What is NFT?

If you have been following the crypto trends in the past one or two years, you will know that Decentralized Finance has grown exponentially in 2020 where many DeFi platforms were deployed. However, enter the year 2021, the DeFi growth has somehow slowed and seems to have been overtaken by another emerging trend, the NFT industry.

The NFT craze started when Jack Dorsey, Twitter’s founder, and CEO, auctioned his first-ever tweet(on March 21, 2006) as a nonfungible token (NFT) and was bought using ETH for $2.9 million. Since then many NFTs were successfully sold for astronomical dollar values, like the artwork named “Everydays: the First 5000 Days.” by the artist Beeper which was sold for $69 million!

So why do people are crazy about NFTs and willing to spend so much money on them? What is NFT after all? According to Wikipedia, a  non-fungible token (NFT) is a unit of data stored on a distributed digital ledger, aka blockchain, that certifies a digital asset to be unique and therefore not interchangeable. In contrast, a fungible token is a kind of digital asset that is not unique and therefore interchangeable. An NFT represents real-world objects like art, music, in-game items, videos, real estate, and more. They are bought and sold online, frequently with cryptocurrency, and they are usually encoded with blockchain technology.

The following table illustrates the differences between NFT and fungible tokens.

Fungible TokensNon-fungible Tokens
Interchangeable
A fungible token can be exchanged with any other fungible token of the same type. It is like exchanging a dollar bill with another dollar bill and the value is still the same.
Non-Interchangeable
A non-fungible token cannot be exchanged with another non-fungible token of the same type. It is like your passport or ID, they cannot be exchanged.
Uniform
Each fungible token is identical to all other fungible tokens of the same type. For example, your one-dollar bill is the same as John’s one dollar bill.
Unique
Each token is unique and different from all other tokens of the same type. For example, your bank account is not the same as John’s bank account
Divisible
A fungible token can be divided into smaller units and the total value is still the same. For example, you can divide a dollar bill into two 50 cents or five 20 cents and the total value is still the same.
Non-divisible
The non-fungible token cannot be divided into smaller units. The basic unit is one token and one token only. For example, your driving license.
ERC-20 Standard
The Ethereum Standard is used for issuance tokens to be used as cryptocurrencies.
ERC-721 Standard
The Ethereum Standard is used for the issuance of unique, non-fungible tokens. The most well-known case is CryptoKitties, which is a virtual collectibles marketplace where each kitty is unique.

NFT has several properties that help to improve processes and things. First, it can prove and authenticate the ownership of an asset or information, making it suitable for fraud and counterfeit prevention. Therefore, it can be used in the KYC procedure, issuing academic degrees and other educational certificates. Besides that, it can be used in areas that need authentication and proof of ownership and information, such as art, collectibles, badges, voting & elections, loyalty programs, in-game items, copyright, supply chain tracking, medical data, software licenses, warranties, real assets and more. Next, NFT is easily transferable and tradeable by capitalizing the blockchain network, without the need of intermediaries, all you need is a crypto wallet like MetaMask.

The history of NFTs began with the emergence of colored coins on the Bitcoin network(Opensea, n.d.). Rare Pepes, illustrations of the Pepe the Frog character built on the Bitcoin counterparty system, were among the first NFT projects. Some of them actually sold on eBay, and a set of Rare Pepes later sold in a live auction in New York. However the colored coins NFT projects did not gain traction in the mainstream.

Cryptopunk was the first Ethereum based NFT project which created 10,000 unique collectible punks with proof of ownership stored on the Ethereum blockchain. The is the project inspired that the modern CryptoArt movement. It was an inspiration for the Ethereum ERC-721 standard that powers most digital art and collectibles. No two punks are alike, and each one of them can be officially owned by a single person on the Ethereum blockchain. Originally, they could be claimed for free by anybody with an Ethereum wallet, but all 10,000 were quickly claimed. Now they must be purchased from someone on the Ethereum marketplace contract where you can buy, bid on, and offer punks for sale. To learn more, check out the website: https://www.larvalabs.com/cryptopunks

Though Cryptopunk was the first Ethereum based NFT, the first NFT project that made an inroad into the mainstream was the Ethereum based CryptoKitties. Launched in 2017, CryptoKitties featured a primitive on-chain game that allowed users to breed digital cats together to produce new cats of varying rarity. The first-generation cats were auctioned off and new cats could also be sold on a secondary market. At the height of the craze, sales of CryptoKitties nearly touched 5,000 ETH in volume, with Founder Cat #18 selling for 253 ETH ($110,000 at the time of sale). These high prices drew more users into the NFT gold rush.

