A new term is beginning to gain popularity among hospitality technology professionals: blockchain. For those unfamiliar, Blockchain is a digital ledger of economic transactions that is incorruptible and can be programmed to record financial transactions. The blockchain also records virtually everything of value, not just financial transactions.

Today, various businesses, banks, and governments, all have been paying close attention, and even allocating investment and resources to better understand and develop Blockchain. This is because startups and large enterprises alike are seeing an evolving market for a range of blockchain applications beyond cryptocurrencies (a virtual or digital currency that utilizes cryptography for security), including tracking shipments and documenting legal contracts.

Blockchain provides internet users with the capability to generate value and authenticates digital information. This technology is used in business scenarios where multiple parties form a network to take part in a transaction. Blockchain has some essential features that make it suitable for various kinds of businesses.

For example, blockchains accomplish money transfers at a greater speed than traditional international banking which can often take days to process money transfers. This can save money and time for the financial industry. One of the significant value propositions for blockchains is the creation of immutable ledgers. Any centralized database can be corrupted and usually requires trust in a third party to maintain accurate information. Like Bitcoin, blockchain keeps the ledger in a permanent state of forwarding momentum as the hashing power worth millions of dollars confirm new transactions that are recorded. And one of the remarkable things about blockchain is that it can enhance the capacity of an entire network. Blockchain contains thousands of computers working together, and this can have higher power than a few centralized servers.

By looking at the above features, it is evident that blockchain is suitable for various kinds of businesses. This article from Tekslate.com will look at the applications of blockchain in the hospitality industry and the advantages it offers to this sector.

Blockchain in Loyalty Management Programs

Today, the working of a loyalty program is limited to the business that owns the program. In some cases, the loyalty program also works for the alliances of the business that owns the program. However, the alliances’ loyalty systems are independent systems and integrating with them is not an easy task. So, it is becoming difficult for the users to use the loyalty points earned from their air miles to shop at the airport or on a hotel stay.

Think of an open system for multiple providers where loyalty points could be exchanged easily across different sectors (airlines, the coffee chain, car rental agencies, hospitality chain). So, it becomes easy for the users to recover loyalty points from any sector on the network that is included in the open system. Thus, the points gained by the user on air miles can be spent by staying in a hotel. This type of program is inspired by blockchain and is known as the Distributed Ledger technology (DLT).

One of the major aspects of the DLT is that it enables users to anonymously take part in a transaction and still get the value as a trader/participant. In the blockchain system, the transaction encryption maintains the anonymity. Redemption and treasury based on smart contract rules leave no doubt from the perspective of the user and brings about a high amount of user’s trust into the system. It provides a rich experience and convenience to the end users.

The higher value addition would be the system’s open nature for all the stakeholders - system managers, loyalty program owners, companies, merchants, and consumers. This DLT based solution helps lower operating costs and cuts out the redundant operations. Hence, the loyalty programs’ maintenance cost is reduced, and the smaller merchants will also be able to pay for them.

Maintenance of Transparency in the Supply Chain with Blockchain Technology

Large hospitality enterprises follow the franchise model where the company owns the brands but not the physical properties. This decreases CapEx requirements but puts the responsibility on the enterprise to ensure supplies’ quality to the enterprises. Besides, the image and reputation of the brand is at stake. The blockchain is a perfect fit in this scenario as it helps in maintaining transparency within the supply chain.

For example, a hospitality chain’s franchise owner who runs a chain in the east coast of the United States is usually required to buy supplies such as tea, coffee, towels, and other in-room kitchen items. He would also have to acquire toiletries such as shampoos and soaps. Usually, he acquires all these items from various suppliers and from various locations across the world. It is mandatory that they should meet the quality and standards of the hospitality chain. In such procurements, at least two parties are involved most of the time. Take, for instance, Bazillian tea. The farmer grows it in Brazil, it is bought by an exporter in Brazil from the farmer, then an importer brings it to the United States, distributes it to different wholesalers and a packer before it finally lands on the kitchen table in the hotel.

If the hospitality brand owner, franchise owner, packer, importer, and exporter take part in a private permissioned blockchain network, it introduces immediate visibility of supplies from factory or farm until it lands in the hotel room. Once the tea is bought by the exporter from farm, details of the place where the tea is grown, when it was grown, price, quantity, and any other information required by the hospitality chain are recorded as a transaction on the blockchain. Transactions can be recorded on the blockchain at each stage of the supply chain.

