BlockStubs Whitepaper

Blockstubs
17 min readMay 31, 2023

--

Context

When NFT technology first began attracting mainstream attention in 2021, its growth was stifled by limited use cases and overwhelming stigmatization on behalf of the general public. NFTs were perceived as nothing more than an unnecessary flex of wealth, and condemned as a passing trend that lacked substance.

Today, the influence and potential of NFTs in modern business is undeniable. Blockchain technology is being rapidly woven into the fabric of our infrastructure, with some of the world’s largest companies like Meta and Starbucks integrating NFTs into their consumer platforms.

One of the largest benefactors of this technological revolution is the entertainment industry. For example, performing artists can create NFT-Gated communities that offer exclusive benefits for their most passionate supporters. Specifically, NFT technology is primed to disrupt and reinvent the ticketing sector. Traditional ticketing is plagued with issues, such as scalping and counterfeiting, that are easily solved by blockchain functions.

BlockStubs aims to provide a complete solution to the complications of the event ticketing industry and ensure fair value, security and transparency for performers, organizers and attendees. At a fundamental level, the BlockStubs platform will support artists and organizers in protecting their ticket sales while giving fans and resellers a universal market to buy and sell event tickets with unmatched transparency.

Blockchain and NFTs are the Ideal Infrastructure for Modern Ticketing

As an emerging technology, blockchain and NFTs are largely misunderstood and stigmatized by the masses. Explanations on how blockchain works are often over-complicated without reason, yet the basic principles that underlie blockchain and NFT technology are actually very simple.

What is a Blockchain?

A blockchain is a public online network that records all events and transactions. Any time a user confirms a transaction on-chain, like sending cryptocurrency to another wallet or paying for goods and services, the blockchain records the event and stores the details of the transaction for all users to see.

All transactions on a blockchain are immutable, meaning once they have been submitted to the network they cannot be altered or reversed. As a result, it is impossible to falsify or forge fraudulent transactions.

What is an NFT (Non-Fungible Token)?

An NFT is a particular type of digital asset that can be stored or transferred between wallets using a blockchain. NFTs are slightly different from common cryptocurrencies like Bitcoin and Ethereum because they are non-fungible. To better understand the difference between a fungible token and a non-fungible token, let’s use a real world example:

Fungible assets are identical, replaceable things that have a consistent, agreed-upon value. For example, cash is fungible. If you have two $10 notes in your wallet, it is globally recognized that both notes have exactly the same value and the use-cases.

Non-fungible assets are unique. They may look similar or have similar use cases, but their value is subjective between different people. For example, art is non-fungible. The Mona Lisa and The Last Supper are both paintings created by Leonardo de Vinci, but they each carry their own identity.

Likewise, event tickets are non-fungible assets. While they are distributed by the same provider and provide similar use cases, a ticket in the front row is generally more valuable than a ticket with a limited view far from the main stage.

There is a misconception that NFTs are only used to store digital images on a blockchain. While this is a common function, the possibilities for NFT use cases are growing everyday. For example, important documents like real estate contracts, payment invoices and other digital data can be registered as an NFT on-chain.

What is a Smart Contract?

A Smart Contract is a self-executing, programmable action that submits and registers transactions on a blockchain. Smart Contracts allow for agreements between parties to be automated and stored on a blockchain, without the need for an intermediary to oversee the transaction.

To give a real life example, consider how vending machines work. A vending machine is not a conscious being, yet anyone can engage in an agreement or ‘contract’ with a vending machine. Even without an intermediary service, anyone can pay at a vending machine and receive something in return.

Why is This Important?

Blockchain and NFTs provide the perfect infrastructure to manage secondary ticket sales worldwide. Smart contracts ensure that performers and organizers are fairly reimbursed for secondary ticket sales. NFTs are publicly verifiable immutable assets. They cannot be altered or changed and anyone can verify their authenticity on the blockchain, protecting attendees from counterfeit and fraudulent tickets

Problems in the Traditional Ticketing Industry

Over the last decade, ticket scalpers and resellers have pillaged the entertainment industry and exploited both performers and attendees. Using powerful automated software, scalpers are able to purchase event tickets en masse, knowing that genuine fans and supporters of performing artists will be willing to pay a premium for a concert experience.

