The use of blockchain technology in the hospitality industry
Blockchain technology is one of the most exciting digital technology innovations in recent times, and one that we at Tradensea, without needing to go into detail, appreciate. In this article, we explore its potential uses within the hospitality industry.
What is blockchain technology?
To be on the safe side, let's go through the basics! Blockchain is a public ledger where transactions are anonymously and permanently recorded. The records or "blocks" in the database are protected by cryptography and once the information is recorded in the blockchain, the data cannot be modified.
Crucially, blockchain technology is decentralised, meaning that information is not stored in one place. This prevents manipulation and makes all data transparent. Many event records are shared across a network, which provides additional security benefits as there is no central point of failure or vulnerability.
All information added to the blockchain is time-stamped. This ensures that all data entries are traceable, further increasing the transparency of the database itself.
For more details, read our previous blog post on blockchain!
What are the benefits for the hospitality industry?
Well, the most obvious are the security and stability benefits. For example, all data is decentralised and traceable, and the database can never be taken offline or removed by a cyber-attack, which can be important when handling financial transactions.
In addition, this innovative solution can play a vital role in simplifying payments. At present, this can be difficult, especially in geographically remote areas. By using blockchain technology, the whole process can be simplified and made more transparent, increasing trust.
You can read more about other applications of blockchain technology and other interesting facts about it in our blog, which has a lot of exciting topics.
Four uses of blockchain in tourism
Secure payments: whether it's accepting cryptocurrencies such as bitcoin or ethereum, or simply a transparent, secure, global ledger, bank payments can be streamlined and hotel costs reduced.
Identification: currently, travellers have to provide their ID at different stages of their journey, but the introduction of blockchain in the industry could enable the creation of a shared digital database. This would allow passengers to be fingerprinted, for example, for seamless verification and faster administration.
Loyalty schemes: blockchain technology could improve the quality of loyalty reward schemes by simplifying them, making it easier for customers to access points. Rewards could be distributed through digital tokens that can be used anywhere, anytime, while reducing fraud in loyalty schemes.
Luggage tracking: travellers' luggage tends to change hands many times during the journey, which can lead to logistical problems. The centralised nature of the blockchain allows different companies to easily share and access related data.
Amazingly, the potential uses of blockchain technology are virtually limitless. It is certain that in the years to come, many applications will be discovered that no one is thinking of now. Join us in cryptography, let's follow this world together!