NFT Tickets are the Future of Live Music
Let’s explore the state of the NFT ticket market, and what it will take for this burgeoning technology to become commonplace.
The evolution of the internet is changing our physical world affecting the music industry, gaming industry, and even the working environment. Concert and festival goers have been storing their event tickets on their phones for the better part of the decade. Ticketing has transitioned from paper to PDF and in the age of digital credentials shaking up the live-event ecosystem via NFTs.
We must note that digital art and avatar NFTs are not the only use cases for NFTs. They can be used in many more ways, and nonfungible ticketing is an example of it. First introduced years before Bored Apes sent the creative world into a tizzy — tokenized concert and festival passes have remained an exciting yet underdeveloped facet of the NFT market. NFT ticketing is a contender in the race for real-world NFT utility.
What is NFT Ticketing?
NFT tickets are tickets in form of an NFT residing on a blockchain and act as entry passes for any dwell (and even digital) occasion. NFT tickets are different from their QR code-based counterparts by using the blockchain factor.
NFT ticket holders can profit in a number of methods. Ticket issuers can use the blockchain to keep a more detailed record of attendance numbers. They can also interact with ticket holders via NFTs in a new and innovative manner.
Issuers can send notices, host shock giveaways, and create token-gated websites and services by just collecting information about the holders of a selected NFT ticket.
Note that NFT ticket holders don’t simply receive a ticket to an event, but an immutable and sometimes interactive digital asset that grants their entry into a show or festival. These tickets allow holders to access exclusive experiences, together with fan golf equipment made up solely of holders of comparable NFT tickets.
Think about a parallel between PFP NFTs and NFT tickets. PFPs are available at various levels of rarity; they act as member passes to a variety of communities, convey an NFT collector’s special status, and can accrue value over time. But, PFPs are designed to be used by crypto and NFT enthusiasts. However, they often come with the caveat about their association with price speculation and financial gain/loss.
NFT tickets, alternatively, are a new addition to the current and sturdy community of live shows, festivals, conferences, and different live events. Think about tickets to a metaverse event, where offers abound.
Who Uses NFT Ticketing?
NFT ticketing has been around as an idea for years but blockchain-powered occasions gained notoriety in 2021 and 2022. And if we look at NFT history, the will to create tokenized experiences has persisted despite cases where the technology and know-how hadn’t reached maturity.
In 2018, celebrity producer/DJ and blockchain music pioneer 3LAU got down to assist lay the groundwork for blockchain-powered occasions together with his single-day live concert, Our Music Competition.
Nonetheless, the pageant itself didn’t implement NFT ticketing for attendees — which doubtless would’ve been troublesome anyhow, contemplating the shortage of publicity to NFTs and software program wallets on the time. So 3LAU and his team created a tokenized event that allowed festival-goers to accumulate tokens that could be reimplemented for real-world purchases while at the festival.
If NFT ticketing had been a viable option for 3LAU in 2018, there’s little doubt that the DJ would’ve applied token-gating for his inaugural fest. As NFT tech has developed through the years, 3LAU has taken on different endeavors to assist in the democratization of the music business, however, different artists and festivals alike have taken up the NFT ticketing trigger.
In the beginning, NFT ticketing started with startups. In 2020, NFTs were not as popular as they were by the end of the following year. So developers were already exploring potential use cases for this new technology in the music business.
Two primary value propositions for NFTs were set forth early on. NFTs could provide ticket holders with a more solid and verifiable identity that can be linked to tickets, effectively reducing scalping and bot activity. NFTs can also create a direct channel for attendees to remarket tickets and maintain community engagement after events.
Startups like GUTS Tickets began working on building NFT technology to curb scalping by tying a ticket to a person’s wallet or identity, whereas concurrently giving artists a reduction of secondary market income. GUTS Tickets and other organizations are far from turning mainstream. So from 2020 on, blockchain ticketing efforts seem to be confined to festivals and artists.
Coachella is doubtlessly the most prominent of those extra localized efforts. With Coachella Collectible NFTs, AEG Worldwide presented a novel case for NFTs use instances as each memorabilia and lifelong passes.
With Afterparty, Soin Holdings Inc. attempted to create an enterprise very similar to Coachella. Soin provided 1,500 NFT collectibles that served as an access pass for the two-day Afterparty pageant that went down in March 2022.
Backed by crowdfunding platform Corite, Method Out West began a similar campaign, however in a smaller dose. Additionally taking parallels to Coachella, Method Out auctioned off three-lifetime tickets within the type of NFTs. Corite additionally offered attendees the choice to mint their festival moments and memorabilia as NFTs, however ones that lacked any type of pageant go mechanics.
Independent musicians and artists are also finding ways to involve NFT ticketing into shows and tours. NFTs are rapidly becoming a prominent sector in the music industry, with many artists launching NFT and blockchain endeavors to bolster their fanbases during COVID. NFT tickets are becoming an increasingly important part of the music NFT ecosystem.
Pop artist Pip recently made a splash with his Cotton Candy NFTs. They were launched as part a crowdfunding campaign. The three-tiered collection of NFTs was designed to be used as NFT backstage passes.
Upon buying a Cotton Sweet NFT, holders gained the power to enter a member-only platform, with perks extending outward to real-life incentives, together with free entry to all of Pip’s headlining live shows for all times. Although this system is similar in concept to major festivals, it is smaller and more personal. These drops are growing in frequency and popularity, leading other artists, such as Steve Aoki, The Cool Kids, and others, to offer free entry to their concerts for those who have their NFTs.
When Will NFT Ticketing Finally Take Off?
Though NFT tickets have but to bridge the gap over the “mainstream” NFT ecosystem, there exist comparable tasks on the revolutionary intersection between dwell occasions and NFTs. One such service is Proof of Attendance Protocol (POAP, pronounced “poh-ap”) — a protocol that creates digital badges or collectibles via using blockchain know-how. \
POAP’ enables event coordinators to reward fans for attending festivals, conferences, summits, and extra. Related primarily with blockchain-powered occasions like Devcon and different numerous Ethereum and Bitcoin occasions, POAPs took on a brand new life in 2021 because the NFT ecosystem ballooned.
POAPs quickly turned a method to reward occasion attendees, and Twitter House contributors, NFT drops, Discord occasions, and way more. Moreover, these POAPs began to achieve utility as standing symbols, incentivizing holders to trade them on OpenSea to potentially receive perks down the road.
Up to now, numerous artists and builders have used POAPs to whitelist holders for subsequent drops, with Gmoney’s Admit One collection turning into some of the outstanding to take action. As PAOPs acquire extra utility, they’re even turning into a backward-compatible prerequisite for attendees of earlier occasions to accumulate NFT tickets for future ones.
As this area of interest sector of the NFT market develops, it has raised the query: “what will it take for NFT tickets to become the norm?” If proof of attendance badges are booming, why is the marketplace for NFT tickets nonetheless so missing? Principally, it comes right down to usability.
Though the music business has undoubtedly begun to just accept the thought of NFTs, the vast majority of music fans haven’t onboarded into the NFT area.
Some digitally native communities, like these surrounding 3LAU, Steve Aoki, BT, and more, accept NFT ticketing. However to others (particularly normal music lovers), NFT ticketing doesn’t lend sufficient benefits over downloading a traditional PDF ticket via mobile devices.
To sum up, the line between music fans and NFT enthusiasts will continue blurring as extra music fans turn out to be lively within the NFT area. So artists and shoppers should do their research to learn how NFTs could disrupt the music industry.
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