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Blockchain technology can eliminate ticket fraud and the black market

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About BAM Ticketing GmbH

  • Founders: Georg Müller (CEO) and Mirko Illic (CTO)
  • Founded: 2019
  • Employees: 15
  • Funding: Incubator program of the Vienna Institute of Technology (INITS) and funding from AWS and Horizon 2020
  • Ultimate Goal: To become an infrastructure provider for the global ticket market, eliminating all kinds of ticket fraud and black market

It was a personal experience that gave Georg Müller the idea. BAM Ticketing GmbHHe works in a bank’s open-plan office, where many of his colleagues Rammstein Tickets—but no one had them. Shortly thereafter, people started announcing that they had gotten tickets after all, but at almost double the price. The concert wasn’t supposed to go on for nine months, so who could know how she couldn’t go? Muller asked herself and started doing some research. The ticketing market turned out to have major problems, which the founders said could be solved with blockchain technology. Startup Today In this episode of his series, he talks about his innovations and the challenges of starting a company.

What is the problem with the ticket market?

It consists of automated trading robots that buy tickets in a very short time. Their share averages 42% for him at large events, but he can reach 90% for popular events. This is a big problem for artists. Because fans are upset that he has to double or triple the ticket price. Fake tickets are also a problem, but this can be easily solved with blockchain technology. At the time, after several months of research, I came to the conclusion that regulation was not necessary to change markets, as is the case, for example, in the financial sector. The problem can be solved simply by using blockchain technology.

What problem are you solving and why is it important?

We are well versed not only in blockchain technology, but also in the ticket market. As a result, we found that, apart from trading robots and fake tickets, blockchain offers an opportunity for interaction between different trading participants. A prominent example is the transportation market. Here, competing transportation companies must work together to enable customers to purchase end-to-her-end tickets from one of her companies to destinations that are out of reach. Blockchain technology can be used to bind these companies into contractual relationships without sharing customer data or trade secrets. The University of Birmingham has just received his EU grant for this kind of project, and the German rail system, Deutsche Bahn, is also working on the issue. Both are doing research on problems we’ve already solved. That means you can save them a lot of time and effort. Our blockchain technology allows you to start implementing your business case immediately.

How can blockchain technology solve the ticket market problem?

Blockchain technology is still young and the requirements for ticketing systems are enormous. For example, selling tickets for the Elton John concert at Wembley Stadium requires a minimum of about 250 transactions per second to process the sale. The most famous blockchain network, ethereum, currently manages an average of 20 transactions per second. This means that this technology cannot yet be used for ticketing. A second requirement is latency. This is the rate at which one transaction can be confirmed when the ticket is activated at the entrance. Ethereum has an average latency of 8 seconds. It takes too long to fill the stadium in a reasonable amount of time. Latency should definitely be less than 1 second. Currently, no blockchain technology can do this.

This was our technical proof-of-concept goal, and we were able to achieve it by creating a system specifically for the high demands of ticketing, as opposed to generic solutions. As a result, blockchain technology can be used to perform up to 2,000 transactions per second with latency of 0.5-0.8 seconds. This is an operation available for all events. This is another way we differ from Ethereum, which has these metrics for every application running on its network.

How would you describe your business model?

In fact, we are technology providers. On the one hand, it provides not only blockchain ticketing, but also an interface between Web2 and Web3. We will integrate this technology into existing ticketing systems, but blockchain technology is still young and everyone needs proof in the market. That’s why, like Eventbrite, we also have our own software-as-a-service solution that you can use to process your events. Our customers include museums, football clubs, festivals and music concerts. Our solutions are also available as white label products in the Americas, Asia and Africa where digitalization is at full speed.

What was the biggest obstacle you had to overcome?

It was definitely the uncertainty about technical feasibility. We knew that the existing network had no use cases, partly because of the lack of business data privacy. I also didn’t know if I could overcome this obstacle. After a year of research and development, I was finally convinced. But there are other obstacles to overcome. For example, many people still have a mistrust of cryptocurrencies, which can only be overcome if it is clear what blockchain technology can and cannot do. is.

This goes hand in hand with the limitations of this technology and the fact that we really still need to do basic research to see how it’s possible at scale. is an obstacle for Most business angels don’t fund research and development. They are funding growth strategies, which makes it difficult to get capital.

Already funded?

There was also the issue of completing a technical proof of concept two weeks before the first lockdown in Vienna. From that point on, it was impossible to get startup funding in the life events industry. The first funding he did not receive until November 2021, as the process took him quite a year and a half.

Can you think of a good or ideal location for your startup?

Austria is a good place for early stage startups due to the abundance of public funding. But when it comes to funding technology, the US is far superior. Because there is an understanding that it is the technology, not the existing business, that is being driven. That’s less true in this country, so the next round of funding will almost certainly be in the US.

What accomplishments are you proud of?

After proving the technical feasibility of our concept, our development achievements have received a lot of recognition. in 2020 and 2021 german blockchain awards and in 2021 Austrian Blockchain Awards smart tech sector. There are some great projects in this space and it’s great to be recognized for our use cases and how we use the technology.

Where do you want BAM Ticketing to be in 5 years?

We want to be the leading infrastructure provider for ticketing. Similar structures already exist for airlines operating infrastructure across the industry, so this is not an overly lofty goal. We are encouraged by the fact that our technology is probably unique at the moment. Achieving that goal is a matter of funding. But I heard from one of the largest US ticketing companies that he’s already talking to 20 blockchain ticketing startups and we’re the only ones on the right track. That’s the music we hear.

What makes blockchain technology better or different than existing ones?

While others use commercial software that can be used for anything, our software is ideal for the ticketing industry and meets all requirements.

Want to read more articles about startups?You can find other episodes of this series here.

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