Today, a couple of NFT platforms have been developed to help users create and mint NFT digital assets, the biggest one being Opensea. It claimed that it is the world’s first and largest NFT marketplace that lets users discover, collect and sell extraordinary NFTs.

References

DeFi and Yield Farming Explained

DeFi and Yield Farming have been the most popular buzzwords among the crypto community in recent months. Some DeFi tokens can skyrocket to more than 10K USD in just a few days but drop back to near zero also in a matter of days! Besides that, people in the crypto community are talking about yield farming instead of mining nowadays, most of you might scratch your head and wonder what the heck is that? Skeptics might challenge that DeFi is merely hype, but the total value of digital assets locked in the DeFi platforms has reached an astounding $10 billion(as seen in the figure below), thus it has created huge DeFi economics(Should I call it DeFiconomics?).

Source: https://defipulse.com/

To help you understand DeFi and Yield Farming, I shall try my best to explain these two concepts in a nutshell.

What is DeFi?

The word DeFi stands for decentralized finance, which means operating financial applications on a decentralized platform such as blockchain. It is the new financial architecture that leverages decentralized networks and decentralized technologies such as smart contracts to transform old financial products into trustless and transparent protocols that run without intermediaries. DeFi has a popular nickname ‘Money Lego’ because of the process of DeFi development like building legos where different components of a system can easily connect and interoperate.

DEFI Features

DeFi has unique features compared to CenFi (Centralised finance) and claimed to be able to provide more convenient and seamless services, particularly for the underserved people. Here are some of the features:

  • P2P- Transactions are performed on peer to peer basis without the need for intermediaries
  • No need KYC- Anyone can open an account with a DeFi platform anytime and easily without going through the tedious and painful process of KYC
  • No one holds your digital assets- DeFi platforms are non-custodian in nature which means they do not hold your private keys, you have full control of your own digital assets.

DeFi Products

Popular DeFi products include decentralized exchanges, loan and savings markets, tokenized physical assets such as gold, derivatives, forecasting/betting markets, payment networks, insurance and more.

Loan and Savings Markets

DeFi loan and savings markets allow you to lend, borrow, or deposit money in a platform. Among the popular loan and savings platforms are Compound, Aave, MakerDAO, Dharma, dYdX, and more.

Compound

Compound is a protocol on the Ethereum blockchain that creates a money market, which is a group of assets with algorithmically earned interest rates, based on supply and demand for those assets. The asset provider (and borrower) interacts directly with the protocol, earning (and paying) floating interest rates, without having to negotiate conditions such as maturity, interest rates, or collateral with peers or business partners.

MakerDAO

MakerDAO is a smart contract that allows users to open Protected Debt Positions, or CDP (Collateralized Debt Positions). Users deposit ETH as collateral and can mint or borrow tokens called DAI. DAI is a stablecoin linked to the US dollar.

Borrowers pay an annual interest rate called the stability fee to mint a new DAI. After the debt is repaid, the DAI is burned along with the stability fee owed in the MKR Maker token. Stability charges prevent users from overspending the amount of DAI supply in excess.

Aave

Aave is a decentralized non-custodial money market protocol in which users can participate as depositors(lenders) or borrowers. Depositors provide liquidity to the market to earn passive income, while borrowers can borrow in an overcollateralized or undercollateralized manner.

Dharma

Dharma is an open-source lending and savings account built on Compound which is characterized by its ease of use and simplicity. Dharma features a Smart Wallet is a non-custodial that automatically lends out any DAI or USDC it receives on Compound and generates a variable interest rate. Dharma requires users to have a fully verified Coinbase Account in order to create a new account.

dYdX

dYdX is a non-custodial trading platform on Ethereum that caters to more experienced traders. The dYdX platform allows users to lend, borrow, or margin trade any supported asset like ETH, Dai, USDC, and more. Interest rates vary by asset and adjust with supply and demand. Interest continuously accrues and is paid to lenders, minus 5% which is set aside for dYdX’s insurance fund.

