Non-Fungible Tokens have had a significant impact on the ticketing sector since their emergence, with NFT tickets, also known as NFT passes, offering numerous benefits. NFT passes could improve the way ticketing is done, increasing security and transparency, among other benefits.
This is because these passes are represented by NFTs, which exist on a blockchain. They differ from the traditional paper or modern digital tickets because each NFT pass is unique and verifiable, thanks to blockchain’s immutable nature.
That means they cannot be faked or replaced since each NFT pass is uniquely tied to a blockchain token.
In this article, we will discuss what NFT ticketing is, how it works, and how it is used. We will also talk about its benefits, challenges, and future. Read on.
NFT Ticketing Explained
To understand what NFT passes are, you first need to know what makes them different from traditional digital tickets. NFT tickets, though seem similar, are quite different due to the fact that they inherit blockchain’s properties.
This allows each pass to be unique and authentic, as cannot be copied or counterfeited. Hence, fraud using NFT passes is off the table.
NFT passes can also be used for ownership verification — something the traditional digital passes can’t do as they rely on centralized databases that can be accessed and manipulated by bad actors. Generally, NFT passes offer tamper-proof, decentralized ownership records that can be publicly verified.
There is also a difference when it comes to NFT resales. With traditional passes, issuers cannot control what happens on secondary markets, while NFT passes allow organizers to control pricing when passes are resold through smart contract settings, allowing them to earn royalties.
All of this, and more, enables NFT pass users to have a vastly enhanced experience and not have to worry about being sold a fake pass.
Each pass can be verified on the blockchain, and, as mentioned, they are issued via smart contracts, which can define rules, automate sales, offer additional perks, and even enforce royalties for resale, so that artists get to earn a percentage if someone buys them only to resell them.
How Do NFT Passes Work?
Creation Process
The creation process consists of several steps, which include the following:
- Designing — The process starts by deciding what the pass will look like, and the event for which it is made. Passes require information such as the type of event, date, time, and location — all the details that a future attendee needs to know. Other than that, you also need to come up with a design, which can be even a simple image.
- Selecting a blockchain — After designing the ticket, you need to pick a blockchain network where theNon-Fungible Tokens would run on. This has to be a chain that has smart contract support, such as Ethereum, Solana, Binance Smart Chain, Cardano, and alike. You also need to have a digital wallet, such as MetaMask or Trust Wallet.
- Pick an NFT platform — The third step requires you to choose an NFT minting platform, with the most common ones being OpenSea, Rarible, or Mintable. However, you can also go for smaller, specialized NFT platforms, like YellowHeart or GUTS passes.
- Create an NFT — The final step is the creation of the NFT itself. To perform it, you must upload the ticket design and add the metadata involving the event the passes will be associated with, such as name, location, and description, as well as any unique features, like VIP access. You will also need to define the supply, whether it is a single or multiple tickets. Lastly, you need to register it on the blockchain, which is a process that comes with a gas fee.
How Events Use NFT Passes
Various events use NFT passes for different things, which may depend on the type of event, while some use cases can be universal.
For example, most passes are used for accessing the event, where they are scanned at the entrance, and if they are legitimate, they allow you to attend the event. Think of them as NFT concert, NFT sports, festival, conference, or just NFT event passes, in general.
Apart from using them as literal NFT tickets for events, you can also use them as NFT access passes that let you access exclusive content and similar NFT ticketing benefits. That can include digital collectibles, behind-the-scenes content, or even discounts. This can be considered as enhanced fan engagement, which can also include meet-and-greets with artists, sports stars, and alike.
Next, a highly valuable use case for them is fraud prevention. NFTs as passes are immutable, thanks to blockchain’s immutability. That means that they cannot be changed or modified, and each of them is unique, meaning that you can consider them non-fungible passes. In other words, if anyone tries to make a counterfeit, it will immediately be discovered when scanning.
Another thing mentioned earlier is using NFTs for resale control, where the issuers get to set NFT ticket prices and receive a percentage of the money when the passes are resold. Finally, some people might want to own NFT passes as digital souvenirs.
Whether it is NFT concert passes, NFT marketplace passes, or some other NFT-based event entry, there could be value attached to these passes, so some collectors might consider them digital collectible passes.
Benefits of NFT Ticketing Over Traditional Methods
Security and Fraud Prevention
One of the biggest and most important benefits of using NFT solutions is for security and fraud prevention purposes.
Thanks to blockchain verification, immutable records, and the uniqueness of each NFT pass, it is impossible to create counterfeit passes and cheat your way into an event or special benefits that a ticket might offer.
