Have you decided to buy a non-fungible token (NFT) ticket? First, you need Ethereum, which is available at Robinhood and eToro.
As the non-fungible token (NFT) craze begins to die down, questions regarding its utility have emerged. One of the most talked about potential use cases for NFTs is in the form of a ticket. While NFT ticketing startups are numerous, widespread adoption has yet to be seen.
NFTs provide the ability to link digital assets to unique tokens on the blockchain. So far, the most successful use of NFTs has attached jpeg images of cartoon animals to tokens. This world-first use case resulted in a market worth $15.8 billion by 2021, via GlobeNewswire.
There is demand for NFTs, with the potential to link more complex digital assets to NFTs – especially tickets.
What are NFT tickets?
Before going into NFT tickets, it is important to lay out what an NFT is. NFTs originated through the ERC-721 token standard on Ethereum and have a unique characteristic. The uniqueness creates different values for the individual tokens.
The technology sparked an NFT art craze, where digitally created art is verifiable and tradable on a blockchain. NFTs can also hold royalties for the original creator. For example, an artist may set a 5% royalty for each resale of the artwork.
With unique values, it is easy to distinguish between NFTs and between real and fake digital assets. For example, BAYC has a collection of 10,000 monkey images, where each monkey is a unique work of art. Their uniqueness makes them unlike the ERC-20 tokens (Dogecoin, Uniswap, USDC, etc.) which can easily be exchanged one by one.
While the state of the art of NFTs is impactful, more complex applications can be implemented. The ability to verify ownership on the blockchain and resell with built-in royalties can be used to innovate the ticketing economy. The ability to drop a collection of NFTs with unique properties among the collection can also be emulated with an event that drops a collection of tickets that have unique seat numbers and other details.
What’s wrong with traditional tickets?
The most notable problems with traditional tickets are:
- Used ticket robots force higher prices
- Fake resold tickets
- Zero percent of resale for artists
This list could go on, and while NFTs may not solve all the problems, the continued improvement of smart contracts can. New token standards continue to be released, as well as improvements to blockchains, which according to Vitalik Buterin will only be 55% complete after the merger in Ethereum.
Why are NFT tickets better for fans?
Some key benefits that NFT tickets provide to fans are:
- Elimination of fake resold tickets
- Unique benefits for holders
- Publicly verified collectibles
By using blockchain to authenticate tickets, fake tickets can be eliminated. The benefits are obvious. NFT technology provides access to fan communities and discounts on goods. Many fans also keep tickets as collectibles – in the same way that Facebook puts your photo album online, NFTs can move your tickets from the sock drawer to the public blockchain.
With a number of obvious advantages, the biggest problem is that not all fans are on board with crypto. This factor eliminates a large part of potential buyers. However, the first market to implement ticket NFTs is crypto conferences. With the majority of these participants being crypto-natives, it is easier to use this new technology.
Why are NFT tickets better for artists?
NFTs are also beneficial for artists performing at events.
Some benefits may include:
- Perpetual royalties
- Bringing artists and fans closer together
- Additional tools
Artists currently have no easy way to earn from the resale of tickets, but the NFT allows artist royalties. NFTs can provide permanent, digital proof of attendance at an event. For some events, this ticket can be worth a lot of money in the future. Artists can also reach out to fans long after the night of the event, so the prospects for community building and increased artist profits are limitless.
Best NFT Ticket Marketplace
The most popular marketplace is OpenSea. Other options exist such as YellowHeart, Rarible, Nifty Gateway and LooksRare. Each marketplace caters to different needs and benefits for users. Some marketplaces are made specifically for the use of NFT tickets.
Where to create and sell NFT tickets
NFT tickets can be created on NFT platforms such as OpenSea, but some platforms specialize in this area. An example of this is Oveit. The platform allows users to create, create and sell tickets. Benefits include invite-only registrations, instant payments and global sales.
So, will NFTs revolutionize the ticketing industry?
NFTs are an innovative technology with the potential to change the ticketing industry. However, some see NFTs as a solution in search of a problem. Whether this is because NFTs are too early in a new technology or whether they have reached their maximum potential with art is yet to be determined. With the amount of talent joining the crypto and NFT space, it’s not time to discount NFT tickets just yet.
