The problem with the travelling industry is that currently, payments between entities can only be processed through central authorities, like banks. For a costless bitcoin trading venture Trade Ethereum App the platform charges zero commission on both profitable and non-profitable trades. It creates friction in the process and slows down processes. One potential solution could be using an Ethereum-based alternate global currency for international transactions.
The Ethereum platform offers low fees, no illiquidity risk because of its programmable money aspect, and is censorship-resistant. The below-mentioned will explore some advantages of using Ethereum for travelling purposes.
Many governments worldwide have started to feel the benefits of using blockchain technologies in their countries. For example, the UAE has recently announced that it will use blockchain for governmental purposes and its interest in cryptocurrencies.
Businesses have been at the forefront of blockchain adoption for several years now, with giants like IBM and FedEx taking on blockchain projects for themselves and their customers. However, Ethereum seems to have an extreme use case in the travelling industry because of its use cases like smart contracts, programmable money and low fees.
Tracking flights
In the air travel industry, airlines sometimes have to change the flight they have booked you on. The problem is that they have no way of informing you once this has happened. It is where a platform like Ethereum can provide greater convenience for the user because of its innovative contract feature. When booking a flight, an Ethereum wallet could be programmed to send you a notification if any changes are made to your flight times or dates after your booking is complete.
Other advantages for travellers would be having one’s digital ID linked to their Ethereum blockchain address. In addition, it will provide greater security when travelling, with the blockchain confirming that a particular document is authentic.
Transferring money to people while travelling
In today’s society, transferring money from one person to another is incredibly slow and inefficient. Some individuals even think that it isn’t possible anymore. It could be because of the number of intermediaries involved, which include banks in today’s scenario. Another problem that arises from the current banking system is the issue of trust, with both parties having to trust each other fully at all times. This lack of trust in today’s financial systems has created huge problems like fraud and inefficient systems across many sectors.
If a traveller, for example, were to travel to another country and needed money, they could use an Ethereum system specifically designed for international transactions. As a result, they could send money across borders without using a bank account, which is incredibly slow and requires large amounts of paperwork.
Another benefit of using an Ethereum wallet would be sending any amount of money in any currency the recipient wants. The money will be sent directly from one’s digital wallet attached to their Ethereum address. There is no need to convert the currency between different banks, or at all.
Tracking packages
Tracking is a huge issue among package delivery companies because of the sheer number of packages sent worldwide. Many of these packages are damaged, lost and stolen during this delivery process. If users cannot trace a shipment back to its sender, it can be stamped as “lost” without ever being delivered to its sender.
Because the users could integrate an Ethereum-based blockchain script into the shipping industry, all packages sent across would have a tracker connected to an Ethereum blockchain address. This blockchain address could belong to both the sender and the receiver. If any package delivered is deemed lost or stolen, it can be easily traced back to its original sender without any hassle. The Ethereum blockchain also has intelligent contracts so that enterprises can automate this process. Blockchain can create more accountability in accounting systems and make auditing for businesses more accessible and more efficient.
Intelligent contracts between hotels and the customers:
When booking a hotel room, there is always the chance that the hotel will cancel your bookings at the last minute. However, with an Ethereum blockchain script, smart contracts could be used by people to enter into a binding agreement between you and the hotel with a deposit paid in crypto. Users would refund you if they did cancel your booking. This same contract could also be applied when making flight bookings.
This question arises from this: What happens if the hotel or airline goes out of business? The answer to this lies in hedging against counterparty risk. The Ethereum blockchain allows for hedging against counterparty risk by using one’s own money to hedge against any potential issues with third parties. Furthermore, it is possible since Ethereum allows anyone to launch their own “node” or “contract”, which can be used as a backup.
This solution won’t be feasible for everyone, but it could make a big difference for some people purchasing tickets for the first time who are not knowledgeable about the market.
