Blockchain in Event Ticketing: An End to Price Gouging?
In recent years, the event ticketing industry Blockchain has seen increased difficulty in combating issues of fraud and scalping. ticket scalping, fake concert tixs and prices through the roof — an age-old combo that always leaves fans screwed… so say the people suing Coachella. Blockchain technology addresses these issues to a large extent and provides an improved secure and transparent execution model for ticketing. Tags: blockchain event ticketing, illegal scalping
What is Blockchain?
In its essence, blockchain is a decentralized digital ledger that records transactions across multiple computers. Each new block in the chain has a record of transactions, and once added to the end of blockchain — it cannot be changed. This makes certain that the info is stored on the blockchain, and it can be take a look at quartz for both equally transparency with tamper-proofing. Traditional systems are based on a central body; however, with blockchain we proceed to decentralization and peer non-policing network which should be much safer than today’s existing frauds.
The Impact of Fraud on Event Ticketing
Fraud is an ongoing problem that affects the event industry. Organizers lose financially to fake tickets that are distributed by back market sellers or even scalpers and meanwhile the fan is left disappointed without access. They not only harm the image of events, but also sow distrust in ticket sales. Whole events are sometimes thrown into chaos when things go wrong and the fans with fake tickets find they cannot get through.
More subtly, ticket scalping (buying tickets en masse in order to resell them at higher prices) does something — but what? Someday in some places fans have to pay thousands more than a ticket price, or even unable to participate the events. This attraction has two issues: First, not every ticket offered for sale is legit and secondly fair pricing mechanisms are broken. Blockchains have the potential to solve both these problems by guaranteeing that each ticket is genuine as well ensuring tickets are available in a provably safe manner with regards prices (Auction at predetermined intervals).
Scalping: A Widespread Issue
Scalping is a growing problem, and that once only occurs during in-demand events. After all, online marketplaces added more fuel to their fire by selling massive number of tickets through automated bots within seconds. As a consequence, only the most devoted music followers are privy to enough notice and alternative route planning options that growing numbers often result in fans paying exorbitant scalped prices for tickets. It affects negatively in the user experience level, and also spoils the image of the event industry.
It really boils down to solving the fraud in ticketing using blockchain, and not as a new kind of cryptographic payment system.
Hence, the decentralized and transparent structure of blockchain to be used as a potential solution against fraud in the ticketing industry. Smart contracts, a key feature of blockchain itself can be utilised to end the scamming on tickets. Smart Contracts are self-executing agreements where the conditions of the sale is written as code. When a ticket is bought, it is registered on the blockchain and this registration history cannot be duplicated or modified by means of smart contract.
Smart Contracts in Ticketing
Ticket sales can be managed using smart contracts, which is a fair and transparent solution. The smart contract guarantees that a ticket sold is an individually coded, non-transferable asset and cannot be resold other than on the peer-to-peer marketplaces. This includes the smart contract that automates refunds or transfers so only approved parties can alter a ticket. This eliminates counterfeits and fraud, allowing for all transactions to be a verified real transaction.
Identity and Progovernment of The Identity Digitally
Also using blockchain, ticket identity can be verified and linked to a type of digital ID tied to email addresses. For example, by connecting every digital ticket to an already verified identity it kismet stop another person from transferring tickets or even sending them back when authentic. This is an added security feature defending against fraud by ensuring that the person using a given ticket is indeed the owner of it.
Ending Scalping with Blockchain
It can address scalping by using smart contracts that enforce price ceilings on resale tickets. This is because tickets are priced in a “hard cap,” which prevents them from being resold at outrageous prices. It makes for a fairer system to the fans, and detracts from scalpers’ ability to make online sales of re-sold tickets at an inflated profit.
Resale Transparency
The blockchain further enables real-time monitoring of ticket resales. As all transactions are on a public ledger it means that both buyers and even organizer can see the entire history of a ticket. This transparency ensures that tickets are not resold many times over for much more than the face-value, and allows a fairer chance of accessing ticket at regular pricing.
Benefits of Blockchain in Ticketing
Blockchain Tools By Event Organizers & Attendees Organizers would pay less for tickets that are otherwise wasted after fraud or scalping, and ticket transfer could be completed more efficiently. Attendees will know they are purchasing their tickets from a real and authorized source, providing them with additional peace of mind through the process.
Enhanced Security and Privacy
Finally, the encrypted system of blockchain also guarantees protection for personal data. This working model is fundamentally similar to centralized systems but distinct in that the sensitive information can be kept more secure because data security could not bypass central nodes. This makes it harder for fraudsters to steal your sensitive information, improving the security of the ticketing.
Increased Trust in the System
Blockchains, by publicly documenting all transactions related to a given ticket, make it impossible to manipulate the data (thus creating trust) between buyers and event organizers. This provides assurance to fans that their tickets are genuine, and allows event organizers to track transactions for prevention of fraud. He believes that this level of trust is a key component in restoring faith to the event ticketing sector.
Use Cases: A Few Success Stories in Ticketing with Blockchain
Already a number of headline events have adopted ticketing systems that use blockchain. UEFA introduced initial implementation of blockchain for ticketing in a soccer tournament, where tickets were un-hackable and cannot be sold at high prices. Music festivals and gigs are other big events to incorporate blockchain in ticketing systems aiming at making their tickets available easily while also preventing third-party scalpers.
Drawbacks & Restrictions of Blockchain in Ticketing
While blockchain has many things going for it, there are barriers to its wide-scale adoption in ticketing. A key barrier is the requirement for infrastructure and technical skill set to implement blockchain systems. Furthermore, the traditional ticketing companies that benefit from a thriving resale market will probably resist changes. Yet as time passes, and more eyes are opened to the ways in which blockchain can be used for good — we believe these obstacles will prove temporary.
What We Know About Blockchain And The Future Of Event Ticketing
The role of blockchain technology in event ticketing is sure to evolve as the tech itself becomes more prominent. Smart contracts, digital identities and a transparent resale market will shake up the industry for good — because is there really any other way? Blockchains could be the future of ticket sales, eliminating fraud and scalping for good.
Conclusion
The good news is that the blockchain technology provides a strong solution to such fraud and scalping that keeps on haunting event ticketing. Blockchain provides for true tickets by way of a smart contract that unlocks only when you arrive at the event, secure digital identities and transparent transaction records so prices are not fixed.
