People purchasing tickets to concerts, plays, and other events sometimes express annoyance that each ticket includes a variety of fees that fluctuate in difficult-to-understand ways, making the entire price uncertain. Multiple intermediaries that add expenditures while taking income without delivering anything back to the original creators of an event or donors who put resources to it further complicate issues.
Bots have grown prevalent in modern systems, acquiring them straight from primary sellers before flipping them at much greater values on secondary market sellers, resulting in recurrent attempts across organizations owing to inadequate teamwork.
By optimizing ticket resale procedures, fostering competitive collaboration among sellers, and providing consumers with more holistic experiences, blockchain technology provides access to events at more inexpensive and transparent pricing. This essay investigates how blockchain ticketing systems might provide significant customer benefits. We imagine a ticketing solution and highlight important factors to consider while creating such systems.
Non-Fungible Tokens (Nfts) Are Used To Represent Event Tickets
Non-fungible tokens (NFT) are digital assets recorded on the blockchain that have unique qualities that prevent them from being exchanged for another token owing to non-fungibility. Baseball cards, for example, cannot be termed non-fungible because the value of each card varies based on criteria such as edition number, design elements, and rarity.
Establishing blockchain event tickets as NFTs assures that they stay unique, that they cannot be reproduced, and that they may enable access to add-ons customized to their specific characteristics.
Intelligent contracts are used to code NFT interactions with blockchains; every interaction is recorded on this decentralized application ledger in perpetuity. Minting creates NFT tokens with unique token identifiers that are related back to the minting process; minting creates NFT tokens with unique token identifiers that are tied back to the minting process. Current owners can swiftly transfer an NFT to another owner via a smart contract by using its transfer function, which then assigns it to the new owner. As a permanent ledger, all transactions may be validated in perpetuity on blockchain networks.
Programmability also facilitates more complex use and interactions, what can non-fungible tokens (NFTs) be used for by actors from the outside world, such as owners, sellers, creators, and promoters.
These features have far-reaching implications for industry events, individual events, and public sector events like:
Maximum Price
Even during resales, a maximum ticket price can be set to reduce the incentive to purchase tickets at face value and then resell for maximum profit on secondary markets. As a result, tickets are less likely to sell out from primary sellers. Still, they are available only through secondary intermediaries at much higher prices (who will take an additional commission cut) at secondary intermediary markets.
Entertainer Revenue On Resales
Artists, athletes, creators, and contributors responsible for hosting an event now stand to benefit from resales in the form of royalties from each resale by programming it into their smart contract and taking a portion from every sale made through it.
Digital Collectibles
National Film Theatre tickets non-fungible tokens (NFTs) can be collected and resold post-event like physical tickets were. Plus, NFT tickets may even serve as collectible pieces of art.
Collaboration Among Multiple Organizations Sharing Standard Frames Of Reference
Blockchain provides an immutable record of truth that's non-siloed and highly available - offering organizations who typically don't work together a chance to collaborate by developing interoperable services for each other to use. Collaboration among organizations allows them to deliver an enhanced consumer experience, creating collaborative competition among them as no single monopoly owns and has access to tickets. Organizations can build services using ordinary tickets from multiple organizations by providing services under one ticket system.
An artist might find it simpler to collaborate more smoothly with relevant content merchandise sellers, video content creators, relevant marketing content and the venue to provide food and drinks using ticket transactions as the common currency for services they need to deliver their work efficiently. One way blockchain transactions simplifies rewards programs is its emphasis on collaboration between parties - previously, companies maintained their own databases without cross-organization collaboration being the norm.
When applied to loyalty rewards programs for loyal fans who attend multiple concerts by rewarding them with free or discounted products from sponsors of artists. Blockchain also simplifies cross-organization collaboration as companies need not keep all data separately but have shared data throughout organizations to work efficiently together.
Utilizing blockchain for event tickets helps streamline reselling processes while eliminating intermediary costs, as sellers can transfer tickets directly from this neutral system when reselling tickets. Current ticketing platforms rely on primary ticket sales platforms for ticket inventory storage; any reselling must occur through a transfer from this primary ticket sales platform to the buyer directly from the seller. Suppose the buyer doesn't already have an account in the primary ticket sales platform.
