Proof of Attendance: The Artist-Fan Engagement Model of the Future
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What is Proof of Attendance?
Proof of Attendance tokens allow enthusiasts to verify their attendance at specific events through the collection of digital badges, all of which live on chain. Each token is an NFT — a unit of data stored on the blockchain that certifies a digital asset as unique and therefore not interchangeable. As an event organizer, you can create events and distribute Proof of Attendance tokens to engage with your community. As a collector, you get to bookmark life experiences with a special badge.
Each token is unique and in order to receive one you must first have a QR code or URL from an event. These tokens are then airdropped to the collectors personal wallet.
What about gas fees?
Gas refers to the fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Gas is used to allocate resources to the Ethereum Virtual Machine (EVM) so that decentralized applications such as smart contracts can execute in a secured but decentralized fashion.
Gas prices are determined by supply and demand between the network’s miners, who can decline to process a transaction if the gas price does not meet their threshold.
EVM?
The Ethereum Virtual Machine (EVM) is capable of running smart contracts that represent financial agreements such as options contracts and swaps. Further, it can be used to execute bets and wagers, to fulfill employment contracts, and act as a trusted escrow for the purchase of high-value items. Gas (Ethereum), Frankenfield (2021).
At scale, minting and airdropping tokens to collectors can be a costly endeavor on Ethereum Mainnet. Two separate transactions occur at this stage: First, the minting of the NFT occurs and second, the transfer of the NFT to the consumer wallet. There is a gas fee associated with both of these transactions.
This Sounds Expensive for Event Organizers and Independent Artists, but Doesn’t Have to Be.
Thankfully, Layer 2 solutions, sidechains, and alternative Proof-of-History blockchains like Solana have developed energy-efficient and cost-effective ways to distribute Proof of Attendance tokens.
Layer 2 is a collective term for solutions designed to help scale Ethereum applications. This is done by handling transactions off of Ethereum Mainnet while still taking advantage of the decentralized security model of Mainnet. Layer 2 solutions are useful for reducing fees for users, open participation, and fast transaction throughput. The end result is nearly no-fee transactions on tokens. One example of a popular Layer 2 solution is Polygon. Layer 2 Rollups, Wackerow (2021).
Sidechains are blockchains linked to a main chain such as Ethereum and are a hybrid between Layer 1 and Layer 2 solutions. These sidechains aim to tackle scalability problems by offloading validation and transaction processing to another blockchain. This frees up the main chain to take on a greater number of transactions. One example of a sidechain currently used to distribute no-fee Proof of Attendance tokens is the xDAI chain. Sidechains, Wackerow (2021).
Alternative Proof-of-History blockchains like Solana provide transactions that are very fast with minimal transaction fees. Proof-of-History creates a historical record that proves an event has occurred at a specific moment in time. Each Solana validator maintains his own clock by encoding the passage of time in a basic sequential verifiable delay function (VDF). The Solana protocol has no dependencies on local computer clocks or local timeouts between state transitions beyond this VDF function. This allows Solana to optimize the entire network, particularly in regards to block time. Proof-of-History makes Solana the first web-scale blockchain with transactional capacity akin to modern internet. Solana’s Proof of History is a Huge Advancement for Block Time, Yakovenko (2019).
Thanks to these Layer 2 scaling solutions, sidechains, and alternative Proof-of-History blockchains, event organizers and independent artists have cost-effective methods of distributing Proof of Attendance tokens to collectors.
Competitive Playground and Notable Implementations.
At the time of writing this article, Proof of Attendance Protocol (POAP) is the leader in this space. POAP is free to use and is built on xDAI sidechain, allowing organizers to mint Proof of Attendance tokens in a cost-effective and energy-efficient manner. POAP currently allows for batch delivery, manual sending, and self-service, all free to the minter and end consumer.
POAP tokens are largely utilized by developer conferences and NFT projects looking to commemorate certain events by airdropping tokens to holders. These conferences or projects set eligibility requirements for redemption prior to the event. Upon satisfaction of the redemption criteria, wallet addresses are granted access to a POAP redemption portal where they can secure Proof of Attendance tokens and even migrate to them to Mainnet. Event organizers looking to use POAP can create an event here.
The Bright Moments NFT Gallery in Venice Beach, organized as a DAO, is using Proof of Attendance tokens in an alternative manner. Bright Moments released an NFT project on the popular Art Blocks platform titled CryptoVenetians, a limited-release collection based on real characters from Venice Beach. The only way to mint these CryptoVenetians was by securing a ticket to visit the Bright Moments NFT Gallery in-person. There, an ERC-20 token was airdropped to the consumers wallet, which was then exchanged for the CryptoVenetian NFT on Art Blocks. They have plans to expand this project to other cities soon.