This brings in transparency as hospitality chain and the franchise owner have instant visibility of the position of the supplies. Because of this, the franchise owner can optimize the shelf life of supplies and plan his procurement better. Simultaneously, blockchain establishes the source of supplies that can be leveraged to increase the trust of the customer in the brand by obtaining supplies from ethical enterprises and proving it to the customers with the help of blockchain.

Blockchain can provide even more benefits to the hospitality chain. For a vast chain with thousands of suppliers and hundreds of franchises, it gives in-depth visibility of the quality of procurement of the supply chain. Franchises can use this data to optimize the supply chain, resulting in increase of bottom line for enterprises and the franchises. As every transaction’s data is immutable and secure, it saves valuable time in dispute resolution, costly paperwork, and process time. Thus, blockchain technology helps make the backend processes efficient, and improve brand value and customer experience.

Bitcoin is a new Kind of money which is Used in Payment Network. It is a CryptoCurrency which is used for Digital Payment System throughout the World.

Underlying the use of Bitcoin is Blockchain. It is a Shared Public Ledger on which Bitcoin is Present. All Transactions which are Conformed are included in BlockChain. This Way, Bitcoin Wallets can calculate their Spendable Balance and new Transactions are also get Tracked.

Here i am going to Explain how actually works and how it is developed, In My view for Example:

I have one Banana with me. I give it to you.

You now have one Banana and I have zero.

That was simple, right?

Let’s look closely at what happened:

My Banana was physically put into your hand.

You know it happened. I was there. You were there. You touched it.

We didn’t need a third person there to help us make the transfer. We didn’t need to pull in Uncle Tommy (who’s a famous judge) to sit with us on the bench and confirm that the Banana went from me to you.

The Banana’s yours! I can’t give you another Banana because I don’t have any left. I can’t control it anymore. The Banana left my possession completely. You have full control over that Banana now. You can give it to your friend if you want, and then that friend can give it to his friend. And so on.

So that’s what an in-person exchange looks like. I guess it’s really the same, whether I’m giving you a banana, a book, or say a quarter, or a dollar bill….

But I’m getting ahead of myself.

Back to Bananas!

Now say, I have one digital Banana. Here, I’ll give you my digital Banana.

Ah! Now it gets interesting.

How do you know that that digital Banana that used to be mine, is now yours, and only yours? Think about it for a second.

It’s more complicated, right? How do you know that I didn’t send that Banana to Uncle Tommy as an email attachment first? Or your friend Joe? Or my friend Lisa too?

Maybe I made a couple of copies of that digital Banana on my computer. Maybe I put it up on the internet and one million people downloaded it.

As you see, this digital exchange is a bit of a problem. Sending digital Bananas doesn’t look like sending physical Bananas.

Some brainy computer scientists actually have a name for this problem: it’s called the double-spending problem. But don’t worry about it. All you need to know is that, it’s confused them for quite some time and they’ve never solved it.

Until now.

But let’s try to think of a solution on our own.

Ledgers

Maybe these digital Bananas need to be tracked in a ledger. It’s basically a book where you track all transactions — an accounting book.

This ledger, since it’s digital, needs to live in its own world and have someone in charge of it.

Say, just like World of Warcraft. Blizzard, the guys who created the online game, have a “digital ledger” of all the rare flaming fire swords that exist in their system. So, cool, someone like them could keep track of our digital Bananas. Awesome — we solved it!

Problems

There’s a bit of a problem though:

1) What if some guy over at Blizzard created more? He could just add a couple of digital Bananas to his balance whenever he wants!

2) It’s not exactly like when we were on the bench that one day. It was just you and me then. Going through Blizzard is like pulling in Uncle Tommy(a third-party) out of court(did I mention he’s a famous judge?) for all our park bench transactions. How can I just hand over my digital Banana to you, like, you know— the usual way?

Is there any way to closely replicate our park bench, just you-and-me, transaction digitally? Seems kinda tough…

The Solution

What if we gave this ledger — to everybody? Instead of the ledger living on a Blizzard computer, it’ll live in everybody’s computers. All the transactions that have ever happened, from all time, in digital Bananas will be recorded in it.

