Nov 12, 2022
What Is NFT Ticket and How Does NFT Ticketing Work?
A ticket is something that can be more than just a little memorable. Think Charlie and the Chocolate Factory. We, as humans, love to be entertained. And we tend to hold on to keepsakes of the things that are dear to us. Movie tickets can often be the perfect vehicle for that. How many of us have stored away the ticket stubs of a much-awaited concert or a blockbuster hit of our favorite movie star?
However, they do pose a significant problem. At the end of the day, they are perishable. Sure, it can be frustrating to want to keep it for posterity only to find it destroyed in a while; but there is also the possibility of the ticket being lost before you have even entered the venue! That would be disastrous, wouldn’t it?! You spend all that money only to not get the experience.
Then, we entered the era of e-tickets with QR codes. This was a definite improvement, but these can be easily forged. And not to mention, they offer very little by way of collectible value. So how do you take the best of both worlds and take it a step, nay, several steps forward? The answer is simple: NFT Ticketing. What’s that, you ask? Well, read on to find out.
First of all, what is an NFT?
We have been hearing so much about NFTs these days. But what exactly are they? NFTs, or non-fungible tokens, are digital tokens that are unique and, well, non-fungible. And you can’t just exchange one NFT for any other. You could do that with a dollar or a bitcoin. But NFTs are different. It’s more like trading one Starry Night for another. Impossible, because there is only one piece in existence. Across all time and space.
From images to audio to memes (Yes, you read that right, memes!), anything can be an NFT. So why all the hype when you can just right-click and save an image? The simple answer is that NFTs offer you ownership that is verifiable. And right now, they are also something of a status symbol, making them very coveted.
And ever since the NFT boom in 2021, NFTs have been finding applications in several industries from gaming to haute couture. Even big brands like Louis Vuitton and Starbucks have incorporated NFTs into their marketing strategies.
What are NFT tickets?
As we have already established, NFTs are unique. And if you think about it, they are very similar to traditional tickets. The latter, too, is a token that is one-of-a-kind representing exactly one available spot. They are also available only in limited quantities depending on the seating capacity of the venue.
NFTs share both these characteristics. Each NFT represents just one unique asset, and NFT drops are usually limited to a specific number. Built using blockchain technology as a base, NFTs are also transparent, making it very easy to track ownership. You can see why this would be useful in the ticketing world, which is rife with fraudulent black-market tickets.
NFT ticket is a digital asset or token that represents the credentials you need to enter a particular event. And just like utility NFTs, tickets created in this mode offer additional utility. They could offer exclusive backstage access, one-on-one sessions with stars, and unique merchandise. For the artists and organizers, too, NFTs are extremely lucrative as they offer a deeper connection with fans along with royalties.
NFT tickets, therefore, offer benefits in spades to artists, event organizers, and, of course, the fans. Talk about a win-win!
How does NFT ticketing work?
Being pieces of paper that offer exclusive access to one event only, tickets are, in a sense, non-fungible themselves. This, we have already established.
However, there is very little regulation. Tickets can be bought from the primary seller and resold on a secondary platform at exorbitant prices — a process known as ticket scalping. On the other hand, NFTs use smart contracts, which are programs run on the blockchain. Smart contracts are programs that execute automatically once certain, predetermined conditions are met. This would give organizers more control, including limiting the value and fees during resale.
Smart contracts, therefore, form the basis for NFT ticketing. By cutting out third parties, organizers can auction or sell their tickets on an NFT platform. When the buyer makes the payment, the smart contract is activated. While the organizer receives payment, the buyer gets the NFT ticket deposited into their digital wallet.
You also have the option of selling the ticket on a marketplace. This secondary platform is designated by the event organizer before the drop itself. Every time the ticket is resold, artists may gain royalties, making the concept mutually beneficial.
And what confers them with collectible value is the fact that you can incorporate gorgeous, jaw dropping artwork. Why go for a simple piece of paper or a black and white QR code when you could have stunning artwork in addition to lucrative utilities.
What does NFT ticketing bring to the table?
As we’ve already established, traditional ticketing is not without drawbacks. NFT ticketing sets out to solve a few of them. Here are a few ways in which NFT tickets can make some major changes to the ticketing industry.
- Cost reduction and efficient production: One thing NFTs help with is a drastic reduction in cost. It takes fewer resources to both mint and distribute ticket NFTs. They also take a shorter time to create, and the whole process can take just a few hours, from minting to sale.
- Security and Fraud Prevention: Both paper tickets and e-tickets have a common disadvantage. They can both be forged quite easily. NFTs, recorded on a blockchain ledger, can help validate the veracity of the ticket and track who the owner of a ticket is.
- Reduced risk of damage: One of the most obvious drawbacks of traditional tickets is that you risk loss and damage. NFT tickets are stored in a digital wallet and can be accessed via phone. These digital wallets also come with state-of-the-art security, making NFT tickets resistant to attack.
- Royalties: An advantage of NFT tickets is that they let artists and event organizers earn royalties. When the tickets are sold on a secondary marketplace, a smart contract can be activated to ensure that the artists get a stipulated percentage of the sale amount.
Concluding Thoughts
It is clear that NFTs have a dazzling array of use cases in pretty much every sector. When it comes to the ticketing industry, it would seem that NFTs were made for precisely this. Introducing ticket NFTs has ensured that tickets retain their value as collectibles and memorabilia while making them safer and more secure. And they come with the added advantage of utility — a decided improvement over previous iterations.
With NFT tickets, sure, you can access an event. But you can do so much more than that. They are investments with emotional value attached to them. After all, shouldn’t everything we do bring a smile to our faces several years down the line?