All borrowed funds must initially be collateralized with 125% of their value. Liquidation occurs if that ratio falls below 115% and comes with a 5% penalty. Traders can take leveraged long positions of up to 5x their collateral’s value and 4x for shorts. Loans and margin trades can remain open for a max of 28 days, after which they are automatically closed out with a 1% expiration fee.

Decentralized Exchange

Decentralized exchanges or DEX are like stock exchanges but run by smart contracts on the Ethereum blockchain. While both allow you to trade assets, decentralized exchanges only trade cryptocurrencies and do not require centralized authorities to operate. Some of the popular exchanges are Uniswap, SushiSwap, Bancor, Kyber, Balancer, and more.

Uniswap

Uniswap is a decentralized ERC-20 token exchange that supports Ethereum and ERC20 tokens. The advantage of Uniswap is that you can exchange ETH with other ERC-20 tokens in a decentralized way. No companies involved, no KYC, and no intermediaries.

The Uniswap platform is unique in that it does not use an order book to derive the price of an asset or to match buyers and sellers of tokens. Instead, Uniswap uses the Liquidity Pool which comprises a group of tokens managed by smart contracts. The liquidity pool ensures enough tokens for users to exchange with each other using Ethereum as a channel.

Bancor

Bancor is a protocol on Ethereum for non-custodial token exchange using pooled liquidity. Bancor does not use order books, Instead, it uses an algorithmic market-making mechanism through the use of Smart Tokens. This will ensure liquidity and accurate prices by maintaining a fixed ratio among connected tokens and adjusting their own supply.

The Bancor platform has expanded beyond Ethereum to offer an exchange with EOS and POA Network. It also features a native token known as BNT( Bancor Network Token), which serves as a Smart Token hub that connects all other tokens in the Bancor Network, enabling instant trades among any asset supported by Bancor.

Kyber

Kyber Network is an on-chain liquidity protocol that allows the token holders to contribute liquidity known as reserves. The Kyber Network offers multiple types of reserves that exist in smart contracts. Besides that, Kyber does not use order books; when a user initiates a trade, Kyber returns the best price across all reserves.

The Kyber Network can be integrated into dApps to enhance user experience. In addition, Vendors and wallets can also use the Kyber Network to allow users to transact using their token of choice in a single transaction. Moreover, Kyber has a native token called KNC which is used to align ecosystem incentives. Holders can stake KNC to participate in governance and earn rewards, reserve managers pay fees and receive rebates in KNC, and DApp integrators receive a portion of fees.

Balancer

Balancer is an automated market-maker built on Ethereum. It allows anyone to create or add liquidity to customizable pools and earn trading fees. Instead of the traditional AMM model, Balancer’s formula allows any number of tokens in any weights or trading fees.

In fact, Balancer is like an inverse of ETF: instead of paying fees to portfolio managers to rebalance your portfolio, you collect fees from traders, who continuously rebalance your portfolio by following arbitrage opportunities. Balancer protocol is designed to be composable and has three types of pools:

1) Private Pools where only the owner can contribute liquidity and has full permissions over the pool, being able to update any of its parameters.

2) Shared Pools where the pool’s tokens, weights, and fees are permanently set and the pool creator has no special privileges. Anyone may add liquidity to shared pools and ownership of the pool’s liquidity is tracked with a specific token called BPT – Balancer Pool Token.

3) Smart Pools which are a variation of a private pool where the controller is a smart contract, allowing for any arbitrary logic/restrictions on how pool parameters can be changed. Smart pools may also accept liquidity from anyone and issue BPTs to track ownership.

Yield Farming

Yield farming is an activity that uses crypto assets to generate as much return as possible on those assets. A yield farmer may continually chase which pool offers the best APY (Annual Percentage Yield). This may mean moving to risky pools from time to time, but yield farmers can deal with the risks.

