Decentralised travel – a complete paradigm shift?

The D-Word has taken the internet by storm. Everywhere you turn, you cannot miss hearing the term ‘Decentralized’ – it’s either Decentralized Web, Decentralized Finance (DeFi), Decentralized Apps (dApps), Decentralized Tokens, Decentralized Storage, Decentralized Cloud, Decentralized Autonomous Organizations (DAO), Decentralized Exchanges (DEXs), or something else. Take a regular concept and prefix the D-Word, you will begin to see that concept in a whole new perspective. So, what is the problem with ‘centralized’ and why is everyone talking about decentralization? Currently, when a user interacts on the internet, the data gets stored in a database which is owned by a corporation. Take the example of social media, where any content that you generate is not owned by you, but the corporation that stores that data. But don’t you think, if the internet is your digital home, the data you generate should also be your own asset? That’s the whole problem. Till such time that the internet is centralized, you can’t have control of your own digital data. Decentralization will bring about a paradigm shift in how the internet is going to work in the future. That’s where the third generation of the web (Web 3.0) comes in – where control is decentralized by a network of thousands of computers as their backend. So, the user essentially owns his/her data along with reading and writing rights, which is a big change compared to how the internet works currently (Web 2.0). It is moving towards a peer-to-peer network setup without the need for third parties. The emergence of technologies such as Blockchain has also enabled faster P2P architecture adaptation. So, this new era of the web will usher in a whole new wave of previously unimaginable businesses, and business models which are open, permissionless, and secure. Now, how is all of this going to impact the travel domain, and what are the trends that are emerging? Here’s a look –

Decentralized Travel Marketplace:

Can there be peer-to-peer interaction in the travel space? Think of it like a marketplace where the suppliers and buyers come together and transact freely without any intermediaries. This can be powered by Blockchain which contains smart contracts, that are used to automate the execution of an agreement and are run when predetermined conditions are met. It could be as simple as ‘if/when…then…’ statements that are written into the code on a decentralized ledger. Yes, it is not as trivial, but the idea is to have the logic served by smart contracts without the involvement of middlemen. This will significantly reduce the cost with direct and better negotiation between the supplier and the customer. Also, this can enable better personalization with unique content availability for the customer and additional marketing opportunities. With this model, the supplier’s margin increases by removing the middleman and enables them to take a bigger piece of the pie as well as the customer pays less, as transactions pass through a reduced number of 3^rd party actors, which hardly enhances the travel product and services. Smart contracts can be used to create and grow a new travel economy that is better for travelers by being more mindful of their data security and delivering better travel experiences. It’s a win-win proposition for both the traveler and the supplier.

Travel Utility Token and Crypto Coins:

One of the biggest issues for travelers is our conventional banking systems. Exorbitant transaction and exchange fees mean that a significant slice of the travelers’ budget is wasted, and that amount does not benefit the travel industry either. Cryptocurrency friendly platforms could save the day. One can pay for their flight or stay anywhere in the world seamlessly using their favorite cryptocurrencies like Bitcoin, Etherium, Binance, Solana, etc. A token model can work beautifully, which can enable a way to have potential growth of the utility token, with its widespread adoption. By offering a digital currency platform as a payment alternative, travelers can travel anywhere without the need to convert currency. In the process, travelers can earn crypto cashbacks easily that get deposited to their wallets and do not need to depend on any particular currency. This also does away with the need to carry cash or ATM cards during one’s travels. Read more:

This article by Sanjeeb Patel was published in ET TravelWorld.

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