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How NFTs will disrupt ticketing

NFTs could create a paradigm shift in the event ticketing industry. Here’s how.

11/28/2022by Sankrit K

Tickets are a necessary part of modern social life. They get us into events, prove our identity, and sometimes are the only way we can access the things we want.

But the way ticketing currently works is flawed. As the recent Taylor Swift debacle demonstrates, traditional ticketing models are ripe for disruption. 

This is where Non-Fungible Tokens, or NFTs, come in. With NFTs, event organizers can save time and money, fans can easily buy and use tickets,  and everyone benefits from increased security and transparency.

In this article, we explore what NFT tickets are and how they can be used to solve some of the challenges faced by traditional ticketing models.

What are NFT tickets?

NFT tickets are digital tickets that are stored and managed on the blockchain. Their ownership and provenance can be verified securely, which aids in mitigating ticket counterfeiting, double-booking, and other issues that plague traditional ticketing models. 

A picture depecting a blockchain.
A blockchain is a distributed ledger used to validate and record information digitally.

In addition to providing an immutable record of ownership, NFT tickets can also be programmed with token-gating technology, which provides event organizers with additional security and fraud protection.

Token gating is a process by which access to a particular service or resource on the internet is restricted by using a token. In order to gain access, the user must possess and present the appropriate token. In the case of NFT tickets, this token is stored on the blockchain.

Token-gating technology allows event organizers to ensure that only validated buyers can access their events. This can help avoid counterfeiting, scalping, and other fraudulent activities.

How does NFT ticketing work?

NFT tickets work the same way as traditional tickets, except they are stored and managed on the blockchain. When a user purchases an NFT ticket, they receive a digital asset that proves their ownership. 

When attendees arrive at the venue, they can present the digital asset to gain entry into the event. This asset is then compared to a list of validated digital assets stored on the blockchain. If it matches, then access is granted.

This process is much more secure and efficient than relying on physical or paperless tickets, because it uses smart contracts and cryptographic methods.

NFT ticketing is also more cost-effective since the overhead costs of processing tickets are drastically reduced. Things like blockchain transaction batching, roll-ups, and layer-2 solutions can be used to save money on ticket printing, ticket management, and ticket sales.

A picture of blockchain verification.
NFT tickets are more secure than physical or paperless tickets because they're verified using cryptographic methods.

To issue an NFT ticket, enterprises must first create an NFT template for their tickets with the required data fields and ticketing logic. This is then uploaded to a blockchain, where it can be securely stored and managed.

Most NFT tickets today follow the ERC-1155 standard: a multi-token standard on the Ethereum blockchain. This standard allows for the creation of a single asset that contains multiple tokens, making it the perfect option for NFT ticketing.

How can NFTs solve traditional ticketing challenges?

The traditional ticketing industry is riddled with challenges that NFT tickets can solve.

Post-event utility

Traditional tickets are usually rendered worthless after an event. NFT tickets can be programmed to offer post-event utilities such as discounts or exclusive offers for the next event. This helps organizers increase customer loyalty and engagement.

In some cases, these tickets also act as collectibles, making them valuable even after the event is over.

Controlled access

NFT tickets contain a distinct digital signature, making them virtually impossible to counterfeit. This helps organizers bar unauthorized access, maintain their events’ integrity, and maximize ticket sales.

In addition, token gating technology can be used to further restrict access to a particular event by validating a select list of NFT holders and providing them with exclusive access.

New revenue streams

NFT tickets provide event organizers with various new ways to monetize their events. This includes selling virtual assets such as limited-edition merchandise or special access passes, which can help generate revenue beyond ticket sales.

A picture of counterfeit tickets.
Unlike paper tickets, NFT tickets cannot be forged (Image source)

What’s more is that there is scope for perpetual passive income for both creators and enterprises through royalties. Organizers simply need to set up a smart contract that charges a fee to buyers whenever they resell their NFT.

Creator empowerment

Small businesses and creators are often at a disadvantage when it comes to ticketing solutions. Traditional ticketing systems can have high overhead costs and require advanced setup, making them costly for small producers.

NFT tickets, on the other hand, offer a low-cost alternative that can be used by anyone with access to the blockchain. This allows small creators to easily and affordably access a ticketing system that offers more control and security.

Forgery prevention

NFT tickets cannot be duplicated, making them virtually impossible to forge. This means organizers no longer have to worry about counterfeit tickets and fraud.

Since the ticketing process can be automated using smart contracts, this can also reduce errors and omissions.

More customer data

Traditional ticketing limits the amount of data collected from customers. It can be difficult to see who bought a ticket, who attended, when they entered the venue, etc.

NFT tickets can be programmed to capture customer data such as age, location, and buying behavior. This allows organizers to gain a better insight into their audience and use this information for targeted marketing campaigns.

For instance, event organizers can view other NFTs held by event attendees and airdrop exclusive collectibles or NFT discount coupons tailored to their interests.

Who is using NFT ticketing?

NFT ticketing has been gaining traction in the events industry, with various organizations embracing this new technology. Below is a list of popular projects and brands making their mark with NFT tickets.

VeeCon

VeeCon is a three-year conference and the brainchild of Gary Vaynerchuck, a serial entrepreneur, personal brand enthusiast, and creator of VeeFriends.

A picture of the VeeCon conference.
VeeCon, Gary Vaynerchuck's annual conference, is a great example of how NFTs can be used to admit event attendees. (Image source)

VeeFriends is an NFT project that provides real-world benefits for holders. The only way to attend VeeCon is to hold an eligible VeeFriends NFT. Holders of the NFT are airdropped tickets to VeeCon, which are verified at the venue.

NBA

North America's largest professional basketball league, the NBA, is a  pioneering example of a major sports league that has embraced NFTs. In June 2020, the NBA launched its “NBA Top Shot” project in collaboration with the NBA Players Association and Dapper Labs.

In 2022, the project created All-Start VIP Access Pass, an NFT ticket that provides holders access to NBA All Star games and VIP perks for up to five years from 2023 to 2027.

Coachella

Coachella is one of the world’s largest and most iconic music festivals. Its “Coachella Keys Collection” includes ten tokens that give owners a lifetime pass to the festival. The NFT holder can choose one weekend per year to attend the festival for free.NFTs in the collection also grant VIP access to several other virtual events.

Create NFT tickets with HyperMint

Did you know that you can use HyperMint to easily program, mint, and distribute NFT tickets at scale? The platform also provides a suite of built-in tools to manage NFTs and store data securely on the blockchain. 

If you’re a brand, enterprise, or agency that wants to deploy NFT tickets at scale, contact us to learn more about how HyperMint can help your business.