You can’t cheat it. I can’t send you digital Bananas I don’t have, because then it wouldn’t sync up with everybody in the system. It’d be a tough system to beat. Especially if it got really big.

Plus it’s not controlled by one person, so I know there’s no one that can just decide to give himself more digital Bananas. The rules of the system were already defined at the beginning. And the code and rules are open-source—you know, kinda like the software used in your mom’s Android phone. Or kinda like Wikipedia. It’s there for the smart people to contribute to, maintain, secure, improve on, and check on.

You could participate in this network too and update the ledger and make sure it all checks out. For the trouble, you could get like 25 digital Bananas as a reward. In fact, that’s the only way to create more digital Bananas in the system.

I simplified quite a bit

…but that system I explained exists. It’s called the Bitcoin protocol. And those digital Bananas are the “bitcoins” within the system. Fancy!

So, did you see what happened? What does the public ledger enable?

1) Its open source remember? The total number of Bananas was defined in the public ledger at the beginning. I know the exact amount that exists. Within the system, I know they are limited (scarce).

2) When I make an exchange I now know that digital Banana certifiably left my possession and is now completely yours. I used to not be able to say that about digital things. It will be updated and verified by the public ledger.

3) Because it’s a public ledger, I didn’t need Uncle Tommy (third-party) to make sure I didn’t cheat, or make extra copies for myself, or send Bananas twice, or thrice…

Within the system, the exchange of a digital Banana is now just like the exchange of a physical one. It’s now as good as seeing a physical Banana leave my hand and drop into your pocket. And just like on the park bench, the exchange involved two people only. You and me — we didn’t need Uncle Tommy there to make it valid.

In other words, it behaves like a physical object.

But you know what’s cool? It’s still digital. We can now deal with 1,000 Bananas, or 1 million Bananas, or even .0000001 Bananas. I can send it with a click of a button, and I can still drop it in your digital pocket if I was in Nicaragua and you were all the way in New York.

I can even make other digital things ride on top of these digital Bananas! It’s digital after-all. Maybe I can attach some text on it — a digital note. Or maybe I can attach more important things; like say a contract, or a stock certificate, or an ID card…

So this is great! How should we treat or value these “digital Bananas”? They’re quite useful aren’t they?

Well, a lot of people are arguing over it now. There’s debate between this and that economic school. Between politicians. Between programmers. Don’t listen to all of them though. Some people are smart. Some are misinformed. Some say the system is worth a lot, some say it’s actually worth zero. Some guy actually put a hard number: $1,300 per Banana. Some say its digital gold, some a currency. Other say they’re just like tulips. Some people say it’ll change the world, some say it’s just a fad.

I have my own opinion about it.

That’s a story for another time though. But kid, you now know more about Bitcoin than most. BlockChain leads to invention of Bitcoin, If you get trained on BlockChain Training you can learn about Bitcoin.

We’re sitting on a park bench. It’s a great day.

I have one apple with me. I give it to you.

You now have one apple and I have zero.

That was simple, right?

Let’s look closely at what happened:

My apple was physically put into your hand.

You know it happened. I was there. You were there. You touched it.

We didn’t need a third person there to help us make the transfer. We didn’t need to pull in Uncle Tommy (who’s a famous judge) to sit with us on the bench and confirm that the apple went from me to you.

The apple’s yours! I can’t give you another apple because I don’t have any left. I can’t control it anymore. The apple left my possession completely. You have full control over that apple now. You can give it to your friend if you want, and then that friend can give it to his friend. And so on.

So that’s what an in-person exchange looks like. I guess it’s really the same, whether I’m giving you a banana, a book, or say a quarter, or a dollar bill….

But I’m getting ahead of myself.

Back to apples!

Now say, I have one digital apple. Here, I’ll give you my digital apple.

Ah! Now it gets interesting.

How do you know that that digital apple that used to be mine, is now yours, and only yours? Think about it for a second.

It’s more complicated, right? How do you know that I didn’t send that apple to Uncle Tommy as an email attachment first? Or your friend Joe? Or my friend Lisa too?

Maybe I made a couple of copies of that digital apple on my computer. Maybe I put it up on the internet and one million people downloaded it.