A simple scan, whether through QR codes linked to blockchain or via wallet verification, provides real-time validation, and the organizers can see if the NFT is real, and even whether it has been used already. That way, they can prevent multiple entries using the same pass.
Transparency & Ownership
Another major benefit is the fact that Non-Fungible Tokens provide transparency that can eliminate scams that are often associated with other ticketing solutions, such as ticket reselling. That’s because NFT ticketing provides transparent ownership, meaning that buyers can see the ticket’s origin, who owns it, and even transaction history — all before they buy it.
Knowing this ensures that you will buy a genuine pass, and it helps you avoid counterfeits and fake copies. This is because NFTs cannot be forged or duplicated, making each pass traceable and unique.
Additional Revenue Streams for Creators
NFT passes have been a game-changer when it comes to creators earning royalties. This is thanks to smart contracts, which handle information about any sales or purchases involving the NFTs. Therefore, if the contract was created to set aside a percentage of every transfer and send it to the creator, they can earn whenever the passes are resold.
These royalties on secondary sales allow creators to continue earning from each transaction that their NFT goes through, and they can even select their royalty rate, such as 5%, 10%, 15%, and so on.
Exclusive Perks & Community Engagement
Lastly, the NFT ticketing system can also be used to provide additional exclusive perks to buyers and increase community engagement.
For example, those who hold an NFT pass that provides such benefits — potentially NFT VIP Tickets — can access special content, early access to the creators’ content, and other VIP privileges that most people don’t have access to.
Challenges & Risks of NFT Ticketing
Now, while NFT tokenized passes come with numerous benefits and perks, there are also certain risks and challenges associated with them.
The first one to consider is scalability and adoption barriers. So far, NFTs have not seen widespread adoption and scalability. This comes for a variety of reasons, such as regulatory issues, and the fact that they require an understanding of blockchain technology, at least at a basic level, since the user needs to understand how to create and use crypto wallets, and alike. Non-tech-savvy users can even struggle with buying NFT passes because of it.
Then, there are environmental concerns that come with blockchain usage. While the blockchain industry has been working on environmentally friendlier chains, the largest networks that are typically used for NFTs are still fairly big consumers of computational power and electricity. This is a hurdle that can be resolved in time, as more chains become eco-friendly or new major NFT networks emerge to take their place.
Lastly, regulatory and legal aspects are a big factor as NFTs and blockchains, in general, are still considered new and emerging technologies. They are still evolving, and as such, they are hard to regulate, especially since many governments are not even trying to do it as they believe this technology only benefits bad actors. Apart from understanding and recognizing NFTs for what they are and coming up with a legal classification, there are also tax implications, data privacy issues, and other matters that complicate the process.
Popular NFT Ticketing Companies & Platforms
With NFT ticketing gaining momentum, the issuers have started frequenting several major NFT-dedicated platforms.
One example is SeatLab — a platform that focuses on combating fraud through the use of NFT tickets. It is a blockchain-based platform that allows creators to set resale rules and offer additional perks, but one of its biggest advantages is the fact that it uses an eco-friendly blockchain, Solana.
Another example is YellowHeart, which operates as an NFT ticketing and music platform. Once again — thanks to blockchain technology, it eliminates counterfeiting, allows creators to offer increased fan engagement, and lets artists set up their own terms.
It is focused on sustainability, and it is known for collaborations with major artists, such as Kings of Leon. It is often used by creators setting up events, and it allows them to offer advanced VIP experiences.
Finally, there is GUTS Tickets — a platform that values secure ticketing and transparency. Like the others, it is a prime choice for creators who wish to set their own terms, such as royalties, limits on resale prices, and alike, thus ensuring fairness and protecting their communities from exploitation. It has a very user-friendly app, making it a great choice for beginners. It has been used for selling passes for various major events across Europe.
Real-World Case Studies
If you wish to learn about some real-life NFT ticketing examples, there have been many events that have sold passes in the form of Non-Fungible Tokens.
One of the prime examples is the Coachella Valley Music and Arts Festival that took place in 2022. With Coachella being one of the largest and best-known music festivals in the world, its organizers’ decision to venture into NFTs has been a big move for the industry.
Coachella created a collection called Coachella Keys Collection, which consisted of 10 unique NFT lifetime passes. Those who hold these keys now have lifetime festival access, for as long as they keep the NFTs in their possession. If they sell them, the rights will be passed on to the new buyer.
Other than that, Coachella also minted additional collectibles, such as various digital experiences and exclusive art.
Another example of a major, highly popular event is the NBA Games. Many have likely at least heard that the NBA was experimenting with NFTs, and yes, this includes NFT passes. The NBA team called The Golden State Warriors was the first professional sports team to create their own NFT collection, both for ticketing and collectibles.
