The TravelChain initial coin offering (ICO) is now well underway and investors are rushing to pick up an exposure to the company’s attempt to revolutionize the way individual travelers create, produce and manage data.
By now, chances are that many reading will have already heard of this one and, in turn, will be somewhat familiar with what TravelChain is and what the company behind it is trying to do.
There is an element of TravelChain, however, that’s not attracting a huge amount of press right now but that could prove pivotal to its success longer-term. Specifically, we’re talking about TravelChain’s third-party application development integration capabilities.
Before jumping into this, however, let’s quickly introduce TravelChain for anybody not familiar with the company and its blockchain-based technology/platform. TravelChain is a blockchain designed to serve as a data storage-type technology on which travelers can record and store data that relates to their travel activities. Said travelers can then provide access to this data to third parties (hotels, restaurants, that sort of thing) in return for TravelChain’s cryptocurrency, the Travel Token (TT).
Essentially, it’s a way of data monetization that benefits the traveler (i.e., those creating the data) as opposed to the incumbent travel companies that currently record, store and sell the data in question.
So, where do applications come into all this?
Well, TravelChain is designed in such a way that application developers can create apps and, by way of an API, can harness data that is stored on the TravelChain blockchain and use it to serve as functional layer within the application they have developed.
Consider a mapping application an example.
A developer can create an application that displays a map of the surrounding area of a user’s location and can use the data stored on the TravelChain blockchain to customize the map depending on the interests of the user in question. If the traveler has recorded data on the TravelChain blockchain that suggests he or she likes Vietnamese food, for example, the application will display a list of the best Vietnamese restaurants in the area. The application developer can generate revenue through sponsored listings and pays for access to the data that’s stored on the TravelChain blockchain with TT.
This, of course, is just one example from a practically endless list of potential applications of this sort of technology to third-party development scenarios. Other examples include personalized guidebooks, notification systems, offer distribution, all that sort of thing. Essentially, if it’s useful to a traveler, it can be integrated into a TravelChain based application.
So why is this important?
A couple of reasons. First, it’s going to dramatically increase the scale at which TravelChain can attract users. With more users, there’s more data being stored on the TravelChain blockchain and, with more data, the blockchain becomes increasingly valuable.
Second, and this is especially important for anyone considering picking up an exposure to TravelChain by way of the ongoing ICO, the increased interaction with the TravelChain blockchain that these applications are going to bring with them is going to result in an in-parallel increase in the value of TT. Why? Because the developers of the applications will need to pay for access to data in order to underpin their respective offerings. This payment is going to be made in TT. As a result, the application developers are going to need to acquire TT in order to fund their application’s operational activity.
Acquisition is demand and with an increased demand, price rises.
All said, third party application integration is just one part of TravelChain’s growth strategy right now but, over time, it could prove key to the company’s expansion and – in turn – the return on investment early stage backers (those that picked up TT as part of the ICO) see on their exposure.
Image courtesy of Pank Seelen via Flickr