When Albert Einstein invented the theory of the laser, everyone said, “yes, very nice, Albert, but what use is it?” Little did they know it would come in very handy indeed.
Much is the same with blockchain technology. Despite its early days, there’s been a cool $6.6 billion spent on blockchain solutions this year, which is estimated to rise to $19 billion in 2024!
And what has started as a beautiful idea has begun to prove very useful in real life. For example, have you ever heard of cryptocurrency?
Cryptocurrency is largely spoken of in the public sphere as something exciting to trade for profit. In fact, as many as 13% of Americans alone invest in cryptocurrency, with an average investor having invested $1,003. So it’s big business.
And guess what, the potential of blockchain technology for the event industry will be pretty big business too!
What is Blockchain Technology
At its most simple, a blockchain is a record. It is a technological ledger that records transactions. You can do that with a pen and paper on your desk. But that’s not blockchain technology.
In its practical application, it means that every transaction is traceable. This is why you can’t launder or cook the books with crypto!
It’s being used in place of trusted third parties, offering a cheaper and faster way of transacting with people around the globe. Better yet, blockchain is secure, anonymous, and tamper-proof.
What Can Blockchain Technology be Used For?
Blockchain is having its laser moment, being applied for things such as smart contracts, financial services, video games, energy trading, supply chain, anti-counterfeiting, healthcare, domain names, and more.
Cryptocurrencies are just like traditional trading currencies. It’s blockchain technology that sets them apart from your pounds, euros and dollars. Firstly, the electronic ledger system makes this a unique application, and speaking purely in monetary terms; they’re not tied to international banks. This means that it has more independence from state and private control.
A quick example is how blockchain is transforming digital rights management to protect analogue or digital media from unlicensed distribution. This is done through embedding digital money (specifically, the private key of a cryptocurrency such as Bitcoin) into the media itself. If a consumer distributes the media entrusted to him, the embedded money (e.g. his deposit) risks being lost and the activity traced. It’s also transforming video games into what it means to own and trade weapons and goods.
However, before we get too excited, we need to remember that blockchain technology is in its infancy and is not widely used in any industry yet. So it might be a while before it becomes inescapable. However, for events companies that are willing to embrace it, now is the moment to take the ‘first mover advantage’. For example, Spacehuntr now accepts cryptocurrency as a method of payment for their event venues.
There are also concerns about the eco-friendliness of blockchain technology. For example, the computer power needed to verify and log transactions for Bitcoin has a high carbon footprint. However, as the related technology develops, this will be reduced.
And finally, the thing that makes it so brilliant - security - is also a flaw. Blockchain technology and its ledgers take a lot of computing time and energy to verify. So for an online transaction that can be instantaneous using traditional currency, a cryptocurrency can take much longer. That being said, moves are being made to counter this with payment protocols such as Lightning Network. So ultimately, it’s an issue to be ironed out, not a fatal flaw.
How Can We Use Blockchain Technology in the Event Industry?
So there is clearly potential for blockchain technology in the events Industry. And right off the bat, blockchain technology is new and exciting! The event industry can bask in that new car smell and appeal to hungry and ambitious people wanting in on the action.
Advertising your event as crypto-friendly will draw in lucrative clients. Leading from the front, the world's largest cryptocurrency conference series - Blockchain Expo - has more than 56% attendees at director level or higher!
And that 56% is of a sample of 26,000 attendees. Think of the sponsorship opportunities! This exciting new technology and the large, dignified audience will be a premium billboard. And with a decentralized system will facilitate these transactions and automatize these features for the event.
This further highlights the growing practical uses of blockchain technology. As we mentioned, the beauty of the system is that they are 100% traceable. This has solid value to the event industry as you can prevent ticket fraud, identity fraud and increase accountability in the supply chain.
To elaborate on these examples, blockchain could revolutionise the ticket sale landscape. It will stop bots from block buying tickets, protecting the secondary ticket marketplace in gouging scenarios. In this way, blockchain technology empowers event planners and attendees by controlling prices and protecting against fraud through guaranteed ticket verification. Fake tickets will become a happy memory.
It’s also going to have a cool influence on gamification especially. Gamification is a crucial element to virtual events, and with NFT’s (non-fungible tokens) it empowers attendees to trade, and own, unique content. Ultimately what NFT will do for virtual events is attract those looking for genuinely exclusive digital content, which even a few years ago seemed unimaginable.
Wrapping up
So to wrap up, it’s not just the event industry that is going to be revitalised by blockchain technology. Yes, there are some minor teething problems, but is that not always the case with young technology? And the most exciting thing is, some of the blockchain technologies best benefits are still to be discovered!
Harry has been the Creative Content Manager at Spacehuntr since 2020. With a keen eye for SEO and strategy, his areas of interest include event technology, trends, marketing, catering, architecture, and interior design.
