Web3 and its related technologies, such as blockchain, can be regarded as revolutionary for a variety of reasons. But one reason for the wide acceptance of the potential to change many aspects of our daily lives such as how we travel.
While the industry of travel is controlled by big business organizations operating in a central way, travel experiences could be made more secure and user-friendly through the introduction of web3. Why is this? Since blockchain is the core of the web3 revolution. Because blockchain is a distributed, encrypted, and distributed digital ledger which serves as an irreparable and unbreakable public database for stored data It can provide transparency, safety, and accountability to various critical points of contact.
What is Web3?
Web3 is the latest and most current version of the internet web, distinguished by decentralization. In the above paragraph, web3 obtains the quality of decentralization that is based upon blockchain technologies.
Web3 is still in development and consequently, it is unlikely that any web3 concept that’s been proposed can be considered to be completely complete. One aspect that requires no more clarification is that web3 has laid the foundations for a distributed world where there is no supervision of centralized entities.
Blockchain-based services and applications are slowly taking off as a large amount of money is being put into their development. Web3 for travel also employs artificial intelligence, machine learning as well as other advanced technologies to develop more adaptable smart applications. It is not surprising that travel and tourism are one of the industries that have gained greatly from the Web3 revolution.
The implications of web3 on the industry of travel
Security and stability are among the greatest benefits that web3 provides can provide in terms of travel services. The decentralization of blockchains means that the transactions that are recorded are identifiable, and therefore information is not lost or erased accidentally.
The industry of travel depends heavily on the exchange of information between businesses. Travel agents are required to pass on the details of customers to hotels and airlines. Personal belongings of travelers are frequently shared between companies and tracked. Any stumbling block in the transfer of data can affect travel in a significant way. Information loss or inaccurate information being transmitted could exacerbate the issue. In the case of web3 and the travel industry, Blockchain technology can help data flow to occur in a seamless manner. Because the whole network of nodes that are who is responsible for managing a blockchain is accountable for data storage accessing and storing information about passengers becomes much simpler when carried out in a distributed manner.
Financial transactions are crucial to web3 for travel. Blockchain technology is not only able to make payments easier but also secure. This is especially the case for transactions made in foreign countries. Blockchain could enhance trust between all participants involved, from airline companies and travel agents to hospitality companies and travelers.
Two of the most significant advantages of web3 when traveling
There are no agent fees, nor is there involvement of intermediaries from third parties.
Since blockchain operates on an open-source peer-to-peer network, blockchain-based travel products and services can eliminate the necessity for intermediaries or middlemen. A lot of travel businesses are therefore using blockchain technology to take advantage of this distinctive feature. For example, S7 Airlines, a Russian airline, utilizes blockchain technology to sell and issue tickets. The private blockchain is used is based on Ethereum and makes use of smart contracts to transfer information between different parties. This has increased the speed of the settlement process between airlines, agents passengers, and airlines from 14 days to 23 seconds. The platform is being utilized, with the number of each month’s transactions via its host blockchain in the thousands. Since no third parties are involved, there aren’t agent fees or commissions due.
Insurance against delays to flights and overbooking
Many airlines use blockchain technology to streamline the process of compensation payments for passengers who are refused seats because of overbooking, or whose flights have been delayed. French insurance firm, AXA, uses blockchain technology to provide insurance coverage for delays in flights. The process of compensating customers includes smart contracts. So, if a client’s flight is delayed by a specified length of time compensation will be paid automatically. The process of compensating the person who was denied seats due to overbooking is also a method used by several well-known airlines, including United Airlines.
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