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Asset tokenisation machine: Revolutionising ownership in the digital age

Explore Asset Tokenisation Machine's revolutionary approach to smart tourism, leveraging blockchain for democratization and sustainable growth.

In general terms, the asset tokonisation project consists of creating the first tokenisation machine for hotel assets and services for the smart tourism sector in developing countries with high tourism potential. The aim is to generate products and services on a large scale through peer-to-peer networks with real estate backing in existing hotel infrastructure, which will allow tourists and passengers to simplify the process of booking, use, and enjoyment of the experience at their destination, seeking to democratize sustainable tourism and boost the local economy.

This will allow individuals and families to visit different destinations in a sustainable, economical, and safe way in order to evolve their added value. A study was carried out in Ecuador in collaboration with an international hotel chain and the University of Salamanca.

The token as a travel passport, a great alternative to democratise destinations and infrastructure. The token machine is intended to revolutionise the way destinations are marketed in developing countries.

Paul Alejandro Mena Zapata

How does it work?

The platform is based on an architecture scheme based on blockchain technology, disruptive technologies, and artificial intelligence. Its main purpose is to record and commercialize experiences of destinations and hotel services occupancy in the form of secure smart contracts that are diverse towards an infinite number of markets and specific needs.

This structure allows the reservation of hotel rooms in developing destinations with high tourism potential and diversification of markets through digital assets, as well as improving the experience of travelers before starting the trip. Furthermore, it provides real-time information on destinations, ensuring the efficient distribution of tourism resources and enhancing destinations. 

The basis of the architecture is a smart contract, which acts as the “brain” of the project, enabling the creation and management of non-fungible tokens (NFTs), each of which represents a hotel room. This smart contract is implemented on several Ethereum Virtual Machine (EVM)-compatible and incompatible blockchains, meaning it works on a variety of different blockchain platforms.

In addition, the architecture encompasses a designated smart contract on a selected blockchain tasked with maintaining records of all NFTs issued across the networks. This structure ensures a consolidated overview of all rooms available on all blockchains, facilitating a decentralised and efficient hotel room reservation system that leverages the advantages of blockchain technology to develop a marketplace. This digital platform will serve as a centralised hub for buying, selling, and renting NFTs, which symbolise the hotel’s rooms, enhancing the system’s accessibility and user experience.

Credit. Midjourney

A critical aspect of the design is its compatibility with most existing NFT marketplaces. Interconnection and interoperability with other platforms will significantly expand the reach and visibility of the hotel’s NFTs, allowing users to interact with them through multiple channels. This design will allow users of our platform to benefit from the liquidity and diversity of offerings available in the broader ecosystem of NFTs. In this way, the architecture ensures the adaptability and future expansion of the project while maintaining relevance in a fast-moving market.

The innovation rationale

The project stands out for its innovation by enabling the creation of integrated blockchains that are secure and backed by tangible assets, trusts, and existing infrastructure, all while adhering to the principles of disruptive technologies and cybersecurity. This innovation extends to democratization, as it facilitates access to high-potential tourist destinations at costs significantly lower than current market rates, thereby diversifying the tourist business model through what is referred to as the “democratisation of added value.” The technological foundation of this project primarily revolves around blockchain, disruptive technologies, and artificial intelligence, further enhanced by a process of contractware integration. This combination of cutting-edge technologies and innovative approaches marks a significant advancement in the field.

What are the advantages?

There are multiple advantages. Some of them are the following:

  • Accessibility to multiple destinations of the hotel chain.
  • Optimization of reserve management.
  • Optimization of service experiences in the tourist destination.
  • Democratization of destinations.
  • Promotion of the local and secondary economies.
  • Legal security. 
  • Advantages of open-service exchanges for multiple cryptocurrencies.

What are the savings?

  • Savings in operating costs.
  • Savings on stays. 
  • Savings in-destination experiences.
  • Savings on standardized service packs.
  • Savings in membership costs.
  • Savings in accommodation and baggage handling times, among many others, will be unveiled in a whole structure planned for the platform launch.

Back and genesis of the innovation

The concept originated from the need to promote new and idyllic destinations within developing countries in a sustainable manner, aiming for safe, interactive, and affordable smart tourism. It also addresses the crucial need to incorporate legal security into complex IT processes by adopting existing technical criteria and advancing them toward disruptive technologies and artificial intelligence. This innovative approach ensures that the project not only meets current technological standards but also paves the way for future advancements in the tourism industry.

The project commenced in 2022, following extensive studies, market research, and the integration of specific needs identified by the research team. It is currently in the development phase, poised for subsequent implementation, and is undergoing a preliminary functionality test before its anticipated market debut in the near future.

Distinguished as a pioneer in its domain, this project stands apart from existing models by providing traditional civil law support through trusts and guarantees on existing infrastructure, ensuring the token’s security, stability, and traceability over time. The pilot implementation is underway in the Republic of Ecuador, with a hotel in Quito already employing this model. Future rollouts are scheduled for locations along the South Pacific coast in Manabí and in the province of Santa Elena, representing a crucial step forward in the project’s growth and practical evaluation.

What are your plans for the future?

Consolidating the model, enhancing sustainable and smart tourism, and generating user confidence and legal certainty in the market are the primary tasks for the future. To this end, fiduciary backing is essential to evolve in the short term towards a tokenisation machine for different services and assets, being faithful to the idea of democratizing the user experience and capital investment, including high audit and sustainability criteria.

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Journal reference

Mena Zapata, P. A., & Plasencia Robles, C. A. (2023, July). Analysis of the Development Approach and Implementation of the Service Tokenization Project. Hoteliers Project Ocean Blue Corp-Hotel Best Wester Quito-Ecuador City and Beach. In International Symposium on Distributed Computing and Artificial Intelligence (pp. 336-346). Cham: Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-38333-5_34

Lawyer, Master's, and PhD candidate in Intelligent Systems, with extensive experience in management positions in governmental organisations and private law. Member of professional guilds and non-profit associations.