This was evidenced in late 2022, with the release of ticket sales for Taylor Swift’s now-infamous Eras Tour. Due to overwhelming demand, the site responsible for selling and distributing tickets suffered outages, delays and unconfirmed purchase attempts at a catastrophic scale. Ticket buyers waited in online queues for over 8 hours, only for bots and ticket scalpers to amass tickets and resell them on secondary marketplaces for over $20,000.

In these circumstances, scalpers are the only benefactor. Performers and organizers are cheated out of fair value, while fans and attendees are required to pay extortionate prices on tickets that were originally sold at a significantly lower price. Buying tickets from resellers on secondary markets also carries additional risk, with no way of verifying that tickets are authentic before completing the purchase.

Counterfeit ticketing is rife in the traditional ticketing industry. Physical tickets can be easily replicated with astonishing accuracy. Unintelligible to the human eye, these high-quality fakes will only be recognized upon commencement of an event which the unfortunate holder will be excluded from. Even digital tickets in the modern age can be forged with falsified QR codes and entrance codes that appear genuine, only to be denied at the gates.

The ticket purchasing process is cumbersome and invasive. Many ticket providers require detailed personal information, such as physical addresses, contact information and credit card data. While benign at first glance, this information is sold to online advertisers and puts buyer privacy at risk.

BlockStubs harnesses blockchain and NFT technology to provide unique and practical solutions to these issues, ushering in a new standard of security and transparency that the traditional ticketing industry is severely lacking.

How Does NFT Ticketing Technology Solve These Problems?

Ticket Verification and Authenticity

Powered by NFT technology, BlockStubs ensures that all tickets are easily and publicly verifiable. A simple due diligence check on any NFT ticket will ascertain whether it is a genuine asset, created and distributed by the official provider, or a high-quality fake deployed by nefarious actors. All ticket data is immutable and stored on-chain, able to be viewed by anyone.

Creator Royalties

BlockStubs employs blockchain and smart contract technology to ensure that creators and performers will earn ongoing royalties from secondary ticket sales. This protects organizers from underestimating ticket sales and guarantees performers fair value. BlockStubs’s performer royalties are enforced at a contract-level meaning that every time a ticket is exchanged on a secondary market, the creator receives a percentage of the sale.

Secondary Sales Data Transparency

Courtesy of fundamental blockchain functions, all secondary sales data is registered on-chain in perpetuity. A prospective buyer will be able to view the entire transaction history of every ticket. By doing so, a buyer can accurately gauge the value and price of a ticket based on its sales history, to avoid being overcharged.

What’s more, ticketing agencies and third-party providers will be held accountable for giving performers their fair share of profits from ticket sales. This provides greater security and support for creators, who are historically exploited and unfairly reimbursed by major labels.

Non-Transferable Tickets

For performers who want to completely eliminate the possibility of secondary token sales, BlockStubs will provide non-transferable Tickets. These NFT tickets are hard-coded by design to be scalp-proof and cannot be traded or transferred to another wallet. For performers, this feature ensures that tickets for their events will only be purchased by people who plan to attend.

Token-Gated Exclusives

Event organizers will be able to release exclusive offerings to specific Token-Gated communities. For example front-row seats, meet-and-greets, presale tickets and limited-edition material could be made available to passionate fans who hold a performer’s official NFT collection.

Ticket Stub Proof of Attendance

For attendees, collecting Ticket Stubs as souvenirs and mementos has become an integral part of the event experience. BlockStubs gives users greater freedom and utility for their Stubs than ever before. Used Stubs can be resold on the secondary market as collectors items, or can even be used as a Proof of Attendance.

Proof of Attendance Protocol is an emerging sector in the Web3 world that identifies holders as event attendees and is already being used to recognize conferences and other events. This helps event organizers to retain a Web3 relationship with attendees and continue to offer goods and services. This can hypothetically be used to give fans with previous attendance history exclusive benefits, like seating upgrades or presale ticket options.

Who Benefits From BlockStubs?

How BlockStubs Supports Performers

The BlockStubs platform offers performers greater control over the distribution and monetization of their events. The sale of tickets on secondary marketplaces witnesses millions of dollars in volume every year, however it’s historically unregulated and deprives performers of fair value. In the traditional ticketing format, all revenue and profits from secondary market sales are retained primarily by scalpers who have no interest in supporting performers and marketplaces who turn a blind eye to this rampant exploitation.

