Distributed ledgers via blockchain came to most people’s attention as the underlying technology supporting bitcoin. But it’s of interest to companies across industries, in part because it offers unprecedented levels of security.

I’ve been watching for unique blockchain applications in travel for some time and have come across a few examples that address relatively narrow operational issues.

But I recently sat down with David Brillembourg, an investor in hotels and hospitality technology, who is developing what he hopes will be a revolutionary platform employing blockchain technology and smart contracts to sell hotel rooms. His intention is to reduce costs for hotel owners and guests by disintermediating online travel agencies (OTAs) and possibly hotel brands.

Without getting into the weeds on the underlying technology, blockchain enables a community to formulate and implement its own economic rules, hence the rise of cryptocurrencies like bitcoin, which for the most part sidestep government regulations. This is done in part through the digital tokenization of a commodity, real or virtual, connected to a smart contract that defines when and how value is transferred or realized.

With cryptocurrencies, the commodity is a financial token whose value is typically measured against government-backed currencies. But Brillembourg wants to create a token and smart contract linked to a specific room in a specific hotel on a specific date and a platform marketplace where rooms can be bought and sold using an interface similar to what is currently displayed by OTAs.

Although the value will float, it would likely do so with more stability than bitcoin because it is backed by something tangible: a reservation.

Sourced through Scoop.it from: www.travelweekly.com