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The year 2018 was not particularly the best year for cryptocurrencies, as the bear market had eroded value in almost all digital resources.
However, even if cryptocurrencies are not getting the best of times, blockchain technology has managed to remain relevant, with organizations and governments coming out with ways they can use blockchain as a tool for growth and progress. One particular sector that has seen an enormous use of nascent technology has been the travel industry, where even airports have adopted the use of cryptocurrencies as a means of payment.
Cut the middle men
As in any industry, the presence of intermediaries has always been one of the main issues of the transport industry. Because these parts provide customers with relationships and communications with hotels, airlines and other travel service providers, they also result in increased transaction costs.
Thirds like TripAdvisor end up paying for the services they provide, and this can increase the already enormous costs.
With the use of blockchain technology, a consumer can make his travel and hotel reservations through the execution of a smart contract, thus eliminating the need for intermediaries such as Expedia and Hotels.com. Likewise, the hotel or the airline will be able to trust that the payment from customers will reach without problems, within a short period. Travel intermediaries are known for problems with initialization of payments, which often lead to an interruption of the customer's itinerary.
Take LockTrip for example. The company provides a platform for people to locate and relate to hotels, airlines, etc. Firstly, it offers correct communication between the final sellers, while ensuring that intermediaries, which hardly create any value, are nowhere to be found in the image.
LockTrip CEO Nikola Alexandrov told Forbes in an interview that his startup was able to do well, despite the effects of the bear market.
Our project outperformed the market with + 200% during the bear market. Our prices are so cheap; we are not authorized to advertise them in Trivago.
Better security of payments
One of the most striking areas in which the transport and travel industry can benefit from the integration of blockchain technology is to guarantee the security of online payments. Although there has been a noticeable improvement in the shift of digital payments in the last decade (thanks to the work of fintech companies and innovative online vendors), the transport industry still loses billions of dollars on an annual basis due to fraudulent transactions and scams. A report has shown that the airline industry loses $ 1 billion each month for credit card fraud.
This brings the need for innovative technology to ensure the safety and protection of customers. The blockchain, thanks to its decentralized nature, is not able to go offline, and this means that the information that is stored here can never be tampered with, even in the event of an attack. Furthermore, transactions carried out on a decentralized ledger are secure and traceable. This will make it much easier to guarantee the conservation and storage of valuable information.
Verification of the correct identity
The transport industry has always relied on the use of effective identification services, and this is another area where distributed ledger technology excels. Blockchain can provide travelers with digital identities; a feat that can significantly improve the efficiency of airports around the world and offer a much more pleasant user experience.
With blockchain technology, check-out lines and queues at airports will be drastically reduced, and we can even see a world where documents such as driving licenses and passports can be replaced with facial scans and other digital and biometric information. This would reduce identity theft and improve the overall reputation of the transport industry.
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