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Non-fungible tokens, or NFTs, are fundamentally misunderstood. The world’s first exposure to them was through the simple and surface-level concept of a profile picture. Many did not understand why others would spend a substantial amount of money to own an image that could be a screenshot or a bitcoin, so people saw this as a fad.
In time, fads fade away. As a result, according to a study by Investment Monitor, the NFT market crashed by a staggering 97%. So what’s the point of NFTs? As it turns out, the technology behind how they are created, or “minted,” via blockchains makes them the unexpected ace every event organizer would want up their sleeves.
Scalping, a lack of proper exchange protocols, and a dilution of customer trust are all obstacles event coordinators face in the current digital age. They’ll have to explore their options with NFTs and begin to understand them as “programmable contracts” to reduce the price gouging within the secondary market, fully monitor distribution, and secure that eventgoers will have a great time.
The current event ticketing market can be frustrating. Some people use AI-controlled bots to monopolize ticket sales and chokehold normal customers into paying multiple times the amount they would’ve paid through the distributor. This reality is the black marketing of tickets, or “scalping.”
There must be a way to track the purchase or exchange data of said first and secondary sales beyond what's already offered by suppliers. The absence of a tool like this has made the lives of event organizers and eventgoers more difficult and disappointing than they should be.
Enter the blockchain, a database that holds information in groups (blocks), which, when filled, an all-new set of information is placed within a new block and then chained together. This methodology creates an accurate and truthful timeline of data and its behaviors.
NFT ticketing can provide a memorable experience for attendees in the digital age. Event organizers can apply this technology with a team of expert-level developers to secure legitimate purchases, make scalping a thing of the past, and capture moments before and during the event for fans to own.
NFT ticketing represents a turn in the right direction for everyone in the live event industry, especially considering the benefits. They are:
Controllable & Flexible
NFT tickets are essentially “smart contracts.” A programmer and distributor can collaborate so that whatever ticket a customer purchases will be pre-programmed with attributes through blockchain support.
These pre-programmed attributes can limit the number of tickets tied to a wallet, restrict the possibility of resale, limit the price of resale, and even place inherent percentages of said resale to go back to the artist and organizer.
Traceable & Authentic
NFT tickets, because they’re created through a blockchain, are completely traceable from inception to sale to resale to redemption.
They are singular, meaning there isn’t a question of authenticity. This fact gives consumers security that what they’re purchasing is legitimate.
Digital assets, such as artwork, content, and other media, are given their unique token from the blockchain, which means they can’t be duplicated.
NFT tickets still have collectible value. People can collect them post-show alongside its digital and (some of) its physical goodies.
CAD tools, specifically ones to make artwork, lifelong passes, albums, and more, can be used to make each ticket minted tailor-made for consumers.
Key moments during the events can be minted to give fans something more they can own and trade with others.
And with these aspects, entire communities huddling around an artist, sport, or event can engage further with it on a micro level. This results in recurring outings and a resurgence within the live event industry.
It’s understandable why only a few dozen events and a handful of artists have ventured into the NFT ticketing sphere. The general public’s perception of what NFTs could offer them is narrow and specific due to how new the technology is. The first wave was the profile picture, but it can be much more functional and cutting-edge than many know.
With the ability to have a consistently updated and authentic record of purchases and resales through the blockchain, the ticketing experience can be revolutionized. Not only through digital and physical goodies but also by offering a secure purchasing experience that ensures them a fair shot at being there instead of being scalped and scammed by the secondary market.
The complexities of NFT and blockchain development can seem too high to scale over. However, an expert-level software developer can make that wall much smaller. Allowing event organizers more control and awareness of the happenings within the first and secondary markets on top of generating more profits. This innovation also gives eventgoers the security and value of a unique ticket for promoting community growth and recurring engagement.
Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and participation of the individuals mentioned. This blog should not be construed as legal advice.
Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.
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