NFT Ticketing: How NFT Tech Is Moving On From Digital Artwork

A bull case for SeatlabNFT

NFT-based ticketing can be one of the main driving forces of widespread crypto adoption over the next five years; the underlying tech is solid, and the benefits of using it in the real world are evident to those familiar with it. NFT event ticketing will be a giant leap forward from its legacy Web2 counterparts if implemented correctly. NFT ticketing platforms built on high-performance chains that can cope with the required throughput are strategically positioned to capture a large chunk of the event ticketing market, which is expected to be valued at $1,552.9 billion by 2028. The potential for expansion into transport ticketing and other related sectors is just the cherry on top of the cake.

Will this finally mean a Web3 business emerges that has the potential to generate revenue from day one?

The Problem

Let’s dive deeper into what gives NFT ticketing offerings a competitive advantage over Web2 platforms or, God forbid, physical-ticket box offices. Before botting NFT mints was cool, resellers were botting and scalping tickets for popular concerts and other events, costing the industry billions and directly hurting fans who have to pay massively marked-up prices to see their favourite artists.

Popular events sell out in minutes thanks to scalpers, touts and their bots buying up as many tickets as possible only to resell them on the secondary market at a profit. Fans are left with no choice but to pay over the odds, and artists and event organisers have their brand image damaged through no fault of their own.

The Solution

On the face of it, creating NFT tickets can initially look a lot like an FCFS NFT minting mechanism, but wouldn’t that perpetuate the issue? Thanks to features like royalty splits, price ceilings and non-transferable tokens, the answer is no.

NFT ticketing and its associated royalty fee component enable the limiting or complete removal of secondary sales, either by using “soulbound” NFTs (non-transferable tokens) or by disincentivising resales with high royalty fees, reducing the potential for profit. Can’t attend the event you bought a ticket for? No problem, a legitimate secondary market can be established for you to sell your ticket without hurting genuine fans. Another tool in the fight against ticket touting that NFT ticketing provides is the ability to set price ceilings to stop secondary resales from going above a specific price.

What’s stopping someone from reusing their NFT ticket over and over again to gain entry into a venue? Near-Field Communication (NFC) is one example of a technology that can help identify NFT tickets that someone has used to gain entry to an event. By binding an NFT ticket with an NFC tag to validate it, we can easily invalidate it by removing the tag too.

Secondly, NFTs cannot be faked or copied, making the whole experience safer for both the seller and the buyer. No more scam websites selling fake and invalid tickets, no more crafty teenagers sneaking into your event with a fake pass. With all the data securely accessible on the blockchain, verifying legitimate tickets is easy.

The final piece of the jigsaw involves fans and how they interact and engage with the events they attend. By tokenising tickets and issuing them as NFTs, we can improve the live event experience, making it more immersive and creating real value from the relationships between fans and the artists, sports stars or idols they admire. Imagine an artist minting an NFT live on stage, airdropping it to ticket holders in real-time, or attaching mystery NFTs to tickets revealed after the event to boost engagement while fans are still buzzing from the IRL experience. Ultimately these NFTs can be kept as souvenirs or resold on the open market as collectibles allowing fans to extract value from attending live events.

Of course, the widespread adoption of NFT tech in event ticketing will face challenges. Seed phrases, payment methods and general onboarding into the space are problems with few feasible solutions. Abstraction is necessary here, as the average attendee doesn’t have a clue about wallets and tokens, but is familiar with accounts and loyalty points for example. Thankfully, the process has already started, especially on NEAR, where creating a wallet is easy(er) and can be done with an email and a password, with no seed phrase required.

This is one of the core reasons why SeatlabNFT, an NFT ticketing platform, is based on NEAR, and it’s why we believe they are in an excellent strategic position to push the space forward towards true adoption. With their innovative $SEAT token that gives users real utility in the SeatlabNFT ecosystem and a top-notch UI and UX, it will appeal to both crypto enthusiasts and normies buying or selling their first NFT ticket. They are integrating a fiat on/off-ramp to make buying NFT tickets as streamlined as possible for everyone involved. The team has a wealth of experience working in the industry with the likes of FC Barcelona, the Manchester Arena in the UK, and many others. After launch, to increase awareness of their technology, SeatlabNFT will be offering grants in $SEAT tokens to help organisers with the upfront costs of running events contingent on them ticketing their event on the SeatlabNFT platform.

What’s Next?

On top of solving the real issues the ticketing industry faces today, building with NFTs allows for a whole host of additional product offerings. DeFi integrations (insurance, auctions) and NFT-based community interactions that are yet to be fully leveraged by traditional artists and entertainers will soon be possible, thanks to NFT and Web3 tech. As demonstrated by StepN, token incentives have been proven effective at getting your name out there. Attend-to-Earn anyone?

Buying and storing tickets doesn’t have to be stressful, prices don’t have to be inflated by scalpers, and there can be legitimate and safe ways to resell if you no longer want to attend without hurting the ticketing economy.

All this and more is the future, brought to you by SeatlabNFT and their NFT ticketing marketplace. Follow them on Twitter and Medium, or join their Telegram and Discord communities for more information.

Disclaimer: This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained here constitutes a solicitation, recommendation, endorsement or offer by Fugazi Labs or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

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