The Diffusion of Web3 in eTicketing is Revolutionizing the Live Event Industry

Or you've seen how prices for tickets can skyrocket on secondary markets, making them unaffordable for most fans.

Limitations of Web2 in traditional ticketing systems

The current landscape of eTicketing is plagued by a number of pressing issues. One major challenge is the widespread use of bots, which use algorithmic scripts to purchase available tickets and shift them to the secondary market. This practice, known as scalping, artificially drives up ticket prices and makes them unaffordable for many fans. Despite the U.S. government's introduction of the BOTS Act in 2016, the industry still faces issues, unable to fully curb the practice.

Fraud is also extremely difficult to control in the secondary ticket market. Tickets can appear on various platforms including traditional sites like StubHub and Viagogo, but also difficult-to-control platforms like social media sites.

These sorts of challenges are ruining the experience for all stakeholders involved, including fans, event organizers, ticketing platforms and even artists.

Fans are paying exorbitant prices for sold-out event tickets and being denied entry due to counterfeit tickets. With primary and secondary markets imposing high transactional costs and markups often exceeding 49% and occasionally surpassing 1000% – only a privileged few can afford the tickets.

Event organizers are losing sales because fans are not able to get tickets, and they are facing legal liability for counterfeit tickets. Conversely, eTicketing platforms are losing customers because fans are frustrated with the current system, and they are facing regulatory scrutiny. And artists are seeing their fans disappointed.

Fed up with these ticketing frauds, some artists have taken the matters into their own hands. In 2017, Taylor Swift introduced a system that gave verified fans first access to tickets. However, these are costly and abstract solutions that should not be necessary. Artists should not be responsible for regulating the eTicketing market.

Clearly, people need a new eTicketing system that solves all these problems. A system that would stop scalping and prevent counterfeiting tickets. For example, Blockchain, which enables a secure and transparent way to record transactions, making it ideal for applications like eTicketing.

Another way to improve the eTicketing experience is by focusing on the platform’s UI and UX. However, no single solution is perfect, as Web3 platforms can be complex and difficult to use.

This is where a hybrid approach can be beneficial. By combining the best of both worlds, a hybrid ticketing platform can offer the security and transparency of Web3 with the user-friendliness of traditional ticketing systems.

A new chapter for streamlined ticket management

UTIX, a decentralized e-ticketing platform, is taking a unique approach to solving the problems of scalping, counterfeiting and other issues in the industry. UTIX's approach is based on the concept of "technology diffusion," which means blending necessary Web2 and Web3 elements.

A smart contract requires all signing parties to agree and have the blockchain validate those agreements in return for the consideration laid out within the contract. Within the contract, you can enable stipulations, such as a resale price on the platform. While this is possible to some extent on Web2, the requirement for a specific NFT to be in the user's wallet who participated in the contract, to enable entry to an event, ensures that secondary off-site pricing and sale is extremely difficult.

However, UTIX also runs traditional parallel databases to avoid scalability, sustainability and efficiency limitations caused by blockchain and smart contracts. This setup allows UTIX to respond quickly to gas price fluctuations or blockchain congestion issues, ensuring uninterrupted service for users.

But is a hybrid approach the best solution in making the eTicketing platform more secure, transparent and user-friendly?

“When we first considered the integration of Web3 technology, we weren't entirely sold. It was an uncharted territory for us,” said Max Mayhew, co-founder of UTIX. “It was an event organizer, a forward-thinking client, who brought the potential of Ethereum smart contracts to our attention, highlighting their value in variable control.”

UTIX's approach is particularly beneficial for small events, which are often the target of ticket scalping because they don’t have the resources to prevent it.

UTIX aimS to keep everything "on platform" as it is today, without making it too different or complicated for existing users. While it is possible for Web2 developers to create something similar to what blockchain offers, it would require multiple different applications to be developed that would all need to work together simultaneously. In contrast, a blockchain solution can enable validation, tracking and control all at once.

One of the key benefits is that UTIX does not require upfront payments from event organizers. This can save event organizers money and minimize the risk of asset fluctuation. Additionally, with a user-friendly interface, event organizers can easily manage any big or small event.

By striking this balance, UTIX harnesses the benefits of both Web2 and Web3 to improve the ticket-buying experience.

Accessibility at its core

While the complete eradication of all negative externalities in eTicketing is the goal, UTIX strives for progress over perfection. The company believes that the integration of its blockchain solution is a step in the right direction towards eliminating issues with the current eTicketing landscape.

“As we delved deeper into the concept, we began to comprehend the real-world advantages. Drawing parallels from successful implementations by global giants such as Walmart, we understood how efficiently a ticket or token could be tracked, with unmatched precision and speed,” Mayhew added.

UTIX focuses not only on the technology but wants people to have a smooth user experience while using the platform.

Blockchain technology can be an essential part to solve eTicketing problems, however, it cannot be the whole solution. Other important factors can be a user-friendly interface, a well-designed go-to-market strategy and partnerships with stakeholders.

It’s a win-win for both event organizers and fans. Event organizers can save money, as they do not need to pay third-party ticketing companies. Fans can also benefit, as they can be sure that they are getting genuine tickets without breaking the bank or falling prey to scams and frauds.

We’re certain that in the future, we can expect to see more and more eTicketing solutions follow the holistic strategy of UTIX’s diffusion technology.