In some sense, yield farming is similar to staking but is a lot more complex. In many cases, it works with users called liquidity providers (LP) that add funds to liquidity pools. For example, a yielding farmer puts 100,000 USDT into the Compound. In return, he or she will get a token for the stock, called cUSDT.

Let’s say he or she get 100,000 cUSDT back. He or she can then put the cUSDT into a liquidity pool that uses cUSDT in Balancer, an AMM (auto market maker) that allows users to set up a crypto index fund that is rebalancing. At normal times, this can earn a small amount of transaction fees. This is the basic idea of ​​yield farming. Users are looking for sophisticated cases in the system to produce as many results as possible in as many products as possible.

Liquidity Pool

What is a liquidity pool? It’s basically a smart contract that contains funds. In return for providing liquidity to the pool, LPs get a reward. That reward may come from fees generated by the underlying DeFi platform, or some other source.

Some popular Yield Farming platforms are SushiSwap, Yearn Finance, and YAM Finance.

SushiSwap

SushiSwap is an automated market making (AMM) decentralized exchange (DEX) currently on the Ethereum blockchain. Unlike other protocols, SushiSwap is a community-run project that is governed by the vote of the community. There are a few core products for SushiSwap’s ecosystem:

Each of these serve a different purpose within the ecosystem. Users Earn SUSHI tokens by staking SushiSwap V2 SLP Tokens.

Yearn Finance

yearn.finance is a decentralized ecosystem of aggregators that utilize lending platforms such as Aave, Compound, Dydx, and Fulcrum to optimize your token lending. When you deposit your tokens into yearn.finance, they are converted to yTokens. yTokens are periodically rebalanced to choose the most profitable lending services.

Among the aggregators, Curve.fi is the most prominent integrator of yTokens. Curve.fi creates an AMM between yDAI, yUSDC, yUSDT, yTUSD that not only earns the lending fees but also the trading fees on Curve.fi. On the other hand, YFI, yearn.finance’s governance token, is distributed only to users who provide liquidity with certain yTokens. With no pre-mine, pre-sale, or allocation to the team, YFI is claimed to be the most decentralized token in the DeFi space.

YAM Finance

YAM Protocol is a decentralized cryptocurrency that uses a rebasing mechanism to raise funds for a treasury managed by the community. The community can then use those funds via YAM governance to build the protocol.

In addition, YAM is the governance token for the YAM protocol. Using token voting, YAM holders have direct influence over the YAM treasury and direction of the protocol. Governance discussions take place on the Yam Governance Forum.

Currently, you’re able to earn YAM rewards by providing liquidity to the yUSD/YAM Uniswap pool. The rewards given to the pool are 92,500 in week 1, decreasing by 10% every week after. Please realize that you must apply the YAM scaling factor to get the current reward amount at any given time.

Conclusion

In short, DeFi is the most exciting blockchain-based financial ecosystem right now, but it is also extremely risky and confusing. This article is just an introduction to DeFi and I hope you could understand the basic concepts. To help everyone understand the DeFi applications better and even use them to accumulate wealth in digital assets, I will attempt to write a series of article of DeFi that shall zoom into some famous DeFi platforms like Compound, UniSwap, SushiSwap, yearn finance, Balancer and more, stay tune!

References

Fighting COVID-19 with Blockchain

COVID-19 outbreak has become a global pandemic in recent months. The epicenter of the outbreak has moved from China to Europe and then the US. It has sickened hundreds of thousands of people and caused ten of thousands of deaths.

The coronavirus pandemic has highlighted many of the applications for blockchain technology. For example, Blockchain technology has been proposed as the most efficient means through which the United States’ stimulus package could be distributed.

On the other hand, the Chinese government has deployed blockchain in numerous applications to assist its efforts to fight COVID-19, using DLT to track the virus’ spread, medical records, and the distribution of medical supplies and charity donations.

