Blockchain Powered Events
In my previous blog I covered the topic of ticket touting and secondary ticketing costs. This one illustrates methods being taken to prevent ticket fraud and reduce cost of tickets even more.
In the past 8 years we have seen an exponential increase in the significance of blockchains and crypto currencies. You’ve probably heard words like Bitcoin, Litecoin and Ripple, maybe you’ve even exchanged money for them, but to a lot of us, it has grown so fast that it simply does not make any sense.
If you’re completely unfamiliar with the concept, a crypto currency is defined as
‘a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.’
However, operating independently of a central bank = potential for anonymous trading
We have slowly learned that anonymous trading makes the tracking of criminal funds much more difficult. And it does not work in the real business world as scamming becomes too prevalent thus preventing the expansion of trading. Now, in nearly every country, you have to submit government ID before you can use cryptocurrency due to the difficulty for governments to monitor them.
Simply put, a Bitcoin or other cryptocurrencies are generated, also known as mined on a computer but still only have value because of the value we humans put on it, we all accept its worth; the same with a dollar or euro.
The secondary ticketing market is estimated to be worth £1bn annually in the UK and on top of that, the Telegraph estimates that Brits wasted over £5m on counterfeit tickets in 2015 from false social media advertisements alone. Again, the secondary market platforms have minimal economic incentive to stop this as they take a cut of these sales. On top of that, bank fees and service charges are the most unattractive elements in the world of transactions so blockchain coders have been fine tuning ways to reduce the fees and regulate the secondary ticket market.
How it works: Blockchain technology
There are several companies paving the way for blockchain ticketing platforms; London’s Aventus and even an Irish company TicketChain. They can operate with much smaller fees because they are absolutely positive the tickets sold are valid. Tickets are entirely handled electronically with better record-keeping and added security features. Each ticket on the platform cannot be printed or copied as a screenshot because the ticket identifier code changes rapidly. That prevents a scammer from selling the same ticket multiple times and completely stops the most common forms of ticket fraud. Most other secondary ticket sites can’t be entirely sure their tickets are legitimate and much of what you’re paying for in fees is essentially insurance that if you get turned away you’ll get a refund.
A number of companies have already reached their funding goals. Aventus and GUTS are working with major artists to test out the system in 2019. The future of ticket sales looks promising but as a number of these startups have already failed, there’s no certainty it will take off.