Tuesday, April 19, 2022

A Utility Case for NFTs in the Entertainment Industries

Much of the anti-NFT arguments are based on this false narrative that all NFTs are created the same -- through proof of work Blockchain technology. Setting that inaccurate assessment aside another argument is that NFTs lack any real use case utility. Let's briefly discuss a key area where there's a primary and secondary use case for NFTs in the entertainment industries. 

Using NFTs as tickets for concerts, sporting events, the museum, the zoo, and anywhere else where you need a ticket to get in has some usefulness. You could mint the max you think the venue will have for the event/timeframe and then when they get sold have them return it to a secondary wallet owned by the venue to gain admittance. 

Because they'd be under a smart contract and on a public ledger it'd be easy to discover attempted fraudulent tickets. Plus, if anyone leaves temporarily and needs to return they would simply have to show the venue door greeters their recent activity which would show them sending the NFT/ticket to the venue's secondary wallet. 

The NFT marketplace, however, wouldn't really resolve the issue of ticket scalping outright BUT if they use certain NFT marketplaces they could include automatic royalties upon sale which could act as a deterrent by forcing people to skyrocket their secondary sale attempts in order to make more than they bought them for in the first place. If that doesn't deter buyers and sellers of scalped tickets (which yeah, you're probably right that it wouldn't) it would at least provide royalties for the secondary sale. 

The auction feature that's available on most NFT marketplaces adds an extra layer of possibility. The venue could have a percentage of the tickets set aside for auctioning, such as all of the backstage passes, which again could include royalties if they try to sell them on a secondary market. They could also have "nostalgia tickets" for anyone who wants to actually keep a copy of the ticket for the event, which again could have the royalties feature activated should it later become a collector's market hot ticket item. 

There you have it folks. Reasons why NFTs could benefit the entertainment industries and even help legitimize the scalping markets. 

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