a percentage of each ticket sale made on secondary marketplaces.
Benefits of NFT Tickets to buyers
- Tickets can be safely stored to preserve memories.
- A way to participate in the event community and benefit from exclusive incentives
- They can generate income by reselling tickets to upcoming events they could not attend. As long as the NFT ticket is built using a transferable protocol
By addressing the inefficiencies present in the current ticketing system, NFT ticketing can potentially overhaul the established ticketing market. Furthermore, it brings inclusiveness between the public and their favorite personality, significantly influencing their icon's decision-making. As a result, web 3.0 technology can contribute to the ticketing system's transition by strengthening the bond between fans and artists, rewarding commitment, and eliminating the scalper's profit from the secondary market.
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