To fight the outbreak, WHO has launched a DLT platform for sharing data pertaining to the COVID-19 Pandemic. In addition, some companies and non-profit organizations have also launched blockchain-based projects to counter the outbreak of COVID-19. Let’s examine a few of the aforementioned initiatives :

WHO

WHO has launched the blockchain-based platform know as MiPasa to fight COVID-19. The platform will enable “early detection of COVID-19 carriers and infection hotspots. It was built on top of the Hyperledger Fabric. Hyperledger Fabric is an open-source enterprise-grade permissioned distributed ledger technology (DLT) platform.

The MiPasa platform was co-developed by MiPasa, IBM, Oracle, Hacera and Microsoft. It aims to facilitate fully private information sharing between individuals, state authorities and health institutions.

MiPasa is a verifiable information highway that allows cross-references siloed location. Furthermore, health data is stored on the platform to obtain global insights while ensuring patient privacy. Besides that, MiPasa is will host an array of publicly accessible analytics tools too.

SNARK HEALTH

Snark Health is a platform that connects patients, doctors, insurers, and donors for health care services, private data sharing and payments via the blockchain technology.  

To combat COVID-19, SNARK is building a framework for data-driven discussions and shared learnings to help people have a greater impact at their respective local, state, national level in collaboration with their organizations and governmental agencies. It aims to enable more rapid dissemination of information to improve patient outcomes.

The goal of this project is to facilitate the exchange of knowledge, best practices, and lessons learned to support the people and organizations that are tasked with problem-solving at the local level across the globe. According to SNARK, there remain many unanswered questions in regards to the clinical, operational and financial aspects of the COVID-19 pandemic. Through the process of answering these critical questions, the new framework could lay the foundation for global triage support, improved access to health care services and clinical research.

BINANCE

Binance’s Blockchain-powered donation platform Binance Charity has initiated a $5 million coronavirus relief campaign At the time of writing this article, its “Crypto Against COVID” campaign has received 24 donations, amounting to a total of 160.6306 BTC. A wallet has been set up for public donations, which can be made in BNB, BTC, BUSD, and XRP. Besides that, Binance will make an upfront donation of $1 million in BUSD, which will be converted to fiat and used to purchase supplies to send to hospitals in affected countries.

In addition, Binance will also match donations up to $1 million. Furthermore, the company will donate $1 for every retweet of its #CryptoAgainstCovid posting and will donate an additional $1 million if the number of retweets reaches 1 million within seven days.

As of March 20 this year, Binance Charity has delivered a number of coronavirus aid products to over 300 hospitals and medical teams in multiple provinces and cities, including Hubei, Sichuan, Guangxi, and Shanghai. The items delivered include 366,000 pairs of gloves, 56,800 masks, 9 sterilizers, 173 barrels of disinfectant, 5,280 bottles of hand sanitizers, 20,000 testing kits, 7,850 protective suits, 20,000 pairs of goggles, 388 oxygen concentrators, and 1000 germicidal lamps.

Hashcash Consultants

Hashcash Consultants has launched the Corona Fund Index Cryptocurrency (CFIX), a coronavirus relief initiative involving cryptocurrency.

This global software firm promised that 90% of trading fees derived from CFIX will be diverted to its Corona Relief Fund. The fund will be donated to various non-profits and organizations that are actively combating the global COVID-19 pandemic crisis.

References

Blockchain-based Event Management and Ticketing Platform

The event management and ticketing industry is a huge market, particularly the event management software market. Markets Insider reported that the Event Management Software Market is projected to grow from USD 5.7 billion in 2019 to USD 11.4 billion by 2024, at a CAGR of 15% from 2019 to 2024.

However, despite the great potential of the event and ticketing industry, there are numerous problems and issues plaguing the current centralized event ticketing industry. The main issues include ticket counterfeiting, ticket scalpers, instant sell-outs and overpriced resale tickets on secondary markets (EventChain, 2017).

The good news is that the blockchain could fix the aforementioned issues.  A blockchain is a distributed digital ledger that can be used to record transactions and other data across a decentralized peer-to-peer network made up of a cluster of computing devices.

Using blockchain technology, every ticket sales can be publicly verified, and thus the authenticity of the ticket can be guaranteed. It is also able to prevent fraudulent sales and counterfeiting. It sets rules (using smart contracts) preventing secondary ticket websites from hoarding tickets and charging inflated prices for premium events. If the rules are broken, the fraudulent accounts are frozen and the tickets are made invalid.

