Why us, why GET, why Decentralized?

We think we are at the brink of a changing ticketing market. First up: Why GUTS? Second: Why is a blockchain needed to solve this?

We are doing it already

It is our belief that ticketing events should not bring hassle to the end consumer, using event tickets should be an easy process unlike other ticket markets such as when buying a plane ticket (i.e. hard to transfer or change name/ownership, impossible to resell or have refunded when you are unable to attend, time-intensive to verify, burden of proof shifts to the entrance of the venue which is problematic from a safety and crowd control perspective). This is the challenge we set out to solve almost two years ago.

The solution brought forward by GUTS is a combination of identity/smart-phone bound event tickets that display a code that changes dependent on both time and ownership. Every minute the code changes on the smartphone ticket, thereby invalidating and nullifying the code displayed previously. This removes the ability to resell the ticket within an unregulated secondary market. If a consumer wishes to resell their ticket the user is able to anonymously offer the ticket back for sale at the primary market. In our solution, there is no difference between the primary and secondary market. While this centralized ticketing solution is rather elegant, it is not the solution targeting the root of the problem. After all, this ticketing solution would only shift towards the ticketing company offering this service. This means that the power and data is still completely centralized. This will create another non- transparent cost/earning model, resulting in the same problems we aim to tackle in the first place.

Let’s not fall in old centralization pitfalls. Let’s stop going in circles already.

To prevent centralization of control and data is why GUTS has initiated an open and public blockchain protocol by means of ICO (called the GET Protocol). This public ledger registers ownership and value transfer on the blockchain. A publicly available ledger that can be accessed by anybody with an internet connection. This public and open-source protocol using the blockchain is in the end what really delivers on the core of the problem of inefficiencies in the ticketing space; centralization of data and non-transparent value stream. Due to the centralized nature ticketing costs and fees are a complete black box. Blockchain registration is public by default, by using this innovative technology socially desirable behavior by all actors is converged upon (consumers, artists, venues and ticketing companies).

Why now?

We believe that the time in which artists and organizers close their eyes to scalping practices in their event is behind us. Technology has long since evolved from static tickets that can easily be scalped/resold to ticketing systems that lock tickets to identities and use dynamic QR code software applications that ensure resold tickets become invalid immediately.

At the end of the day, it is the organizer that chooses what ticketing system to use and consequently what behaviors and profit/scalping schemes this system helps create by actors in the open market. It can be assumed that there will always be actors in society that will try to game the system and use it in a way to profit from the inefficiencies created by the ticketing technology itself. The behavior of these actors isn’t the core of the problem in our belief, offering ticketing systems that take no effective measures to prevent this, however, is.

Technologies like the GET Protocol assume that there will always be actors trying to profit from a certain ticket sale. As a ticketing company, we believe it is our responsibility to ensure that our ticketing and identification technology cannot be gamed and profited upon by independent actors in the open market. The time to blame consumers of scalping tickets are over, the technology to prevent this type of profiteering behavior has come to fruition and has proven itself to be effective.

Its a choice

If event organizers haven chosen to use a ticketing system that allows a vibrant secondary ticketing market to exist, we find that they are facilitating for the emergence of a non-transparent business models. By choosing such outdated ticketing technologies they create a black-box in sub charges on tickets, robbing fans and artists of data on who earns from the tickets they buy.

We can only assume what the reasons for choosing scalp-able static QR code ticketing systems are.. in the most optimistic case its due to the fact that these organizers are un-innovative. Or they are choosing this ticketing method because it brings in profit streams that they don’t want the public to know about. This can only exist because there is a total black box that feeds on desperate fans just wanting to see their favorite artist. Changing ticketing solution would be killing their bottom line (i.e. they are earning money by setting aside tickets to sell at higher prices via third parties). Whatever the motivations may be, we believe that the public deserves to know who is earning from the premium they are paying.

In the end, we think that artists, organizers and thus ticketing companies should publicly declare the number of tickets sold, resold and ‘left behind’. We believe that this type of ultimate transparency will force artists and organizers to follow a strategy that is socially defend able and desirable.

Role of regulation

Keeping artists’ feet to the fire when choosing a certain ticketing system can be rather difficult from a regulatory perspective. History has shown that regulatory interference in business won’t always result in a more efficient industry. In our eyes, government regulation should force organizers to publicly disclose the tickets sold and resold during an event. We believe blockchain technology, due to its transparent and open nature, is a perfect match to act as a public ledger in order to ensure the data is not tampered with.

We believe that by removing the black box nature of the ticketing market and creating an open and transparent record of value flows, artists and organizers will naturally keep in check. With access to this data, consumers can decide for themselves and vote with their wallets.

More about the GET Protocol

If you want know more about the GET Protocol read our whitepaper, visit the website, join our Telegram community or get yourself a smart event ticket in our sandbox environment.