As you see, this digital exchange is a bit of a problem. Sending digital apples doesn’t look like sending physical apples.

Some brainy computer scientists actually have a name for this problem: it’s called the double-spending problem. But don’t worry about it. All you need to know is that, it’s confused them for quite some time and they’ve never solved it.

Until now.

But let’s try to think of a solution on our own.

Ledgers

Maybe these digital apples need to be tracked in a ledger. It’s basically a book where you track all transactions — an accounting book.

This ledger, since it’s digital, needs to live in its own world and have someone in charge of it.

Say, just like World of Warcraft. Blizzard, the guys who created the online game, have a “digital ledger” of all the rare flaming fire swords that exist in their system. So, cool, someone like them could keep track of our digital apples. Awesome — we solved it!

Problems

There’s a bit of a problem though:

1) What if some guy over at Blizzard created more? He could just add a couple of digital apples to his balance whenever he wants!

2) It’s not exactly like when we were on the bench that one day. It was just you and me then. Going through Blizzard is like pulling in Uncle Tommy(a third-party) out of court(did I mention he’s a famous judge?) for all our park bench transactions. How can I just hand over my digital apple to you, like, you know— the usual way?

Is there any way to closely replicate our park bench, just you-and-me, transaction digitally? Seems kinda tough…

The Solution

What if we gave this ledger — to everybody? Instead of the ledger living on a Blizzard computer, it’ll live in everybody’s computers. All the transactions that have ever happened, from all time, in digital apples will be recorded in it.

You can’t cheat it. I can’t send you digital apples I don’t have, because then it wouldn’t sync up with everybody in the system. It’d be a tough system to beat. Especially if it got really big.

Plus it’s not controlled by one person, so I know there’s no one that can just decide to give himself more digital apples. The rules of the system were already defined at the beginning. And the code and rules are open-source—you know, kinda like the software used in your mom’s Android phone. Or kinda like Wikipedia. It’s there for the smart people to contribute to, maintain, secure, improve on, and check on.

You could participate in this network too and update the ledger and make sure it all checks out. For the trouble, you could get like 25 digital apples as a reward. In fact, that’s the only way to create more digital apples in the system.

I simplified quite a bit

…but that system I explained exists. It’s called the Bitcoin protocol. And those digital apples are the “bitcoins” within the system. Fancy!

So, did you see what happened? What does the public ledger enable?

1) Its open source remember? The total number of apples was defined in the public ledger at the beginning. I know the exact amount that exists. Within the system, I know they are limited (scarce).

2) When I make an exchange I now know that digital apple certifiably left my possession and is now completely yours. I used to not be able to say that about digital things. It will be updated and verified by the public ledger.

3) Because it’s a public ledger, I didn’t need Uncle Tommy (third-party) to make sure I didn’t cheat, or make extra copies for myself, or send apples twice, or thrice…

Within the system, the exchange of a digital apple is now just like the exchange of a physical one. It’s now as good as seeing a physical apple leave my hand and drop into your pocket. And just like on the park bench, the exchange involved two people only. You and me — we didn’t need Uncle Tommy there to make it valid.

In other words, it behaves like a physical object.

But you know what’s cool? It’s still digital. We can now deal with 1,000 apples, or 1 million apples, or even .0000001 apples. I can send it with a click of a button, and I can still drop it in your digital pocket if I was in Nicaragua and you were all the way in New York.

I can even make other digital things ride on top of these digital apples! It’s digital after-all. Maybe I can attach some text on it — a digital note. Or maybe I can attach more important things; like say a contract, or a stock certificate, or an ID card…

So this is great! How should we treat or value these “digital apples”? They’re quite useful aren’t they?

Well, a lot of people are arguing over it now. There’s debate between this and that economic school. Between politicians. Between programmers. Don’t listen to all of them though. Some people are smart. Some are misinformed. Some say the system is worth a lot, some say it’s actually worth zero. Some guy actually put a hard number: $1,300 per apple. Some say its digital gold, some a currency. Other say they’re just like tulips. Some people say it’ll change the world, some say it’s just a fad.

I have my own opinion about it.

That’s a story for another time though. But kid, you now know more about Bitcoin than most. BlockChain is Similar to Bitcoin, to Know more about Block Chain Training Visit