Using cypred currency in the hospitality industry

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Using cypred currency in the hospitality industry

Sologub Yu.I., Kazantseva K.A., Protas A.Ya.

Financial sector, as well as all other aspects of business, has not escaped the introduction of IT-technologies. Not only have these technologies accelerated all transactions, but also made them relatively cheap and in-stant. If earlier payments were primarily conducted only in traditional currencies by banks and other relevant entities, recently the Bitcoin and other similar cryptocurrencies took its place as a universal currency. This article is devoted to the topical matter of cryptocurrencies, their functions and mechanisms of emission. Keywords: Currency system, cryptocurrency, Bitcoin, decentralized system, the risk of inflation.

elevance. Tourism is a dynamic, open sphere of life that quickly takes over modern trends and fashion. Innovative developments from any sphere of life easily enter the tourism industry. Considering the rapidly changing of system of settlement in the world and how the tourism market easily perceives these changes. It is worth considering one of the possible options for the calculation -- the use of alternative, electronic types of currencies.

The growth in demand for electronic currency opens up new horizons for businesses dealing with transactions at the macro level. Each transaction costs a certain percentage of the amount trans-ferred, this mechanism is used in conventional banks. But on the world's market came "Noutlus" of modern cryptography -- Bitcoin.

Please note that this topic has not been investi-gated previously by scientists of tourism direction. Most of works on alternative types of payments are written by economists and programmers. But today it is impossible to ignore this kind of payments. cryptocurrency business technology

The purpose of this study -- to investigate the possibility of using electronic types of currency in the tourism market.

The object of the study -- alternative, electronic types of currency

The subject of research -- the possibility of ap-plying alternative, electronic types of currency in the tourism sector.

Tasks of this work:

* To consider the general principles of crypto currency and also bitcoins;

* To indicate the advantages and disadvanta-ges of this currency

* To analyze the legal framework * To suggest an alternative currency for the tourist market

Main part. First it is necessary to consider the general principles of modern electronic curren-cies. It will give the possibility to understand how data systems have emerged and how they work, the main difference between this type of payment and the generally accepted. But the main thing is to understand how expedient the use of these methods of payment in the tourist market is. Con-sider the advantages and disadvantages.

Bitcoin -- "Electronic Money Transfer System of Peer-to-Peer Network", published (created?) in 2008 by Satoshi Nakamoto. Is an electronic pay-ment system based on cryptographic proof instead of trust, allowing any two willing parties to trans-act directly with each other without the need for a trusted third party. Transactions that are com-putationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers. In this paper, we propose a solution to the dou-ble-spending problem using a peer-to-peer distrib-uted timestamp server to generate computational proof of the chronological order of transactions. The system is secure as long as honest nodes col-lectively control more CPU power than any coop-erating group of attacker nodes [2].

Introduced as a peer-to-peer electronic cash system, Bitcoin experienced explosive, exponential growth during its initial years. Users were drawn by properties of Bitcoin that allowed for cheap money transfers, instant confirmations, worldwide compatibility, round-the-clock operation, and no limitations on minimum or maximum transaction amounts. This electronic form of money quickly became popular with diverse groups of users all around the world. Merchants used Bitcoin to tap into a global marketplace [3].

The steps to run the network are as follows [3]:

1) New transactions are broadcast to all nodes.

2) Each node collects new transactions into a block.

3) Each node works on finding a difficult proof- of-work for its block.

4) When a node finds a proof-of-work, it broad-casts the block to all nodes.

5) Nodes accept the block only if all transac-tions in it are valid and not already spent.

6) Nodes express their acceptance of the block by working on creating the next block in the chain, using the hash of the accepted block as the previ-ous hash.

Consider the advantages and disadvantages of using this type of calculation (payment) what will make it possible to weigh the rationality of use and outline the range of aspects that can be used in tourism.

It is worth considering that one of the most ex-pensive cryptocurrency today is Ethereum: it costs nearly 300 dollars per one.

Therefore, the creation of a closed currency for the tourism industry is the next way to speed up the turnover of the financial side of the business. Accel-erating the work of finance will increase the speed of implementation and creation of new products, with no bank fees for each transaction or cross-rate.

The main question that arises is how to create your own cryptology for a this economic sector. To do this, it is necessary to have the following main resources:

• Small server

• The code of cryptology (it ia possible to ge-nerate the code using the service github.com)

• Transaction Library

• The name of cryptology (I suggest "Voluptu- ariyn" based on the Latin meaning “tourism”)

• Developing of the cryptography and defining its price for participants

To register a currency, you must present a graphic interpretation. At the same time for properly work of the system, it is necessary to generate a certain amount of coins to be issued to participants for real currency funds.

