Transforming the Luxury Ideal Through Smart Contracts on EOSIO
In an age defined by technological progress, it never ceases to amaze us how primitive many administrative processes remain.
Excessive paperwork. Sluggish payments. Incessant reliance on third parties to execute contracts. Each still a pain-point in today’s society, and no more so than in the world of luxury where the task of renting a superyacht requires an exhaustive list of steps and intermediaries, which ultimately becomes overwhelming.
One thing’s for sure, there is ample room for improvement: whether in condensing steps or simply eliminating administrative effort, it would make a world of difference for all parties involved.
And we’re closer to the ideal than you might imagine.
Introducing: Smart Contracts
Smart contracts are lines of code stored on a blockchain. They execute automatically when predetermined conditions are met and provide a host of advantages over traditional processes.
The benefits of smart contracts include:
- Trust and Security: Based on distributed ledger technology, the integrity of the documents included in the smart contract process, is significantly improved. Courtesy of the tamper-proof nature of a blockchain: corruption, theft, or destruction of contracts — and other documents— is also near-impossible.
- Immutable: Smart contracts themselves are unalterable, meaning the original agreement always executes as intended.
- No Third Parties: Smart contracts can remove the need for intermediaries as third-party verification is not required. They execute automatically as determined by computer code. This reduces the time and cost associated with manual verification and returns control to the original parties.
- Automation and Interoperability: Smart contracts can interact with each other automatically, which allows them not only to replace single links in a sequence of processes but to do so sequentially: Instead of waiting for the painfully slow transfer of information between third parties, the execution of one smart contract can automatically trigger the next.
In theory, entire networks can be deployed using smart contracts, and then operate in a completely autonomous way.
Configuring Smart Contracts for the Luxury Sector
To pave the way for smart contract usage in the luxury niche, Elitium has deployed its own native cryptocurrency: EUM.
The currency makes it possible for Elitium to provide pre-coded smart contracts, which clients can customize in line with any level of rental agreement executed on the Elitium platform.
One perfect example could be in chartering a superyacht: an activity that’s closely linked to Elitium through its key partner, Boatsters. What was formerly a lengthy, exhausting process requiring many parties can be ultimately be streamlined into a quicker, more automated operation:
- Contracts/documents signed, then placed on a blockchain;
- Tenant’s payment escrowed, after which they receive a private access code for the superyacht;
- Tenant uses the code to access the yacht, automatically executing payment to the owner with a fee transferred to the broker;
- If the access code isn’t used before a predefined time, the owner receives a liquidated damages payment in accordance with the original agreement.
The above process would require no third party involvement, significantly accelerating the task — all without compromising any party’s key interests.
Why Use EOS?
Few platforms currently have the speed, scalability, and flexibility to accommodate the demanding requirements of Elitium’s smart contract process.
As such, Elitium decided to build on EOS.IO.
EOS is one of the most successful smart contract platforms to date, accommodating near-instant payments, higher scalability, and the ability to process thousands of transactions per second.
Where other less-scalable platforms could hinder the performance of Elitium’s smart contracts owing to transaction latency or a clogged network, EOS will provide the reliable, robust foundation Elitium needs to offer efficiency and user-friendliness to its clients.
The Applications are Endless
Do not be fooled: Smart contracts are not limited to yacht rental. They will play a huge role across the entire luxury niche, especially in the context of Elitium’s partners and core platform services.
You will likely interact with smart contracts if you use Elitium’s:
- Concierge service
- Helicopter charter
- Private jet charter
- Limousine and car rentals
- Private island rentals
- Membership networks
Or (almost) any other of its luxury rental agreement services.
The potential for smart contracts to revolutionize luxury is boundless. Now, Elitium is building out its ecosystem to harness the technology in as many ways as possible — underpinned by the incredible technology of EOS.