What are NFT tickets? Beginner’s guide
Most people associate NFTs with pixel art and monkey profile pictures. However, NFTs can also provide significant value in many other industries, such as event ticketing. Keep reading to find out what NFT tickets are and their potential to transform the ticket industry.
What Are NFT Tickets?
Unlike traditional digital tickets, NFT tickets exist on the blockchain as unique tokens that cannot be copied or duplicated. This makes it easier to audit with a transparent ownership history. Additionally, they can generally be bought, sold, or traded on NFT marketplaces.
Tokenized tickets not only grant access to specific events and experiences such as concerts, festivals and sports games, they can also offer special perks. For example, owners can access celebrity and athlete handshakes, backstage passes, or limited-edition merchandise.
How Do NFT Tickets Work?
The NFT ticketing process uses blockchain to create and manage event tickets. Each ticket is a unique digital token that cannot be forged. As such, NFT tickets are an effective fraud prevention tool, ensuring that only authorized individuals have access to virtual or physical events.
To create an NFT ticket, the promoter first designs a digital representation of the ticket. Once the ticket is ready, it will be minted on the blockchain. With Mint, unique data for each ticket is recorded on the blockchain. Once embossing is complete, the date associated with each NFT ticket cannot be changed.
The next step is to distribute the tickets to the fans. When the ticket holder comes to the event, simply scan the ticket to verify authenticity and enter.
Non-fungible token tickets are more secure and trustworthy than traditional tickets, as their ownership history is transparent and traceable.
NFT Ticketing Use Cases
NFT tickets have some interesting use cases. Let’s take a look at some of the most promising.
Tickets to famous events have become coveted collectibles, some selling for hundreds of thousands of dollars. For example, an unused ticket to Michael Jordan’s NBA opener sold for $468,000.
The ticket industry is now full of scammers. Many scammers sell fake tickets, while others simply buy tickets in bulk and resell them at a higher price. This is primarily due to the opaque ownership history of traditional tickets.
NFT ticketing allows issuers to track each ticket exchanged from one wallet to another. This allows issuers to take steps to curb mass scalping and excessive trading. For example, an issuer can set a rule in his NFT ticket smart contract to deactivate a single wallet that trades more than 10 tickets.
Metaverse events are becoming more and more common. For example, Travis Scott’s virtual concert in 2020 was watched by 27 million people, making it the largest concert ever. Such events could greatly benefit from NFT ticket sales in the future to provide exclusive access or discounts.
Pros and Cons of NFT Tickets
NFT tickets come with a unique set of advantages and disadvantages.
- In comparison to traditional tickets, NFT tickets are more secure and transparent.
- NFT tickets offer new revenue streams for event organizers, sports clubs, and artists.
- NFT tickets can be securely traded on online marketplaces.
- There are lower chances for an NFT ticket to get stolen or damaged compared to traditional tickets.
- NFT tickets may be inaccessible to those unfamiliar with blockchain technology.
- Market volatility may cause the prices of NFT tickets to fluctuate
- Users have to pay gas fees when trading NFT tickets which may add to their costs.
NFT ticketing is arguably one of the most promising NFT use cases, which has already been tried and tested in numerous ways. Should the adoption of NFT technology continue to grow, NFT tickets could become one of the most used types of utility NFTs in the market.