In a nutshell, a blockchain-based event and ticketing system has the following benefits:

  • Elimination of ticket duplication and counterfeit tickets
  • Elimination of scalpers
  • Elimination of ticket touts and purchasing bots
  • Fully transparent ticketing aftermarket
  • Automatic refund at the time of cancelation

Use Cases

BitTicket

The Edinburgh-based Citizen Ticket is an event ticketing platform backed by blockchain technology that uses the cryptocurrency Ethereum Classic. In May 2017, they deployed the blockchain-based ticketing system BitTicket and delivered the first live event using blockchain technology.

BitTicket is a ticket delivery service that event organisers, venues, and artists can use to secure their tickets with blockchain technology. BitTicket provides users with one wallet QR code that holds all their BitTickets securely, no matter which ticketing provider they bought them from. They simply present it along with proof of ID to gain entry. Due to the security of BitTicket identity, ticket transfer to friends and family can be done easily and with assurance. BitTickets are immutable, transferable, and verifiable.

BitTicket guarantees the following:

  • Your purchased ticket is genuine
  • Inherent protection against industrial-scale ticket touts and ticket purchasing bots
  • Transfer your tickets securely and with ease between friends & family
  • Provides one wallet for all your tickets – no more individual tickets

GUTS

GUTS uses blockchain technology to create a transparent ticketing ecosystem where inflated secondary market prices and ticket fraud are eliminated. Their motto is simple, transparent and secure.

GUTS brings numerous benefits for different stakeholders:

  • Artist and Managers
    • A fair chance for all the fans to attend the show
    • Expand the fan base with exact data
    • Direct communication with your fans. Send them a message right before the show starts.
  • The Venue, Festival and Theatre Operators
    • No ticket fraud: fewer complaints and a stronger image
    • You know exactly who is present at any time (and who isn’t)
    • Automatic refund procedure at the time of cancelation or resale
    • Identification via mobile phones means shorter queues
  • Ticket Providers
    • Complete control of the tickets in both the primary and secondary market
    • Easy to integrate with existing ticketing solutions

LAVA

LAVA is a blockchain-based ticketing system that guarantees fair and secure smart tickets for music lovers. The system prevents ticket touting and fraud ruining festivals for music lovers.

The LAVA ecosystem has the following features:

  • 100% Safe
    • Using latest blockchain technology to eliminate ticket fraud
  • Smart Tickets
    • Smart tickets to stop the exploitation of festival tickets using a unique digital footprint
  • Lava Wallet – Eliminate printing completely by generating the ticket digitally and sending the digital ticket to the Lava wallet directly
  • No booking fee

PouchNATION

PouchNATION is an event management software system that uses the blockchain technology to good effect. PouchNATION is the first platform to implement blockchain and new digital currency across all verticals in event management. Its components comprise guest registration, cashless payment, access control, activity tracking, social engagement and detailed analytics reporting.

This innovative platform could overcome issues that the ticket industry is currently facing with managing events, attendance tracking apps, eliminating duplicate tickets, and validating registration at the door.

They have executed over 100 events including cashless events in Indonesia, Philippines, Vietnam, Malaysia, Thailand, and Myanmar.

EventChain

EventChain is a global Smart Ticketing blockchain project that will allow events worldwide to sell SmartTickets through a peer-to-peer network, solving the issues of the centralized event ticketing industry.

It implements the EventChain token network for event management to ensure faster transactions, indisputable ticket vouchers, transparency from event hosts and fully flexible and programmable SmartTickets. With the use of the EVC token, smart contract code, and the Ethereum blockchain, EventChain’s transaction network brings increased accountability, transparency, and security to event ticketing.

To fix the excessive ticket fees, EventChain is distributing EVC tokens, a digital ERC20 token created for buying, selling, and programming SmartTickets on the Ethereum distributed network. EventChain claims that their transaction fees are much lower and the transaction confirmation speed is near seconds.

