What Is Web3? The New Age Of The Internet
Web3 is the evolution of the internet. It's the World Wide Web but based on blockchain technologies to enable decentralisation.
From ticketing to airdrops and immersive fan passes, when implemented correctly, NFTs have the power to transform live events.
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There's been a substantial evolution of NFTs in the past year or so. From their early days as profile picture projects (PFPs), NFTs have become a versatile tool with an incredibly broad scope in several industries.
With many possible applications for NFTs, their use in the entertainment industry is becoming increasingly widespread. It's more than likely that you've heard of a celebrity or sports franchise releasing their own NFT collectables. Still, there are plenty of different ways that NFTs can be used in the entertainment industry, particularly in the case of live events.
We'll start with an obvious one: event ticketing. If you've followed our project, you'll know that NFTs are a natural solution for many of the problems facing the event ticketing industry.
Issuing tickets as NFTs will eliminate ticket fraud. Thanks to the way that blockchains record their information, assets hosted on a blockchain network are traceable, even when they pass through multiple parties via different transactions. Because NFT tickets are traceable, NFT tickets bought on SeatlabNFT are guaranteed to be authentic.
Similarly, NFT ticketing also offers a huge step forward in secondary market control for those organising events. Scalping is still a major issue plaguing all types of live events, and smart contracts (self-executing pieces of code that govern NFTs) can significantly reduce the impact of scalping on the live events community.
Smart contracts can set conditions around the transfer of NFTs, such as Royalty Splits and ceiling prices that cap the amount a ticket can be resold for. Royalty Splits allow event organisers to divert a set percentage of revenue from secondary sales to a specific wallet, giving fans the freedom to sell their tickets while generating additional revenue for the event itself.
Price ceilings are a way of beating ticket scalpers, who sell tickets for vastly inflated prices. A maximum ceiling price for the resale of an NFT ticket prevents scalpers from using the secondary market for profit while allowing fans flexibility if their plans change.
A brief mention of NFT collectables in the intro doesn't do justice to how these digital souvenirs are transforming the landscape of fan engagement. Since NBA released their NFT collectable platform Top Shot, the growth of collectable NFTs has been remarkable.
NFT collectables give fans the opportunity to own authentic digital souvenirs. Fan collectables have long been a feature of sports and the entertainment industry, but the move to a digital world saw the practice become more scarce. The traceability of NFTs, though, means, once again, fans can begin collecting souvenirs and mementoes of their experiences at live events, this time in digital format.
But there's much more to NFT collectables than just digital versions of trading cards. Blockchain technology means that NFT collectables are guaranteed authentic pieces of digital media (audio recordings, images, video, digital artwork, etc.) that can be airdropped on demand, displayed online and traded freely, all with the same secondary market control offered by smart contracts to NFT tickets.
NFT collectables can potentially have serious value, as demonstrated by the popularity of Top Shot. Smart contracts allow those minting the NFT collectables to enjoy a share of the revenue generated by their trading on a secondary market.
The potential monetary value of collectable NFTs gives fans a tangible reward for their engagement with events and artists. However, it is the dynamic ability of airdrops to distribute these NFTs in real time that has the potential to transform the way that fans experience live events and their connection with artists.
True fans can now show off their commitment to their favourite artists by owning scarce digital assets that can be verified on a fast, secure and carbon-neutral blockchain.
An "airdrop" is the term used to describe transferring NFTs to a wallet. The traceable nature of NFT tickets discussed earlier allows artists and event creators to identify the wallets of fans holding NFT tickets to their events and airdrop them an NFT reward.
These airdropped rewards can range from the NFT collectables described above to broader utility NFTs which entitle their holders to claim additional perks and benefits. For example, using utility NFTs, fans could claim free merchandise, early access passes, VIP entry or any other perk imagined by the event organisers.
Airdrops allow artists and event creators to immediately distribute digital assets of tangible value to fans attending events at any time they choose. Artists could mint an NFT of a selfie with their back to the crowd, then airdrop it live to those attending. Best of all, airdrops are not limited to the duration of an event.
Instead, airdrops can take place before, during or after an event. Fans holding tickets to past events can be airdropped an NFT memento of the event or an early access pass to the next release by an artist. In the run-up to events, NFT airdrops can be used to heighten anticipation and increase engagement, all using the technology of NFT ticketing to identify their wallets.
Social proofing has become standard, and NFTs offer a way for people to share their experiences. Under Web2 models, users "check-in" to spots, revealing their real-time location and other sensitive information. By contrast, Proof of Attendance NFTs give fans a way of sharing their experience at events with their peers without having to reveal personal information.
POA badges are NFT collectables that prove the holder's attendance at an event. Using blockchain technology, they can be airdropped to fans attending events either triggered by the event creator or by fans scanning an interactive element within the venue.
Fans that have earned a POA NFT can keep it as a memento, or, if the NFT becomes a rare collectable, can sell it on a secondary marketplace. Again, these resales can also be covered by smart contracts with Royalty Splits to offer event organisers a new way of generating additional revenue.
The various uses we've discussed above for NFTs are all underpinned by the traceability of blockchain. This transparency allows for a new type of fan engagement and interaction powered by Web3.
Adoption of NFT access passes has already begun, with Coachella offering NFT membership cards that were extremely popular, generating substantial revenue and selling out fast. Web3 offers fans a way of connecting with the artists and events they love, and there is clearly a desire to adopt the technology in the live events community.
The Immersive Fan Pass is an NFT-based fan membership card programme available exclusively on SeatlabNFT. Immersive Fan Passes are NFTs with potentially tiered utilities and benefits that artists can offer as part of a fan club package in place of a traditional subscription model. Fans can purchase different tiers of Immersive Fan Pass NFTs, each coming with its own select perks and rewards.
Loyal fans of an artist could own an "Access All Areas" Immersive Fan Pass, which entitles them to tickets to intimate “Fan Pass” shows, flights, accommodation and tickets to any show worldwide, album launch party invites and artist meet-and-greets. As part of the same programme, lower tiers of Fan Pass could be offered that come with perks such as released and unreleased audio tracks, live concert streams and event images, artist avatars, personalised digital autographs, collectable album artwork and much more. These are just some examples of how an Immersive Fan Pass might work, but there is almost no limit on what’s possible!
The SeatlabNFT Immersive Fan pass allows artists and organisations to cater rewards to selected groups or specific events. For fans, this offers unparalleled access to the artists, teams and organisations they support. Any type of loyalty programme or membership card can be translated into an Immersive Fan Pass offering.
We've covered a lot of ground here, but that's because there are so many possible ways that NFTs can be used in live events. The variety of different applications for NFTs is made possible by the traceability of blockchain networks and how they store the data they hold.
Issuing live events tickets as NFTs unlocks the possibilities of airdrops, collectables and all of the dynamic fan engagement opportunities they come with. That's all on top of the fraud elimination and scalping reduction that NFT tickets provide.
Our goal with SeatlabNFT is to build an NFT ticketing platform that provides artists and event organisers with the tools they need to harness the power of Web3 in their live events. From NFT ticketing to airdrops, collectables and secondary market control, we believe NFTs are the future of live events, and we're here to redefine event ticketing with them.
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