Considering that internet-based services have made the vast majority of our lives much easier over the past decade, it is surprising that a huge industry, entertainment, is still very much stuck in the past. In fact, the rise of online ticketing actually makes things more difficult for the consumer in some respects – fraud is now easier to carry out since duplication is more easily possible.
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This is a big problem for the entertainment industry, with ticketing fraud costing billions in the US alone per year. But the dynamics of the problem aren’t unique to ticketing, so punters should be interested to hear that a blockchain startup, GUTS tickets, is planning to use the security features of blockchain technology to address the issue.
Ticket scalpers and scammers’ free reign
When you consider that tickets for some events can cost hundreds and then be resold for ten times the original price in some cases, it is obvious why shady behavior arises.
The first problem is more widespread – touts or scalpers making a killing from reselling tickets they often buy in bulk. This can result in in worse experiences for all involved, and most people in the entertainment industry are quite opposed to this dynamic.
More sinister is the fraud that often occurs. Before any major gig you will see many people on Twitter and Facebook looking for tickets, and in this situation it is remarkably easy for people to either send a copy of an electronic ticket to multiple people or indeed copy the actual ticket and do the same. While ticket agencies are using name registration and more advanced physical tickets to combat this, it is still far from 100% fraud proof and hugely impractical. The possibility for scammers to essentially “double spend” the tickets they have is very easy.
Using crypto technology to make ticketing more secure
Those who are familiar with the history of blockchains will know that double spending and a lack of transparency are the very reasons the technology was invented. GUTS uses ledgerized transactions to connect the customer directly with the booking agent, allowing middlemen and all the associated shadiness to be factored out.
It eliminates price gouging and scamming with tickets. If blockchains can make complex financial transactions fraud proof as in the case of Bitcoin and Ethereum, something as straightforward as simple as verifying digital ownership is made extremely easy. GUTS uses a system of smart contracts for each ticket purchase transaction.
A team with experience and track record
While many crypto startups need to use a lot of runway before they can demonstrate a proof of concept, GUTS took the approach of getting their idea up and running quickly. They have piloted the system successfully, like when they used their platform to successfully sell out thousands of tickets for one of the most popular comedians in the Netherlands.
This should be intriguing to investors, since it proves they know what they are doing but also that the design of their system is one that even those with no experience with crypto can navigate easily.
They are ramping up their expansion and are holding their ICO currently, with their GET token being sold to investors in exchange for ETH.