Jay Chou's concert tickets in high demand and hard to get | Fans hope to use NFTs to combat scalpers, Japanese expert: Unable to prevent

This article is reproduced from CryptoCity, with the original title "Jay Chou concert tickets are hard to get! Community suggests using NFT to prevent scalping, how do Japanese companies view this", written by Ariel.

Jay Chou's concert ticket frenzy has attracted attention, with fans questioning why NFT tickets are not used. Experts point out that NFT tickets cannot fundamentally solve the scalping problem, and emphasize their advantages in circulation.

The Whole Internet is in Agony: Unable to Get Jay Chou Tickets, Why Not Use NFT?

Today, major social media platforms are either scrambling for Jay Chou tickets or for the latest Hunter x Hunter release. As the Asian King of Pop, Jay Chou's "Carnival" World Tour Concert will take place at the Taipei Dome from December 5th to 8th.

Returning to Taiwan for a concert after seven years has caused a frenzy among Taiwanese fans. According to official statistics, there were up to 890,000 people online simultaneously trying to get tickets, and nearly 150,000 tickets were sold out within 5 minutes. Many cryptocurrency enthusiasts lamented, "Can't get tickets! Why not use NFT?" "I can't understand why the ticketing system still doesn't use NFT ticketing technology," "The tickets were all snatched up by scalpers!" Even "Cryptopia" office sparked a discussion.

However, can the introduction of NFT really solve the ticketing and scalping issue? Japanese ticketing platform operators wrote at the end of last year (2023) explaining why NFT tickets cannot effectively prevent scalping!

Is the Claim that NFT Tickets Can Prevent Scalping False? Japanese Operators Point Out the Key Blind Spot!

You may have seen the following argument: "NFT concert tickets can prevent scalping" because blockchain technology has the characteristic of being tamper-proof and unforgeable. However, a Japanese digital entertainment startup Playground and electronic ticket platform MOALA founder Keishi Ito poured cold water on this notion: "The claim that NFT tickets can effectively prevent scalping is false. Why?"

Keishi Ito wrote at the end of last year (2023) in an article on Mynavi, that whenever he hears the statement "NFT tickets can prevent scalping," he furrows his brow, feeling deeply puzzled.

The belief that NFT tickets can prevent scalping is mainly because the blockchain can record the circulation of data. However, Ito stated that even without using blockchain technology, existing centralized ticketing systems can also record the circulation of tickets and even prevent improper ticket transfer.

Reasons Why NFT Tickets Cannot Prevent Scalping: Scalpers Operate Offline

Ito pointed out that the reason NFT tickets cannot prevent scalping is that scalping activities mainly occur offline rather than online. In this scenario, when operators sell tickets (physical or digital), scalpers can still illegally sell tickets through physical ticket stubs, screen captures, or mobile devices.

These offline activities cannot be recorded by the ticketing system, so even if the method of recording tickets is moved from centralized servers to the blockchain, it still cannot eliminate scalping.

In terms of preventing scalping, electronic ticket technology operators are currently discussing measures such as "facial recognition," "digital stamping on mobile phones," and "dynamic QR codes," rather than viewing blockchain technology as the ultimate solution.

Ito sighed, saying: "Misunderstandings are inevitable in the early stages of technology due to insufficient knowledge. However, if the wrong perception spreads widely, it will overlook the true value of NFT tickets, which is a pity."

The Essence of NFT Tickets: Creating a Common Ticket Circulation Facility

Ito pointed out that the most significant feature of NFT tickets is their high liquidity. Currently, the system structures of various electronic ticket platforms differ, and if a transfer to another platform is needed, manual processing by the other platform is required.

However, if NFT tickets become widespread in the future, and every ticket platform issues NFT tickets using the same blockchain, a significant reduction in manpower can be expected, addressing issues such as labor shortages and labor problems in the entertainment industry. Ito believes this is the greatest advantage of digitizing tickets into NFTs.

He pointed out that the biggest challenge in realizing this advantage is how to keep the pace of various ticket platforms consistent. Since the attention to blockchain technology, not only in the electronic ticketing industry, everyone wants to establish a common circulation facility, but currently, no company has become a precedent for breaking this barrier.

Building a common circulation facility is a massive undertaking. Although it may not yield benefits in the short term, if successful, it can bring far-reaching impacts, with extraordinary significance for the entertainment industry and the Web3 industry.

If NFT Tickets Cannot Prevent Scalping, What Is Their Use?

If NFT tickets cannot prevent scalping, what are they good for? Ito suggested that perhaps they can be developed towards "recording memories" to further promote their widespread use.

After watching a fantastic concert, exhibition, or movie, when users want to reminisce or share on social media, physical ticket stubs are still the preferred option for many users. As an electronic ticketing operator, Ito often receives feedback from users: "It feels empty without a physical ticket stub to keep."

But if tickets go completely electronic in the future, how will users record memories? This is where NFTs can come into play.

Ito pointed out that by issuing "attendance proof NFTs," also known as NFT ticket stubs, memories of various events attended using electronic tickets can be conveniently recalled in a digital format.

Osaka Expo in Japan Sold NFT Tickets Last Year, Using SBT for Issuance

Last year, the Osaka Expo in Japan sold NFT tickets for the first time, priced at 2,000 Japanese yen, and issued in the form of Soul Binding Tokens (SBT). Once SBT is transferred to the user's cryptocurrency wallet, it cannot be resold or transferred to other users on the blockchain.

However, if scalpers are determined, they can still transfer wallet control to other buyers through offline transactions. Currently, there is no way to conduct comprehensive identity verification (KYC) on the chain, and excessive real-name requirements may cause backlash from users in the cryptocurrency community, as one of the characteristics of blockchain is "anonymity."

Nevertheless, as more and more major institutions attempt to issue NFT tickets, Ito still sees the potential for the development of the electronic ticketing industry.

Ito stated that although NFT tickets have been closely watched since the dawn of blockchain development, they, like other blockchain applications, have not been widely and continuously utilized. Nevertheless, NFTs are still a solution worth paying attention to, especially in a ticket market where physical tickets still hold the majority share.