BlockStubs’s revolutionary smart contract infrastructure enforces creator royalties on all secondary sales, ensuring that performers earn ongoing commissions every time their tickets are resold. Performers can also choose to make their tickets non transferable, eliminating any secondary sales in totality.

Performers will also be able to provide exclusive offerings, such as signed merchandise and memorabilia, future event tickets and meet-and-greets directly to their supporters through token-gated services. This helps strengthen the relationship between a performer and their fanbase.

How BlockStubs Supports Event Attendees

Event Attendees can enjoy peace of mind and unmatched security when buying tickets on the BlockStubs Marketplace. Every tokenized Stub NFT is publicly verifiable on-chain, allowing potential buyers to avoid the fraudulent and counterfeit tickets that are commonplace on the secondary ticket resale market.

Users can also share their favourite moments from events and concerts and network with other live performance enthusiasts using BlockStubs Social. A BlockStubs Social profile allows users to showcase their favourite Stubs amongst their peers and keep a public record of events they’ve attended.

What’s more, holding specific NFTs from performers can entitle the owner to certain exclusive benefits. For example, the Icelandic music group Sigur Ros has built a tight-knit online community around their ‘Heimr’ NFT collection. Holders of the official NFT are able to purchase presale tickets and limited edition records that the general public doesn’t have access to. Through BlockStubs, collecting Stub NFT tickets could allow users to access a multitude of future perks from their favourite performers.

How BlockStubs Supports Event Organizers

Enforcing secondary sales royalties at a contractual level not only supports performers but also benefits event organizers. Gauging ticket pricing is an extremely complicated affair, with even minor miscalculations having a potentially significant impact on sales and revenue.

Earning commissions from secondary sales gives organizers greater flexibility and better security when calculating initial ticket pricing. In addition, earning ongoing royalties will allow distributors to reduce the original market prices and ultimately reach a larger audience of live performance enthusiasts.

These benefits also extend to performance venues. One of the often overlooked issues of secondary ticket sales is that in many cases, scalpers are unable to resell their full supply of purchased tickets. Consequently many Sold Out events are actually under-attended, resulting in empty seats and a somewhat diminished atmosphere.

Performance venues generate the majority of their income through concessions and services. As a result, overhead operational costs are estimated based on the number of ticket sales. In the case of a Sold Out event, scalpers who do not attend events cause miscalculations across all aspects of venue management, from the provision of food and beverage to staffing and security. This results in a reduction in venue profits, and discourages the continuation of the live entertainment industry.

Platform

The BlockStubs Marketplace

BlockStubs provides the ultimate marketplace for the secondary sales of NFT tickets. Access to secure and transparent ticketing services should be accessible to everyone, regardless of whether or not they’re familiar with blockchain. For this reason, and with Web3 adoption enjoying consistent growth worldwide, the BlockStubs user experience will be geared towards simplicity and ease of use.

The BlockStubs Marketplace will provide a seamless and intuitive interface for fans and resellers to buy and sell NFT tickets for upcoming events. Every ticket listed on BlockStubs is authentic and verifiable on-chain, with secondary sale royalties being distributed to performers at a hard-coded, contractual level.

The platform will boast state-of-the-art search functions and filter options to ensure that users across the globe can easily find the events they would like to purchase tickets for. Because seat allocations are hard-coded into the Stubs code, users will be able to see visualize their placement within the venue via real-time seating charts.

In the spirit of protecting personal privacy, BlockStubs does not require lengthy sign-ups and contact information. Users will be able to simply connect their Web3 Wallet and purchase NFT Tickets directly on-chain through BlockStubs’s accessible platform.

The BlockStubs Dashboard and Wallet provides a complete overview of a user’s profile. From one central interface, users can store their NFT tickets securely ahead of events, list NFT tickets for sale in the BlockStubs Marketplace and view their collection of used Stubs.

BlockStubs Social

The BlockStubs platform will also double as a powerful and engaging Social Media network for creators, organizers and live performance enthusiasts. Users will be able to leave comments and reviews on events, share live event footage and showcase their collection of Stubs to the wider BlockStubs community.

BlockStubs Social will also allow performers to communicate directly with their audiences and provide giveaways and exclusive offers on-chain. This ensures transparency and guarantees the authenticity of ticket giveaways, protecting users from fraudulent accounts and forged tickets.

