Long-term as well as short-term property rentals such as vacation homes are now more accessible because of the introduction of several online platforms like Airbnb and Booking, to name a few. With the travelers’ familiarity with sharing economy, various startups in the rental sphere are now sprouting in the market and are gaining popularity that they are even affecting the hotel market.
Sharing economy is based on the idea of a direct relationship of the host and the tenant. However, P2P (peer-to-peer) economy right now is not fully implemented because there are still middlemen (booking service or agent) which serves аs guarantor and arbitrator in resolving disputes and nonstandard situations. So, the hosts are still not earning the full potential of his establishment and the tenants are, in effect, still paying more than they should.
According to research, leading short-term rental marketplaces such as Airbnb charge a service fee of up to twelve percent from the guest and three percent from the host, this is to compensate its three thousand five hundred plus employees who process transactions in a centralized system. Also, hotel marketplaces like Booking and Expedia charge their affiliate hotels ranging from fifteen to thirty percent depending on location.
Reviews in rental properties in platforms like Airbnb and Booking are gathered by a proprietary nontransparent internal database. And because it is nontransparent, there is a high risk of a potential abuse of the system, they can easily change or delete reviews or create a self-rating. This system is not reliable because businesses could easily reach out to customers and convince them to change their negative reviews in exchange for refunds or other enticing offers.
ATLANT aims to provide a better solution to that inefficient practice which would result to reduction of commissions and publishing true ratings. Peer-to-peer rental service offered by ATLANT relies on three main protective mechanisms — escrow, reputation system, and decentralized arbitration.
Any lessor may get listed on the platform. They can start by giving their real-world identity and sending a security deposit into the escrow contract provided by ATLANT. This is a protective measure against rental listing spam and ATLANT Distributed Data Store (ADDS) bloating. The host or lessor will first create both the Ricardian and EVM contracts through the ATLANT software, which are then automatically interlinked and deployed in ADDS (Ricardian) and Ethereum (EVM contract). Lessor’s real-world identity is located inside of the Ricardian contract stored in ADDS. After the smart contract is deployed, the lessor sends a security deposit to the appropriate smart contract, which acts as an escrow and discourages possible dishonest behavior of the lessor. More