2Blockchain: harnessing its potential in travel
Contents
Foreword ..........1
1. Blockchain: more than just a database .....2
2. The unique characteristics of blockchain technology.....4
Ethereum and the rise of smart contracts ..........5
3. Blockchain in the travel industry .......6
Making loyalty schemes more user-friendly ......6
Loyyal: transforming loyalty programmes with blockchain ...........7
Improving baggage tracking with blockchain ....8
Simplifying settlements in the travel value chain ......8
Improving identity management in travel ...........8
Civic — solving the identity dilemma with decentralisation .........9
4. Blockchain’s new funding mechanism: tokens ...10
5. Recommendations for the travel industry ...........12
Blockchain: harnessing its potential in travel1
Foreword
I am fortunate that my role as Head of Innovation grants me access to the people
and technologies changing how the travel industry and wider world operate. From
autonomous drones to the latest in artifcial intelligence, my team keeps a watching
brief on innovation in all its forms.
However, when it comes to innovation, focus matters. This is why we are focusing
our innovation activities on six themes which we believe will deliver value to both our
customers, and travellers alike. Blockchain is one of our six themes, along with others
such as extended content, disruptive forces and improved conversion.
Blockchain is a development that Amadeus has been watching, and engaging with,
for some time now. Our teams have developed live prototypes and we are cultivating
a network of specialist partners to experiment with this new technology, some of
which are discussed in this paper. Amadeus Ventures, our corporate investing arm,
has also been actively monitoring the space.
The promise of blockchain has captured many people’s attention. However, when
it comes to managing mission critical systems in the travel industry Amadeus takes
its commitment to thorough testing and due diligence extremely seriously. Similarly,
we are committed to fully understanding the data security and privacy implications
blockchain presents. Whilst this new approach to handling data excites us, we also
recognise it is still extremely early in its development.
This whitepaper is designed to help shine a light on the many diferent areas of
the travel industry where blockchain is beginning to have an impact in addition to
providing a window into the wider development of the blockchain industry itself.
We hope you fnd this paper valuable and it contributes to greater understanding
of blockchain’s potential.
Katherine Grass
Head of Innovation and Ventures
Amadeus
2Blockchain: harnessing its potential in travel
What is clear is that this emerging technology holds tremendous promise to change
the way we can ‘exchange value’ digitally. Just as the internet’s design has allowed
us to exchange information very easily and quickly, so blockchain could open the door
to a new iteration of computing that allows ‘value’, ofen fnancial, to be exchanged
between businesses, governments and individuals.
Interest in blockchain began with Bitcoin, the decentralised digital currency that rose
to prominence amid the frst huge surge in its price in 2011. The original promise of
Bitcoin was of a new currency, a digital payment mechanism outside the traditional
fat currencies endorsed and managed by the world’s governments. However, Bitcoin
adoption today remains modest at best as the network underpinning the currency
struggles to cope with the transaction volumes needed. Today, Bitcoin is capable
of processing only fve transactions per second, compared to the many thousands
processed by the likes of MasterCard and Visa. The cost of accepting Bitcoin as a
payment mechanism has also risen signifcantly in line with the appreciation of
Bitcoin’s value. Today, holding Bitcoin is primarily a speculative exercise.
Despite Bitcoin’s lack of adoption, the technological and cryptographic concepts
pioneered by the digital currency have been broadly embraced by startups and
even trialled by some governments and central banks. Perhaps the most signifcant
aspect of Bitcoin’s design is the blockchain database, a distributed digital ledger
that is used to record transactions across many computers so that the record
cannot be altered retrospectively. A digital ledger shared between multiple parties
is a compelling concept that makes it easier for various parties to trust each other
because ‘consensus’ is reached regarding each transaction. New public blockchains
have since emerged that seek to improve Bitcoin’s design to harness the power of
Bitcoin’s underlying technology, most notably Ethereum which also introduced the
smart contract concept.Blockchain:
more than just a database
Ask even the most technically-savvy expert to succinctly
explain blockchain and it is a bit like trying to solve a Rubik’s
cube. The reason for that is that there are several dimensions
to the concept including technological, business, economic
and, many believe, even social.。。。