The Whole Internet is Howling: Can’t Get Jay Chou Concert Tickets, Why Not Use NFTs?
Today, major online communities are either scrambling for Jay Chou concert tickets or hunting down rare items. The highly anticipated “Carnival” world tour by Jay Chou, the “King of Asian Pop,” will take place at the Taipei Dome from December 5th to 8th.
After a seven-year hiatus from performing in Taiwan, Jay Chou’s concert has caused a frenzy among Taiwanese fans. According to official statistics, there were a record-breaking 890,000 people trying to purchase tickets simultaneously, and nearly 150,000 tickets were sold out within 5 minutes. Many Jay Chou fans in the cryptocurrency community lamented, “Can’t get any tickets! Why not use NFTs?” “I can’t understand why ticketing systems still don’t utilize NFT ticketing technology.” “All the tickets have been snatched up by scalpers!” Even the office of “Cryptocity” sparked a wave of discussion.
However, can the introduction of NFTs really solve the ticketing and scalping problems? A Japanese ticketing platform operator published an article at the end of last year (2023) explaining why NFT tickets cannot effectively prevent scalping!
NFT ticketing cannot prevent scalping? Japanese operators point out the critical blind spot!
You may have come across the argument that “NFT concert tickets can prevent scalping” because blockchain technology has the characteristics of being tamper-proof and forgery-resistant. However, a Japanese electronic ticketing platform operator poured cold water on this idea: “The claim that NFT tickets can effectively prevent scalping is false. Why?”
Keishi Ito, founder of Playground, a Japanese digital entertainment startup, and the MOALA electronic ticketing platform, wrote an article at the end of last year (2023), expressing his deep confusion whenever he heard the claim that “NFT tickets can prevent scalping.”
The belief that NFT tickets can prevent scalping is mainly due to the fact that blockchain technology can record the circulation of data. However, Ito pointed out that even without using blockchain technology, the existing centralized ticketing systems can record the circulation of tickets and even prevent unauthorized ticket transfers.
Reason 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 such cases, when operators sell tickets (physical or digital), scalpers can still illegally sell tickets using physical paper tickets, screenshots, or mobile devices.
These offline activities cannot be recorded by ticketing systems. Therefore, even if the method of recording ticket information is shifted from centralized servers to the blockchain, it cannot eliminate scalping.
In terms of measures to combat scalping, electronic ticketing technology providers are currently discussing options such as “facial recognition,” “digital stamps on mobile phones,” and “animated QR codes.” They do not consider blockchain technology as a true solution.
Ito sighed, “Misunderstandings are inevitable during the early stages of a technology due to a lack of knowledge. However, widespread dissemination of incorrect understanding will overlook the true value of NFT tickets, which is regrettable.”
The essence of NFT tickets: Creating a shared ticket circulation infrastructure
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 the other platforms is required.
However, if NFT tickets become popular in the future, and each ticketing platform adopts the same blockchain to issue NFT tickets, it can be expected to significantly reduce manpower and address labor shortages and other issues in the entertainment industry. Ito believes this is the greatest advantage of NFT ticketing.
He pointed out that the biggest challenge in achieving this advantage is how to keep the pace consistent among various ticketing platforms. Since the attention on blockchain technology, not only the electronic ticketing industry but also many others want to establish a shared circulation infrastructure. However, there is currently no company that can break through this barrier and set an example.
Building a shared circulation infrastructure is a massive undertaking. Although it may not yield immediate benefits, if successful, it can have a far-reaching impact and significant implications for the entertainment industry and the Web3 industry.
If NFT tickets cannot prevent scalping, then what are they good for?
If NFT tickets cannot prevent scalping, what are they good for? Ito suggested that they could be developed in the direction of “recording memories” to further promote their adoption.
After experiencing an exciting concert, exhibition, or movie, many users still prefer to keep physical tickets as mementos when they want to reminisce or share their experiences on social media. As an electronic ticketing provider, Ito often receives feedback from users saying, “Electronic tickets don’t leave a physical presence, and it feels empty.”
But if tickets become completely digitized in the future, how can users record their memories? This is where NFTs can be useful.
Ito pointed out that by issuing “attendance proof NFTs,” also known as NFT ticket stubs, memories of various activities attended using electronic tickets can be easily recorded in a digital format.
Last year, the Osaka Expo in Japan sold NFT tickets using the “Soul Bound Token” (SBT) form. Once SBT is transferred to a user’s cryptocurrency wallet, it cannot be resold or transferred to other users on the blockchain.
However, if scalpers are determined, they can still transfer control of the wallet to other buyers through offline transactions. Currently, there is no way to conduct comprehensive identity verification (KYC) on the blockchain, and excessive real-name systems may provoke backlash from cryptocurrency users because one of the characteristics of blockchain is its “anonymity.”
Nevertheless, as more and more institutions attempt to issue NFT tickets, Ito still sees the potential for development in the electronic ticketing industry.
Ito stated that although NFT tickets have received attention since the early stages of blockchain development, they have not been widely and continuously utilized, just like other blockchain applications. Nevertheless, NFTs are still a solution worth paying attention to, especially in the ticketing market where physical tickets still account for the majority of market share.