Total Experience Stadium Pass

Team Zero is exploring ways to use Web3 and blockchain technologies for Sports and Music. This concept looks to leverage blockchain to create an all-in-one in-stadium experience. The digital “ticket” will have many utilities while enjoying the event and has delightful value after the event is over. It allows artists/players/teams a direct, anonymous connection to true fans and the ability to drop rewards. It also provides control over ticket prices and opens avenues for future royalties.

Overview

Technology in professional sports has changed the industry in incredible ways. It has revolutionized how athletes train, creating stronger, faster, and more agile athletes. It’s brought new equipment to protect the athletes and make the games safer. Technology has also provided equipment that measures biomechanics and data analytics that creates predictive models of how a team can exploit an opponent’s weakness or how a team might strengthen its own. The fans enjoy more games or shows with more viewing options through internet services in high-resolution screens from multiple camera angles for sports and music. Ticket purchasing is more convenient through digital channels, and fans can connect with their favorites players through social media. It has been a remarkable few decades. And the future of sports and music will only continue to improve. There are numerous projects in the works using technologies such as Augmented and Virtual Reality (AR/VR), Artificial Intelligence (AI), Robotics, and Wearables. This article will specifically talk about how Web3 and Blockchain technology will be used in the future of sports and music. We believe Web3 and Blockchain technology will create vast improvements in the following five key areas…

1. Parity x10
   Keeping the same features of Web2 that fans expect, but enhancing the ticketing, souvenir, fan engagement, and digital experience by 10x.
2. Unlocks
   Digital tickets will become more than just entry passes into an event. The ticket can also allow artists and sports teams to give delightful and surprising “easter eggs” to their fans.
3. Loyalty
   Blockchain and Web3 will give user data back to the user but still allow artists, athletes, and sports teams to gain insight and reward their true fans without paying an intermediary.
4. Collectibles
   Digital collectibles in the form of NFTs have taken the world by storm in 2021. So it’s only a matter of time before sports and music ditch the bobbleheads and adopt this new form of souvenir.
5. New Revenue
   Blockchain and Web3 will give user data back to the user but still allow artists, athletes, and sports teams to gain insight and reward their true fans without paying an intermediary.

Parity x10

Keeping the same features of Web2 that fans expect, but enhancing this digital experience by 10x.

Web2 has changed the way fans engage at events. The digital ticket has become a convenient way for fans to check ticket availability, pick what seats they prefer, and pay, all within a convenient flow. The fan can use their smartphone with the digital ticket on it to get into the event. Team and stadium apps give the fan access to important information. For instance, fans no longer have to buy overpriced programs to know team rosters or keep stat lines at baseball games. Digital maps are displayed in team and stadium apps to show where concessions and first aid are located. These apps have even become sophisticated enough to gauge how long the wait is to use the restroom. It can also suggest alternatives with shorter lines. Stadiums like Citizen Bank Park and food giant Aramark have experimented with cashless kiosks called “Zoom Foods” to allow fans to self-order online or through a kiosk and then pick up their food and drink at designated pick-up areas. Despite all these significant advances, there are still some areas that can be improved moving forward.

For starters, digital tickets can still be fraudulent. They are indeed more secure than paper tickets, and company’s like TicketMaster are developing ways to deter fraudsters. In 2019, TicketMaster developed “SafeTix,” a function tied to the ticket holder’s mobile device through an encrypted barcode that automatically refreshes every few seconds.

There’s been a long love/hate relationship between bands/fans and TicketMaster. TicketMaster has had a lock on the multibillion-dollar ticketing industry and have only grown larger the last decade when they merged with Live Nation, the largest concert promoter in the United States. As a result, venues, artists, and teams have struggled to keep control of ticket prices. To make this situation worse, TicketMaster also owns a significant stake in the reseller ticket market, causing ticket prices to be even higher for fans, but does not benefit the artist, venue, or sports club. TicketMaster also has a reputation among fans for high “convenience fees” charged to the fan per ticket, not transaction. Plus, to buy a ticket, the fan must agree to a privacy policy that gives them the right to share their information with other companies.

