In an interesting move in the blockchain space, Lufthansa has announced that it is working with a Swiss blockchain start-up, the travel platform Winding Tree, and is investing in its cryptocurrency.
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As we have written previously, blockchain holds the potential to become a key technology for future data management. Lufthansa has shown interest in the development of the technology for several years. Now, Germany’s largest airline has completed a deal to cooperate with the Swiss Blockchain travel platform Winding Tree which includes an investment, although details on the latter have not been made public.
Winding Tree acts as a B2B marketplace using blockchain technology. According to Maksim Izmaylov, CEO of the start-up, Winding Tree will help Lufthansa build and test block-based travel apps that meet the needs of the airline. In return, Lufthansa has announced that it intends to integrate its APIs into the Winding Tree platform and, in turn, to offer expertise in the field of travel bookings.
“The partnership with the Lufthansa Group enables us to develop a block-based travel marketplace that not only meets the needs of the airline, but also to test it with Europe’s largest airline and to test the efficiency and scalability of the platform,” said Izmaylov.
According to Lufthansa, the partnership potentially opens the way for the further development and distribution of travel packages.
With this move, however, the German airline will have to deal with the phenomenon of the Initial Coin Offerings (ICO). Start-ups can raise funds in their early stages by selling their cryptocurrency to donors. As such, Lufthansa’s investment will become concrete in the course of an imminent sale of the currency LIF by Winding Tree. In order to reaffirm confidence in the new technology, the Lufthansa Group will buy a non-publicly communicated amount of this currency after a legal examination by the Swiss authorities.