They created a collection called Golden State Warriors Legacy NFT Collection, offering limited-edition NFT passes, but also commemorative ticket NFTs, which are meant to serve as memorabilia and collectibles.
Future of NFT Ticketing
As with any aspect of the crypto industry, it is difficult to make predictions for NFTs, as no one knows what will become a trend in the future. However, industry experts believe that NFTs will stick around and that they could see mainstream adoption thanks to major industries like sports, festivals, concerts, and conferences. They could fully switch to NFT ticketing for this system’s perks and benefits.
Other than that, NFT passes might yet evolve into something more interactable, while their royalty and resale models could become standardized and simply be adopted as a normal industry practice in a few short years.
NFT ticketing is also likely to see even greater interaction when it comes to virtual events, such as the ones held in the Metaverse, where virtual concerts and festivals are already being held regularly. They could be a virtual representation of real-world events for those who could not attend them, or they could be metaverse-exclusive, but in both cases, NFT ticketing is likely to be present.
In other words, NFT ticketing is already a big and ever-growing part of Web3, and it will likely only continue to evolve and expand in time.
How to Buy & Use NFT Passes
Finally, let’s talk about the actual steps you need to take if you wish to buy and use NFT passes.
Let’s start by describing the process of buying NFT passes. There are a few steps that you need to follow in order to get one of these passes for yourself, such as:
- Set up a crypto wallet: This is the first step because you need a place to store your NFT once you purchase it. The most popular wallets that support Non-Fungible Tokens include MetaMask, Trust Wallet, and Coinbase Wallet. Just remember to follow the guidelines on wallet use- and read up on how wallet addresses work.
- Select a marketplace: Your next step will be to pick a marketplace where you will buy NFT passes. Some of the most popular options include OpenSea, Rarible, SeatLab, YellowHeart, and GUTS Tickets, which we talked about previously.
- Buy cryptocurrency: Your next step will be to buy some cryptocurrency, which you will likely need in order to buy NFT passes. A lot of NFT marketplaces require you to use crypto such as Ethereum, Solana, Polygon, and alike, depending on the marketplace you choose, so make sure to check which cryptos are supported and/or required for your chosen marketplace.
- Buy your NFT Tickets: Armed with a wallet, a marketplace, and coins you can use on it, you can finally move on to buying your first NFT pass. You can browse available events, or if you are trying to get passes for a specific one, you can look it up through the search feature. Once you find it, there will be a Buy Now or Place a Bid option, depending on whether it is an auction or not, which you can click to take the next step, which is to pay the transaction fee and receive your NFT event passes.
As for how to use your NFT pass at an event, the process is quite simple, and here are the steps you can expect:
- Verification: After buying a pass, your first step is to verify it. Typically, event organizers will send an email containing instructions on what to do, but keep in mind that some events might also have dedicated apps where your pass will be linked automatically.
- Check-In: Once you arrive at the location of your event, you will have to check in using your NFT ticket. That can be done by showing your wallet or scanning a QR code, as most passes come with one, which is unique and can be verified on the blockchain. Either way, it is a very simple step, just remember to bring your mobile device with you.
- Redeeming exclusive perks: If you bought a VIP NFT ticket or if it grants you access to some specific perks, you can redeem them at the event. This will usually be explained by the event organizer, either via email or through the ticket-issuing platform itself.
- Claim benefits after the event: In some cases, NFT passes might entitle you to certain perks after the event. If that is included with the ticket you purchased, you could be entitled to photos from the event, behind-the-scenes footage, digital art, and alike. And, of course, the pass itself could still hold some value as collectible memorabilia, either for you or for collectors.
Final Thoughts
In this article, we have explored NFT passes and ticketing, including potential benefits and challenges along the way, as well as the potential future of NFT ticketing as a sector. We also covered the processes of creating NFTs, buying them, and even using them. At this point, you should have a clear idea of what NFT passes are, how they work, as well as why they are becoming a preferred method of selling passes among artists, event organizers, and similar entities.
No one can tell with certainty that NFTs are the future of such events, but every educated guess predicts that they will have a large role in them, and potentially become a standard and an adoption practice later down the road. So, if you are someone who likes attending concerts, sports events, conferences, festivals, and alike, now might be a perfect time to become familiar with this novelty.
It is also worth noting that you may have heard or read that the time of Non-Fungible Tokens is over and that the hype has passed, which is commonly claimed in the crypto industry. We have discussed this topic in a different article, and if you are wondering about that, click here to read more about it. Alternatively, if you are interested in learning more about different use cases of cryptocurrencies, you can explore the topic of governance tokens and why they matter here.