NFTs are much more than just jpegs. Not just a scam. A deep dive into the utillity of NFT ticketing
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Recently NFTs have been getting an increasing amount of hate, due to the number of cash grabs and scams. Yesterday, the post below went viral on twitter with over 200k likes. NFTs are more than JPEGs, but what is an NFT?
This makes NFTs an excellent usecase for ticketing, gaming and art. Coachella, the Super bowl and number of other high profile events have been experimenting with NFT ticketing. What are the current problems in the ticketing industry? 1. No immediate validation Attendees cannot easily verify if their tickets are valid (Tackmann, 2017). 2. Lack of Transparency A lack of transparency in the secondary market is evident in the event ticketing industry (Waterson, 2016). Event organizers do not have an ownershiptrail, which shows if intermediaries 3. Lack of trust: Consumers have to trust third parties when buying tickets on secondary markets and thus face the risk of purchasing fraudulent or invalidated tickets, that face the risk of being cancelled or are counterfeits. Furthermore, event organizers have to trust ticketing companies that they sell all tickets on primary market and not keeping a portion for themselves to sell tickets at a high mark-up straight to the secondary market. Like Ticketmaster's secret scalping program https://www.youtube.com/watch?v=N-HCqL38WdY 4. No control over secondary markets: Consumers ticket prices on secondary markets are taken to extremes, partially through the use of bots which automatically drive up prices to earn a profit by reselling them at the highest possible markups (Courty, 2017). From the event organizer’s point of view, a major problem is the limited control over secondary transactions.
Event organizers are dependent on intermediaries and bear financial risks while being cut off from windfall profits and direct relations with event attendees. How do NFT tickets solve these problems? On a public blockchain the ticket buyer can immdiately verify if the ticket is the original one. Consumers do not have to trust intermediaries anymore, but can instead verify if the ticket is real. A public blockchain is transparent. Event organizers and ticket buyers can check the ownership trail. This gains valuable insight in the transfers of tickets in secondary markets and can be used for future marketing opportunity’s. The event organizer can also check if ticketmaster is secretely selling a portion of the ticket directly on secondary like in the example above. A smart contract can prevent the resale of tickets or include the a royalty fee for artist. This is similar to NFT art, where a royalty is often included. Other Benefits are that the NFT ticket can be used to for continuous engagement of the artist with fans even after the event. Artists get the tools to use NFT tickets for community building and fan engagement. Think of NFT tickets giving access to special community places or even being used for governance, where fans can vote on what they want in future shows. In the case of Coachella the the NFt ticket gives the following benefits DeFi event financing A very interesting use case of tickets being NFTs is that still needs to be explored further is using DeFi to provide upfront funding of eventsThe NFT tickets can be used as collateral for event financing. In the future you should be able to invest in artists/shows of your preference by buying NFT tickets upfront and earning from them after they’ve gone on sale. This blog goes into more detail. https://medium.com/get-protocol/decentralizing-event-financing-liquidity-x-defi-x-nfts-975f028135f5 NFT tickets in practice I bough an NFT tickets using GUTS a GET protocol powered NFT ticketing solution For mass adoption the purchase of ticket needs to be frictionless, the blockchain part needs to happen in the background. To test this I bough a ticket for a show of Max Cooper in London.You buy your ticket with fiat money and check-out like you have always done. Everything else happens in the background. You don’t need an Ethereum wallet or any knowledge about blockchain/crypto whatsoever to buy a ticket. https://guts.events/yrwilh-max-cooper/lezoiu I can verify the authenticity of the ticket on the NFT ticket Explorer https://explorer.get-protocol.io/ Claiming you NFT ticket to your waller Claiming a ticket as an NFT is an “after the event” possbillity. It isn’t mandatory and only influences the “after the show” experience. I’ll get back to this and the benefits later. Claiming is done by either copy/pasting your wallet address in the app or scanning the QR-code of it. Opensea The ticket I purchased from Katey will only be claimable as an NFT after the event has passed (more on that and the importance of it later). But here is an example of another GET fueled NFT ticket tradeable on OpenSea: Conclusion NFTs are much more than just JPEGs and scams. NFTs present an oppurtunity to revolutionize and disrupt industries. NFTs can prevent fraud and scams in the creative industry. An example of an industry that can easily capture the benefits of NFT is the ticketing industry. For mass adoption the purchase and reselling needs to be frictionless and not require any blockchain knowledge. Consumers can already easily buy ticket without having to know anything about crypto. Therefore, I expect that in the near future all tickets are going to be NFTs. The ticketing industry is already aware of the utillity of NFT. For instance Jack Goetzinger, the CEO of Seatgeek, thinks that in the next 5-10 years all tickets will be an NFT https://twitter.com/JoePompliano/status/1466430822630764556 Sources https://adnanzzz.medium.com/nfts-are-much-more-than-just-jpegs-99c20cd963fd Courty, P. (2017). Ticket resale, bots, and the fair price ticketing curse. Retrieved from http://web.uvic.ca/~pcourty/FPT1005.pdf Tackmann, B. (2017). “Secure event tickets on a blockchain.” In: Lecture Notes in Computer Science (Vol. 10436 LNCS, pp. 437–444). https://www.researchgate.net/publication/319646900_Secure_Event_Tickets_on_a_Blockchain Regner, Ferdinand & Schweizer, André & Urbach, Nils. (2019). NFTs in Practice – Non-Fungible Tokens as Core Component of a Blockchain-based Event Ticketing Application. Waterson, M. (2016). Independent Review of Consumer Protection Measures concerning Online Secondary Ticketing Facilities. submitted by /u/treaqura |
