By Ahren Posthumus and Mike Lysko
As the Covid 19 restrictions start easing off, the event industry has made a strong comeback and is beginning to grow at a rapid pace. With this growth comes many opportunities, but also new challenges. There are now modern methods of tackling these challenges and streamlining the event management process, and one of these methods is by leveraging Web3.0 technology and NFTs.
What is Web 3.0 technology you may ask? Web3.0 is an idea for a new iteration of the World Wide Web based on blockchain technology, which is a record of transactions from practically anything, inclusive of the movement of goods, money, or secure data. It can be the purchase you make at the supermarket or the government allocating an ID number. Blockchain is a technology that is decentralised and secure, which makes adding, removing, or changing data impossible without being detected.
Brief Rundown of NFTs
A non-fungible token (NFT) is a unique digital token that can link to any asset whether physical or digital. They serve as a certificate of ownership and provide authenticity to any real-world object. Each NFT sits on the blockchain, an immutable ledger that facilitates transactions and tracks assets in a transparent manner.
NFTs will play a key role as we head into a new age of the internet. This new age is called ‘Web 3.0’ – an internet that empowers its users through decentralisation and the removal of hierarchy.
Right now, NFTs are limited to only a few types of assets, such as digital art. This is expected to change as many are starting to realise the ways that NFTs could streamline several processes in many industries. One of these industries is event management.
“We helped customers host over 600 online events during 2020 and 2021”, says Mike Lysko, Founder of Flock. “Event Planners had to adapt very quickly and with advances in technology, there are new solutions that can help Event Planners with Ticket Sales, improving the Event Experience, effective Attendee Management and sourcing venues and suppliers from a reliable decentralised database.”
How NFTs Will Improve Event Management
One of the more frustrating aspects of event management is the coordination of ticket sales and allocation. It’s a significant problem that events endure today and many consider the current ticketing system as outdated. This is where NFTs could fit into event management and take weight off an events team’s shoulders.
NFTs can be attached to all tickets in an effort to ensure the authenticity of each ticket, as well as to make the exchange of tickets more efficient and organised. This way, you can remove the problem of ticket fraud, as well as streamline the secondary sales of tickets.
Event managers will also be able to track the movement of tickets thanks to blockchain technology – something that was not previously possible. This will help with security as well as provide important data with regard to tracking attendance.
How NFTs Could Change the Event Experience for Attendees
With the event industry evolving, new ways of entertaining attendees are constantly being thought of. NFTs can power the creation of unique experiences for attendees. Holders of the event’s NFT can be rewarded for attending the event through proof of attendance, or perhaps give them access to an exclusive show. All of these benefits will enhance the overall experience as well as build anticipation for attending an event.
As we move into a new age of technology, events can make use of tools like NFTs and the authenticity they provide to reward attendees and give their events experiences that have never been seen before.
At trade exhibitions, identity management is an important aspect of the security protocol. The use of blockchain technology keeps track of a user’s transactions. In the case of events, because their information is already in the system, repeat attendees can breeze through the security and badge scanning processes.
This allows event planners to concentrate on first-time attendees without having to worry about security. Furthermore, by tracking the digital signature of the ticket against who it was issued to and confirming who owns the ticket at the venue, such technology can help improve security at the site.
The Secondary Sales Market for Tickets and NFTs
One of the key benefits of NFTs is that they bring in a transparent exchange protocol. With the current ticketing system, secondary sales are pretty much 100% hidden and cannot be tracked. Because NFTs sit on the blockchain, each transaction linked to them is made public and it’s easy to track the distribution of the tickets.
Those looking to buy tickets can access an open marketplace where they can easily verify the legitimacy of the ticket as well as make an incredibly efficient purchase. Ticket sellers can either make their money back or potentially more (depending on event interest), while event runners can earn a small amount on each sale made through royalties.
Royalties in NFTs are defined as payments that compensate the original creator of the NFT. They are automatic payments thanks to the use of a smart contract. The creator of the NFT collection will set the royalty fee, but they usually sit at around 10%. That means that events will receive a small portion of each sale made on secondary markets for tickets. This makes NFTs a tool for added revenue generation as well.
“There is a huge opportunity for the events industry now to turn one of their biggest problems [ticket scalpers] into an opportunity” – says Ahren Posthumus. “This has already been proven with VeeCon, an annual conference which created tickets as NFTs. The organisers have already reaped over $4M in royalties from secondary sales”
Some Events Installing NFTs Within Their Framework
Although still very much in its infancy stage, some companies are already bringing in NFTs for ticketing to try and provide their attendees with unique experiences.
Momint, an NFT marketplace, has recently hosted NFT auctions with tickets being issued as NFTs. Having the NFT gave you access to the auction room as well as other exclusive events that occurred on the nights.
Coachella, one of the biggest festivals in the United States, has recently introduced lifetime passes as NFTs. These passes give you lifetime access to virtual events as well as physical events. One might ask, how would they make money by selling lifetime tickets? The answer to that is that they’ll generate considerable revenue through secondary sales. Many will be willing to pay a lot for a lifetime pass, and Coachella will make a small percentage on each of these secondary sales.
There are companies looking to tap into the field of providing a platform to generate on-chain tickets. Get Protocol has been processing NFT tickets for quite some time now, and there’s no doubt that their service will in high demand in the near future.