NFT ticketing is one of the modern elements in 21st-century music. The concept crawled into the space following NFT’s massive bloom in 2020 and 2021. In 2021, NFT enjoyed over 1.5 million art sales in one month. Sales exceeded $250 million on the Nifty Gateway platform. By the end of that year, NFTs generated an expenditure of approximately $41 billion in cryptocurrency for that year alone.
In 2022, the web3 space suffered from record-breaking losses. NFT wasn’t an exception. The losses didn’t stay consistent throughout the year. But NFT’s market cap dropped by 40%, while trading volume decreased by 66% from March through June 2022. Like every other modern technological introduction, NFT is much alive, and its enthusiasts project daily that the space is headed for a massive turnaround in the coming years.
In this article, we will look at how NFT in music is changing the process of ticket sales and acquisitions for music promoters, artists, and fans.
NFT ticketing explained
NFT ticketing uses blockchain technology to improve security and manage ticket sales. These digital tickets are stored on the blockchain, making them less prone to fraud. NFT tickets are shaking up the ticketing industry. Ticket sellers leverage NFTs to grow their consumer base and product line, create fan communities, increase fan interaction, and gain control over secondary markets.
An excellent example of an NFT ticketing model is a music event that explores NFT to share and manage tickets. These tickets will have a unique nonfungible token created and stored on a blockchain by the event planner(s). What these NFTs have on them is well-detailed information about the event, the ticket holder’s name and the seat assigned to them. Then, the nonfungible tokens would be available online for sale, where customers can purchase them using cryptocurrency.
What are NFT tickets?
NFT tickets (not to be confused with NFT ticketing, which is the process of issuing and storing NFT tickets) are unique and unforgeable, ensuring authenticity. Their traceable and immutable nature on the blockchain aids in easy verification, reducing counterfeits. This new method is more efficient and secure, showing potential for the future of ticketing.
NFT ticketing vs traditional ticketing
Traditional ticketing entails producing and distributing paper tickets via various outlets, such as box offices, ticket brokers, and online marketplaces. The drawback is the high likelihood of fraud, counterfeiting, and scalping with these tickets.
Through blockchain technology, NFT ticketing creates unique, nonfungible tokens representing ownership of a particular experience or event. NFT tickets are sold through digital marketplaces and can be collected, transferred, or resold after purchase. When the holder wishes to attend, the NFT must be turned in for blockchain technology-based scanning and verification to be admitted into the event.
|NFT ticket uses blockchain
|Traditional ticket does not use blockchain
|NFT tickets can be stored, kept safe and preserved for long.
|Traditional tickets can not be stored and preserved for long, like NFT tickets.
|NFT tickets prevent forgery and duplication.
|Traditional tickets are prone to forgery and duplication.
What experts say about NFT ticketing in music
In an interview with Middermusic, Cassiopeia agency and FinancialFox CEO and Founder, Stefania Barbaglio said,
“NFT ticketing is a transformative force in music that can reshape artist-audience interactions. It has the potential to redefine monetization avenues, liberating artists from intermediaries. Transparent ticketing eradicates scalping and offers fairer pricing, fostering trust between fans and creators.
Beyond music, it empowers a diverse range of creatives by leveraging blockchain’s authenticity. Barriers imposed by management dissolve, ensuring artists retain control and reap larger profits sans hefty fees. Direct music creation and sales amplify the autonomy of the respective artists — this has the ability to nurture a direct connection with their audience. NFTs enable fundraising opportunities, which fuel innovation and enable artists to evolve beyond conventional norms, fostering a vibrant, self-sustaining creative ecosystem.”Stefania Barbaglio
Tyler Adams, CEO and Co-Founder at COZ, told Middermusic that NFTs used as tickets benefit both artists and fans by reducing ticket fraud. Unlike traditional printed tickets, NFT tickets retain value over time and can be resold at market rates. This can also be made by binding tickets to a physical asset such as a ring that grants access to the event. OneBand, a proprietary product powered by NFI technology and developed by ITEM Systems, is the perfect solution.
“A notable development in web3 that can certainly have an impact on this field is the partnership between COZ and AxLabs, leading to the creation of ITEM Systems. They have created a new technology, known as Non-Fungible Item (NFI), which is a game-changer as it binds physical assets to a “digital twin” on blockchain. This opens up a myriad of possibilities for many businesses, including in the music industry. It can safeguard items such as collectibles, albums, and posters, and can even revolutionize the way concert attendance is verified, potentially replacing traditional tickets.
NFTs present new and exciting opportunities within the music industry, offering numerous benefits for both artists and music enthusiasts. By bypassing traditional intermediaries, ticket NFTs ensure artists receive more direct compensation. The emergence and growth of the music NFT marketplace are playing a pivotal role in the evolution of the music industry. It is clear that NFTs are poised to empower artists and their fans in the years ahead.”Tyler Adams
NFT ticketing in music solves several problems relevant to the music industry. It provides co-referential usability — it improves the value of NFT in the market and provides security and longevity for ticket sales in music. As organisations, music promoters, and artists explore this more, traditional ticketing will be forgotten.