Seeing your favorite musician perform live is an incredible experience, isn’t it? But your paper-based ticket can get lost or stolen, ruining your entire day. A digitized ticket reduces the chance of loss, but QR codes are easy to counterfeit. In addition, such tickets don’t offer much in terms of memorabilia. In this case, NFT-based tickets are a perfect match for concertgoers.
NFTs are digital assets stored on a blockchain, so the risk of damaging or losing your ticket is relatively low. NFT-based tickets can address the weaknesses of traditional tickets, become valuable digital collectibles, offer exclusive benefits to fans, and provide an additional layer of security for events.
In this article, we’ll try to find out how NFT tickets are disrupting the ticketing industry.
In 2022, chaos turned up at the UEFA Champions League Final in Paris because of fraudulent ticket claims. It resulted in massive delays, jams at security checkpoints, and clashes between fans and authorities. The event emphasized typical ticketing issues, so digitization may be the solution.
With blockchain, users can buy NFT tickets online but only after proving their identity. Then, when they arrive at the event, they are given access to a “holding area,” and their tickets are issued via SMS. NFT tickets include a unique QR code that is used to gain access to the event, preventing unauthorized visitors from entering events.
YellowHeart and other music companies have implemented NFT ticketing, so blockchain-based solutions are gaining popularity in the sports industry. For example, Michael Cadot, the French government’s Olympics representative, has recommended the use of NFT ticketing for the 2024 Paris Olympics.
NFT ticketing is exactly what it sounds like. NFT tickets are tickets in the form of an NFT which exist on a blockchain and serve as an access pass to any live or virtual event. However, they are not the same as digital tickets.
NFT tickets confirm ownership of a particular experience or event, such as admission to a concert, sports game, or theme park. Such tickets can be used to gain event access and prove credibility and ownership. NFT tickets can also provide exclusive benefits, including limited-edition merchandise, meet-and-greets, fan clubs made up only of holders of similar NFT tickets, etc.
With NFT-based tickets, issuers also gain significant benefits. First, they can use NFTs to interact with ticket holders in innovative ways. Second, issuers can use blockchain technology as a digital ledger to track attendance more comprehensively. Finally, they can also create token-driven services, hold surprise giveaways, send out notifications, etc.
Artists and musicians
The entertainment industry has been one of the pioneers in the use of NFT ticketing. For example, popular DJ 3LAU used NFTs for the first time in 2018, when the concept was still in its infancy. In addition, pop artist Pip launched the Cotton Candy NFT collection as part of an independent crowdfunding campaign. Holders of the NFTs could access a members-only platform that offered exclusive benefits such as free admission to all of Pip’s headlining concerts for life. Other music stars who started using NFT tickets include Kings of Leon, The Cool Kids, and Steve Aoki.
Digital events in the Metaverse
NFT-based tickets play an important role in digital events in the metaverse. For example, Travis Scott performed a virtual concert in the Fortnite metaverse, attracting 27 million players. Decentraland hosted a virtual fashion show with Dolce and Gabbana, Tommy Hilfiger, and other fashion houses, selling thousands of dollars worth of in-game NFT wearables.
Festivals
Coachella launched Coachella Collectible NFTs, which serve as lifetime passes and include exclusive memorabilia. Another example is Way Out West, supported by the crowdfunding platform Corite. They auctioned off three lifetime NFT-based tickets and offered visitors to mint their festival memorabilia and moments as non-fungible tokens.
Hospitality
NFT tickets can help tourists looking to book accommodation in advance find legitimate platforms and view public records of their past activities. This can help users avoid fraud, scams, and overpaying for accommodation. If tourists are unable to travel, they can easily sell their tickets on secondary marketplaces.
Sports
NFT tickets create unique experiences for sports fans and help sports leagues solve problems they face regularly. For example, they can prevent unfair ticket resale prices and counterfeit tickets. In addition, tickets can be resold or exchanged on secondary market platforms.
Tech startups
The first example of a startup using NFTs is GUTS Tickets. It aims to prevent scalping by linking an NFT-based ticket to a person’s identity or wallet while giving artists a cut of secondary market revenue. YellowHeart is another startup using blockchain. They have introduced an NFT ticketing metaverse to help musicians and fans avoid fraud, high prices, and zero resale profits for artists.
Travel and tourism
With NFT-based tickets, passengers can quickly sell their tickets if they are unable to travel. When the NFT is sold to a new owner, it registers the buyer as the new holder. It also adds credibility to the entire system by allowing passengers to verify that their tickets are not counterfeit.
