Lamentation across the internet: Unable to grab Jay Chou tickets, why not use NFTs?
Today, major online communities are either scrambling for Jay Chou or for The Witcher, as the Asian superstar Jay Chou’s “Carnival” world tour concert will be held from December 5th to 8th at the Taipei Dome.
After a seven-year hiatus from performing in Taiwan, the concert has caused a frenzy among Taiwanese fans. According to official statistics, there were 890,000 people online trying to snatch tickets, and nearly 150,000 tickets were sold out in just 5 minutes. Many cryptocurrency enthusiasts and Jay Chou fans lamented, “Can’t get any tickets! Why not use NFTs?” “I don’t understand why the ticketing system hasn’t adopted NFT ticketing technology yet.” “The scalpers took all the tickets!” Even the office of “Crypto City” sparked a discussion.
However, can introducing NFTs really solve the ticketing and scalping problems? Japanese ticketing platform operators published an article at the end of last year (2023) explaining why NFT tickets cannot effectively prevent scalping!
NFT ticketing’s anti-scalping claim is false? Japanese operators point out the key blind spot!
You may have come across the following argument: “NFT concert tickets can prevent scalping” because blockchain technology has the feature of being tamper-proof and unforgeable. However, Japanese electronic ticketing companies poured cold water on this claim: “The fact that NFT tickets can effectively prevent scalping is false, why?”
Keishi Ito, the founder of the Japanese digital entertainment startup Playground and the electronic ticketing platform MOALA, wrote an article at the end of last year (2023), expressing his deep puzzlement whenever he hears the claim that “NFT tickets can prevent scalping.”
The belief that NFT tickets can prevent scalping is mainly due to the ability of blockchain technology to record data circulation. However, Ito stated that even without using blockchain technology, the existing centralized ticketing system can record the circulation of tickets and even prevent unauthorized ticket transfers.
Reasons why NFT tickets cannot prevent scalping: scalping occurs offline
Ito pointed out that the reason NFT tickets cannot prevent scalping is that scalping primarily occurs offline rather than online. In this situation, when the ticket provider sells tickets (physical or digital), scalpers can still illegally sell tickets using physical copies, screen captures, or mobile devices.
These offline activities cannot be recorded by the ticketing system. Therefore, even if the method of recording tickets is moved from a centralized server to the blockchain, scalping cannot be eliminated.
In terms of preventing scalping, electronic ticketing technology providers are currently discussing measures such as “facial recognition,” “applying digital seals on mobile phones,” and “moving QR codes” to make them dynamic. In reality, they do not view blockchain technology as a real solution.
Ito lamented, “During the dawn of technology, misunderstandings are inevitable due to a lack of knowledge. However, if incorrect understanding widely circulates, it will overlook the true value of NFT tickets, which is regrettable.”
The essence of NFT tickets: creating a common circulation infrastructure for tickets
Ito pointed out that the most significant feature of NFT tickets is their high liquidity. Currently, the system structures of various electronic ticketing platforms differ, and if tickets need to be transferred to other platforms, manual processing by other platforms is required.
However, if NFT tickets become popularized in the future and every ticketing platform adopts the same blockchain to issue NFT tickets, it can be expected to greatly reduce manpower and address labor shortages and other issues in the entertainment industry. Ito believes that this is the greatest advantage of ticket NFTization.
He pointed out that the biggest challenge to achieving this advantage is how to keep the pace consistent among different ticketing platforms. Since the attention on blockchain technology, it is not only the electronic ticketing industry but also everyone who wants to establish a common circulation infrastructure. However, currently, no company has become a precedent in breaking this barrier.
Creating a common circulation infrastructure is a massive undertaking. Although it cannot generate benefits in a short period, if successful, it can bring far-reaching impacts and have extraordinary significance for the entertainment industry and the Web3 industry.
If NFT tickets cannot prevent scalping, what is their use?
If NFT tickets cannot prevent scalping, what is their use? Ito suggested that they could be developed towards the direction of “recording memories” and further promote their popularity.
After watching a fantastic concert, exhibition, or movie, when users want to recall or share their memories on social media, physical ticket stubs are still the preferred choice for many. As an electronic ticketing provider, Ito often receives feedback from users saying, “Electronic tickets don’t leave a physical trace, and it feels empty.”
But if tickets completely transition to electronic format in the future, how can users record memories? This is where NFTs can come into play.
Ito pointed out that by issuing “attendance proof NFTs,” also known as NFT ticket stubs, memories of various events attended with electronic tickets can be easily recorded in an electronic format.
Last year, the Japan Expo in Osaka sold NFT tickets for the first time, priced at 2,000 yen, and issued them in the form of Soul-Bound Tokens (SBT). Once SBT is transferred to users’ cryptocurrency wallets, it cannot be resold or transferred to other users on the blockchain.
However, if scalpers are determined, they can still transfer wallet control to other buyers through offline transactions. Currently, there is no way to conduct comprehensive identity authentication (KYC) on the chain, and excessive real-name registration may also cause resentment among cryptocurrency users since one of the characteristics of blockchain is “anonymity.”
Nevertheless, with more and more institutions attempting to issue NFT tickets, Ito still sees the potential for the development of the electronic ticketing industry.
Ito stated that although NFT tickets have been attracting attention since the dawn of blockchain technology, they have not been widely and continuously utilized, just like other blockchain applications. Nevertheless, NFTs are still a solution worth attention, especially in the ticket market, where physical tickets still hold more than half of the market share.
This article is authorized to be reproduced from Crypto City.