Popular music festival Lollapalooza recently partnered with Solana to build a digital marketplace for their NFT products. Solana’s Proof-of-History blockchain ensures expeditious and cost-effective transactions for consumers. Current offerings include the 1991 Poster Collection, the Artist Collection feature Steve Aoki and Subtronics, the Lolla International Collection, and the Lolla Landmarks Collection. While still a closed system, Lollapalooza is expected to continue to mint new tour Proof of Attendance tokens for eventual transfer to Solana mainnet.
Beyond Badges.
Merch.
The merchandise stand has been a staple at music events for years, with touring artists earning a considerable portion of their income through merchandise sales. In 2019, Musicians played over 63,000 shows globally earning more than $350 million USD in gross merchandise sales. 2019 Music Merch Industry Trends, Atvenue (2020). Further, music merchandising was a $3.5 billion USD industry in 2018. 2019 Global Licensing Survey, Licensing International (2019).
The top selling items at these shows are t-shirts, hats, stickers, and other accessories. These items already act as proof of attendance to a particular concert or event. From the perspective of a Web3 supporter, tokenizing these items are a logical next step.
Simply by scanning a QR code at the merch table, those who attend a concert or event could have access to various Proof of Attendance tokens including anything from music festival posters to Metaverse wearables. Buy a tour t-shirt and receive a wearable NFT for your Metaverse character, or buy a tour poster and receive an NFT version for display in your Metaverse gallery.
Metaverse?
A Metaverse is a blockchain-based platform where users can purchase, build and monetize virtual reality applications. Users can also purchase virtual land in the platform’s world. This grants them ownership and control over the environment and applications they create within their land. Decentraland, CoinDesk (2021). Applications includes virtual games, casinos, concert halls, homes, and art galleries. All of these applications are themselves NFT’s which can be bought and sold on Opensea. The big players in this space are Decentraland, The Sandbox, and Somnium Space with a combined market cap of 130,509 Ethereum, worth over $404 million USD at the time this article was written.
In most of these Metaverses, users can design and create their own wearables and other NFT’s for their metaverse using applications like VoxEdit and Decentraland Builder. These applications are free to use and allow artists and organizers to monetize their work in diverse ways. I would personally love a voxelized version of my Air Force One candle displayed in my Metaverse home.
The top-5 projects on OpenSea have generated over 602,628 Ethereum in sales, worth approximately $1.8 billion USD at the time this article was written, and yet this market is largely untapped with very few artists or musicians minting Proof of Attendance tokens, or NFT’s in general, for use in the metaverse.
Ticketing.
From 2011–2019, organizers sold over 50 million concert tickets per year. Statista, (2021). Over 5 million of these tickets were fraudulent and sold to unsuspecting consumers. Ticket Fraud, Digital Music News (2017). Online event ticket sales in the US market alone eclipsed $14.3 billion USD in 2021, with sustained growth of over 10% per year since 2002. Online Event Ticket Sales in the US, IBISWorld (2020). NFT’s have the potential to completely replace these legacy ticketing systems.
Upon receipt of payment, organizers can easily mint and drop their tickets to consumers using one of the aforementioned methods. This process is quick, simple, cost-effective, and the immutable nature of the blockchain ensures the token is genuine and not a forgery. The consumer displays the token on their phone, the token is verified by security in a manner consistent with current practices, and the consumer is granted access to the event.
Alternatively, Proof of Attendance tokens can be implemented side-by-side with legacy ticketing systems. If you are like me, event tickets hold sentimental value. Rather than holding the physical ticket in storage to maintain this sentimental value, the consumer can scan a QR code on the physical ticket that mints and transfers a Proof of Attendance token to the connected wallet. This ensures the token is protected, authentic and readily available for inspection.
Certifications.
Four million college students graduate each year, with over 2 million college graduates earning bachelor’s degrees. College graduation rates at public institutions have increased 15% since 2010. College Graduation Statistics, Educationdata, (2021). However, it’s often times a difficult task to verify specific degree and certificate authenticity. People seeking a leg-up can forge diplomas and transcripts, securing jobs well above their qualification levels unbeknownst to hiring managers. Blockchain-based degree verification addresses this issue directly.
Colleges and Universities can implement Proof of Attendance tokens into their existing framework. The blockchains publicly available ledger ensures that the data is genuine and accurate. Upon obtaining a higher-education degree, Colleges and Universities would use one of the aforementioned methods to mint and drop Proof of Attendance tokens to graduates. These tokens would contain pertinent information in their metadata regarding the graduate’s degree, graduation date, and transcript record, and any other relevant data points.
This same procedure can be implemented for any certification program, including CPA and CFA certifications, first-aid and CPR certifications, and continuing education programs at Colleges and Universities.
Proof of Attendance tokens may soon replace the Juris Doctor diploma hanging on my wall.
Possible Further Applications.
Proof of Attendance tokens can also be utilized for the following purposes: recipients of tokens from specific events can be eligible for targeted airdrops, tokens can be used as collateral for lending, and tokens can be used as a proxy for special governance procedures. The possibilities, however, do not end here.
