Blockchain technology has transformed traditional business models in the last few years. It provides a secure, traceable, and transparent network in which two users exchange Bitcoin or other cryptocurrencies. Its online presence is influencing many industries, including Government, Finance, Healthcare, and more, as it has redefined the way people transact.
Blockchain technology today is doing much more than managing virtual currencies. It supports a wide range of applications such as supply chain tracking, product quality identification, peer-to-peer transaction, and lot more across various industry verticals. Here, we will look at the essentials of Blockchain technology and its impact on the event industry.
Essentials of the Blockchain Technology
Blockchain is about storing digital information (block) in a public database (chain). Since its conceptualization in 2008, Blockchain has been evolving across multiple channels.
Initially, Blockchain technology helps manage Bitcoin, an electronic currency. It uses a distributed database for allowing a safe, quick way to users for verifying vital information and build trust. In simple terms, Blockchain enables users to manage electronic cash without the involvement of a central administrator.
In 2014, a project called Ethereum played a significant role in allowing vast improvements in Blockchain technology. Today, Blockchain provides numerous benefits to different domains, including:
- Digital signature and encryption for a high level of security.
- Banks and clients get convenient and transparent transaction process.
- Maximum fraud control as digital data is stored in various places.
- Different accessibility levels for users in public and permission-based Blockchain networks.
- The need for the cash/credit card payment system is eliminated, which makes the transaction process faster and reduces operational costs.
- A decentralized system makes users worry-free from paying any fees to mediators.
- Participants can quickly check and confirm the validity of the previously made transactions.
How Blockchain Technology Influence Events Industry
Prevent Unethical Ticket Sales:
Many event organizers keep the event ticket price low to attract a significant number of participants. They use multiple platforms and take services from various vendors to sell or resale the tickets. However, such practices sometimes pose a challenge of financial loss.
Because of the lower ticket rates, automated bots, or even some vendors may buy tickets in bulk and create a ‘sold-out’ scenario. It may result in low participation, which can affect the success of the event, or the participants may have to pay higher prices for the tickets purchased from such vendors.
To avoid this, many event professionals today use Blockchain technology that helps to create entirely secure and authenticated transactions from real users. They can set rules for the ticket purchase, reselling, and setting the limits for the number of tickets that a single user can purchase. A tool powered by Blockchain technology will ensure that once a user transfers Bitcoin amount from his address to another, he/she cannot replicate the purchase.
Moreover, the Blockchain security allows the attendees to use their digital identification number to register for the event, instead of filling out lengthy forms.
Linking Cryptocurrency with Ticket Sales
Many companies today accept cryptocurrency as a mode of payment. Basis of the various advantages of cryptocurrency as a payment method; its use has become an eternal trend.
Unlike credit card transactions, which use pull mechanisms, Blockchain uses a push mechanism. This method helps to limit the details passed onto the receivers. Besides, a peer-to-peer network manages the payment system instead of a centralized body.
Event planners can implement cryptocurrency payment methods in their event ticketing systems, which will make the transactions absolute and counterfeit-proof once done. This feature can become invaluable for them in handling sales.
Hassle-Free Venue Management:
The decentralized transaction system helps event managers to connect with various venue owners and book a suitable space for their next seminar, conference, award ceremony, or any other type of event. The use of Blockchain technology will enable event managers to make fast & secure transactions and eliminate administrative hassles.
Besides, event sponsors can utilize Blockchain technology to set an automatic search for events as per their interest. Further, they can give additional sponsorship support through value-based connections.
The security of any financial transaction is an essential aspect of any event planning. Factors such as settlement time, currency denomination differences, the influence of intermediaries, and more may complicate the financial transactions.
With the use of Blockchain, users can share real-time information and update the transaction records after all parties agree. As a result, event planners can prevent loss due to fraudulent activities even before it happens.
Manage Suppliers and Attendees:
Through the Blockchain-powered tool, event planners can manage different vendors providing services such as catering, audiovisuals, maintenance, security, and more. By confirming the authenticity of these suppliers, event planners can book their services and make payments instantly.
Further, the Blockchain tools enable to create of a point-based system. It helps event planners to reward attendees for doing particular activities, including taking part in surveys, provide feedback, and more. They can avail of these reward points for services such as free food or accommodation, travel expenses, and others. Such a system will motivate participants to take more interest in events and help organizers to create an interactive event environment.
Moreover, Blockchain technology helps event planners to centralize the ticketing system that creates a uniform and transparent process for ticket sales. Further, it enables organizers to accept cryptocurrency as a payment for providing various services, including tickets, food, accommodation, and more. As this process is secure and efficient, it eventually lowers costs for multiple operations related to event management.
The proliferation of the Internet, along with a rapid increase in smart devices, has revolutionized the way managers organize and run events. Besides, Blockchain technology helps to build trust, transparency, and security among the entities and people even if they do not know each other. It enables companies to build a robust solution for planning & managing events that improve the attendee experience as well as reduce operational costs.
Although the Blockchain-powered tools are still evolving for the MICE industry, they will soon become the modern industry standards with the potential in offering better control, higher security, and efficient management for small to large-scale events.