The event industry is increasingly confronted with fraudsters and the black market. More and more fake tickets end up on the market, both online and offline. With the introduction of NFT tickets through blockchain technology, fraud must now be brought to an end. But how do blockchain-based tickets work? What advantages and disadvantages do they bring?
More security when buying tickets through NFTs
Increasingly, tickets for events such as concerts and football matches are sold unofficially in bulk. These are usually illegal and overpriced tickets. Often people buy tickets at regular price and sell them at a higher price when the event is sold out. Profiting from resale in such cases is considered fraud. In addition, tickets are often counterfeited and sold to unwitting buyers on secondary and black markets. The price is kept low so that potential buyers do not become suspicious. Caution is therefore always required, as the black market is often indistinguishable from other markets.
NFTs (Non-Fungible Tokens) are represented in a blockchain. A blockchain is composed of interconnected data sets that appear in the form of blocks. Each block is linked to the previous one. Data consistency ensures a high level of security and it is impossible to make data changes retroactively. If one block is changed, the domino effect occurs and all the blocks in the chain are gradually changed.
So-called smart contracts are also the basis of NFTs. They enable a quick authenticity check of the NFT tickets. It is only possible for the organizer to create tickets. Buyers are able to verify authenticity at any time. Thus, non-fungible tokens offer 100% security against counterfeiting. Only a regulated infrastructure with a small effort is a prerequisite for the introduction of the NFT tickets.
What are the benefits?
The biggest advantage is the fact that NFT tickets eliminate the black market for fraud. Real-time verification would not only be a relief to interested parties but also to organizers. Blockchain technology eliminates gaps in the procedure. In addition, so-called royalties enable the organizers to earn money on secondary markets. You get a percentage on every resale.
Another special benefit is the reuse of NFT tickets. NFTs are flexible in their shape, meaning they can be designed however you want after the event. The ticket can, for example, reflect the meeting with an artist. Due to special highlights, the tickets may also increase in value in the longer term. There are therefore no limits to creative development.
Disadvantages of NFT tickets
Of course, there are also some disadvantages behind non-fungible tokens. First, there is a technical hurdle to overcome. People who are not tech savvy face a challenge here. An in-depth study of blockchain technology is therefore essential. A wallet is also required to use the tickets. However, this can be simplified by the organizers developing simple apps.
Blockchain technology is taking up more and more space today and will continue to play a bigger role in the future. This has meant that you can find more and more tutorials and help on the internet – for example on YouTube, Instagram & Co – that make it easier to get started.
As much as digitization has created new opportunities for fraud, it is also more powerful in solving these problems. NFT tickets ensure 100% security and are a good solution to make counterfeits disappear from the black market. Nor do they lose value after the events. The only drawback is the technical complexity. Here, too, it can be said that the world is becoming more and more digital, and the technical obstacles are therefore smaller. Therefore, it is only an advantage to deal with the blockchain technology now. It will definitely dominate some areas of life in the future and bring many opportunities with it.
Maximilian Schmidt is CEO of CPI Technologies. Among other things, the company is developing an NFT-based digital identity and has already completed some preliminary developments regarding NFT tickets. https://cpitech.io/de/
NFT Tickets: New Opportunities for Counterfeit Proof Tickets Using Blockchain?
Statements by the author and the interview partner do not necessarily reflect the opinion of the editors and publisher