$STUBS Token

The $STUBS token is the native utility token of the BlockStubs platform. Deployed on the Ethereum Mainnet using the ERC-20 standard, $STUBS is the cornerstone of the BlockStubs economy and benefits from sustainable, growth-focussed tokenomics.

Using a sophisticated buyback and burn mechanism, BlockStubs will periodically use platform fees to buy $STUBS tokens off the public market and burn them, permanently removing them from the supply. This establishes a price floor and increases token scarcity. $STUBS tokens will be continually bought off the market in this fashion until the entire circulating supply is burnt.

The $STUBS token enjoys a 0% buy tax, with a 6% sell tax being enforced to help grow the ecosystem. 6% of every sell will be distributed as follows:

  • 2% — BlockStubs unique buyback and burn mechanic
  • 2% — Marketing and Development
  • 2% — Cover team operating costs

The initial $STUBS token allocation benefits the community, with 0% of the initial supply reserved for the BlockStubs founding team.

  • 6.9% — Reserved for CEX Listings
  • 93.1% — Presale & Initial Liquidity

$STUBS Staking and Farms

BlockStubs Staking and Farming will allow $STUBS holders to earn passive income in the form of crypto rewards while supporting the growth of the BlockStubs ecosystem.

In the future, platform fees may be collected and used to buy $STUBS directly off the market. These tokens are consequently redistributed to $STUBS stakers and liquidity providers, giving the $STUBS token greater utility.

Conclusion

In its traditional format, the entertainment and event ticketing industry is painfully ill-equipped to handle the magnitude and frequency of ticket scalpers. Everyday, performing artists lose out on over-inflated secondary sales while tickets are held for ransom. Fans and concert-goers worldwide are often required to pay extortionate sums for tickets that were originally sold at a dramatically lower value.

Fraudulent ticketing and counterfeit issues are commonplace, with limited and unreliable infrastructure in place to verify ticket authenticity. Buyers are vulnerable to overvaluing tickets, because they cannot be sure what the true market value of certain tickets are due to unrecorded transactions.

Ticket purchasing is over complicated, with arduous registration processes. In a world where cyber security is of paramount importance, ticket providers demand unnecessary personal information for simple transactions.

BlockStubs provides effective solutions to these outstanding issues and addresses numerous existing pain points for all parties in the ticketing experience. Entertainment ticketing is heavily unbalanced, with scalpers and resellers taking advantage of faults in the existing model at the expense of performers and attendees.

The BlockStubs platform seeks to revolutionize the outdated ticketing model and bring new transparency to the entertainment ticketing industry. Blockchain technology and NFT functions will protect buyers from extortionate pricing and fraudulent ticket scams, while ensuring performers earn fair value and enforceable royalties from secondary markets. BlockStubs helps all users to properly enjoy the experience of attending live-events, without having to navigate the traps and pitfalls ignored by the traditional ticketing industry.

Contact:

Website | Twitter | Telegram | Audit

Disclaimers

Licenses and approvals (if required) are not assured in all jurisdictions
BlockStubs intends to operate in full compliance with applicable laws and regulations and use its best endeavors to obtain any necessary licenses and approvals (if any). It is not possible to guarantee, and no person makes any representations, warranties or assurances, that any such licenses or approvals will be obtained within a particular timeframe or at all. Moreover, laws and regulations evolve so BlockStubs makes no guarantees, representations, or warranties that it will be able to obtain any necessary licenses or approvals that may be implemented in the future. Accordingly, BlockStubs may be required to restructure initiatives and activities described in this white paper or such services may be unavailable in all or certain respects in certain jurisdictions or may not be available at all.

No financial or investment advice
This whitepaper does not constitute any investment advice, financial advice, trading advice or recommendation by BlockStubs, its affiliates, or its respective officers, directors, managers, employees, agents, advisors or consultants on the merits of purchasing any $STUBS tokens nor should it be relied upon in connection with any other contract or purchasing decision.

Not a sale of security
This whitepaper does not constitute a prospectus or financial service offering document and is not an offer to sell or solicitation of an offer to buy any security, investment products, regulated products or financial instruments in any jurisdiction.