The NFT ticketing system starts with the creation of a ticket. Blockchain technology helps to create a unique NFT-based ticket that can’t be replaced by anything else of the same value. The process of creating an NFT ticket is both complex and technically sophisticated, making it a perfect solution for event ticket management.
Once created, NFT tickets are distributed to the public through digital marketplaces and event coordinators. These tickets can be purchased and sold just like other assets, with the bonus of being more difficult to tamper with. When a ticket holder decides to attend the event, their ticket is scanned with blockchain technology to verify its legitimacy. Once verified, the ticket holder is granted access to the event.
Unlike traditional tickets, NFT-based tickets offer the exclusive ability to be resold or traded on online exchanges, making them a more valuable asset whose price changes based on the level of interest in the event. NFT-based tickets are transparent and traceable, making them nearly impossible to duplicate or counterfeit and providing a secure and reliable way to manage ticket sales and distribution.
An ideal example of an NFT ticketing system can be seen at music festivals and concerts. Each ticket is created with a special non-fungible token, which is stored on a blockchain and contains the ticket holder’s name and seat assignment. The NFT-based tickets are then made available for sale through online marketplaces and stores, where customers can purchase tickets using cryptocurrencies.
To attend the event, the ticket holder must show their NFT ticket before entering. The ticket’s QR code is scanned via the blockchain to verify its validity. The event coordinator can also provide NFT ticket holders with unique benefits and experiences, including backstage passes or exclusive merchandise. This adds to the overall experience of the event and provides a level of exclusivity that is difficult to achieve with traditional event tickets.
NFT ticketing and traditional ticketing are two different methods of managing and selling event tickets. In traditional ticketing, digital or paper tickets are distributed by an event coordinator or ticketing provider. In this case, tickets are sold through authorized resellers, box offices, and ticketing websites. Once purchased, the ticket provides access to the event and can only be used once.
To talk about NFT ticketing, it utilizes blockchain technology to create a unique non-fungible token that represents ownership of a specific event experience. Digital marketplaces typically sell NFT tickets, which can later be resold, transferred, or collected after they are purchased. When the NFT holder wants to attend an event, their tokens must be submitted for scanning and verification using blockchain technology.
Now, let’s take a deeper dive into the key differences between traditional ticketing and NFT ticketing.
Although traditional tickets are still widely used, NFT-based tickets are an emerging way to represent and manage event tickets. This type of event pass offers more flexibility and security in terms of handling sales, distributing digital tickets, and engaging fans.
Preventing fake tickets and scams
One of the major downsides of paper-based tickets, QR codes, and centralized digital tickets is that they can be easily counterfeited or stolen. This poses a security threat and disappointment for fans who have unintentionally purchased a counterfeit ticket.
Because NFT ticket transactions are recorded on a blockchain ledger, event coordinators and attendees can easily validate the authenticity of each ticket and track ownership history, making it nearly impossible for malicious actors to forge the details.
Reduce costs
Compared to the traditional ticketing system, the costs associated with minting and selling NFT-based tickets are negligible. Unique tickets can be produced at lower production costs, while customers and event coordinators can verify the authenticity of every ticket in the chain and track ownership history.
Quick production
While traditional paper-based tickets take days or even weeks to become available for sale, NFT tickets are created and minted in less than a minute. As a result, NFT ticketing is a cost-effective and easy way to issue event tickets across multiple distribution channels.
Perpetual revenue
The blockchain technology behind NFT tickets creates the potential opportunity to create tangible value for all stakeholders. For example, NFT-based tickets can provide perpetual royalties to artists and event coordinators through smart contracts.
When a ticket holder sells their ticket on the secondary market, the artist receives a percentage of the resale proceeds. Ticket holders can also resell NFT airdrops as part of the ticket’s built-in rewards.
New revenue opportunities
NFT-based tickets have unlimited potential for new revenue streams. For example, event coordinators can add rarity to tickets so they can be sold as digital collectibles later. Organizers can also use them to reward fans who have attended many events.
Lower chances of loss or damage
Traditional paper-based tickets are susceptible to being lost or damaged. NFT-based tickets are stored in a digital wallet that can be accessed via a mobile phone, so the risk of damage or loss is much lower.
On the flip side, there are some risks associated with using NFT-based tickets. Let’s take a quick look at them.
Potential users should be aware of the risks and take appropriate steps to mitigate them. These measures may include researching the event coordinator, the NFT ticket, and the platform before making a purchase. In addition, users should be aware of current market trends and potential technical issues.
