What is an NFTicket?
Looking at use among an early NFTicket mover, the entertainment industry, in this article we answer key questions like ‘What is an NFTicket?’ and ‘How do NFTickets work?’, while exploring core aspects of the NFTicket concept.
Non-Fungible Tokens (NFTs) have stormed an unsuspecting world over the last couple of years, with a slew of industries exploring the use cases of these digital assets.
As part of this wave of mass adoption, the NFTicket concept – Non-Fungible Ticket – has emerged as an ingenious way for those quick on the draw to create new revenue streams and provide more secure, authentic or memorable experiences for their customers.
As evidenced by the list of early adopters of NFTicket tech, which spans a wide breadth of industries (entertainment, sports, mobility, tourism and travel, gaming, health, gambling security…there are many).
Unique window of opening
With corporations pivoting post-COVID to pitch heightened authenticity, autonomy and safe and respectful customer engagement, the NFTticket looks set to play a role. This is because each NFTicket has uniqueness built into its being, serving the user a one-of-a-kind that’s not interchangeable for an identical item. Unlike traditional, fungible tickets or similar types of products.
In the entertainment industry, an early mover in the use of NFT ticketing, issuing customers with an NFTicket instead of a regular ticket has already led to a greater overall feeling among customers of engagement and trust, while spurring a sense of ownership and involvement in the offering issued and presented to them. At the core of this increased customer engagement and satisfaction are the opportunities afforded by the NFTicket tech.
Due to their non-fungibility and tie to the blockchain, the NFTicket can be smoothly bought, sold, and traded on marketplaces. Or even used to gain access to the concert, game or event they represent, then sold as a commemorative item afterwards A collectable that won’t fade with time or get lost behind the couch.
This heightened sense of customer involvement made possible by the advent of the NFT ticketing concept also opens further avenues along this path, as a given NFTicket can include additional features like VIP perks or exclusive experiences. Meaning multiple tiers of uniqueness can be offered the holder (or trader, collector and presumably, investor).
What is an NFTicket?
Put simply, an ‘NFTicket’ is an individual digital asset that is stored on the blockchain, making it unique and 100% verifiable and trackable. Because the ticket and its specific credentials are recorded on a blockchain, this NFTicket cannot be replicated or counterfeited (barring the hijacking or collapse of the supporting blockchain).
Coming back to our entertainment industry example, this ensures that only the person who holds the NFTicket will be able to gain entry to a given event. Their NFT tickets are also digital collectibles in themselves and can be turned into more three-dimensional products. Owners can be gifted special digital collectibles like set lists or exclusive access to new songs or videos. You can even use your NFT ticket as any old NFT, displaying it as your PFP, sharing your event attendee credentials across social media to show off your goo fortune.
The tech is in place
The NFTicket is basically the next logical step and a central use case to the non-fungible token itself, acting as type of NFT that represents a ticket, admission or confirmation for a specific occurrence. While this may well be a concert, sports game, or theater performance, it can just as easily be used when accessing an easy-toll highway, gambling in Vegas, registering a deed, playing the lottery, or signing off on a shipment of medical supplies.
Similar to the way in which the underlying tech of cryptocurrency — the blockchain — has given rise to a myriad of use cases, spinoffs and spillover industries, the NFTicket may well come to underpin a sprawling and diverse range of use cases and niches.
NFT industry growth
While popular NFT prices saw a decline in late 2022 alongside the crypto market, the tech is here to stay. The global NFT market size is expected to put on at least another 50% in 2023 (growing from the US$21.5 seen in 2022 to $32.9 billion by year’s end) and not expected to slow down thereafter (MarketResearch.com has the most thorough forecasts for this five-year period, while useful shorter term charting can be availed of here).
This indicates that the use of NFTs are still growing at an unprecedented pace, and the space will remain a lucrative new realm of engagement for sellers, advertisers, producers, and consumers at least in the mid-term.
But it should be noted that growth of the NFT space is not necessary for the NFTicket to soar – blockchain adoption saw historic levels in late 2022/early 2023 while the original reason for this tech, Bitcoin, suffered a sharp decline in value and devs remained as loath to do any work involving the clunky Bitcoin network. However, the advance of the NFT ecosystem is also surely not a bad thing for those eager to quickly see how the NFTicket will be utilized at scale. A rising tide lifts all boats, etc.
How do NFTickets work?
Being stored on a blockchain, each NFTicket occupies its own particular notch in this digital ledger recording transactions in a secure and transparent way. When a ticket is created, a unique digital code is generated that represents that, and only that, specific ticket.
This code is then stored on the blockchain, and once it has become a link in the chain, cannot be replicated or altered. As a result, the ticket is fully verifiable and does not need any other power to acknowledge, approve, display or otherwise interact with it in order to assure its veracity.
This puts the NFTicket far from any type of frivolous or unuseful purpose seen in many NFTs, engineered as it is to save time and costs. But most importantly it saves effort. On all sides. Administrative and personnel power for the supplier and the various timespends traditionally associated with a user’s interaction with their ticket.
The NFTicket thus serves as the ultimate jeton or access token, enabling all-round ease, and ensuing that the organizer of the event or the collector of the tolls can rest assured that only the person who holds it will be use the service provided.
Then later, that same NFT ticket bought for the big show can be resold, traded and bought back again on blockchain-based marketplaces. This not only empowers the holder, it has the potential to be a lucrative source or recurring revenue for the issuer, while allowing for a more efficient and transparent ticket resale market — within and an ecosystem that continues to engage clients long after the first point of contact.
