Advantages Of Blockchain

Volodymyr Donchenko TR-M2SE/1

Student card No17444

How blockchain technologies may impact the business models for tourism.

In 2009 was created technology named “blockchain”. Generally most of the people associate it with financial system, but innovations and constantly trying to create something bigger basing on this technology caused appearance first ideas of creating databases. Why people are interested in it? And is it good or no? Basically, a blockchain is a virtual machine that can execute computer code. Advantages of the blockchain is data safety, decentralized system, transparency of actions and reliability.

Over the course of the history we have invented multiple institutions that essentially are there to enable trust. The immutability

Blockchain also gave rise to a whole new type of business organisation, where a cryptocurrency issued by that organisation acts as its shares and at the same time as its internal currency, in which its contributors can be rewarded.

This new business model allows startups to raise money and at the same time pump value into their cryptocurrency by giving discounts to early buyers. By the way, the most changeable creation for travel industry are new databases, which can supersede currency GDS, Channel managers and OTA or change them (Amadeus, Sabre, Travelport etc.). If it will be public database as it may be it will have great influence, because all brokers who with we have to work to sell room in hotel, flights, transfers and other facilities create charging a percentage for their facilities. Then as a final price we observe higher price for at least 50 procent. Our fixed price for facilities will also grow up, because minimal price is changing. But such big companies as Amadeus for example may reduce the costs and increase revenue. Last years Amadeus’ IT engineers explore opportunities and work on new programs and software to begin new epoch of global

And second problem is assurance enough power to operate, which needs a lot of mainers ‘farms’.

A growing number of tourists need new technologies, an increase in the number of flights is expected to double in the next decade. New technologies should simplify the identification of a person protecting it.

The travel industry is notably disjointed, with governments, travel agencies and credit card companies running differing legacy systems, all of which would have to be migrated to the blockchain. Blockchain presents data security and privacy implications that would need to be addressed.

Some of the current ‘big player’ moves into blockchain are really little more than a sop to the markets to be seen to be ‘doing something’ with blockchain. Some of the startups could be massively disruptive. Only time will tell.

However, digital disruption is a business reality in today’s world. Any orginization that ignores, what could be a revolutionary technology like blockchain, may end up in the same graveyard as those companies that did not adapt quickly enough to previous digital