PhoenixDAO launched its flagship events dApp on the Polygon Network back in April. Now, those wishing to buy event tickets can do so by connecting their crypto wallet. But why is decentralisation just so important in the ticketing industry?
The ability to buy event tickets from the comfort of your own home has been around for quite some time now, so what is PhoenixDAO doing that is completely revolutionising this sector, and making it cheaper, fairer, and more secure for ticket buyers and sellers alike?
Problems of centralised ticketing
Centralised ticket booking sites have many disadvantages for those buying the tickets. Not least among them is a fair bit of overcharging depending on the demand for certain tickets – the more demand there is, the more these sites can set their prices higher.
Another problem with a lack of decentralisation is that ticket touts, whether they be individuals or agencies, are always on the lookout for events that they know will provoke a huge amount of excitement, and therefore demand for the event tickets.
These people know which events will cause this amount of hype, and they, therefore, buy up tranches of tickets and then sell them at hugely inflated prices.
Counterfeit tickets are another issue with centralised systems. As long as the counterfeit is good, it is extremely difficult to identify it, and will probably result in event organisers, the ticket agencies, and customers, potentially all losing money.
One more disadvantage that should be mentioned is the sheer amount of control wielded by the ticket booking agencies themselves. They have almost total power over how they distribute and sell tickets. A system that is bound to be manipulated in their favour.
Why decentralisation of ticketing is a game-changer
Decentralisation is the process of taking the power away from individuals or organisations that have a monopoly, or a large say in how things are done, and of making the process fair and completely transparent.
PheonixDAO is achieving this in the ticketing industry, by setting up smart contracts that completely cut out any middlemen. These smart contracts enable companies to set clear rules on any ticket reselling, and also to limit any secondary sales commissions.
All transactions of the tickets are completely transparent and available for anyone to view on the blockchain, thereby making the whole process verifiable. The smart contracts are written in such a way that they can automatically deal with any of the possibilities that happen with transactions, including issuing, payment processing, and refunds etc.
Finally, counterfeiting is now a thing of the past. The blockchain-based aspect means that tickets cannot be replicated.
In fact, PheonixDAO has introduced NFTs to its platform, in the form of ERC-721 tokens, which is the standard for non-fungible tokens. This means that every ticket can be unique, proving ownership beyond a doubt, and giving the owner the possibility to transfer, gift, or sell their ticket to anyone they wish.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.