how NFTs are reshaping the ticketing industry

The concept of non-fungible tokens (NFTs) emerged in 2015 and first gained prominence in 2017 when many prominent digital collectibles such as CryptoPunks and EtherRock were created.

NFTs gained early traction with major sports clubs, but became popular after digital artist Beeple’s artworks sold as NFTs for more than $69 million. The Beeple event caught the world’s attention and proved to be a disruptive move for the NFT ecosystem.

today, Most of the major private labels, premium sports and apparel brands, celebrities, sports stars and influencers have gotten themselves caught up in the NFT craze. While many believed that the hype and frenzy surrounding the market would become the cause of its demise, the NFT ecosystem has seen rapid expansion beyond the digital collectibles market.

how NFTs are reshaping the ticketing industry
how NFTs are reshaping the ticketing industry

Gaming is another key industry where NFTs have had a significant impact, with play-to-earn (P2E) and integrated NFT rewards trending in 2021. Games like Axie Infinity have become a source of livelihood for many in Vietnam, and market experts have predicted that within 10 years most video games will turn to P2E models.

While digital collectibles and the gaming industry have become two of the most prominent use cases for NFTs, there are several other industries where the use of non-fungible tokens is growing. In a prominent example, the ticketing industry is considering an overhaul through the integration of NFT.

How NFTs shape the ticket market

Although the ticketing market has become quite digitized in recent years, aided by the pandemic, it is highly centralized, favoring the growth of secondary and underground markets.

Today, hoarders buy tickets to any concert or major event in advance, which they then sell in these markets at an inflated price, in a practice known as “scalping.”

Many times, Scalpers even sell fakes without customers being able to confirm the authenticity of the tickets before buying them.

NFTs provide proof of authenticity as they store data on a blockchain. The same mechanism can be applied by putting the tickets on a blockchain that not only guarantees the authenticity of the ticket but also whether it is being sold by a legitimate promoter.

These NFT tickets also have the potential to open up the secondary market for tickets.

For a long time, the secondary market was largely inaccessible to organisers, venues and artists. Being unregulated and speculative, it affects both fans frustrated by high prices and artists besieged by a disgruntled fan base.

With NFT ticketing, this problem could go away. Artists and promoters can create smart contracts that govern the resale of their tickets.

The benefits of NFTs can range from copyrights on resale, to setting an upper or lower price limit, to including all kinds of utility add-ons in NFTs. With NFT tickets, the community gets much closer to the artist or the sports team. That means they play a bigger role in the decisions of their favorite artists or teams.

NFT records go well beyond access. They are a collector’s item but can also be a gift bag for all sorts of benefits. It can be a wallet that securely stores monetary value. You can grant access to specific areas of an event or reward with a t-shirt, hamburger, autographed poster, or $100 worth of purchases at the venue.

NFTs bridge the gap between markets for separate experiences. The same NFTs can be used to gain access to a concert, as a key to your stay at a hotel, to a nearby amusement park, and even as a key to your rental car on your next trip.

Mike Dragan, COO of the NFT Oveit ticket market, told Cointelegraph that NFT tickets are already in high demand, with a market value that can exceed hundreds of billions of dollars:

“According to our data, 18% of ticketed events are using or considering using NFTs to improve their fan experience. This number is up from just 2% in July 2021. We expect the number to continue growing over the next year as technology is implemented and crypto wallets become more popular. We project that by 2017 the NFT ticketing market will reach 25% of the total ticketing market, approximately $18.5 billion in the live events industry alone. We expect a similar level of adoption, albeit over a longer period of time, in the hospitality and tourism industry.”

What does the future of NFT ticketing look like?

Many founders and makers in the NFT ticketing market agreed that the craze for NFTs among the big brands has definitely helped the ticketing market attract more promoters. NFT ticketing is still an emerging technology, so there’s plenty of room for growth. To find the right solution, the ceiling is as high as the industry itself, with a projected market size of $94.27 billion by 2026.

Despite a rapid growth rate, the NFT ticketing industry also faces certain challenges along the way. Colby Mort of Get Protocol, an NFT ticketing solution, told Cointelegraph that customer interest in exploring NFTs is incredibly high, but the technological barrier remains a challenge:

“The challenge that has always existed for NFTs is the barrier to entry into space for mainstream audiences. There is a great need for a warm introduction to space through user-friendly experiences and guidance. We believe NFT ticketing represents a Web2.5 step between core audience and Web3.”

Charlie Gardiner, Content Manager for Seatlab NFT, believes NFT tickets have the potential to attract big players. He told Cointelegraph:

“Ultimately, NFT ticketing platforms have the potential to oust the big players in this industry as long as the process of buying and selling tickets on an NFT marketplace is smooth. By integrating fiat on and off ramps and focusing on the user experience, we are creating a future that, on the surface, functions similarly to today’s offerings, but fundamentally improves the fan experience, increases artist revenue, and controls the secondary ticketing market except Control”.

Big brands are beginning to understand the value of NFT technology and that it’s not just a fad. Using NFTs in event ticketing requires educating brands on how to leverage the underlying technology for more than just digital collectibles. They already have a certain level of trust and understanding of NFT technology and so the future of NFT ticketing seems like the next best use case.

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