The concept of non-fungible tokens (NFTs) originated in 2015, and it started gaining traction in 2017 when many prominent digital collectibles such as CryptoPunks and EtherRock were created.
NFTs quickly caught the attention of top-tier sports clubs, but gained popularity after digital artist Beeple’s artwork sold as NFTs for over $69 million. The Beeple event caught the world’s attention and proved to be a breakout move for the NFT ecosystem.
Today, most mainstream brands, high-end sports and apparel brands, celebrities, sports stars, and influencers have gotten involved in the NFT frenzy. While many thought the hype and frenzy around the market would become the cause of its downfall, the NFT ecosystem has seen rapid expansion beyond the digital collectibles market.
Gaming is another key industry where NFTs have had quite a significant impact, with play-to-earn (P2E) and embedded NFT rewards all the rage in 2021. Games such as Axie Infinity have become a source of revenue for many people in Vietnam, and market experts have predicted that within 10 years, the majority of video games will have shifted to P2E models.
While digital collectibles and the gaming industry have become two of the most well-known use cases for NFTs, there are several other industries where the use of non-fungible tokens is on the rise. In a striking example, the ticketing industry is considering an overhaul by integrating NFTs.
Recent: Georgia Cryptocurrency Mining Potential: What’s Driving Industry Growth?
How NFTs are shaping the ticketing market
While the ticketing market has become sufficiently digital in recent years, aided by the pandemic, it is highly centralized, contributing to the growth of secondary and underground markets.
In today’s world, tickets for any concert or major event are purchased early by hoarders who are then sold at an inflated price in these markets in a practice known as “scalping”.
On many occasions, resellers even sell counterfeits, with customers having no way of confirming the authenticity of tickets before buying.
NFTs offer proof of authenticity because they store data on a blockchain. The same mechanism can be applied by putting the tickets on a blockchain, which would guarantee not only the authenticity of the ticket but also whether it was sold by a legitimate organizer.
These NFT tickers also have the potential to tap into the secondary ticketing market.
For a long time, the secondary market has been mostly inaccessible to event planners, venues and artists. Unregulated and speculative, it affects both fans frustrated by high prices and artists struggling with a disgruntled fanbase.
With NFT ticketing, this problem could disappear. Artists and event organizers can create smart contracts that govern the resale of their tickets.
The benefits of the NFT can range from royalties from resales, limiting the upper or lower price limit, to packing all sorts of utility add-ons into the NFT. With NFT tickets, the community gets much closer to the artist or sports team. This means they have a bigger role in the decisions of their favorite artists or teams.
NFT tickets go far beyond access. It’s a collector’s item but can also be a goodie bag for all sorts of benefits. It can be a wallet that holds monetary value securely. You can grant access to specific areas of an event or award a t-shirt, burger, autographed poster, or $100 in purchases in the concert hall.
NFTs bridge the gap between distinct experience markets. The same NFT can be used to hold access to a concert but also be the key to your hotel stay, visit a nearby theme park, and even the key to your rental car on your next trip.
Mike Dragan, COO of NFT ticketing marketplace Oveit, told Cointelegraph that NFT tickets are already in high demand, with a market value that could exceed hundreds of billions of dollars:
“Based on our data, 18% of paid events are using or considering using NFTs as a way to enhance their fan experience. This number is up from just 2% in July 2021. We expect expecting the number to grow even more in the coming year as the technology is deployed and crypto wallets become more and more popular.We expect the NFT ticketing market to reach 25% of the market total ticketing by 2017, or approximately $18.5 billion, in the live events industry alone We expect a similar level of adoption, albeit over a longer timescale in the tourism and hospitality industry.
What is the future of NFT ticketing?
Many founders and creators of the NFT ticketing market agreed that the frenzy around NFTs among mainstream brands has certainly helped the ticketing market attract more organizers. NFT ticketing is still an emerging technology, so there is plenty of room to grow. For the right solution, the ceiling is as high as the industry itself, with a projected market volume of $94.27 billion by 2026.
Despite a rapid growth rate, the NFT ticketing industry also faces some challenges along the way. Colby Mort of Get Protocol, an NFT ticketing solution, told Cointelegraph that interest in mining customer NFTs is incredibly high, but the technology barrier remains a challenge:
“The challenge that has always existed for NFTs is the accessibility barrier in the space for the general public. There is a strong need for a warm introduction to the space through customer-friendly experiences and guidance. We believe that NFT ticketing represents a Web2.5 step between mainstream and Web3.
Recent: Quantum Computing to Run Economic Models on Crypto Adoption
Charlie Gardiner, head of content at Seatlab NFT, thinks NFT tickets have the potential to launch big players. He told Cointelegraph:
“Ultimately, as long as the process of buying and selling tickets in an NFT marketplace is frictionless, NFT ticketing platforms have the potential to dethrone the big players in this industry. By integrating fiat on and off ramps and focusing on the user experience, we are creating a future that on the surface works the same as current offerings, but fundamentally improves the fan experience, increases artists’ incomes and curbs the madness. beyond the control of the secondary ticketing market.
Consumer brands are beginning to understand the value of NFT technology and that it’s not a passing fad. Using NFTs in the event ticketing space requires educating brands on how they can use the underlying technology for more than just digital collectibles. They already have a certain degree of confidence and understanding in NFT technology, and therefore the future of NFT ticketing seems like the next best use case.