No representations or warranties
No representations or warranties have been made to the recipient of this whitepaper or its advisers as to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this whitepaper or any omission from this document or of any other written or oral information or opinions provided now or in the future to any interested party or their advisers. No representation or warranty is given as to the achievement or reasonableness of any plans, future projections or prospects, including with respect to the functioning or development of the BlockStubs or any applications thereof, and nothing in this document is or should be relied upon as a promise or representation as to the future. To the fullest extent possible, all liability for any loss or damage of whatsoever kind (whether foreseeable or not and whether or not BlockStubs has been advised of the possibility of such loss or damage) which may arise from any person acting on any information and opinions contained in this whitepaper or any information which is made available in connection with any further enquiries, notwithstanding any negligence, default or lack of care, is disclaimed.

Third party data
This whitepaper may contain data and references obtained from third party sources. Whilst the management believes that these data are accurate and reliable, they have not been subject to independent audit, verification, or analysis by any professional legal, accounting, engineering, or financial advisors. There is no assurance as to the accuracy, reliability or completeness of the data.

Translations
This whitepaper and related materials are issued in English. Any translation is for reference purposes only and is not certified by any person. No assurance can be made as to the accuracy and completeness of any translations. If there is any inconsistency between a translation and the English version of this whitepaper, the English version shall prevail.

Views of BlockStubs
The views and opinions expressed in this whitepaper are those of BlockStubs and do not reflect the official policy or position of any government, quasi-government, authority or public body (including but not limited to any regulatory body or self-regulatory body) in any jurisdiction. This whitepaper has not been reviewed by any regulatory authority.

Third party references
References in this whitepaper to specific companies, networks, protocols, technologies, and/or potential use cases are for illustrative purposes only. The use of any company and/or platform names and trademarks does not imply any affiliation with, or recommendation or endorsement of/by, any of those parties. All references to ‘dollars’, USD or ‘$’ are references to the United States Dollars unless otherwise stated.

Graphics
All graphics included in this whitepaper are for illustrative purposes only. In particular, graphics with price references do not translate into actual pricing information.

Risk statements
Purchasing $Escrow tokens or interacting with the BlockStubs platform involves substantial risk and may lead to a loss of a substantial or entire amount of the money involved. Prior to purchasing $STUBS tokens or interacting with BlockStubs applications or protocols, you should carefully assess and take into account the risks, including those listed in any other documentation. A purchaser should not purchase $STUBS tokens for speculative or investment purposes. Purchasers should only purchase $Escrow tokens if they fully understand the nature of the $Escrow token and accept the risks inherent to such tokens, their relevant applications and protocols, and the BlockStubs platform itself.

Cryptographic
tokens may be subject to expropriation and/or theft; hackers or other malicious groups or organizations may attempt to interfere with the $STUBS token or BlockStubs platform or relevant applications or protocols in various ways, including malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing, and spoofing which may result in the loss of your cryptographic tokens or the loss of your ability to access or control your cryptographic tokens. In such event, there may be no remedy, and holders of cryptographic tokens are not guaranteed any remedy, refund, or compensation.

The regulatory status of cryptographic tokens and digital assets is currently unsettled, varies among jurisdictions and is subject to significant uncertainty. It is possible that in the future, certain laws, regulations, policies or rules relating to cryptographic tokens, digital assets, blockchain technology, or blockchain applications may be implemented which may directly or indirectly affect or restrict cryptographic token holders’ right to acquire, own, hold, sell, convert, trade, or use cryptographic tokens.

The uncertainty in tax legislation relating to cryptographic tokens and digital assets may expose cryptographic token holders to tax consequences associated with the use or trading of cryptographic token.

Digital assets and related products and services carry significant risks. Potential purchasers should take into account all of the above and assess the nature of, and their own appetite for, relevant risks independently and consult their advisers before making any decisions.

Professional advice
You should consult a lawyer, accountant, tax professional and/or any other professional advisors as necessary prior to determining whether to purchase $STUBS tokens or operate BlockStubs applications.

Caution Regarding Forward-Looking Statements
This whitepaper contains certain forward-looking statements regarding the business we operate that are based on the belief of BlockStubs as well as certain assumptions made by and information available to BlockStubs. We do not purport to make any statements with respect to the conduct or operations of any third parties whose actions (including commercial activity) may affect the BlockStubs platform and $STUBS token. Forward-looking statements, by their nature, are subject to significant risks and uncertainties. Forward-looking statements may involve estimates and assumptions and are subject to risks, uncertainties and other factors beyond our control and prediction. Accordingly, these factors could cause actual results or outcomes that differ materially from those expressed in the forward-looking statements. Any forward-looking statement speaks only as of the date of which such statement is made, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

--

--