BLOCKCHAIN
Smart thinking The Ethereum network and working with contracts
MANY BLOCKCHAIN-BASED B2B COMPANIES are opting to use the Ethereum platform as their operating system, as it features smart contract functionality. The smart contract protocol can digitally facilitate, verify, or enforce the negotiation or performance of a contract. Within the accommodation
sector, contracts play a key role and hotel solutions provider HRS says it identifies broad potential for blockchain within its corporate hotel programmes.
Martin Biermann, vice-president and chief technology officer at HRS, says: “We’re already testing blockchain processes in China and Europe to ensure preferred hotels get the correct business traveller data, and can then verify that the guest checking in at the front desk is using the proper negotiated rate. We’re also leveraging blockchain to
help enhance the accuracy of hotel supplier contracts, and provide a traceable record for audit purposes if an incorrect rate scenario is discovered.” For Roberto Da Re’s Travel Ledger project, smart contracts will automate some of the commercial terms, such as permission calculations, managing payment dates or credit control. “If I’m doing business with a company, I can record our commercial relationship with that other party, and the smart contract would automatically verify and check that all the calculations are correct, so save the buyer the job of having to check all the calculations have been done correctly,” he says. “The Ethereum network is robust and able to use smart contracts. It’s been out there for some time. It’s attacked by hackers every single second, but it’s proved really reliable.”
there are enough funds committed until that month. It also claims there are “no immediate plans to ‘distribute product’ or create a ‘travel currency’”. Da Re is meanwhile calling on travel
technology firms to join Travel Ledger, so it can harness their computing power. In return, these travel technology firms
or “master nodes” will be rewarded for proc essing transactions. For every transaction Travel Ledger processes, a small, percentage-based fee is charged in “tokens” for using the plat- form. Fees collected are then used by the alliance to reward master nodes, finance development, incentivise system suppliers and integrators, and reward early inves- tors. “Master nodes and users will also control the alliance with voting rights on community proposals,” it states.
58 BBT May/June 2018
BAD TIMING However, these industry launches coin- cide with several new regulations. “Blockchain is at an early stage. There’s
going to be a lot of innovation but also a lot of hype,” says Paul Saggar, chief innovation officer, Capita Travel and Events. “There’s a bit of ‘here’s a solution, what’s the problem?’. There’s a lot of noise; the true value of the technology is getting lost – and I think discovering its value is a couple of years away,” he argues. “From our perspective, are we actively
doing anything? No, we’re watching. We’ve got other challenges, such as GDPR [General Data Protection Regulation], IATA PCI compliance and other legislative deal- ings. We’re on top of it, to make sure we meet all the requirements. GDPR is high profile; all eyes are on it.”
Saggar adds that IATA’s New Distribu-
tion Capability is another priority. “With NDC, is there a crossover with blockchain? It’s evolving at pace, and there are changes in distribution models. Clearly airlines are making moves, so we’ve no choice but to move on it.” And while he says he is following Travel Ledger’s progress, he believes the issue of bill-backs in the corporate sector is ”slowly receding”. With Travel Ledger’s comparison to
IATA’s BSP, he says IATA’s 400-500 airlines means it is “a manageable number” with IATA promoting and supporting it. The leisure market is more fragmented
and the bigger numbers could prove un- wieldy. “You can’t compare air to non-air, there are many independent hotels. Even properties that are part of chains are not all owned by the same company,” he argues.
BUYINGBUSINESSTRAVEL.COM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152
