Making Sense Of Tokenizing Tickets As NFTs

6 min read

Before you can attend and enter a venue for a concert, exhibit, movies, sports, theater, conference or special events, you need a ticket. The Digital Age has made it easier to purchase tickets online. All that a user needs to do is access a website or download an app and make their ticket purchase. The user then presents a ticket QR code to enter the venue.

Music concerts (Photo Credit Vishnu R Nair)

The Issues

Some users do not get their tickets directly from the venue. This is true and for the most part accepted. “Company A” will function as a middleman to “Venue X”, selling tickets with an additional cost. Depending on their arrangement with “Venue X”, the middleman can purchase tickets wholesale for reselling to the public. “Company A” collects fees for reselling the tickets, at a premium price to the customer. Users often have no choice, other than scalpers, so they will pay the amount no matter how expensive it is.

Exploring NFT As A Solution

The emergence of cryptocurrency has offered a new way to get around third parties like middlemen. The underlying foundation is called a blockchain, a decentralized database that resides in a distributed network that verifies provable data that is tamper proof and censorship resistant by design. A type of token called an NFT (Non-Fungible Token) can be implemented on the blockchain for custom verification of data. The main property of NFTs are its uniqueness which makes it non-interchangeable with another token.

Example of NFT tickets (Source NFT.Kred)

Incentivized For Ticket Holders

Tokenizing tickets can be beneficial to ticket holders. This is because the blockchain is ideal for incentives to users who participate on the network. By tokenizing tickets as NFT, users become part of the network where incentives can be offered. Venues can offer tickets directly to users as an NFT, which is reusable for future events.

Rewards from NFTs can be sent via an app to the user (Photo Credit Photo by Andrea Piacquadio)

The Value Of Ownership And Authenticity

A sports venue that offers an NFT for fans, can use it to get tickets with more perks and benefits. This is the pitch for implementing an NFT, but what does it really offer? It not only makes it easier to track and use, but the important thing is the proof of the ticket’s ownership. An NFT provides this through the blockchain. If a user has verified ownership of a ticket from an NFT for a particular venue, it makes it easier to prevent fraud.

Movie Pass didn’t exactly turn out right for many customers (Photo Credit Pavel Danilyuk)

Final Thoughts

There is no claim that an NFT solves all the problems with ticketing systems around the world. This is a suggestion about exploring NFT as a solution to the problem. An NFT can provide a direct relationship between venues and users using a blockchain-based system. Users can find a way around resellers who charge at premium prices, while artists can earn additional revenues from direct ticket sales.

Vincent Tabora I am a network engineer and technology writer, with a deep focus in blockchain and machine learning technology. I have extensive experience in the IT industry developing and implementing solutions in various industries. I eventually became more interested in blockchain due to the rise in cryptocurrency like Bitcoin. I realized that it was not about speculating on price value, it is a disruption in the finance industry. At the moment I like to educate about the significance of cryptocurrency, which I feel has great potential to drive innovation not just in financial systems, but even in settlements and trust.

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