Blockchain technology is taking the tech world by storm. Its secure, decentralized implementations are heralded as having the potential to revolutionize the way we approach everything from shipping to real estate. Currently, the most popular use of blockchain is through cryptocurrencies like BitCoin, but the possibilities for development are endless. With all the hype following blockchain and cryptocurrency developments, how much more can blockchain do, and how will it affect the ticketing industry?
The concept of blockchain technology is fairly straightforward: it’s a piece of code that keeps track of transactions and records between people. What makes blockchain new and innovative is the manner in which this information is stored. The encryption process for blockchain data is incredibly secure, stopping people from editing or deleting files. Additionally, each piece of information, or ‘block’, is stored in a network of thousands of computers, ensuring that no individual person or company has sole ownership of blockchain records.
For added security, software written with blockchain technology completes transactions automatically, eliminating the role of humans in financial transactions. As long as the code is properly written and there are no bugs, blockchain is unbiased and has a low margin of error – unlike human beings.
Blocks can also be used to verify identity online, as information cannot be edited, deleted, or copied by outside individuals. Blockchain will also be able to verify that your social media posts or emails are actually your own, or verify your identity when picking up a purchase such as an online shopping order.
Can Blockchain be Applied to Ticketing?
Blockchain and cryptocurrency technology can be of great use to the ticketing industry. As an online, decentralized method of payment, cryptocurrencies can drastically reduce the processing fees of online ticket sellers. BitCoin ranges from 0% to 1% in terms of processing fees, whereas credit and debit fees can be up to 3.5%.
Blockchain also makes it harder for scalpers to operate on the secondary ticket market. As tickets can be followed through the supply chain more easily, tickets changing hands between different purchasers can be flagged with greater accuracy.
The blockchain is also a great solution to the problem of purchase verification. Instead of proving purchases with a credit card, ticket purchasers need only have their blocks containing the transaction information verified. The result of such technology can be seen in mobile tickets that are identified via a blockchain based token on a mobile device.
The Long Game
Blockchain technology is still far from reaching the mainstream. Just like cryptocurrency, consumers have yet to fully accept the tech’s integration into existing markets. As a foundational technology, there is still much to be discovered about blockchain. We have yet to encounter all the potential benefits and barriers, as well as other factors that must be understood before full implementation can take place.
For the ticketing industry, blockchain based tickets have begun to crop up, as seen in companies like Blocktix, Aventus, and LAVA. Blockchain ticket sellers tout the enhanced security, decreased cost, and the ability to shut down ticket fraud as their main advantages over standard ticket sellers. Mainstream ticketing agents, however, have not yet implemented blockchain technology for the majority of their markets When blockchain finally does reach the majority of ticket-buying audiences, the potential for advancing the ticketing industry is unparalleled.
Blockchain technology represents a pending revolution on the internet, where the web can function in a secure, decentralized way. For industries such as event ticketing, the opportunities to end fraud, cut costs and enhance security is huge. Though blockchain tech may still be decades away from full implementation, ticket sellers would be wise to start analyzing the ways in which it can be used sooner, rather than later.