First things first. What is blockchain? What is an NFT? Blockchain is a complex concept, so it’s best to focus on the most relevant ticketing.
A blockchain is a database. In regular databases, there is one computer that holds a master copy of the data. In a blockchain, the database is shared across multiple computers interconnected in a network. Thus, various computers hold identical copies of data in a distributed way. Most blockchain systems are also decentralized, meaning that there is not one central entity with control and decision-making power.
Blockchains are best known for powering cryptocurrency (including Bitcoin and Etherium), but there are also blockchains in use in banking, healthcare, and many other industries.
NFT stands for Non-Fungible Token, and these are unique digital tokens that store information on a blockchain. Unlike cryptocurrencies which are mutually interchangeable (fungible), NFTs cannot be interchanged. NFTs can be used to represent physical items, people’s identities, or properties. As all NFTs are entirely different from all others, thus they are ideal for uses such as ticketing.
For more information on how blockchains and NFTs work, we recommend this and this page on Investopedia, respectively, and this graphic by Reuters.
The main advantage of using blockchain and NFTs for ticketing is that it enables event organizers to keep track of the tickets after they are sold. All tickets are securely linked to the purchaser, and these transactions and any others on the exact tickets are entered in the blockchain. Any further sale or transaction involving the tickets will also be listed in the blockchain. Keeping a shared database of all the transactions involving each ticket limits or even eliminates the possibility of scalping, uncontrolled price gouging, and fraudulent transactions.
There are other advantages to controlling the transactions through blockchain, including ensuring that ticket prices are kept fair, even when resold, and the opportunity to award royalty payments for each transaction to artists or event organizers.
NFTs build on these advantages by also potentially providing additional revenue streams in the form of transaction fees for used tickets as collectibles. NFTs can be produced quickly at low cost, which is not necessarily true of other uses of blockchains.
Blockchains are constantly evolving, and they have the potential to be part of ticketing and registration for all events. Currently, the advantages of using blockchain and NFTs are more relevant to some types of events.
Consider the following criteria to see if blockchain ticketing is a good fit for your event:
These criteria reflect that security and control are the most significant advantages for event professionals. They also reflect that music and sporting events can benefit from blockchain ticketing as ticket scalping and unregulated secondary markets are widespread issues.
Business events are not commonly plagued by issues like ticket scalping and unregulated secondary markets, so it’s easy to dismiss using blockchain technology for them.
Not so fast.
Blockchain and NFT technology offers immediate benefits to larger-scale events public with control issues, yet security is an area of increasing concern to event professionals. Tightly controlling access to business events has never been as crucial as now, with in-person taking place in many parts of the world under strict safety regulations.
It’s relatively easy to forge registrations or get access to discarded name badges. There is also commonly limited care in terms of identifying each participant entering business events. Ticketing and registration platforms offer varying identity checking and security features, but matching the ticket to the participant’s identity on-site is not always guaranteed.
While the issue confirming the identity of those attending business events may not be perceived as high risk, the impact of the wrong people accessing an event can be catastrophic. From sexual harassment to active shooter occurrences, blockchain-powered ticketing could give potential intelligence to avoid unwanted individuals gaining access. It’s important to note that blockchain and NFT technology are not the only way to do this; however, these technologies have security and control at their core.