SafeTix is only the beginning of TicketMaster’s exploration in fraud deterrent. They also invested in start-up Blink Identity, which specializes in facial recognition technology. These innovations sound great for guaranteeing that entry tickets are authentic, but it sounds like it comes with many privacy risks. Amazon is also experimenting with its palm-scanning technology that it has used in Whole Foods and its cashless stores. Amazon partnered with ticketing company AXS and deployed standalone ticketing pedestals at Red Rocks Amphitheatre in Denver and are currently in use as of September 14, 2021. It is a bit concerning that TicketMaster and Amazon, which has a substantial profile on consumers, will potentially become the central system of personal identification to go along with the stores of data they are obtaining on fans.

Decentralization for Authentication and Privacy

Privacy and data ownership concerns are where Web3 and blockchain can help. Blockchain is inherently secure and is an excellent fraud deterrent. Each “ticket” is unique and cannot be replicated, and its authenticity and who owns it is easy to verify. No one owns the blockchain or Web3. It’s simply a tool available to anyone and has millions of people transacting on it today. Transactions can be simple peer-to-peer payments like sending Bitcoin to a friend. Blockchains like Ethereum contain “smart contracts” that can create rules, for example, set parameters between parties and release payment or exchanges when those parameters are met. So not only can a fan’s “ticket” authenticate that they are the owner to allow entry into the event, but it is also built on top of payment rails that can be used to make other transactions during the event. The closest Web2 equivalent is a product called uptix by givex. Uptix is a stadium ticket that permits entry and also allows venues to load money directly onto a fan’s ticket. This cashless payment method can be used at stadium concessions. For instance, venues can also push real-time promotions-a $5 discount on concessions after a home run.

Ethereum also has the ability to tie to your identity but in a more controlled and private way. For example, a fan could buy an alcoholic beverage without having to flash an ID. The purchase on Ethereum only check and authenticates that you are of age to make this purchase and gives the vendor no further details unlike using credit cards which track your spending habits. Tying identity to fan engagement can open up new possibilities in stadiums that are innovative to utilize Web3 wallets and blockchain public keys. It will also allow fans to protect and control their personal data while still serving venues, teams, and artists access to the more relevant pieces.

Unlocks

Digital tickets will become more than just entry passes into an event. The ticket can also allow artists and sports teams to give delightful and surprising “easter eggs” to their fans.

The ability for Non-Fungible Tokens to create “unlocks” was a big inspiration for this concept. We imagine a world where fans can go to a concert of their favorite band, and after the show, their “ticket” alerts them that the band has unlocked a hidden asset in the fan’s “ticket” to thank them for going to the show. The unlock can be a video of the first four songs played in the live performance the fan just attended. The fan can now relive this experience over and over again. The artist can set it up so that each venue section is given different songs from the setlist. In this example, the fan received the first four because they were in section A. As a fan of shows, I can see a market for fans that want the full 20-song setlist. This new marketplace opportunity would allow the fan to trade, buy, or sell their unlock. For performers cracking down on the use of smartphones in their shows, this could be a nice consolation prize to give social proof back to the fan.

Our Experiments

Team Zero along with teammates, Serto, ran an experiment on ticket unlocks and decentralized identity with Citizen Cope. Here is the use case and result.

We’re still exploring industries and problems, researching, contacting people in these industries to perform small experiments. If you are interested in learning how you might work with us or explore future tech for your industry, please reach out to us by using the form on this page or say “hi” on Twitter @team-zero-dev.

Loyalty

Blockchain and Web3 will give user data back to the user but still allow artists, athletes, and sports teams to gain insight and reward their true fans without paying an intermediary.

Unlocks can be a valuable tool for promoting and tracking fan loyalty. In today’s market, it is hard to discern who is a true fan. A person can be a season ticket holder but not a true fan. As mentioned above, reselling (or scalping) is a large, profitable market encouraged by companies like TicketMaster, who also profit from the secondary. Resellers post tickets for fans to buy at a significant mark-up as a side business price-gauging true fans. Venues, sports teams, and artists also do not profit from this. The season ticket holder/scalper often receives perks along with their profitable reseller business.

