Source:liveforlivemusic
NFTs(Non-Fungible Tokens) is the hottest topic in the crypto space right now. They have made several headlines for getting auctioned for millions of dollars.
NFTs are digital certificates stored on the blockchain which prove ownership of certain unique assets. In starting, many people view them as collectibles only. People are experimenting with them and now many other applications are coming. Tickets being sold as NFTs is one such new application.
Problems with Traditional ticketing system
1. Black marketing: Black marketing of tickets is one of the biggest problems with today’s ticketing system. People buy tickets using online bots and other techniques in bulk to sell them in the secondary market. These middlemen make a lot of profit and fans are looted who purchase tickets at higher prices. Artists or event organizers get no benefit from these sales as well.
2. Security concerns: It is impossible to track tickets sold in the secondary market. Event organizers have no data about people who purchased tickets on the black market. This poses a real security threat.
3. Authenticity: People buying tickets are always concerned whether they have bought the original ticket or a fake one. Many people get scammed by people posing as original ticket providers online.
How will it work?
NFTs are tokens stored on the blockchain which means they will be programmable. So, an event organizer can create a smart contract to mint an NFT ticket when someone triggers that smart contract by paying the price of the ticket. The money sent will be automatically transferred to the organizer’s wallet and NFT will be sent to the fan wallet. All records of ownership will be maintained on the blockchain. Ownership of NFT tickets can be verified quickly by anyone.
If the buyer tries to sell that ticket again, the ownership of NFT will be changed and some royalty amount will also be sent to the organizer’s account as per the smart contract logic.
Benefits of using NFTs as tickets:
1. Royalty fees: A new income source will open up for artists which would directly benefit them whenever tickets are sold in the secondary market.
2. Preventing fake tickets: As NFTs are stored on the blockchain, anyone can verify the authenticity of tickets being original or fake by checking their complete transaction history.
3. Reduce Security threat: Event organizers will always have the right data about the audience who will be attending their event as NFT ownership is easily tracked on the blockchain.
4. Intangible: As NFT tickets will be stored on the blockchain, there is never a case that fans could lose tickets.
This is just a start, NFTs in the future will have a lot of applications. The technology is in a very early stage and it will become mainstream soon.
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Originally published at https://medium.com on October 30, 2021.