In that case, they must first create one and verify through secondary ticket sales platforms that the transfer was complete. Currently, purchasing tickets through secondary sales platforms requires multiple accounts due to ownership being housed by one primary sales platform for its entire lifespan. Every transaction occurring within it, with blockchain's decentralization capabilities, empowers consumers with self-service transactions while eliminating intermediaries.
The lack of an agreed framework between different systems makes delivering these experiences challenging. Due to on-chain data being in an open format and the availability of self-service data pull/trigger events via blockchain technology, collaboration opportunities increase significantly while richer experiences/products and healthy competition thrive through participation in this ecosystem.
Service Fee Commitment Price
Smart contracts provide companies with an immutable means to offer consistent, transparent service fees that match operational costs and inflation directly instead of charging static, fixed fees. Intelligent contracts may even allow dynamic fees based on demand conditions, allowing more predictable, transparent fee structures such as blockchain event ticketing systems.
Read More: Uncovering the Top NFT Trends of this year: A Look into the Future of Digital Collectibles
Considerations Of Blockchain
To take full advantage of blockchain in event ticketing applications, certain factors must be considered when developing such apps. We explore each question below in more depth.
- Which chains should we utilize: public or private chains?
- How can we approach cost-prohibitive and unpredictable gas expenses?
- Which roll-up type should we employ?
- What data belongs on-chain, and which should reside off-chain?
Public Blockchains
Public blockchain solutions provide permissionless access and decentralization. Owning an entity within an indivisible decentralized ledger, decentralized network, decentralized finance environment provides universality, access, and verification - so a wide range for this use case, the best public blockchain option would likely be Ethereum nodes hosted through Amazon Managed Blockchain (AMB), while they may be self-hosted - however AMB simplifies participating in its network by making participating easier; also known as "programmable public blockchain," Ethereum boasts one of the world's largest implementations.
According to their developer guide, Ethereum offers NFTs the freedom of being visible and interactive. Ethereum boasts an immense and robust environment with hundreds of thousands of millions of composable intelligent contracts being deployed monthly. Live online presentations on a variety of topics at various technical levels.
With transactions openly visible across such an expansive and interconnected environment, assessing a participant as honest based on on-chain behavior becomes much more straightforward. Furthermore, private chains do not provide this open access, leading to significant advantages over existing primary ticketing systems. Functional cookies help us provide useful site features, remember your privacy preferences, and display relevant content. Performance cookies, essential cookies provide anonymous statistics about how customers navigate our site so we can improve site experience and performance.
Layer 2 For Cost Efficiency
Due to network congestion, developers may find Ethereum gas fees prohibitively costly. According to The Scalability Trilemma theory, how event ticketing uses blockchain achieves only two of the three properties outlined: decentralization, scalability, and security. Layer 1 (L1) refers to the initial blockchain protocol, such as Ethereum or Bitcoin, with scaling issues addressed through Layer 2 (L2) solutions developed within its community. L2 is an upgrade on L1, in which computation is offloaded to reduce gas fees while increasing transaction throughput.
Roll-ups are one type of L2 solution that "roll ups" multiple transactions before sending them as one to L1 Ethereum as finality transactions allowing developers to transact for much lower transaction fees. Arbitrum, a popular L2 roll-up solution, charges an average transaction fee of $0.20 compared to Ethereum's average fee of approximately $4 per transaction call data transaction fee reduction proposal - further driving L2 fees down and contributing towards greater profitability for L1 transactions.
L2 networks do come with some drawbacks. Dapps built using L2 solutions cannot interact directly with L1 solutions, leading to composability issues and decreasing composability. While attempts have been undertaken to increase interoperability with L1, this issue must also be considered when considering using an L2. Lastly, security and decentralization trade offs occur with this choice, given there is more trust involved when dealing with more centralized entities as L2 solution developers; transactions do not settle as quickly with Ethereum-powered solutions; therefore, users do not benefit until all transactions have concluded successfully and settled against L1.
How To Select An Effective Roll-Up
Zero Knowledge (ZK) and Optimism are two kinds of roll-ups. Their main difference lies in how each handles any transaction disputes that may arise between clients. Certain ZK roll-ups send cryptographic validity proofs known as ZK-snarks directly to L1, enabling the roll-up to invalidate transactions quickly; however, they need extra time and testing due to their complexity.