Blockchain allows you to know who is purchasing a ticket and if they are attending the game. The sports team will not know their name, address or even email to contact them. However, they can still see the behavior of that specific fan via their public key and how they use it within the stadium. They can also show appreciation to that fan by dropping tokens to the fan’s ethereum public key to use on merchandise, food, or even give access to autograph signings or special events.

Collectibles

Digital collectibles in the form of NFTs have taken the world by storm in 2021. So it’s only a matter of time before sports and music ditch the bobbleheads and adopt this new form of souvenir.

Personally, as a fan, I still have all of the ticket stubs of every show and sporting event that I have ever attended. There are shows whose tickets have simple plain lines of text that describe the event, and then there are some beautifully designed tickets. Unfortunately, after marriage, my tickets are in a manilla envelope, and every once in a while, I will pull them out and look at them. Some fans put them in scrapbooks or have creative ways of showcasing them. Now that tickets are going digital, we can enhance this experience and spark nostalgia and fond memories better.

We also can create collectibles that will last. Collectibles have primarily been physical and, for the most part, cheap. The cost of providing a free trinket for over 30,000 fans can get expensive. However, there’s still enjoyment for receiving such pieces as bobbleheads. There is even a marketplace to trade, buy, and sell despite the quality-digital souvenirs and blockchain help to verify its authenticity. Digital souvenirs could be in the form of games that fans can play during or after the event, or animations, or graphic design created by a famous digital artist. I believe the fusion of digital, gaming, and events will become popular in the future.

Sports teams are already using blockchain to validate memorabilia. For example, the Sacramento Kings have given out player autographed sneakers and jerseys marked with a tag that can be scanned and validated with blockchain technology. As a result, fans can easily verify the authenticity of the memorabilia.

The NBA has TopShots which capture moments of a game. Fans can buy these “moments” with varying degrees of rarity. However, something yet to be seen is sharing “moments” with attendees of a game. For example, suppose a fan went to a game where someone breaks a record or makes a phenomenal play. Ethereum blockchain will allow that team to verify that you were in attendance and drop a Top Shots-Esque souvenir into your Ethereum wallet so that you can own the moment.

Our Experiments

Team Zero along with teammates, Treum, the makers of EulerBeats ran an experiment on chance-based minting of NFTs with artist, Jonathan Rosen. Here is the use case and result.

New Revenue

Web3 will develop new ways for musicians, athletes, and teams to create micro-franchises from their personal brand using a pay-it-backward method of smart contracts.

With all of these possibilities for new and authenticated collectibles and the marketplaces that it creates for fans, this could create new earning models for fans. In today’s models, artists, athletes, and sports teams may not appreciate fans making money exploiting an athlete or artist’s celebrity and notoriety. However, Ethereum smart contracts can tie royalties back to the artist, athlete, and sports team. Every sale can trigger a percentage of the earnings back to the musician, athlete, or sports team. Ease of using smart contracts and a connection to adding value to a fan’s favorite player, team, or artist gives more incentive to fans that create to recognize intellectual property laws. If a fan creates a successful business, smart contracts can automatically give percentages back to the artist, athlete, or sports team and still allow the fan to earn on their creation. The selling of unlicensed material is already happening illegally. Smart contracts can create mutually beneficial and endless revenue streams. It forms a new type of franchise model for fans endorsing the brand of an artist, athlete, and sports team that they are passionate about serving. This franchise idea may not be beneficial for the Lebron James of the world, but it could create lucrative cult followings for that 7th man off the bench in basketball or middle reliever in baseball. A franchising model could also be attractive for minor leaguers in the major sports leagues, independent leagues, xSports, and the rising fanbases for eSports.

Our Experiments

Before we were Team Zero, we were Web3Studio doing similar experiments as we do now. We attempted to attack the Digital Rights Management problem with the pay-it-backward method smart contract. This was showcased at The Blockchain House at SXSW 2019. Here is the use case and result.

We want your thoughts

We do a lot of research on industries, but we’re not in the day-to-day operations. If you have more insight and are willing to share, please contact us!

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