The buzz of NFTs has been around for a while now, but if you are still unsure of what this acronym stands for here is a mind twister for you; NFT stands for non-fungible token.
Yeah ok, but what does it mean? Aren’t NFTs just those stupid JPEGs that overly rich people are buying for an overly priced rate on an overly estimated martlet and mean nothing?! Well, not really, so let’s dig in deep on what are NFTs and how they might impact your musical career in the future.
NFTs are a financial security-backed asset, consisting of digital data stored in a blockchain (insert vinyl scratch sound).
Quick side-track information, into what is blockchain, for more read on at Forbes:
Oversimplifying, a blockchain is a form of a distributed ledger, where the ownership of an asset is consistently checked by its own users, creating a government-free system of financial exchange. Understood? Great, so let’s move on. The ownership of an NFT is recorded in the blockchain and it can basically be anything!
NFTs typically contain references to digital files such as photos, videos, audio and other media. Because NFTs are uniquely identifiable, they differ from cryptocurrencies, which are fungible, this system assures the authenticity of the asset, making it practically impossible to fake.
How does that impact your music career?
The future of concert tickets is all via NFTs, they have the ability to change the ticketing process for both purchasers and organisers.
What advantages do NFT tickets offer?
Well first you can forget about scalping tickets, there will be no chance of fraud and bogus tickets. Both ticket buyers and organisers will rely on blockchain as a safety measure which is basically fail-proof.
For all parties to be able to validate the legitimacy of the ticket, the transfer of NFTs from the first sale to the subsequent sale is recorded immutably on the blockchain. They can also be created as non-transferable tickets, in situations where the resale of tickets is prohibited, which is a whole new area of business altogether.
You can produce an unforgeable ticket for less production cost, and customers and organizers can validate the authenticity of every ticket on the chain and track the history of ownership.
Quick production contrary to the traditional way of digitizing tickets, is the approach to creating and minting NFTs in minimal time. NFT can be minted and ready to put for sale in less than a minute.
New potential sources of income
Since programmable NFTs can include built-in rules for merchandising, content, resale, and royalty splits, that opens up another easy way to boost the revenue stream for artists. You are also able to resell the NFTs on secondary marketplaces, creating a whole new opportunity attached to that NFT.
You can sell NFT tickets to collectors, or use NFT ticket perks to offer food or clothing specials in conjunction with your sponsors, maybe for a percentage of the sales, the possibilities are limitless.
How do they benefit the purchasers?
Event planners can presell tickets in advance by tackling the original ticket purchase with future events. Let’s say a festival that happens once a year, you could potentially sell a 5-year package to hardcore fans, including VIP passes, you can make the NFT as part of your event purchases, including drink and merch package, and they can also market desired rare tickets to collectors.
What opportunities does NFT Ticketing provide to organizers?
They can create art-like tickets representing the story of an event so that people will want to collect them. They can prove the authenticity of each ticket and verify the owner. They earn a piece of the profit when a ticket owner resells the NFT ticket. They can access potential data to make subsequent events better. They can distribute NFT tickets easily via email or SMS.
In order to entice people to collect them, they can design tickets that resemble works of art and tell the tale of an event. They could validate the owner and demonstrate the validity of each ticket. When a ticket holder resells an NFT ticket, they receive a portion of the proceeds. They have access to information that could improve future events.
NFTs are closing the gap between a one-off experience with artists, going to a concert and “see-you-later”, to a meaningful and committed relationship. Companies like Binance, Oveit and Seatlab are some of the first to offer NFT tickets.
There are so many possibilities to engage and interact with fans through this highly secure system, we have just started exploring this space and the market for these items will only grow in the next 5-10 years and is expected to hit $60 billion dollars by 2026, according to the Coin Telegraph. Get amongst it, don’t lose an opportunity to boost your earnings as an artist!