Ethereum Virtual Machine-compatible ZK roll-ups have yet to emerge fully as yet. Polygon recently open-sourced an EVM-compatible ZK roll-up, which is already live on their test network and should go live for mainnet launch in 2023. Matter Labs's zkSync is also progressing toward providing EVM compatibility and intelligent contract deployment capability - these upcoming features, combined with short-time requirements, make ZK roll-ups attractive future solutions.
ZK roll-up transaction dispute mechanisms result in faster throughput with minimal security tradeoffs, while optimistic roll-ups don't provide this protection; their transaction verification procedures assume transactions to be valid rather than using validity proofs to support that assumption. For this reason, optimistic roll-ups require a challenging period where anyone may use fraud proof to contest the results of optimistic roll-up transactions.
Although NFT ownership transfer may appear instantaneous for consumers, waiting time introduces risks that must be acknowledged before accepting ownership transfer contracts. We picked Optimistic roll-up Arbitrum for this example because of its simplicity of deployment of smart contracts and EVM compatibility - developers may use Solidity code directly without compiler or version constraints on these contracts.
Data On And Off The Blockchain
Due to the hundreds of nodes and transaction fees involved with cryptocurrencies such as blockchain apps, keeping all data on-chain would be inefficient and inefficient. Determining which data points may benefit from decentralization is a smart practice. Others, on the other hand, would be housed in more cost-effective centralized databases - we might use file storage as an example to investigate this notion further.
NFT art works must be easily accessible and consistently exhibited across platforms and contexts, such as on the Internet Archive, IPFS, or any decentralized file storage site that is important to NFT artists. These distinguishing characteristics are not required for menu button PNG files. As a result, centralized hosting services may be sufficient to perform that duty.
Because not every data requires the same level of decentralization, you may use Errna functions for application logic while keeping extra data in Amazon DynamoDB. Off-chain logic and data related to this dApp may differ dramatically, and participants should not take these assumptions as absolutes; they may change depending on variables such as additional functionality given by its original firm.
An event's attendees might prefer different services; one might provide free recordings while the other offers drinks, yet each participant must agree upon certain aspects of a ticket that are immutable across use cases, so competent contract developers may use permanent royalties and max prices in their intelligent contracts; user address mapping to token ID must remain on-chain as this truth must be accepted by everyone participating.
High-Level System Design
Arbitrum nodes running on Amazon Elastic Compute Cloud (Amazon EC2) instances may easily connect to Ethereum nodes built using the Amazon Managed Blockchain space dashboard. To link an Arbitrum node to Ethereum nodes, we constructed and defined an endpoint using tokens as L1 URLs.
Consider allocating adequate disc space on your EC2 instances for the Genesis database, which takes around 75 GB to download and archive the original tar file. Arbitrum minimizes costs in the system presented here, while Ethereum provides finality - this figure visually shows this system.
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Conclusion
Using blockchain to create NFT tickets allows for numerous process optimisations. It improves cross-organizational collaboration by providing each institution with access to a single universal ticket on an unbiased platform for easy consumer reference. Assume that blockchain ticketing systems are successful. In that situation, more musicians, sports teams, and entertainers must use ticketing solutions that securely store tickets on blockchains.
Amazon Managed Blockchain enables users to launch dedicated, fully managed Ethereum nodes on both the mainnet and public testnets in minutes, capitalizing on Ethereum's dominant market position of approximately 80% weekly NFT volume share and 92% total value entering smart contracts; approximately 80% of all dApps use Ethereum, L2 Ethereum solutions, or EVM-compatible chains as infrastructure platforms; more players will create network effects, allowing more organizations to collaborate to create deeper services versus NFTs.
This essay serves as non-fungible tokens explained, as well as its consequences and concerns while creating an NFT blockchain system. If you require assistance planning or creating this solution particular to your vision, please contact your account team for extra guidance and implementation support. Similarly, for newbies just getting started with Errna, establish at least Business Support-level accounts so architects may provide particular architectural support relevant to use cases.
