NFTs have already had a significant impact on the art, brand promotion, and gaming industries, but the next best use case may come from the ticketing industry. The notion of nonfungible tokens (NFT) initially emerged in 2015, and it gained pace in 2017 with the creation of many renowned digital collectibles such as CryptoPunks and EtherRock.
NFTs gained acceptance among major sports clubs early on but gained general traction once digital artist Beeple’s artwork was sold as an NFT for more than $69 million( R 1.071bn). The Beeple event drew worldwide notice and proved to be a watershed moment for the NFT ecosystem.
Most major household companies, premium sports and clothing labels, celebrities, sports players, and influencers have now joined the NFT frenzy. While many predicted that the industry’s hype and frenzy would be the cause of its demise, the NFT ecosystem has grown rapidly beyond the digital collection market.
Gaming is another prominent area that NFTs have considerably influenced, with play-to-earn (P2E) and integrated NFT rewards becoming popular in 2021. Games like Axie Infinity have become a source of income for many people in Vietnam, and market analysts believe that within the next ten years, the bulk of video games will have shifted to P2E models.
While digital collectibles and the gaming sector have become two of the most well-known use cases of NFTs, there are a number of other industries where the use of nonfungible tokens is growing. One noteworthy example is the ticketing sector, which is planning a transformation by incorporating NFTs.
The Impact of NFTs on the Ticketing Market
While the ticketing industry has become more computerized in recent years, thanks to the pandemic, it remains extremely centralized, which aids in the emergence of secondary and underground markets.
In today’s environment, hoarders buy tickets to any major concert or event early and then sell them at an exorbitant price on these marketplaces, a practice known as “scalping.”
Many times, scalpers may sell bogus tickets, leaving customers with no means to authenticate authenticity before purchasing.
NFTs provide proof of validity by storing data on a blockchain. The same approach may be used to confirm not only the authenticity of the ticket but also that it is being sold by a reputable organization by putting it on a blockchain.
These NFT tickers may also be able to enter the secondary ticketing market.
For a long time, event organizers, venues, and artists had little access to the secondary market. It affects both fans who are dissatisfied with exorbitant costs and artists who are tormented by an unhappy fanbase because it is unregulated and speculative.
This issue could be solved with NFT ticketing. Smart contracts can be created by artists and event organizers to govern the resale of their tickets.
NFT benefits might range from resale royalties to limiting the upper or lower pricing limit to including all kinds of utility add-ons in the NFT. NFT tickets bring the community considerably closer to the artist or sports team. This implies they have a greater say in the decisions made by their favourite artists or teams.
NFT tickets provide far more than just access. It’s a collectible, but it may also be used as a treat bag with various perks. It might be a wallet that securely stores monetary worth. You can provide entry to certain regions of an event or award a t-shirt, a burger, a signed poster, or $100 ( R 1553) in concert venue sales.
NFTs are bridging the gap across distinct experience markets. The same NFT can be used to gain entrance to a performance, but it can also be the key to your hotel stay, a visit to a neighbouring theme park, or even the key to your next rental car.
According to Mike Dragan, chief operating officer of NFT ticketing platform Oveit, NFT tickets are already in high demand, with a market value that can exceed hundreds of billions of dollars:
“According to our statistics, 18% of ticketed events use or are considering employing NFTs to improve the fan experience.” This figure has increased from 2% in July 2021. We expect the number to grow even more in the coming year as the technology matures and crypto wallets become more widespread.
We anticipate that the NFT ticketing market will account for 25% of the overall ticketing market by 2017 (roughly $18.5 billion) R 287bn in the live events industry alone. We anticipate a comparable level of acceptance in the tourist and hospitality industries, but on a longer time period.”
What does the future of NFT ticketing look like?
Many NFT ticketing market founders and producers acknowledged that the buzz surrounding NFTs among major brands has undoubtedly helped the ticketing industry attract more organizers. Because NFT ticketing is still a new technology, there is plenty of room for expansion. With a projected market volume of $94.27 billion( R 1.5tn) by 2026, the ceiling for the right solution is as high as the sector itself.
Despite its rapid expansion, the NFT ticketing market is not without its obstacles. Colby Mort of Get Protocol, an NFT ticketing service, said that while clients’ interest in researching NFTs is quite high, the technical barrier remains a challenge:
“The accessibility barrier into the realm for mainstream audiences has always been a challenge for NFTs.” There is a tremendous requirement for a nice user experience and instruction to provide a warm entrance into the space. We feel that NFT ticketing is a Web2.5 step between mainstream consumers and Web3 audiences.”
According to Charlie Gardiner, content manager at Seatlab NFT, NFT tickets have the potential to throw big players. He stated: “Ultimately, NFT ticketing platforms have the ability to dethrone the industry’s large players as long as the process of purchasing and selling tickets on an NFT marketplace is frictionless.” We’re creating a future that, on the surface, works similarly to current offerings but fundamentally improves the experience for fans, increases revenue for artists, and reins in the wildly out of control secondary ticketing market by integrating fiat on- and off-ramps and focusing on user experience.”
Mainstream brands are realizing the importance of NFT technology and that it is not a passing fad. The utilization of NFTs in the event ticketing industry necessitates educating brands on how the underlying technology can be used for more than just digital collectibles. They already have some trust and understanding of NFT technology, therefore the future of NFT ticketing appears to be the next best use case.