Russian developers invented a platform to fight ticket profiteers

in #blockchain7 years ago

A Russian-based startup will create a decentralized platform to sell tickets at the events. The blockchain will allow to liberate the industry from profiteering and fraud and will help the ticket market to grow.

One of the main problems for event organizers is profiteering at the secondary market. In 2016, the global market volume of tickets to events was estimated at $38.9 billion, of which the secondary market accounts for almost one quarter ($8.9 billion).

Dealers often use special bots allowing them to buy tickets immediately on release. As a consequence, the organizer of the event does not get possible revenue from the sale of tickets while the spectator has to pay the overpriced ticket, sometimes several times the nominal price.

If the dealers do not manage to sell overpriced tickets, they often try to return tickets to the organizer at the last moment. The latter is rarely able to sell all of these tickets, which leads to shortfall in profits and losses.

Within the Сrypto.tickets system, the tickets to events will be issued in form of cryptotokens. The technology of cryptotokens will enable them either to receive additional profit from resale of tickets or, on the contrary, ban any resale or transfer of tickets from one user to another. All the conditions of ticket sale will be recorded by the organizer in a smart contract: it would regulate such questions as the possibility of resale, the refund or the sale of one ticket per customer. The revenues that accumulate in the pockets of the middlemen will return to the organizers. The spectators will also profit of the ticket prices decrease caused by the removal of profiteers from the chain of sale.

Another problem for organizers is the risk that tickets won’t sell well enough. This risk is caused not only by the lack of demand for the event: for instance, some tickets may stay in the hands of the less efficient ticket vendors. In such a situation, the customers cannot find tickets because they look for them elsewhere. The demand may be high but the hall will still be half empty. The transfer of the ticket sale to a decentralized platform would eliminate this risk because all ticket vendors would have the information about all available tickets. The organizer would be able to drop the obsolete practice of distributing ticket quotas among the vendors.

The elimination of ticket quotas would allow the organizer to use a more modern pricing policy known as dynamic pricing. It means the price would depend on demand. The system already functions in the tourist industry: for instance, air tickets become cheaper when the demand is low and grow in price when it is high. The event organizers would be able to sell the tickets in a more efficient way.

Any functioning ticket system can connect to Crypto.tickets. The platform does not aim to compete with any existing ticket system. It aims to create a fully distributed ecosystem that would become self-governed in the future.

The architecture of the platform consists of three systems. Tickets Chain is a blockchain solution that regulates the interaction among all the players on the market. Every event that appears in the system is a smart contract that defines the rules and the mechanisms of pricing in the case of resale, exchange or return of the ticket. The organizer can also insert in the smart contract the information about how the extra charge would be partitioned between the artist, the vendor and the organizer. All these operations would take place in automatic mode.

The second block of the platform is Ticket Cloud, a system of distribution of tickets existing since 2014 and offering for all the participants of the ticket market, organizers and vendors, the whole range of solutions such as billing, payment operations and instruments for the promotion and the analysis of sales. The monthly sales turnover of the platform is $2 million. It has already sold more than 800,000 tickets. More than 100 vendors and 1,000 organizers cooperate with the platform. The customers of Ticket Cloud include Aliexpress and the Nashestviye-2016 Russian rock festival whose organizers issued all their tickets on the Ticket Cloud base.

According to the technical description of the new platform, there will be a possibility to issue cryptotickets. It would enable the organizer and the customer to see all the operations with tickets.

The third block of the platform is the online wallet Tickets Wallet that will have mobile and desktop versions. These wallets will store cryptotickets. They will also make it possible to manage one’s tickets: return them, resell them on the secondary market or donate them to other users. Ticket Wallet would also make it possible to spread information and organize votes among the future visitors of the events.

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Cryptographic.tickets-it is a project to create a unique blockchain ecosystem that will forever change the sale of tickets for the massive Event industry. At the moment the ticket sales market is experiencing many problems, such as speculation on the secondary market, fraud and falsification of tickets, partial sales and the lack of a consolidated tool of a return ticket.

Perhaps one of the buzziest of buzzwords for the past few years has been “Blockchain”. But for those who are well-versed in the technology and the goings on of the industry, it is definitely more than just hype.