The event industry is taking centre stage, with revenue growth of 9.7% expected in 2024, we’re looking at a market volume of US$92.44 billion by 2027, according to Statistica.
We’ve come a long way from waiting in long lines for tickets. Thanks to digital platforms and payment systems, getting your hands on those event passes has become faster. In the last couple of years, the landscape of event ticketing has experienced a groundbreaking revolution, due to the emergence of blockchain technology and the growing popularity of non-fungible tokens (NFTs).
What are Token Gated Events?
Token Gated Events have emerged as a hip and innovative approach in the Web 3 world, turning event tickets into an exciting blockchain-powered experience, especially with the quirky NFTs (Non-Fungible Tokens) leading the way. Unlike the traditional ticketing hassle, attendees just need to flaunt their token through a certified app to get inside the event—making it as smooth as butter.
Picture it like those good old days in Web 2.0 when folks had an all-access pass to club events throughout the year, just by holding a membership. But wait, it gets even cooler! Just like fancy clubs offering different membership tiers, these tokens can determine the level of access and duration.
How does Token Gating work?
- Minting NFT:
Organizers mint a limited number of tokens on a blockchain platform. Apart from being the holder of the token, each NFT can be used to guarantee the holder access to specific events as well as other benefits. Since NFTs are indivisible and unique, they cannot be duplicated or replicated.
- Access to Events:
Upon acquiring the NFT, the holder gains access to the token as well as associated benefits that are programmed into it. This exclusivity is ensured by the blockchain, which records the ownership and transaction history of each NFT ticket. At the event, the holder has to show proof of ownership of the token and they are granted access.
- Reselling via Secondary Markets:
Token Gated Events enable organizers to implement dynamic pricing and receive royalties for secondary sales. When a ticket holder decides to, he may also resell their NFT to another interested party through a blockchain-based marketplace thus ensuring fairness in that transaction also. Organizers can set rules that allow them to earn a percentage of the resale price or decide on the benefits.
Benefits of Token Gated Events:
- Creating Loyalty:
By providing exclusive access to events, organizations can create a sense of exclusivity around ownership and thus drive loyalty. For example, a sports team may issue a limited set of NFTs that allow the holders to have one on one meetings with the star players of the team during the game season. Such an access to the stadium would be verified by the ownership of the token. It not only adds a premium offering for the most loyal base of followers but also retains a sense of exclusivity to the experience.
- Enhanced Security:
Since NFT tickets are based on blockchain technology, they are tamper-proof and secure. This significantly reduces the risk of counterfeit tickets and fraudulent activities, providing a trustworthy ticketing solution for both organizers and attendees.
- Empowering Event Organizers:
Token Gated Events use blockchain to empower organizers with control over ticket distribution and pricing. This curbs scalping, ensures fairness for attendees, and maintains an unalterable ticket ownership record. Each ticket becomes a unique digital token linked to the buyer’s identity, allowing dynamic pricing adjustments while preventing unauthorized resale.
Token Gated Events represent a major leap forward in the world of events. Through the use of blockchain NFT ticketing, organizers can ensure secure, transparent, and equitable access to events. Attendees can rest assured that their tickets are genuine, while organizers can optimize pricing and revenue streams through the use of token-gated exclusive events. As blockchain technology continues to evolve, Token Gated Events are poised to shape the future of event management and ticketing, benefiting both event organizers and enthusiastic attendees alike.