Blockchain: The Next Technology

Disruption in The Travel INdustry

Demystifying Emerging Technologies for the

Global Travel Industry

March 7, 2018

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What is Blockchain?

Source: 123RF

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Bitcoin, Blockchain and Ethereum

Blockchain

• Distributed

Ledger

Technology

Bitcoin

• 1st Widely Adopted

Cryptocurrency

Ethereum

• Smart Contracts

• Industry Specific

Platforms

Sources: Coinbase, BlockGeeks and Ethereum

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Centralized vs Decentralized

• Peer to Peer

• Ledger on Every Node

Source: 123RF and BlockGeeks

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Encryption at Its Core Blockchain Transactions are Immutable

Source: CFB Scientific Translations & Consulting

• Private

• Public

• Hash

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A miner approves the transaction as valid

4 1

A wants to purchase your item

A wants to transact with B

2

The transaction is represented online as a “block”

3

The block is broadcast to miners in network

Payment received goods exchanged

6

The transaction is complete with payment sent from A to B

5

The block is added to the chain which provides a permanent and transparent record of the transaction

Steps In Blockchain

6 Source: Adapted from Blockgeeks

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Role of the Miner

Source: BlockGeeks

A minor solves a cryptographic puzzle to:

• To verify the legitimacy of a transaction

• The miner is compensated with a digital currency

.

Source: Adapted from Blockgeeks

Smart Contracts

Code that Automatically Executes a Contract

Agreement Smart Contract

created on the

blockchain

Smart

Contract

Triggering

event and

execution

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Permission versus Permissionless

Source: BlockGeeks

Eliminates

the

Middleman

Maintains

Control by

the

Middleman

• Users are not anonymous

• Permission is required for users to have a

copy of the ledger and participate in

confirming transactions.

Private

• Users are anonymous

• Each user has a copy of the ledger

and participates in confirming

transactions.

Public

.

Barriers to Blockchain Adoption

Blockchain is a Young Technology

Sources: 123RF, Harvard Business Review, Ethereum WorldNews

3 to 4 20 2,000

SPEED per Second

Lighting Network Plasma

Public

Open

Network

Volatility

Speculation

vs. Utility

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Blockchain Primary Areas of Impact for the Travel Industry

Transparency Settlement Loyalty Fraud

Sources: Travel Tech Consulting, Inc., Deloitte, NBC and 123RF

Identity IoT Policy Overbooking

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Reducing or Eliminating the Middleman

Consumer interfaces are still needed but roles

may change

Source: 123RF

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Blockchain Travel Examples

• Permissionless

• Token Event will Fuel Innovation

Sources: VentureBeat, TNOOZ, PhocusWire and Winding Tree

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Summary

It’s all about the plumbing A new distributed network

A new travel platform created by

thousands of developers

Sources: 123RF, BlockGeeks and Linux