finbold.com
Cryptocurrencies usually get the headlines due to price action, market movements, or scams, but the technology goes far beyond that. The blockchain has the power to revolutionize many segments of our society and life, such as travel and trivial payments.
In particular, two startups – built on Algorand (ALGO) – are using blockchain to innovate on airline tickets and energy bill payments. These startups are TravelX and HesabPay, featured in the Algorand Foundation’s new campaign “Algorand Can” as evidence of what blockchain technology can do in the real world, especially when using ALGO’s infrastructure.
Essentially, Algorand is a blockchain platform designed for speed, scalability, and security, competing with Ethereum (ETH) and other “layer-ones (L1s).” It uses a pure proof-of-stake consensus model and has a supply cap set at 10 billion ALGO.
These characteristics can leverage startups like TravelX and HesabPay with efficient and secure solutions for their needs. Finbold looked at publicly available stats from these businesses, showing the impact they are already bringing to the real world.
TravelX – Using Algorand NFTs for airplane tickets
TravelX is using Algorand’s blockchain to run “NFTickets” for airline travel, aiming to solve known issues in this industry. According to its case study, “Airlines face operational cost burdens managing complex distribution networks and numerous intermediaries.”
“NFTickets, governed by smart contracts, provide secure, flexible, and efficient ticket distribution while reducing customer service costs and increasing airline revenue. The use of blockchain provides enhanced security, transparency, and immutability to travel transactions.”
– Algorand Foundation’s TravelX case study
Notably, TravelX claims to have onboarded over 5 million passengers in 2023, being a battle-tested case of success. Since its launch, the startup has recorded over 2.2 million NFTickets and 18 million transactions on the Algorand blockchain.
“This eliminates the risk of fraud and fosters trust between airlines and passengers, ensuring all parties involved have clear and verifiable records. NFTs represent unique, secure, and transferable digital ownership of airline tickets, offering passengers greater control over their travel plans.”
– Algorand Foundation’s TravelX case study
Besides increased security, eliminating the risk of fraud, and providing true digital ownership of the tickets, the benefits go further. TravelX also leverages a safe environment for secondary markets and more flexibility for its customers than conventional airline ticketing systems.
“Unlike traditional tickets, NFTickets can be easily transferred or even resold on secondary markets, providing passengers with increased flexibility. Smart contracts automate ticket functionalities and interactions, such as managing ticket changes or cancellations. This automation leads to reduced operational costs and improved efficiency for airlines.”
– Algorand Foundation’s TravelX case study
HesabPay – Afghanistan energy bill payments via ALGO
Meanwhile, HesabPay, in partnership with UNDP and Unicef, is using the Algorand network to foster digital payments’ accessibility in Afghanistan.
According to data shared at the “Can A Blockchain Do That” website, the app has processed over $64 million worth of electricity bills and 106,000 humanitarian cash transfers in the country, resulting in over 8 million transactions confirmed by the Algorand blockchain.
On that note, Alex, an Algorand contributor, shared that HesabPay has processed $40 million in electricity monthly bills. This, according to Alex and Algorand Foundation’s CMO, Marc Vanlerberghe, equals 30% of all Afghanistan electricity bills.
30% of electricity bills are paid each month in Afghanistan using #Algorand, via @HesabPay_! ⚡️
— Ⱥlex | france.algo 🇫🇷 (@algerstmehn) November 28, 2024
We're talking about hundreds of millions of $ annually.
This is a perfect example of a concrete blockchain use case, not counted in TVL, used by millions of users outside of #web3! pic.twitter.com/Ax62GnQbeN
As things develop, startups continue to use blockchain technology in different chains, proving that crypto is about solving real-world problems. Finbold covered three other interesting use cases built on top of MultiversX (EGLD), for example.
In the meantime, cryptocurrency analysts are showing growing optimism about “utility altcoins” like ALGO, EGLD, ETH, and others.
Alex Becker believes “utility altcoins” are the “easiest and surest play” in crypto. Additionally, Alex Svanevik listed promising utility narratives in what he called an upcoming “mother of all bull markets.” Binance’s founder, Changpeng Zhao (CZ), urged the industry to build real-world applications as meme coins started to become “weird.”
Featured image from Shutterstock.