Event Management and Ticketing Platform-A Conceptual Model

After examining the above use cases, I propose a conceptual model that utilises a similar concept to develop a blockchain-based event management and ticketing platform. Below is a simple conceptual model of the Event Management and Ticketing Platform:

The platform allows an event organizer to create an event and broadcast it to the website as well as a mobile wallet. The event should comprise details such as event title, date, time, venue, and a ticketing ordering button. The participant can then order tickets by paying  Token X. Once the organizer receives Token X, the e-ticket shall be automatically delivered to the participant’s mobile wallet. To enter the event venue, the organizer just needs to scan the e-ticket of the participant.

To build the platform, we need to build a smart contract layer on top of blockchain network to automate the buying and selling of event tickets. We shall use Solidity to write the contracts. There shall be at least three smart contracts -the ERC20 token contract(to generate Token X),  the event contract, and the ERC721 ticket contract. The event contract will need to link to the ticket contract as it needs to use the data in the ticket contract. The keyword to access the data in another contract is import. For example, we can create an event contract event.sol that imports the ticket contract ticket.sol, using the syntax as follows:

Pragma Solidity ^0.5.0
import "./ticket.sol"; 

The event.sol file shall create an event contract that specifies event details such as total tickets, collected funds, start time, etc. The code could be as follows:

Contract Event { 
 struct EventDetails {  
 uint256 ticketAmount; 
 uint256 SoldticketAmount; 
 uint256 CollectedFunds; 
 uint256 StartTime; 
  } 

The event contract shall also include a create event function, as follows:

function CreateEvent{
 uint256 _ticketAmount; 
 uint256 _Startime 
}

There are many more functions to be included in the smart contracts but I will not dwell further as this is not a technical paper.

References


Event Management and Ticketing Platform

The event management and ticketing industry is a huge market, particularly the event management software market. Markets Insider reported that the Event Management Software Market is projected to grow from USD 5.7 billion in 2019 to USD 11.4 billion by 2024, at a CAGR of 15% from 2019 to 2024.

However, despite the great potential of the event and ticketing industry, there are numerous problems and issues plaguing the current centralized event ticketing industry. The main issues include ticket counterfeiting, ticket scalpers, instant sell-outs and overpriced resale tickets on secondary markets (EventChain, 2017).

The good news is that the blockchain could fix the aforementioned issues.  A blockchain is a distributed digital ledger that can be used to record transactions and other data across a decentralized peer-to-peer network made up of a cluster of computing devices.

Using blockchain technology, every ticket sales can be publicly verified, and thus the authenticity of the ticket can be guaranteed. It is also able to prevent fraudulent sales and counterfeiting. It sets rules (using smart contracts) preventing secondary ticket websites from hoarding tickets and charging inflated prices for premium events. If the rules are broken, the fraudulent accounts are frozen and the tickets are made invalid.

In a nutshell, blockchain-based event and ticketing system has the following benefits:

  • Elimination of ticket duplication and counterfeit tickets
  • Elimination of scalpers
  • Elimination of ticket touts and purchasing bots
  • Fully transparent ticketing aftermarket
  • Automatic refund at the time of cancelation

Use Cases

BitTicket

The Edinburgh-based Citizen Ticket is an event ticketing platform backed by blockchain technology that uses the cryptocurrency Ethereum Classic. In May 2017, they deployed the blockchain-based ticketing system BitTicket and delivered the first live event using blockchain technology.

BitTicket is a ticket delivery service that event organisers, venues, and artists can use to secure their tickets with blockchain technology. BitTicket provides users with one wallet QR code that holds all their BitTickets securely, no matter which ticketing provider they bought them from. They simply present it along with proof of ID to gain entry. Due to the security of BitTicket identity, ticket transfer to friends and family can be done easily and with assurance. BitTickets are immutable, transferable, and verifiable.

BitTicket guarantees the following:

  • Your purchased ticket is genuine
  • Inherent protection against industrial-scale ticket touts and ticket purchasing bots
  • Transfer your tickets securely and with ease between friends & family
  • Provides one wallet for all your tickets – no more individual tickets

GUTS

GUTS uses blockchain technology to create a transparent ticketing ecosystem where inflated secondary market prices and ticket fraud are eliminated. Their motto is simple, transparent and secure.

