Technology startup Aventus, which is linked to Imperial College’s Cryptocurrency Research and Engineering Centre, has unveiled a blockchain-based event ticketing solution it believes can repair what it describes as a “broken” sector.
In a white paper, Aventus said the ticket sector is doomed to failure as both primary and secondary market platforms “actually profit from some forms of unethical activity, often at the expense of fans and event organisers”.
In summary, it said event organisers aim to under-price tickets to maximise fan attendance, increase customer loyalty and earn more revenue from in-event sales, but the consequence of this is that a “large economic potential exists for the formation of secondary markets, with resellers being able to make a profit by pricing tickets at closer to their ‘real‘ market-value”.
It added that a solution to the prevalence of ticket touting has not yet been “comprehensively addressed” by either technology or new legislation.
Read Aventus’ white paper here
Aventus believes its Aventus Protocol, an Ethereum blockchain-based protocol, can implement a “fairer, more secure and transparent event-ticketing industry, practically eliminating counterfeit tickets and unethical touting”.
The Aventus Protocol is a database that gives organisers control over the creation, managing and promotion of their events and ticketing.
They can enforce resale prices (minima and maxima) and even receive a portion of secondary market sales-revenue. Changes to identities associated with the ticket can only take place if the ticket is resold through the approved secondary market.
Aventus said: “[There is a] need to re-build the industry from the bottom-up, replacing the current, siloed, architecture to create a new, fair, secure and transparent economic model under which fans and event organisers would have greater control whilst, at the same time, touts and ticketing-platforms would be incentivised to behave in such a way as to produce positive externalities.”