This is particularly useful for popular events that tend to sell out quickly, as it gives fans more opportunities to purchase tickets and cuts into the bottom line of would-be touts. The particular perks built into a given NFT ticket can also be monetized in a way that stimulates recurring revenue and continued user engagement past the event.
Examples of special NFTicket features
For example, your NFTticket might include additional features like VIP perks or a backstage tour, lounge access or special seating, but also exclusive experiences that take place after the original event. Or even at regular intervals once the event is done..
Linking fans for online meet-and-greet with the band that take place over the course of the year following the event, with fan clubs formed by holders of those specific NFT tickets and meetup structured around the date where the band members will drop by or anniversaries of the event that bought them altogether the first place.
For the entertainment industry, but also far removed, in routine corporate life and beyond, at conferences, courses and learning generally, the NFTicket paves the way for intimacy, belonging/loyalty, and engagement on a level that has not previously been an option.
The benefits of using an NFTicket
In short, deploying an NFTicket lowers friction and increases security, while spurring use (alongside short-, medium- and longer-term growth). Within the entertainment industry example we’ve been using, one of the key ways in which lowered friction and growth manifests is the facilitation of a more efficient and transparent ticket resale market.
As regards short-term use and growth side, this comes for such an NFT ticket through their enabling of entertainment admits to more easily include additional features like VIP perks or exclusive experiences, opening up new revenue streams for event organizers. These additional features can make NFT tickets more valuable and desirable to buyers. As a result, event organizers can increase the revenue per ticket sold and also increase the engagement with their audience.
100% verifiable + 100% immutable = effortlessly secure
The increased security provided by using NFT ticketing instead of regular event ticketing will also help eliminate fraud and scalping, as each individual NFT ticket is unique and verifiable, meaning would-be counterfeiters are unable to replicate this ticket.
The use of blockchain technology allows for a more efficient and transparent ticket resale market, as it eliminates the need for intermediaries and allows buyers and sellers to interact directly. This bolstered secondary marketplace is also a good standalone example of how deploying an NFTicket can mean less friction, more security, and higher growth.
NFTicket use cases so far
Several events and organizations have already embedded the power of NFT ticketing into their offering, providing their audience with more secure and memorable experiences. For example, the NBA’s Sacramento Kings became the first professional sports team to sell game tickets as NFTs. The Kings offered basketball fans the opportunity to purchase NFTs that included exclusive experiences, such as pre-game courtside seats and post-game meet-and-greets with players.
The NFTicket is quickly becoming the new gold standard across several industries where your ability to provide enhanced digitalization of products, guarantee security, and keep up with younger demographics either makes or breaks you.
As the technology and market continue to evolve, we can expect to see more and more creative use cases for NFTickets and a growing number of industries that are impacted by this disruptive technology.
‘NFTicket’ offerings or marketing by companies or projects include:
- Viberate music data analytics providers has launched a product called ‘NFTicket’ which allows musicians to sell concert tickets as NFTs.
- Emojicoin has launched an NFTicket platform for music events.
- Arianee, the self-proclaimed “leading NFT platform for the luxury and fashion industries” has also launched an NFTicket platform for events.
- The famed Coachella Festival has been offering access to an exclusive area of the festival known as the ‘NFTicket Holder Lounge’ boasting VIP service and perks.
Gaming, Tech & Gambling
- Sandbox’s NFTicket offers players of the popular blockchain-based gaming platform access to special in-game experiences and items.
- The 2022 ETHOnline-selected ‘NFTicket’ project pitches itself as a solution that allows decentalized control over sports ticketing.
- NFTicket Finance (NFTicket.Finance) is set out as an unbiased, autonomous lottery system, which introduces round eliminations and a secondary market to sell active tickets at higher prices.
- Fantasy sports game Sorare has launched a competing NFTicket platform for sports events.
- The fan token platform Socios has launched their ‘NFTicket’ for sports events, which allows fans to buy a fan token that also serves as an NFTicket.
- The aforementioned Kings sports nftickets allow fans to purchase unique, limited-edition digital assets that represent their favorite teams and players.
- Less tech-driven industries are a little behind the curve on NFTicket uptake, but there are already being pushed by numerous players in transport, hospitality, tourism and travel, health, and communications.
How will the NFTicket concept develop?
The NFTicket market is still in its early stages, but it has the potential to disrupt many different industries. While for the sake of illustrative purposes we have focused on what NFT ticketing is doing in the entertainment industry, and while this is indeed a frontrunner on adoption, it is only one of the multiple sectors that have already made moves.
And with slower moving industries gradually seeing how the NFTicket can alter their offering, it is possible that ten years from now the most prominent NFTicket we encounter in our daily lives is right now but a blip on the radar.
The NFTicket concept is out of the box, but we are still exploring how, where, by whom and even when it will be optimally used. The finish line is not yet settled. In fact, the start isn’t even settled yet – we are still sorting out who the competitors are, who has already achieved an early advantage and what the race is likely to look like.
And why is this race worth running?
Well, the tech..
The NFTicket concept is revolutionary, changing the way we think about tickets, access and frictionless transfer or exchange. That’s the whole point here, a new pocket of opportunity has been opened by the NFTs and its NFTicket offspring. And firms and individuals alike are at this moment discovering ways they can use this new avenue to bring added value that could otherwise not be explored.
To ultimately produce value that couldn’t exist before, underpinned by tech from an industry that was not around.