🔥 TOP STORY
LTC Price Predicted to Keep Rising After Sparking Crypto Spring — Five Positives from Litecoin
LTC Price Predicted to Keep Rising After Sparking Crypto Spring — Five Positives from Litecoin

Blockchain and AI Combination to Push Travel Industry Forward

  • Yuri Molchan

    As DLT and AI join their efforts, a lot of current issues are going to get a new solution, including the travel industry

Blockchain and AI Combination to Push Travel Industry Forward
You may also like:
Contents

Blockchain keeps changing the existing many spheres of everyday life. After Bitcoin’s appearance ten years ago, open ledger technology (DLT) has become a tremendous breakthrough and is now turning into something more or less regular, even though a lot of people still fail to understand how it works. It was first used in the finance industry but now it has leaked into real estate, gambling, education, medicine and other fields, too.

Blockchain and tourism

Blockchain allows data to be strongly protected and ensure its transparency without any intermediaries. Besides, it makes not only data but also various transactions on the DLT more efficient and cheap.

Among the areas that are being impacted by blockchain is the travel industry and tourism. These areas produce almost 10 percent of the global GDP, having millions of tourists travelling around the globe every year. Moreover, the scale of these areas is growing, currently being at a historical high.

👉MUST READ Blockchain’s Transparency Could Put a Clear Sheen on Dirty Politics

Currently, the industry can be improved by bringing down costs and making the general customer experience better and more enjoyable. In addition, blockchain can be the answer to travellers’ prayers when it comes to numerous awful experiences regarding booking plane tickets and actual flying.

Experts believe that in the future blockchain can be applied to four main areas of the industry. Those are customer reward programs, luggage tracking, I.D. systems and the secure transaction of payments.

Luggage tracking

Luggage tracking is especially important, since even now, in the 21 century, baggage is often lost or arrives late. Luggage goes from one point to another when its owner is travelling with just a light bag. It goes from the airport to the plane, transport services, then to the hotel where you are going to stay. It goes through plenty of stopovers and transferring points.

Blockchain can be used to ensure that every unit of luggage that passes all the stages from the start to the finish point. Should any baggage be lost or delayed, DLT will be able to trace it, even if it requires getting multiple companies involved.

Payment services

Payment operations are the most frequent and practical way to use blockchain, though many disagree on that point. DLT-based systems can definitely make life easier for travel companies when it comes to payment transactions. Crypto coins that are used with them can be sent to any country, independently of local and international banks, and there is no hassle with exchanging numerous currencies and using foreign exchange platforms when you go abroad.

ID procedures

Blockchain, when implemented into ID systems at an airport/train station, makes things much easier for travellers. It allows avoiding queueing at an airport security and waiting in long lines at check-in and immigration desks, even though these are obligatory procedures. Open ledger technology can solve this problem, too. Travellers’ data on it can be easily traced and shared if necessary. This would speed up the screening procedures at airports, since DLT allows one to confirm anyone’s identity by simply leaving a fingerprint or performing a retina scan. Checking the personal documents of a traveller will no longer be necessary.

System of rewards

Another thing blockchain can be helpful in is making reward programs in the travel industry work more effectively. This field, just like others, such as hotels and airlines, prefers to attract customers with rewards for using its services. DLT can get this process to work better and more efficiently, and let clients receive their personal points in a way that is transparent and traceable.

For this purpose, crypto tokens can be used, which would also facilitate buying tickets and similar things, like paying for a hotel room afterwards.

👉MUST READ Piglet’s Big Brother: How AI Changes Agriculture

To sum up

Travelling still remains a problem. However, blockchain and artificial intelligence combined together promise a solution. When this system is decentralized, various entities and companies that are part of the travel industry will be able to exchange and share data easily on the blockchain. This would make things easier, more efficient and secure.

Smart, AI-based technologies would improve the overall user experience and cut down expenses. If these two technologies put together can change the travel industry for the better, they will probably revolutionize other areas as well.

Subscribe to U.Today on Twitter,and get involved in all top daily crypto news, stories and price predictions!
👓 Recommended articles
something-wide
something-wide

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
You may also like:
Contents

Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

👉MUST READ John McAfee Says Exactly When Bitcoin Will Hit $1 Mln, IBM’s Jesse Lund Goes for More Modest Forecast

Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

Subscribe to the official U.Today Telegram channel. Get news first!
👓 Recommended articles
something-wide
something-wide