UTIX is a BVI based entity, whose mission is to develop and market the open-source UTIX protocol and disrupt the inefficient e-ticketing industry. The UTIX solution is to enable users and event organisers to seamlessly use smart contracts on the Ethereum network to control each of the variables that ultimately lead to market inefficiency.
Dylan Haupert is the founder and CTO of the UTIX project. Coinedict had a chance to interview Dylan and know more about the UTIX project.
Coinedict: In most cases, decentralization is a slower, less scalable, and more expensive way to develop a business, so why is it your preference over a centralized database?
Dylan: Faster and cheaper to build doesn’t necessarily correlate with a better product. By integrating a decentralized element, we believe we are able to vastly reduce a number of the factors that create the market inefficiency present within the e-ticketing market. Effective and lasting change never usually happens overnight, we are happy to be patient as the world recognises the potential decentralization has.
Coinedict: How is Blockchain implemented in it? Is UTIX a security or a utility token? What purpose does it serve?
Dylan: UTIX is a utility token, the protocol wouldn’t be able to function without it. Blockchain is implemented by the facilitation of smart-contracts placing certain variables throughout the e-ticketing purchase process that allow/disallow individuals from partaking in certain behaviours. The token allows these transfers to be instantly tracked, traceable and controllable. Through the use of the UTIX token, we are able to control the secondary market, verify legitimate/fake tickets as well as enable stake-weighted voting mechanisms that allow the community to determine required changes to the model, platform and site.
Coinedict: Blockchain-based event organizers already exist in the market. What is your essentiality that shall provide a competitive edge over the others?
Dylan: We believe their models are flawed. 99% of e-ticketing providers that have integrated the blockchain into their software require you to purchase their tokens to host an event. This is a huge disincentive for any supplier to want to use the platform. Whether it is an event that sells 1000 tickets a week, to a stadium that will sell 50,000 a night, there is very little evidence that they would be willing to front a large amount of capital to sell tickets, when they could do so on traditional e-ticketing sites for free.
UTIX introduced the reserve fund, this is why the UTIX token is required. It is a large token reserve, that lends the tokens to the event organiser to distribute to the users; when the event is finished, the tokens return to the reserve fund for the process to begin again. It is the first of its kind.
Coinedict: Could you reveal strategic partner for UTIX? Please brief us about the Gnosis Multisig wallet type?
Dylan: We have a number of letters of intent from event organisers in the US, UK and Europe; as well as a number of institutional interests in Australia. I can’t say too much right now, but I can say we should have by a large number of events ready to use the platform the moment it is publicly available.
Coinedict: When are the smart contracts established in UTIX and what purpose do they serve? Are smart contracts been audited?
Dylan: UTIX is an online, decentralised event hosting and e-ticketing platform that utilises the smart contracts to reduce market inefficiencies and provide event organisers (EO) with variables they conventionally would not be able to control. Users and event organisers can buy or sell tickets through cryptographic signatures stored on a blockchain that cannot be altered or destroyed, removing the requirement of centralized servers, over-reliance on costly third parties and other negative externalities that arise through an unregulated free market mechanism.
UTIX, through our own protocol, can lend tokens to an event organiser to be distributed to a user when a ticket to their event is purchased. Through our user-friendly interface, an event organiser/user will have all the functionality of a blockchain, without the added complexities typically involved. By utilising smart contracts, we can reduce complication, cost, and minimize the threat of fraud.
Yes, all contracts we work with will be fully audited, as well as our offering contracts. You can find this audit on our website, www.utix.io
Coinedict: How is ticket re-listing done on this platform how does it differ from others?
Dylan: Our aim is to work extremely closely with established and large event organisers to create a system that really works for them. Initially, we aim to build a system whereby you can transfer a ticket to a specific user, in return for capital through the site itself; this means should you wish to sell the ticket to someone you know or a friend, you should be able to do so relatively seamlessly. We also will allow the tickets to move back onto the open market, with those tickets being the first available for purchase (unless it is a seated stadium based event), so all parties involved end up happy!
