Blockchain in Travel Industry
William Mougayar, the author of The Business Blockchain, investor and analyst once said in his book:
Blockchain is not easy to understand. You need to get its main purpose to assess its potential.
Just imagine: it’s 1994 and someone says: “I’ve invented a global system of interconnected computer networks that is able to link devices worldwide.” Probably your reaction would be: “So what?” But today we all know that this is the definition of the Internet. In 1994 very few had an idea of how dramatically the Internet would change the world.
Exactly the same thing is happening right now to the Blockchain technology.
So what is Blockchain?
In short, Blockchain is a chain of blocks, where every block records some of the recent transactions. These blocks are connected to each other in chronological order. Basically, it’s a digital register of transactions, deals, contracts and all those things of value which can be represented in the form of digital asset.
What’s so special about Blockchain?
– It’s a distributed, decentralized and permanent database. The blockchain database isn’t stored in any single location, meaning the records are truly public and easily verifiable and no data in the blocks can be changed or deleted.
– Blockchain cannot be controlled by any single entity. Blockchain networks tend to support principles, like open access and permissionless use to protect this vision from regulatory interference.
– Blockchain has no single point of failure. Recording transactions through blockchain virtually eliminates human error and protects the data from possible counterfeiting.
– The probability of cyber invasion is very low as any hack is meaningless in that case: any action within any block is traceable. If an irregularity is detected somewhere along the supply chain, a blockchain system can lead you all the way to its point of origin.
– No need for an intermediary. Blockchain has a core characteristic of being decentralized and trustless. Data can be shared across the network without the need of an intermediary to validate or authorize it.
– Blockchain is defining digital trust based on the possibility to check every aspect of it. It establishes trust by combining the openness of the internet with the security of cryptography to give everyone a faster, safer way to verify key information.
– It is a great framework for building new decentralized business-models. Blockchain provides a groundbreaking new way of doing everything digitally — supply chain, security, healthcare, shopping, voting — you name it.
And what about smart contracts?
Another Blockchain advantage — smart contracts — should be put into a stand-alone point.
Smart contract is an agreement that has been codified and stored in the blockchain network (on each participant database). It defines the conditions to which all parties using contract agrees. So if required conditions are met then certain actions are executed.
As the smart contract is stored on every computer in the network, they all must execute it and get to the same result. This way users can be sure, that outcome is correct.
Smart Contracts are Awesome and here’s why:
Autonomy — You’re the one making the agreement; there’s no need to rely on any intermediary to confirm. Incidentally, this also rules out the danger of manipulation by a mediator, since execution of the contract is managed automatically, rather than by individuals.
Trust — All the documents are encrypted in a shared ledger. There’s no way they can be lost or modified.
Backup — Imagine if your bank lost your savings account. On the blockchain, each and every one of your friends has your back. The documents are duplicated many times over.
Safety — Cryptography, the encryption of websites, keeps your documents safe. The possibility of hacking is excluded.
Speed — It usually takes plenty of time and paperwork to manually process documents. Smart contracts use software code to automate tasks, thereby they enhance the effectiveness.
Savings — Smart contracts reduce costs since they knock out the presence of an intermediary. You would, for instance, have to pay a notary to witness your transaction.
Accuracy — Automated contracts are not only faster and cheaper but also avoid the errors that come from manually filling out heaps of forms.
How can it be used within the travel industry?
Within travel industry blockchain and blockchain-based smart contracts can be applied to literally every aspect — payments, concluding deals, luggage handling, ID, you name it.
And especially the P2P market can benefit greatly from implementing Blockchain technology so that everybody can just depend on the quality of the technology verifying the trust.
Payments — Blockchain’s offering of a single, secure, transparent global ledger that is able to drastically reduce costs for airlines, hotels and travel agencies by streamlining bank payments and settlements. Initially, this very process is probably the main reason why so many industries use blockchain.
Luggage handling — Although luggage loss rates are at historic lows, issues still persist, and a blockchain-based solution for tracking luggage would be a great solution for that. Instead of a customer having to wait at a conveyor, and then find his airline’s luggage counter when a bag doesn’t show, all airlines could track luggage handling on a single blockchain which is readable by the passenger. The traveler could even be able to see if their luggage is on the plane. Smart contracts could also be deployed to automatically trigger insurance payouts when luggage is delayed or irretrievably lost.
Decentralized car renting — It can give greater flexibility to car rental companies, car owners, and customers to participate in it through an easy-to-use application. With a smart contract as a basis, any entity that needs to use a vehicle or have one to provide a service may have the ability to set its terms in a form of a smart contract. This can make the procedure much easier: the car can be automatically opened after the conditions of the contract are fulfilled and the payment can be initiated by smart contract itself. The end result will be a more competitive market and a much easier process of requesting and delivering car rental services.
Tourists’ ID — Digital identity is critical to many business and social transactions. It enables ways to interact with billions of users in the digital world. One of the potential uses of the blockchain is to provide a digital ‘identity’ for travelers. It allows to store a lot of personal information: not only verify you as being who you say you are but also have a record of your booked tickets. So no more worries about lost passport or boarding pass!
Loyalty programs — Customer loyalty programs are not realizing their full potential due to low client retention and redemption rates, time delays, and high costs. That’s where blockchain comes in. Adopting blockchain would enable companies to rapidly add and maintain loyalty partnerships without adding complexity to their programs.
And finally… Why apply blockchain into the MeetnGreetMe platform?
- First of all, blockchain allows to issue our own token which is crucial to our platform — here we’ve already explained why.
2. Then, smart contracts can make the process of ordering servicer more transparent. This will also allow us to decentralize the control function.
3. P2P payment system can be also enabled by the implementing blockchain into MeetnGreetMe: it allows to exclude a costly middleman from the money transfer in the future.
4. And, finally, decentralized curation. The advantages of a hybrid platform are difficult to overestimate. With blockchain, it becomes possible to crowdsource the MeetnGreetMe platform curation process which is a reasonable way to operate the global p2p business.
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