What Is NFT Ticketing and How Does It Work?
Main Takeaways
NFT tickets are digital access credentials that offer holders exclusive benefits at the event they attend.
NFT ticketing can help address various problems associated with traditional ticketing systems.
What’s more, they can also help artists and event organizers establish stronger relationships with fans.
Immerse yourself in the future of live events with NFT tickets.
Seeing your favorite musician perform live with thousands of other fans can be an extraordinary experience. But just imagine, you’re waiting in line to enter the concert venue, and just as you’re reaching in your bag to get your ticket, it’s not there! A wave of panic washes through you, as you’re frantically patting around your pockets and rummaging through your bag, trying to locate your paper ticket.
Getting a digitized ticket can lower your chances of misplacing your ticket, but QR Codes can be easily forged and don’t offer much in terms of memorabilia. A situation like this is where an NFT ticket would really come in handy for a concertgoer. NFT tickets are digital assets stored on a blockchain, so the risk of your ticket getting lost, stolen or damaged is relatively low. Plus, NFT tickets can become valuable collectibles, acting as lasting memorabilia.
NFTs are evolving to have more use cases in different industries beyond art and gaming. So it may come as no surprise that NFT technology can help solve the inefficiencies faced by the legacy ticketing industry. From addressing the shortcomings of paper tickets, rewarding fans with exclusive perks, and even acting as an additional layer of security for events – NFT tickets have the potential to transform the ticketing landscape for all parties involved.
Keep on reading to learn more about NFT tickets and how they can revolutionize the ticketing system as we know it.
What is an NFT Ticket?
Short for non-fungible tokens, NFTs are cryptographic tokens that represent unique digital assets. They allow us to tokenize digital or real-world assets, such as art, collectibles, or real estate. Since they are stored on a blockchain network, they act as verifiable proof of authenticity and ownership. Moreover, an NFT can only have one official owner at a time, and can’t be altered or forged.
NFT tickets are digital assets that hold your access credentials to an event. They can also offer ticket holders additional perks such as meet-and-greets, exclusive merchandise, and more, to create an even more immersive fan experience. On top of helping establish a closer relationship with fans, NFT tickets can provide ongoing royalties for artists, event organizers, and stakeholders.
How Does NFT Ticketing Work?
If you think about the mechanics of an NFT, it goes hand in hand with event tickets. Physical tickets are usually a one-off piece of paper and are only valid for one event admission or seat. In that sense, tickets are non-fungible. Similar to NFTs, tickets are sold in limited batches since live venues have capacity limits.
However, the downside of traditional ticketing is that tickets go through a few distribution channels with limited regulation or control. For example, resellers in the secondary ticket market can inflate prices, and ticket scalpers can buy up most tickets online to resell at a higher price. With NFT tickets, anyone can track the transactions on a blockchain ledger, making it easier for everyone to see when and where the ticket was bought and sold – while event organizers are afforded more control over primary and secondary ticket sales.
An NFT ticketing system can also help limit resale value and fees with the help of a smart contract, a program that runs on the blockchain. A smart contract is a deterministic program that self-executes particular tasks when and if certain conditions are satisfied. Organizers can determine how royalties are split on secondary ticket sales by setting up a rule that can trigger a royalty payment whenever the ticket is sold to a new owner.
Additionally, event organizers can forgo third-party distribution by minting the amount of NFT tickets they need on their preferred blockchain network as part of the ticketing system. Once they set the sale or auction price, payment from a buyer will trigger a smart contract. The NFT ticket will then be sent to the buyer's digital wallet, allowing them to access it anytime via their phone. Because the NFT ticket is stored on a blockchain network, you can also choose to resell your ticket on the NFT marketplace designated by the event organizer. Once someone buys your ticket, a smart contract is triggered, and you'll receive payment while the buyer gets the ticket.
Artists can also use NFT tickets to reward long-time fans with exclusive airdrops or other perks to elevate their experience. A real-world example of NFT tickets in action was Binance's partnership with Southern Europe's largest music festival: Primavera Sound.
Binance offered Primavera Sound 2022 attendees exclusive NFT POAPs (Proof of Attendance Protocols) that helped make their festival experience richer and more personalized. Ticket holders were invited to download the Binance app to request their unique NFT, which they could use to unlock exclusive experiences at the Binance booth.
How Can NFTs Solve Traditional Ticketing Challenges?
NFT ticketing can potentially disrupt the traditional ticketing industry by solving the inefficiencies faced by the current ticketing system.
Preventing forgery
One of the major downsides of paper tickets and QR Codes is that they can be easily forged, creating a gap in security for event venues and disappointment for fans who unknowingly bought a fake ticket.
But since NFT ticket transactions are recorded on a blockchain ledger, event organizers and attendees can validate the authenticity of every ticket on the chain and track the history of ownership. Making it near impossible for bad actors to falsify a ticket.
Reduce costs and faster production
The costs associated with selling and minting NFT tickets can be potentially lower than the cost needed to produce and distribute traditional tickets.
NFT tickets can often require much less production lead time than physical tickets, allowing organizers to mint and distribute tickets within a few hours.
Ongoing revenue opportunities
The blockchain technology behind NFTs opens up the potential opportunity to generate tangible value for all involved. NFT tickets can provide ongoing royalties to the artist and event organizer via smart contract technology. If a ticket holder sells their ticket on a secondary marketplace, a percentage of the resale revenue may also be redirected to the artist. Ticket holders can also resell NFT airdrops they are gifted as a part of the ticket’s built-in rewards.
Lowers chances of loss or damage
Traditional paper-based tickets can be easily lost or damaged. Since NFT tickets are stored in a digital wallet that can be accessed via a mobile phone, the risk of losing or damaging your ticket is exponentially lower.
Conclusion
With the growth of blockchain technology and Web3, artists, event organizers, and fans have the opportunity to see the ticketing system shift in their favor with the help of NFTs.
As they are built on a blockchain network, NFT tickets are easily authenticated, and their immutable nature prevents bad actors from creating or distributing fake tickets. Moreover, event organizers and artists can benefit from the NFT ticketing system by gaining more control over their primary and secondary market ticket sales, while establishing lasting engagement with fans.
Although the NFT space is still in its infancy, with the rate that it’s growing it has the potential to improve the traditional ticketing system and more in the live event space.
Explore the NFT World With Binance
Dip your toes into the colorful and diverse world of NFTs. Begin by browsing for a wide variety of NFTs on Binance NFT – a NFT marketplace that welcomes artists, creators, and blockchain enthusiasts in one place to mint and trade premier NFTs. Don’t want to miss a thing? Get updates on our weekly IGO drops and exclusive Mystery Box releases by following Binance NFT on Twitter and Telegram.
Read the following helpful articles for more information:
(Academy) Top 7 NFT Use Cases
DISCLAIMER: NFTs are an emerging asset class that is still evolving. The information in this article should not be construed as investment or financial advice. Always do your own research before making any decision to buy, sell or trade NFTs.