Most people associate NFTs with pixel art and profile pictures of monkeys. However, NFTs can offer much value across many other industries, including event ticketing. Read on to learn what NFT tickets are and about their potential to transform the ticketing industry.
What Are NFT Tickets?
NFT tickets are a relatively new type of NFT that give holders access pass to a live or virtual event. However, they are not to be confused with digital tickets.
Unlike traditional digital tickets, NFT tickets exist on the blockchain as unique tokens that cannot be copied or replicated. As a result, they are easily verifiable with a transparent ownership history. Furthermore, they can typically be bought, sold, or traded on NFT marketplaces.
Besides granting access to a specific event or experience, such as a concert, festival, or sports game, tokenized tickets can also provide exclusive perks. For example, holders may be granted access to meet-and-greet events with celebrities or athletes, backstage passes, or limited-edition merchandise.
How Do NFT Tickets Work?
The NFT ticketing process uses blockchain to create and manage event tickets. Each ticket is a unique digital token that cannot be counterfeited. As such, NFT tickets are a useful tool for preventing fraud and ensuring that only authorized individuals can access an event, whether virtual or physical.
To create NFT tickets, the event organizer first designs the digital representation of the tickets. Once the tickets are ready, they are minted on a blockchain. Minting involves recording each ticket’s unique data on the blockchain. Once minting is complete, the data associated with each NFT ticket cannot be changed.
The next step is to distribute the ticket to fans. When the holder of the ticket arrives at the event, all they need to do is scan their ticket to verify its authenticity and gain entry.
Non-fungible token tickets are more secure and reliable than traditional tickets since their ownership history is transparent and traceable.
NFT Ticketing Use Cases
NFT ticketing comes with some interesting use cases. Let’s that a look at some of the most promising.
Turning Event Tickets into Collectibles
Tickets to famous events have become highly sought-after collector’s items, with some selling for hundreds of thousands of dollars. For example, an unused ticket to Michael Jordan’s first NBA match sold for $468,000.
Currently, the ticketing industry is full of fraudsters, with many bad actors selling fake tickets while others buy tickets in bulk just to resell them at exorbitant prices. This is mostly the case because the ownership history of traditional tickets is not transparent.
With NFT ticketing, the issuer can trace each ticket as it is exchanged from one wallet to another. As a result, the issuer is empowered to employ measures to curb mass scalping or excessive trading. For example, an issuer may set a rule in the NFT tickets’ smart contract that if a single wallet trades more than ten tickets, then it gets deactivated.
Ticketing Virtual Events in the Metaverse
Metaverse events are becoming more common. For instance, the 2020 virtual Travis Scott concert saw 27 million people tune in, making it the world’s biggest concert ever. Such events in the future can benefit greatly by selling NFT tickets to provide exclusive access or perks.
Pros and Cons of NFT Tickets
NFT tickets come with a unique set of advantages and disadvantages.
- In comparison to traditional tickets, NFT tickets are more secure and transparent.
- NFT tickets offer new revenue streams for event organizers, sports clubs, and artists.
- NFT tickets can be securely traded on online marketplaces.
- There are lower chances for an NFT ticket to get stolen or damaged compared to traditional tickets.
- NFT tickets may be inaccessible to those unfamiliar with blockchain technology.
- Market volatility may cause the prices of NFT tickets to fluctuate
- Users have to pay gas fees when trading NFT tickets which may add to their costs.
NFT ticketing is arguably one of the most promising NFT use cases, which has already been tried and tested in numerous ways. Should the adoption of NFT technology continue to grow, NFT tickets could become one of the most used types of utility NFTs in the market.