Real World Asset Tokenisation - 4/10

The fourth in my series of Real World Asset Tokenisation Business Cases, is one of my Favourites, that is #tokenisation of #tickets

NFT Tickets

Let's take a different approach for this use case.

I will start with the problems faced by this 70 Bn Dollar Industry:

1. No Value Addition on Tickets: Tickets today are meant to be discarded after the show. Today tickets are boring and are seen as something to be disposed off after the event. Due to this tickets offer no value addition apart from being just a Piece of Paper of a QR code.
2. Fake Tickets: A big concern for those buying tickets is they have paid for a real one or a fake. Customers are being defrauded by fake ticket websites posing as legitimate authorised ticketing agents. This leads to massive disappointment, loss of money and increasing levels of mistrust of the ticketing industry. Fraud is creating a global loss of trust in the industry. It’s not one or two organisations anymore, it’s a worldwide problem.?
3. Scalping: USD 15 Bn dollars is wasted on scalping of tickets. This neither benefits the Event Organizer or the Buyer.?
4. Security: Security is a top priority for operators of venues of any size, Customers expect that organisers will do bag checks for every person. The Web 2.0 has moved ticketing online but still not addressed Know Your customer (KYC), which can definitely help in identification of the attendees of the event.
5. No Standard Industry Protocol: Unlike many other industries, there is no standard protocol in ticketing. This means we can’t exchange data or track customers beyond the boundaries of the ticketing platform.
6. No Presale of Tickets to Finance: Event Organizers need to raise capital to finance the event that includes calling Celebrities, renting the venue, paying for Food and beverages etc. There is no platform where event organizers can raise capital using tickets as collateral? and share upside with savvy investors or buyers of tickets.
7. No integration between Advertisers and Ticket Buyers: The advertisers and sponsors of the events fund the events in hope that few of the ticket buyers will engage with the brand. The Advertisers have no information on the ticket buyers.?
8. Exploitative & Monopolistic Ticking Giants: All the Web 2.0 ticketing companies now control 90% of the market share. They charge as much as 30 percent of the revenue from small event organizers listed on their platform.? No wonder so many talented artists boycott these Ticketing Giants and vice versa.

Digitising and further Tokenising these tickets has a potential to solve many of the above mentioned problems, some of which are mentioned below:

1. With Tokenisation, one can mint unique tickets as NFTs on the blockchain. Each ticket is unique, serves as a digital smart contract, and represents ownership. Blockchain provides a single immutable source of truth for both ticket buyers and sellers, thereby offering authenticity, solving the issue of Fake Tickets.
2. Smart Contracts? enable custom constraints during transfers. For example, an event organizer can Set a minimum and maximum resale price, percentage of royalty when ticket changes hands, restrict transfers to a specific time period, prevent ticket resale but allow returns. These constraints will help regulate the market and will obviously reduce the ability of the black market to resell at uncontrolled prices, solving the issues of Scalping.
3. Every blockchain activity is audited and impossible to modify afterwards. Therefore, an event organiser? knows at any time which e-wallet owns a ticket. This means they can cancel the ticket or get in direct contact with the owner. We can add a layer of regional KYC (Know Your Client) processes to identify and verify customers, and can track the attendees for Security purposes.
4. An event organizer can have an option to pre-sell their tickets to a pool of investors. Event organizers can use their tickets to raise finance. Investors or Buyers can resell their tickets in the NFT marketplace to earn money. Organizers can share the upside as per the pre-decided sharing ratio.
5. Tokenisation unleashes the potential of tickets as NFTs, as something to be collected. NFT moments are added to the NFT tickets that becomes collectible. With custom constraints both event organizer and ticket buyer have fun with buying and reselling the tickets, making the Tickets a more interesting collectible.
6. With tokenisation, ticket buyers will also have an option to buy add on to Tickets which are Special NFT Moments of the Event. These could be DJ, Influencer, Alcohol Moments etc.?Further, whenever the NFT Ticket and add-on NFT Moments are traded, royalties will accrue to the event organizer, which will be perpetual

Indicating a few numbers to explain what potential does this use case have:

• USD 70 Bn is the global Ticketing Revenue of just Cinema, Music and Sports.
• USD 15 Bn is the Secondary Ticketing Market size that is wasted
• USD 16 Bn is estimated size of global Smart ticketing by 2026.
• By 2030 Entire Ticketing Industry from Airlines to Concerts will shift into Blockchain Ticketing

One of our partners in this space Blocktickets , have launched a similar system and they are using UnicusOne for their #web3 infrastructure using our #waas offering.

We are excited to be a part of their journey, where they aim to offer following features:

1. Reduces cost with a quick & scalable ticketing platform
2. Empowers customers to change or cancel tickets at the last minute
3. Brings perpetual revenue for organizers?
4. Special NFT moments are bundled with tickets
5. Allows event organizers to use their tickets to raise money from investors
6. Allows Advertisers to airdrop the Tokens and their brand NFTs to ticket buyers?
7. After the expiry of the event tickets are stored as collectible NFT
8. custom and innovative smart contracts can be added onto tickets.

We wish them great success and look forward to partnering with other players in the market who aim to tokenise Real World Assets and generate value for the ecosystem.