Coinedict: How UTIX aims to eliminate the purchase of tickets in bulk?
Dylan: Tickets have to be assigned to specific users, although initially this seems like a headache, through testing and demo, it really isn’t and should take only a matter of seconds to do. One single individual has no need for 5+ tickets, as it only requires 1 ticket to enter an event for them. It is as simple as purchasing, searching for a friend on the platform (IOS, Android, web etc) and assigning the ticket to them. There will of course also be limits on the total amount of tickets anyone user can buy, but this is functionality the event organiser can choose to implement. UTIX is all about choice and variable control.
Coinedict: How do you endeavour to create a structure whereby event organisers can see the benefit of utilising blockchain technology for merchandise, beverages, food etc at events and/or festivals?
Dylan: It is all about keeping things simple. If we attempt to overcomplicate things initially, or ever, our system will not be used. As an individual that has hosted events, as well as worked with e-ticketing systems in the past, there are a lot of different factors to keep track of, and without great organisation, it can become a headache. If we can effectively create an online platform whereby organisers can control every aspect of their event, including how many drinks/food items or merchandise has been sold, it could change the e-ticketing game entirely. We will not roll out a product for the sake of doing so. It will take time, event organiser input and work, but we believe we can create a platform that covers all merchant aspects of running an event, big or small.
Coinedict: What is the pricing model assigned to the company?
Dylan: As with the majority of e-ticketing models, fees are scalable, depending on the value of the ticket. However, we aim to keep things as low as possible, low enough to remain highly competitive. There are blockchain based costs involved in facilitating smart-contract transfers, but these are so small, they’re negligible. The transactional cost covered by the consumer in the purchase of the ticket will always cover these costs.
Coinedict: How do you consider your team in terms of capability to bring forth the value that UTIX offers to the public?
Dylan: We have a passionate team with the same vision, with from experience, is very difficult to find. Each and every day individuals come to the office with new and formative ideas that could really aid the platform in both functionality and growth. It is incredibly refreshing to work with guys and girls that have such a strong synergy. The team is highly experienced, with our founders directly working with an e-ticketing platform in the past, therefore understanding the risks and requirements necessary to ensure success. We have a wide range of developers who have dealt with the issue of secondary pricing first hand, so see clearly how it can be eradicated, and a brilliant advisory team that remain subjective and ensure we remain on the right path, with the end goal in mind. We’re very fortunate.
Coinedict: What propelled you to form UTIX? What were you previously involved in?
Dylan: Our founders Dylan and Max created their own e-ticketing platform whilst in college, as 95% of tickets were still paper, it was inefficient, ineffective and stressful for consumers and event organisers. In the last few years, Max has worked in finance, and Dylan has focused his attention primarily on blockchain development, mining and its growth. Dylan was able to identify how the introduction to blockchain to their college e-ticketing product could really help the e-ticketing market eradicate much of the negative externalities that existed, this is what began UTIX. Our dev teams etc all also come from finance, so we are a well versed team in probability/statistics, which ultimately is about bringing everything down to 1 number. This is our aim with UTIX, make it as simple, yet effective as possible.
Coinedict: What are your thoughts over BOUNTY programs in ICO? Why did you refrain to implement it in your roadmap while most ICO’s prefer to back their project with them?
Dylan: Bounty programs are great, they’re fantastically effective at raising awareness for projects + products as well as identifying key issues. Our aim is absolutely to have a bounty program, but for the product itself, and identifying issues that could affect consumers and event organisers. In terms of a bounty for our smart contract, our smart-contract auditor, Cindercloud, set-up a bounty for UTIX through Fundrequest (who raised $12.1 million earlier this year!). The purpose was to allow for talent to identify and assist in the patching of bugs and issues in our offering contracts, this was a success and all info regarding the audit of our smart contract can be found at our website, www.utix.io