Sunday, March 20, 2016

Blockchain Travel Apps

Cryptocurrencies such as Bitcoin and blockchain technology could have many useful and novel applications in the travel industry, for both individuals and business travelers, and also host destinations that are interested in attracting visitors.

1. Money - The first and most obvious blockchain travel application is money, taking advantage of Bitcoin or other cryptocurrencies for digital payments. Foreign currency exchange is an expensive hassle, and it could be much easier to pay with Bitcoin directly from a smartphone, when possible. If it is not possible to pay with Bitcoin, another crypto money application is obtaining local currency through worldwide Bitcoin ATMs or converting money from Bitcoin to local currency through a crypto exchange. Loyalty programs could be another crypto application, where blockchains could track point-garnering activity as it occurs, possibly denominated in crypto token that could be easily fungible and readily convertible to awards.

2. Passport - Another crypto travel application is storing important documents on the blockchain such as passports, visas, permits, identification cards, and driver’s licenses. One benefit is that documents presented in person could be confirmed with an Internet look-up of their blockchain-registered version. Another benefit is having easily-accessible back-up copies in the event of loss. Other new ideas expand the traditional notion of identity, for example beyond nation state citizenship, world citizenship (projects proposed by Bitnation and Chris Ellis) and Estonia’s e-Residency program. Beyond identity documents, it could also be helpful to have immunization records and EMRs (electronic medical records) accessible by blockchain.  

3. Reservations - Managing all of the many details of travel - flight, accommodation, transportation, and tour reservations – can require a lot of coordination that might be managed seamlessly by a Travel DAC (distributed autonomous corporation). This blockchain-based package of smart contracts could track, orchestrate, and update changes in travel details and keep travelers on top of their schedules. This would be like having a more extensive version of TripIt (multiple travel reservations in one application including automated status-updating) with blockchain-based AI functionality. A Travel DAC for business travelers could feature expense-tracking and reimbursement. Other Travel DAC applications could include monitoring airline prices for optimal dates or routes, and suggesting vendors per user preferences, such as those that accept cryptocurrency (for example LaZooz as opposed to Uber, or decentralized alternatives to Airbnb).  

4. Insurance and Provenance - Travel insurance could be selected through decentralized peer-to-peer based alternatives to traditional insurance that might be cheaper and offer more certainty in the case of claims payout dates and amounts. Blockchain-based peer-to-peer dispute resolution mechanisms also might be employed to adjudicate travel claims. Another application when purchasing an item for example, could be validating the item’s provenance (origin) through a quick blockchain look-up using item-tracking functionality from Provenance (or in industrial use cases, SKU Chain).

5. Disaster - In special cases such as natural disasters, blockchain-based applications could be indispensable in coordinating and tracking aid donations and supplies to their end recipients. ‘Disaster chains’ could also be used to help in managing volunteers, facilitating rescue-tracking, and even possibly getting around the scalability issues of overly-taxed communications networks in the case of disasters (with lighter-weight communications messaging).

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