GUTS brings numerous benefits for different stakeholders:

  • Artist and Managers
    • A fair chance for all the fans to attend the show
    • Expand the fan base with exact data
    • Direct communication with your fans. Send them a message right before the show starts.
  • The venue, Festival and Theatre Operators
    • No ticket fraud: fewer complaints and a stronger image
    • You know exactly who is present, anytime (and who isn’t)
    • Automatic refund procedure at the time of cancelation or resale
    • Identification via mobile phones means a shorter queue
  • Ticket Providers
    • Complete control on the tickets at both the primary and secondary market
    • Easy to integrate with existing ticketing solutions

LAVA

LAVA is a blockchain-based ticketing system that guarantees fair and secure smart tickets for music lovers. The system could prevent ticket touting and fraud ruining festivals for music lovers.

The LAVA ecosystem has the following features:

  • 100% Safe
    • Using latest blockchain technology to eliminate ticket fraud
  • Smart Tickets
    • Smart tickets to stop the exploitation of festival tickets using a unique digital footprint
  • Lava Wallet-Eliminate printing completely by generating the ticket digitally and sending the digital ticket to the Lava wallet directly.
  • No booking fee

PouchNATION

PouchNATION is an event management software system that uses the blockchain technology to good effect. PouchNATION is the first platform to implement blockchain and new digital currency across all verticals in event management. Its components comprise guest registration, cashless payment, access control, activity tracking, social engagement and detailed analytics reporting.

This innovative platform could overcome issues that the ticket industry is currently facing with managing events, attendance tracking apps, eliminating duplicate tickets, and validating registration at the door.

They have executed over 100 events including cashless events in Indonesia events in Indonesia, Philippines, Vietnam, Malaysia, Thailand, and Myanmar.

EventChain

EventChain is a global Smart Ticketing blockchain project that will allow events worldwide to sell SmartTickets through a peer-to-peer network, solving the issues of the centralized event ticketing industry.

It implements the EventChain token network for event management presents to ensure faster transactions, indisputable ticket vouchers, transparency from event hosts and fully flexible and programmable SmartTickets. With the use of the EVC token, smart contract code, and the Ethereum blockchain, EventChain’s transaction network brings increased accountability, transparency, and security to event ticketing.

To fix the excessive ticket fees, EventChain is distributing EVC tokens, a digital ERC20 token created for buying, selling, and programming SmartTickets on the Ethereum distributed network. EventChain claims that their transaction fees are much lower and the transaction confirmation speed is near seconds.

A Conceptualised Event Management and Ticketing Platform

After examining the above use cases, I propose that we can use a similar concept to develop blockchain-based event management and ticketing system for a decentralized platform. Below is a simple conceptual model of Event Management and Ticketing platform:

The platform allows an event organizer to create an event and broadcast it to the website as well as the Token X wallet. The event should comprise details such as event title, date, time, venue, and a ticketing ordering button. The participant can then order tickets by paying Token X. Once the organizer receives Token X, the e-ticket shall be automatically delivered to the participant’s mobile wallet. To enter the event venue, the organizer just needs to scan the e-ticket of the participant.

To build the platform, we need to build a smart contract layer on top of the platform to automate the buying and selling of event tickets. We shall use Solidity to write the contracts. There shall be at least two smart contracts – the event contract, and the ticket contract. The event contract will need to link to the ticket contract as it needs to use the data in the ticket contract. The keyword to access the data in another contract is import. For example, we can create an event contract event.sol that imports the ticket contract ticket.sol, using the syntax as follows:

Pragma Solidity ^0.5.0
import "./ticket.sol";

The event.sol file shall create an event contract that specifies event details such as total tickets, collected funds, start time, etc. The code could be as follows:

Contract Event { 
struct EventDetails { 
uint256 ticketAmount;
uint256 SoldticketAmount;
uint256 CollectedFunds;
uint256 StartTime;
 }

The event contract shall also include a create event function, as follows:

function CreateEvent{
uint256 _ticketAmount;
uint256 _Startime
}

There are many more functions to be included in the smart contracts but I will not dwell further as this is not a technical paper.

References