Creating artistic tickets. Traditional tickets are just proof of someone’s ability to get into an event. They look boring and have very limited functionality. NFT tickets, on the other hand, can be designed more artistically, using realistic images and 3D models. Moreover, they can have additional features, such as including Fortnite skins of famous singers.
Getting profit from NFT ticket reselling. The ticket distributor can use smart contracts to generate revenue from the resale of tickets. For example, a smart contract can set a certain percentage of the total ticket price as a surcharge whenever the ticket owner sells the NFT-based ticket to someone else. This prevents scalping and other fraudulent schemes, as the commission is automatically credited to the coordinator’s wallet.
Protecting online events. Centralized systems do not protect online event attendees from having their information collected and shared with third parties. Premium subscriptions to online courses, events, or webinars may offer better protection, but attendees who join events for free are vulnerable to privacy and security risks. With blockchain, event coordinators have complete control over the content and the right to decide who can access it.
Convenient ticket distribution. NFT-based tickets can be easily sold and distributed to customers. These tickets can be quickly shared as QR codes or via messaging. Unlike simple QR codes or SMS tickets, blockchain technology protects NFT tickets from copying, counterfeiting, and unauthorized resale on the secondary market.
Easy ticket authentication. Several services in the blockchain space can quickly verify the authenticity and origin of cars, food, gadgets, and more. Event coordinators can use the same tools to help customers, resellers, and stakeholders verify tickets before purchasing them.
KYC and AML compliance. Event coordinators can sell NFT-based tickets in compliance with KYC and AML procedures. The rules associated with these procedures can be written in a smart contract that integrates multiple identity verification services while maintaining customer anonymity.
DeFy Tickets
DeFy Tickets is an NFT ticketing platform that uses blockchain technology to create an ideal ticketing solution that works for event coordinators and attendees alike. The platform was founded by event industry professionals, DeFi enthusiasts, and technology experts who wanted to solve the problems of the current ticketing industry.
GET Protocol
GET Protocol is an emerging NFT ticketing company that offers ticket issuers a white-label set of products. Namely, it allows customers to create a tailored ticket wallet app, status dashboard, and real-time ticket sales. The company has a developer hub to enable further customization of its platform.
According to the company, GET Protocol provides ticketing services for over 200 events per month and has already helped companies from 121 countries create NFT-based tickets. The company also aims to pay ticket issuers royalties from secondary market sales.
GET Protocol also has a real-time NFT ticket explorer where users can enter a wallet address, index, or NFT ID to check the status of the ticket. GET Protocol operates on the Polygon blockchain.
Jeike Ticketing
Jeike Ticketing is a company that helps event coordinators manage their ticketing needs from a single dashboard directly connected to NFT-based tickets and digital collectibles. The company works primarily in the sports and entertainment industries.
GUTS Tickets
GUTS Tickets is an NFT ticketing platform focused on concerts, festivals, live streams, museum exhibitions, theater, and more. The platform aims to provide resale royalties, controlled resale prices, fraud prevention tools, and detailed data to ticket issuers. In addition, GUTS Tickets features real-time communication and updates for ticket owners.
The platform runs on the GET Protocol and uses its utility token to govern the marketplace. GUTS Tickets has reportedly sold over 600,000 NFT-based tickets.
Relic Tickets
Relic Tickets strives to provide event coordinators with powerful NFT-based ticket marketing tools and exclusive benefits for fans. Event managers can target specific audiences, track all data, and monitor profits in both primary and secondary markets in one place. Relic Tickets uses blockchain to eliminate counterfeit tickets and introduce a better way to sell event tickets.
SeatLabNFT
SeatLabNFT is one of the newest NFT ticketing marketplaces. The platform uses the NEAR Protocol blockchain. Ticket owners who hold tickets issued on the platform are rewarded with collectible airdrops that can be resold later. In addition, the original ticket issuers and ticket holders receive royalties from the future resale of the ticket.
To verify ticket authenticity and prevent counterfeiting and fraud, SeatLabNFT uses NFC technology. The platform has a unique governance token called $SEAT, which allows users to receive exclusive rewards.
SquadUP & Sidechain
SquadUP is a ticketing and management platform that creates mobile-first tools for event coordinators. Its ticketing services allow event managers to control the ticketing experience from start to finish and keep fans engaged with the coordinator’s own platform.
Sidechain is an NFT ticketing and loyalty platform that has partnered with SquadUP. They have created a special tool that allows fans to convert SquadUP tickets into digital collectibles.
