First of all, here's a little into onto what GET protocol is:
The GET Protocol offers a blockchain-based smart ticketing solution that can be used by everybody who needs to issue tickets(NFTs) in an honest and transparent way.
GET has managed to atract a lot of adoption for its services (over 550k tickets sold). The ticketing companies using it (currently in The Netherlands, South Korea, Germany and Italy) see the advantages smart, blockchain registered tickets offer. Not only does it end scalping & fraud but smart tickets allow the event organisers to communicate with the ticket holder, give insight to real time data, merge the primary and secondary market, … and so much more!
A flyer summarizing the GET protocol
Here's my take on why GET protocol's smart and blockchain registered tickets becoming NFT's will revolutionize the ticketing industry.
After the DeFi hype we’ve witnessed last year, the next hype in crypto that seems to be developing are NFT’s. In this case it isn’t about riding the hype. Tickets being NFT’s on the blockchain really makes sense and it will change ticketing as we know it. Let me explain…
So what’s a NFT exactly? NFT stands for non fungible token. This is a token that’s unique on the blockchain and not mutually interchangeable. This in contrast to for example Bitcoin where it doesn’t matter which Bitcoin you have (1 BTC = 1 BTC). Every ticket issued by the GET protocol will become a getNFT.
getNFTs are indivisible, meaning that a getNFT can only be held by 1 address at the same time. This ensures that whoever owns a certain NFT will be the only one to decrypt the QR code.
Eventhough GET’s NFT’s will be the most used, bought & traded NFT’s in the crypto space the goal isn’t to ride the hype. Ticketing + NFT = a match made in heaven. And here’s why:
As every ticket on the blockchain will become a NFT and thus unqiue, it will allow non custodial ownership of the ticket asset. This gives many interesting advantages but 2 stand out for me personally: P2P ticket trading & DeFi event financing.
P2P ticket trading
NFT’s will allow P2P ticket trading and GET’s almost done building it! Peer to peer ticket trading means that everyone who owns a getNFT ticket will be able to trade it with another “peer”. This will happen in a closed and regulated ecosystem. This means that certain rules can be set by the event organizer. For example:
- The ticket can be sold for only x% profit
- x% of the trade profit goes to the event organizer
- a certain trading fee goes to the event organizer
- …
This will be the first and only ticketing system that will allow ticket trading while at the same time making scalping impossible. Regulators have been struggling for a long time to solve this problem and what seemed impossible to achieve will be made possible by smart contracts! The impact of this will be huge and will change the ticketing space for the better.
Additionally and not unimportantly it will give the event organizer an extra revenue stream. The money that right now for a large part goes to scalpers (the secondary ticket market is worth $15B) will be tapped into by the event organizers.
The advantage for GET holders is twofold:
- The P2P market will atract more users (artists, venues, ticketing companies) of the GET protocol (= more GET needed in the primary market)
- every ticket exchanged in the secondary market is an additional statechange (= more GET needed)
Event financing
Without a doubt one of the most promising and exciting things to look forward to in 2021 is the introduction of decentralized event financing to GET Protocol.
Event organizers often struggle to get financing for their events. This doesn’t only apply to starting artists, but even to famous stars. The artists need to have a lot of capital in advance as they have to pay for the venues, organisation, … upfront while only receiving the money after the show is over. Enter GET’s DeFi solution!
The pre-financing of events for event-organizers is not a solution looking for a problem; it’s a widely known and used tool that enables event organizers to make the investments needed to get their shows or festivals off the ground.
In the past we have encountered Event Organizers who select their ticketing partner solely based on the amount of money and loan conditions that they are offered up front.
Thanks to getNFT tickets you’ll be able to pre-finance events of your choice. You can choose to finance new artists (more risk/more APY) or established kpop stars (less risk/less APY).
This is how it will work:
If the concept seems complicated, here’s what you need to understand about GET’s decentralized financing solution:
1.) Event organizers will be able to easily pre-finance their events. (Something they desperately crave.)
2.) Investors will be able to invest in events of their choice, at a risk & reward level that they feel comfortable with.
3.) The $GET token is an integral part of the financing process, as it is required for ‘skin in the game’ from
The advantage event financing for GET token holders will bring is again twofold:
- As a GET holder you’ll be able to finance events and share in the profit of the ticket sales. This means that GET will allow you to profit without selling = passive income. An important note is that this is profit without inflation. While other DeFi projects give you returns by increasing the supply (and thus decreasing the value of the token) the returns here will not increase the GET supply, as the returns come from real profit(ticket sales).
- As the GET token will be an integral part of this process, it will:
- increase the buy pressure of the GET token (everyone who wants to participate will need GET)
- decrease the supply (everyone who participates will have to locks his GET tokens).
For a deeper insight I recommend the blog below:
https://medium.com/get-protocol/decentralizing-event-financing-liquidity-x-defi-x-nfts-975f028135f5
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