The safety of this type of organization of the financial flow is due to the closure of the system and the algorithm of encryption of so-called "keys and electronic signatures." The system is designed in such a way that a new currency is created with limited speed and the total amount of money in the system is limited. Therefore, in the long run, the depreciation of savings is not threatened by the fact that some country has included its printing press.

This system will allow automated accounting of all operations to perform duties before tax ser-vices. The system will keep accounting from the moment it starts working, so it will lead to in-crease the reliability of all operations and reducing of fraud.

During the creating of this project there is some dissonance with the administrative legal system. In order to implement this mechanism it is necessary

to organize a group of partners (hotels, transfer, res-taurants, etc.) into a "cooperative group of partners", which may have its own currency as "Voluptuariуn".

It is also important to consider the regulatory framework that regulates this process. That will allow to estimate how legal is the use of new meth-ods of payment and how well the legal framework is adapted to the current needs of the market.

According to Art. 2 of the Law of Ukraine No. 1087-IV of 10.07.2003 "On Cooperation", as amended and supplemented (hereinafter -- Law No. 1087), a cooperative is a legal entity formed by natural and / or legal persons who are voluntarily united on the basis of membership for conducting joint economic and other activities in order to meet their economic, social and other needs on the basis of self-government.

According to Art. 8 of Law No. 1087, the char-ter of the cooperative is a legal document regu-lating its activities. The charter of the coopera-tive must include, in particular, information on the procedure of setting the size and payment of contributions and shares by the members of the cooperative and responsibility for breach of obligations about their payment.

In order to ensure statutory activities, the co-operative, in the manner prescribed by its charter, at the expense of shares (including additional) of members and associate members of the cooperative, forms a unit fund (Article 20 of the Law N 1087). When displaying the contribution received in the tax accounting, one should proceed from the fact that in exchange for the contribution received, the corporate rights are transferred to the founder.

In accordance with clause 1.8 of Art. 1 of the Law of Ukraine No. 334/94-VR of December 28, 1994 "On the taxation of corporate profits" (as amended by the Law of Ukraine dated May 22, 1997 N 283/97-VR), as amended and supplement-ed (hereinafter referred to as Law No. 334 ), corpo-rate rights are the property rights to the author-ized capital of a legal entity or its share, including rights to management, obtaining the correspond-ing share of the profit of such legal entity, as well

We also get the opportunity to use only the cryp-tocurrency in the system until the real currency works on the assets of the investment module.

The real currency can be used to upgrade a par-ticular module of the system. That is, the entire system can invest in itself, for example, to repair a hotel room, or purchase equipment for a certain point of attraction.

Cryptocurrency is transformed not only into electronic money, but for a certain period of time it replaces real ones, thus bringing additional prof-it as well as reducing tax deductions by 20% for all operations inside of this system.

Conclusions. Obviously, electronic money is a very flexible tool that allows to expand the di-rection of cash use. Only electronic money can provide micro-payments that are necessary for information business and the sale of publications. Such electronic money can be seen for special use, for example, only for tourism, which is very con-venient for controlling money in the family and business.

This work demonstrates the importance and relevance of more in-depth research of the possi-bility of using modern methods of calculation (pay-ment) in the tourism market.

References

1. W. Dai, "b-money," http://www.weidai.com/bmoney.txt, 1998.

2. H. Massias, X.S. Avila, and J.-J. Quisquater, "Design of a secure timestamping service with minimal trust requirements", In 20th Symposium on Information Theory in the Benelux, May 1999.

3. S. Haber, W.S. Stornetta, "How to time-stamp a digital document," In Journal of Cryptology, vol 3, no 2, pages 99-111, 1991.

4. D. Bayer, S. Haber, W.S. Stornetta, "Improving the efficiency and reliability of digital time-stamping", In Sequences II: Methods in Communication, Security and Computer Science, pages 329-334, 1993.

5. S. Haber, W.S. Stornetta, "Secure names for bit-strings", In Proceedings of the 4th ACM Conference on Computer and Communications Security, pages 28-35, April 1997.

6. A. Back, "Hashcash - a denial of service counter-measure, http://www.hashcash.org/ papers/hashcash.pdf,

2002.

7. R.C. Merkle, "Protocols for public key cryptosystems", In Proc. 1980 Symposium on Security and Privacy, IEEE Computer Society, pages 122-133, April 1980.

8. W. Feller, "An introduction to probability theory and its applications", 1957.

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