TicketMint
TicketMint is a SmartLedger solution that merges non-fungible tokens and ticketing. It allows users to host Metaverse concerts, communicate directly with fans, and create NFT-based tickets and collectibles.
Wicket
WICKET is an Italian ticketing platform designed for ticket issuers. It is built on the GET Protocol. The platform aims to solve the problem of scalping in Italy, where event tickets are sold for more than 1,000% of the original price. WICKET also uses dynamic QR codes that make ticketing easier for ticket holders.
The platform allows ticket issuers to use dynamic pricing. For example, early bird tickets can be priced lower than tickets sold closer to the event. In addition, dynamic pricing makes it possible to reduce the price of NFTs sold as digital collectibles after the event and to offer discounts to VIP NFT holders.
YellowHeart
YellowHeart is one of the largest NFT ticketing platforms for major music artists. It provides ticketing solutions for brand-name events, including national and international concert tours. YellowHeart has worked with Maroon 5, Kings of Leon, and XXXtentacion.
The platform focuses on secondary market royalties to ensure that the original musician continues to earn from ticket resales. YellowHeart enables NFT ticket holders to obtain special memberships that guarantee access to special venues and exclusive benefits. The company also focuses on digital/physical NFT pairings. Namely, users can issue non-fungible tokens that represent physical merchandise such as vinyl.
Let’s take a look at some of the brands and companies that are actively exploring the NFT industry and leveraging the benefits of blockchain.
Dallas Mavericks
Mark Cuban, the billionaire owner of the Dallas Mavericks, has offered to use NFT tickets for Dallas Mavericks games. He wants to create the most engaging and memorable NFT tickets ever.
“Dynamo” The Football Club
Dynamo Kyiv is one of the first popular football clubs to use the NFT ticketing system. In 2021, they launched three hundred million NFT-based tickets for their fans on several social media platforms. The tickets were available on the Binance platform. The club plans to sell at least 25% of the total tickets in the form of tokens.
Kings of Leon
Kings of Leon, a popular American rock band, released the album “When You See Yourself” and launched three different NFT collections in 2021. The first NFT included the audio of the album’s songs, the second was an exclusive animated digital album cover, and the third type of NFT included 18 “golden tickets.” The tickets guaranteed NFT holders front-row seats to any of the band’s live performances.
To sum up, NFT tickets are digital assets that provide incentives and exclusive benefits for your events. They can be used to create new revenue streams for you and your community. Now that you know the basics of NFT ticketing, it’s time to learn what you need to do to create an NFT ticket.
First, as an event manager, you need to choose which blockchain you want to tokenize your tickets on. For example, if you opt for a proof-of-stake blockchain, you will save on operational expenses and minting costs.
After that, you need to develop a smart ticket contract. The contract can include auction and resale rules, as well as rules for royalties and sale prices.
The final step is to connect an IPFS system to the ticketing system. This will allow users who buy tickets to receive digital files of their tickets. It can include a QR code that helps event managers verify the authenticity of the ticket.
Successful adoption of NFT-based ticketing depends on competition from other ticketing strategies, technology improvements, and user enthusiasm. However, NFT ticketing is likely to continue to grow in popularity because it offers substantial advantages over traditional ticketing strategies.
Further development of blockchain technology can bring more security and transparency to NFT ticketing. For example, smart contracts can automate ticketing, thus eliminating fraud and ensuring that only legal ticket holders have access to the event. In addition, decentralized marketplaces can bring more flexibility and transparency to the process of distributing and selling tickets.
Non-fungible tokens can also represent vouchers, memberships, subscriptions, and other types of access. Therefore, more industries will be able to manage access in a more user-friendly way, expanding the use cases for NFTs.
All in all, the future of NFT ticketing seems promising, but potential users should keep an eye on market trends and emerging technologies. The concept will continue to evolve to meet the needs of event coordinators and fans.
Just like other Web3 technologies, NFTs and their use cases have evolved. As a result, tech enthusiasts are integrating NFTs into the ticketing industry to make the entire system more beneficial for event coordinators, musicians, and fans.
NFT-based tickets are built on a blockchain network, so they remain immutable after they are issued. As a result, their authenticity can be easily verified, preventing malicious actors from distributing counterfeit tickets. What’s more, NFT-based tickets allow event coordinators and musicians to gain more control over their ticket sales on the primary and secondary markets and build lasting relationships with fans.
Even though the NFT space is still in its infancy, it is actively growing and has the potential to improve the conventional ticketing system. Keep an eye on its potential opportunities! Experience the revolutionary technology of NFT Tickets. Get in touch with us and elevate your event to the next level.
