How Non-Fungible Tokens Can be Used for Ticketing at Events
Non-fungible tokens can be used to track the ownership of concert tickets or to track legal ownership of tickets that were purchased with cash. It's critical to note that non-fungible tokens are different from ERC-20 tokens. While both are useful in ticketing, they are used in distinct ways. ERC-20 tokens are frequently used to purchase tickets. When a user arrives at the venue, they must transfer the tokens to demonstrate their legal right to be there. When using non-fungible tokens, the tokens are tied to the ticket and can be transferred between individuals to indicate lawful ownership has changed. https://www.happhi.com/resources/happhi-nft-platform
June 15, 2022
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The blockchain and non-fungible tokens have reached peak cool this year. It seems every other event has its own token now, from music festivals to conferences. This is great news for event ticketing and the secondary markets, as it gives us a way to track and validate ownership of digital tickets. But how can we use these new tools to solve real problems? The answer is non-fungible tokens! Let’s take a look at what they are, why they are useful, and some examples of where they have been used so far.
What is a Non-Fungible Token?
Non-fungible tokens are used to track ownership of digital assets. They are similar to ERC-20 tokens, but are specially designed to show a specific owner. A good example of a non-fungible token is a ticket for an event. The token for a ticket is unique, and it is tied to the owner of that ticket. So if the owner decides to transfer the ownership of the ticket, the token will be updated to show the new owner. This solves a big problem in the ticketing industry, especially with paper tickets. If an event is shut down, the ticket can’t be used in another venue. It is also difficult to track who legally owns the ticket, and if the person who has it isn’t the ticket holder, it can be tough to prove they are.
What are non-fungible tokens used for in ticketing?
Non-fungible tokens are used in the ticketing industry, but not as much as they could be. While they have been implemented in a few different ways, they have been mostly overshadowed by ERC-20 based tokens. There are a few different ways that non-fungible tokens can be used in the ticketing industry. One of the best ways to use non-fungible tokens is for ticketing for a secondary market, such as StubHub or EventBrite. Here, non-fungible tokens can be used to track ownership of the ticket. If the holder of the ticket decides to sell it on the secondary market, the token will be updated to show the new owner. This solves one of the biggest problems with the secondary ticket market. People often try to sell fake tickets in order to get into the venue. With a non-fungible token, it can be verified that the ticket is real and the person selling it has the legal right to sell it.
A Legal Coincidence
One of the best uses for non-fungible tokens is in the legal industry. Lawyers often use non-fungible tokens to prove ownership of assets, such as property or patents. In the ticketing industry, non-fungible tokens have an added benefit. The date and time the ticket was purchased can be used to prove when the ticket was purchased legally. While this may seem trivial, it can be helpful in court. Let’s say someone buys tickets for a big concert and has a friend buy them. The friend uses fraudulent means in order to buy the ticket, and then sells it to the end user. If both parties use a non-fungible token, it can be traced back to when the end user bought the ticket. This can help prove that the person bought the ticket legally, and show that the friend purchased it illegally.
Ticketing with Non-Fungible Tokens in Secondary Markets
As we discussed above, secondary markets are one of the best uses for non-fungible tokens. Let’s say you are hosting a music festival, and you accept non-fungible tokens as payment for tickets. When the tokens are purchased, they will be automatically placed into a secondary market. This secondary market will be hosted on a blockchain, and the purchaser will have their ID verified. This allows the festival to know who bought the tickets, and it makes it harder for people to buy a bunch of tickets with a stolen credit card. Now, let’s say someone buys tickets for the event. They will get a non-fungible token that is linked to their ID. If the person decides to sell the tickets on the secondary market, the token will be updated to show the new owner. This allows the festival organizers to see how many tickets are still left, and they can even change the ownership manually if they need to revoke a ticket.
Tracking of Ownership and Legitimization
An important part of using non-fungible tokens is tracking the ownership of the ticket. This can be done with a smart contract that is linked to the token. When the ticket is purchased, the token will be updated to show the new owner. If the person decides to sell the ticket, the token will be updated again to show the new owner. This allows the organizers to see when the ticket was purchased, who bought it, and when it was sold. This can be especially useful in situations where tickets are purchased with a credit card. If someone buys a ticket online with a credit card, the organizers will know the name of the card holder when the ticket is purchased. This means the organizers know who legally purchased the ticket. This can also be helpful in situations where tickets are purchased with cash. Let’s say a friend buys a ticket for you with cash. There is no way to prove that the friend legally purchased the ticket. But with a non-fungible token, it can be tracked who legally owns the ticket.
Non-fungible tokens are a great way to track the ownership of tickets. They can be used in secondary markets, or they can be used to track legal ownership of tickets that were purchased with cash. It is important to note that non-fungible tokens are different than ERC-20 tokens. While they are both useful in ticketing, they are used in different ways. ERC-20 tokens are often used to buy tickets. When the user arrives at the venue, they will have to transfer the tokens to show they have a legal right to be there. When using non-fungible tokens, the tokens are linked to the ticket. They are used to show the ownership of the ticket, and can be transferred between people to show the legal ownership has changed.