Blockchain Ticketing: How Blockchain & NFTs Will Transform Ticketing

by Nov 9, 2021NFTs & Blockchain

Cryptocurrency has gained considerable traction in recent years, thanks to Bitcoin, Dogecoin, and perhaps a little bit of Elon Musk.

For the most part, the term ‘cryptocurrency’ became synonymous with blockchain, but recently, new uses for the encrypted database have gained momentum, like NFT transactions and ticketing. NFT tickets promise greater security, traceability, and personalization. They’re set to revolutionize ticketing.

Let’s take a look at the significant problems blockchain ticketing helps solve.

The ‘secondary market problem’ for ticketing.

The global secondary ticketing market was valued at more than 5200 million USD in 2020, and is expected to continue along its growth trajectory. In the secondary market, middlemen and scalpers mass purchase event tickets, and resell them to fans at a higher price point.

Secondary ticket sales drive a wedge between event creators and fans by increasing the overall ticket price. As a result, fans end up paying more, which makes the events less accessible. Additionally, the creators don’t pocket the extra revenue – it goes to intermediaries that don’t add value to the chain.

Another vital issue that traditional ticketing suffers from is forgery; unauthorized third parties create fake tickets and sell them to unsuspecting fans, often at a reduced rate. This black hat strategy costs creators even more revenue; the middlemen enjoy the full share of the profits.

How blockchain ticketing solves these problems

Blockchain databases and NFT tickets solve these key problems by introducing transparency and tracking into the ticketing process. In blockchain ticketing, each NFT ticket is unique and securely linked to the buyer.

If an NFT ticket is sold, the further transaction is automatically logged into the blockchain. Thus, event organizers can track resales, eliminating scalping and price gouging efforts. Additionally, blockchain ticketing discourages fraudulent transactions, because original tickets are tracked and uniquely identifiable.

The added tracking power and security that NFT tickets offer doesn’t limit your marketing efforts, though; blockchain ticketing simply gives creators more control over each transaction.

For example, event organizers can still allow ticket resales, but the tracking features help guarantee middle-men don’t initiate price gouging and create an entry barrier for fans. Additionally, creators can use NFT ticketing to earn royalty payments on resales; effectively, organizers can charge transaction fees on used ticket sales as an additional revenue stream.

Does blockchain ticketing only benefit virtual events?

No. NFT tickets are set to revolutionize virtual, hybrid, and traditional events collectively. Live event organizers need to shift their ticketing from physical to virtual to benefit from blockchain ticketing.

Additionally, unlike physical tickets, NFT tickets can be generated almost instantly at significantly lower costs. These cost and time-saving benefits, coupled with tracking and securing features, offer more incentive to switch to blockchain ticketing.

While these more obvious benefits of blockchain ticketing are highly welcomed, the creative opportunities that NFT tickets offer are also substantial. In fact, NFT tickets may revolutionize event ticketing entirely.

Because NFT tickets are unique, customizable, and traceable, creators and organizers can leverage NFT technology to improve their fan’s experiences. You can:

  •         Customize the tickets with digital art to represent the event, encouraging fans to collect tickets.
  •         Provide exclusive rewards to individuals that collect X number of tickets, or X type of tickets.
  •         Create tickets for specific purposes, e.g., NFTs fans can exchange for food or drinks at live events.
  •         Personalize tickets for your most loyal fans, to make them more memorable.

Additionally, unlike physical tickets, digital ones are easy to keep, and they won’t wear over time or get damaged. This makes NFTs ideal keepsakes for fans that like to collect tickets to remember the events.

Centralized data collection

Data collection is a priority for event organizers with good reason; it helps improve ROI for future events and improve attendees’ experiences. Thanks to the unique NFT tickets and traceability, organizers can use blockchain ticketing to collect meaningful attendee insights.

For example, creators can track how many times a given ticket was resold, how many were resold, and which were specifically resold. Additionally, leveraging multiple ticket types (e.g., for hybrid events, you can have one type for physical attendees, and another for virtual) helps planners gain further insights.

You can determine key factors like whether virtual-attendance tickets resold more or physical ones, and the price increments (if any). Access to tracking analytics is also critical for preventing foul play; if an overwhelming amount of tickets are bought and resold at higher rates, your event may be suffering from scalpers.

Blockchain & NFTs are set to revolutionize the ticketing industry, providing added security, traceability, and endless creative potential. Blockchain ticketing empowers creators to take control of the ticketing process and combat fraudulent activity in the secondary ticketing market.