Press Release – Open Source Announcement of the “Electronic Ticketing and Unauthorized Resale Prevention System” – Officially Putting an End to Ticket Scalping

On September 15, 2017, GMO Internet and GMO-Z.com RUNSYSTEM officially announced the open-source release of the “Electronic Ticketing and Unauthorized Resale Prevention System (resale deterred ticket).” This marks the fourth phase of the GMO Blockchain Open Source Project – a program leveraging Blockchain technology that GMO Internet has publicly released as open source.

The open-source “Unauthorized Resale Prevention” program can prevent ticket scalping and eliminate paper tickets by integrating directly into existing ticketing systems. Ticketing systems using this program issue entry authorization via a designated Blockchain address, and ticket purchasers must prove their entry rights using a unique “key” generated on their personal device, such as a smartphone. As a result, tickets purchased through unofficial channels lack credibility, thereby helping to eliminate illegal ticket reselling.

With a team of highly skilled young engineers, GMO-Z.com RUNSYSTEM successfully collaborated with GMO Internet to develop the “Electronic Ticketing and Unauthorized Resale Prevention System.” The company is now putting this technology into practice, starting with verifying ticket buyers’ information when conducting online ticket sales for several major organizations in Vietnam. With this application, ticket holders can confirm their purchase using a QR code on their smart devices (tablet, smartphone) without needing to register or present an ID when receiving tickets. At the same time, GMO-Z.com RUNSYSTEM is planning to expand the application of this technology to build a comprehensive electronic ticketing system that minimizes the negative impact of ticket scalping.

This is a very positive signal in the fight against ticket scalping, which has become a major social issue. Especially for attendees of large-scale events, this system will prevent frustration caused by ticket prices being inflated by scalpers. It is hoped that in the near future, the open-source “Electronic Ticketing and Unauthorized Resale Prevention System” developed by GMO-Z.com RUNSYSTEM will be widely adopted across society to bring the greatest benefits to both users and ticket buyers.

Below are the details of the “Electronic Ticketing and Unauthorized Resale Prevention System”:

1. Process of applying the “Electronic Ticketing and Unauthorized Resale Prevention System” to real-world events

• Organizers register event information on the Blockchain

• Agents (ticket sellers) register their information on the Blockchain

• Agents notify their Blockchain ID to the event organizers

• Organizers designate the selling Agent (ID) and register the event

• Participants purchase tickets through the Agent’s ticketing site and provide their Blockchain address to the Agent

• Agents grant entry authorization to the purchaser’s address

• At the event venue, ticket holders present their device (QR code) containing the “key” that proves their entry rights

• Event organizers verify entry rights on the Blockchain by scanning the QR code of the attendee’s device. If valid, entry is permitted.

2. Key Features of the “Electronic Ticketing and Unauthorized Resale Prevention System”

2.1. Entry authorization managed by a “key” known only to the ticket holder

In this system, ticket purchasers are granted entry authorization to a designated Blockchain address. This authorization is generated using the buyer’s device, and only the “key” corresponding to that address can prove the entry right. Therefore, buyers can only enter using the device that holds the “key.”

This “key” exists solely within the ticket holder’s device and is stored in a non-duplicable location. If the key is illegitimately copied, its uniqueness is compromised, and entry will likely be denied as the system will record the ticket as “already used.”

Thus, tickets purchased through unofficial channels cannot guarantee entry, effectively preventing unauthorized resales.

2.2. Easy to use for both agents and event organizers

The “Electronic Ticketing and Unauthorized Resale Prevention System” offers an open, independent, and autonomous entry management structure, allowing agents and organizers to easily operate it themselves.

Ticket agents can integrate the system simply by adding two processes into their existing ticketing system: “obtaining the buyer’s Blockchain address” and “granting entry authorization to that address.”

Event organizers can utilize the system by scanning attendees’ devices (QR codes) and preparing entry registration systems to validate entry rights.

• No need for related parties to hold cryptocurrency (Ether)

On Blockchain, a fee (paid in Ether) is typically required whenever processing is recorded. However, it is not common practice for ticket buyers, agents, or organizers to hold cryptocurrency just to store information.

This program includes a feature that allows service providers to cover these Blockchain fees. Therefore, users can take advantage of the anti-scalping ticket system without having to deal with cryptocurrency payments.

REFERENCE INFORMATION

About GMO Blockchain Open Source Software (OSS)

Leveraging over 20 years of hands-on experience operating Internet infrastructure services, GMO Internet Group has been actively developing Blockchain technology. In December 2016, we launched “Z.com Cloud Blockchain” and the beta version of “ConoHa Blockchain,” which allows for the creation of simple decentralized applications on Blockchain. In practice, we also implemented the “Exclusive Delivery Box” system using the “Z.com Cloud Blockchain” platform.

Building on this expertise, and with the goal of promoting new Blockchain-powered services, GMO Internet released “GMO Blockchain OSS” in July 2017, making practical Blockchain applications available as open source.

Going forward, we plan to periodically release more “GMO Blockchain OSS” open-source programs to meet diverse user needs.

Reference URLs:

• GMO Blockchain OSS – Open Source List: https://guide.blockchain.z.com/docs/oss

• Z.com Cloud Blockchain – URL: https://cloud.z.com/jp/products/blockchain/

• ConoHa Blockchain – URL: https://www.conoha.jp/blockchain/

• Exclusive Delivery Box – Verified URL: https://www.gmo.jp/news/article/?id=5542

(Jointly developed by GMO GlobalSign and SAISON INFORMATION SYSTEMS CO., LTD.)