Beyond Airbnb: Exploring Decentralized Short-Term Rentals with Ethereum and IOTA

Abstract

This paper presents a decentralized short-term rental platform based on Ethereum and IOTA. The proposed framework aims to improve the privacy, security, and decentralization of the rental market by incorporating decentralized identity, reputation mechanisms, and escrow services. Specifically, the proposed framework utilizes Zero-Knowledge Proofs (ZKPs) to facilitate the creation of property listings and the secure exchange of funds between renters and tenants. Moreover, it employs an open-source smart contract to enhance trust between users and developers while preventing unilateral alterations to contract logic or platform fee structures. Ultimately, the presented prototype illustrates the viability of deploying a blockchain-enabled short-term rental platform by effectively incorporating essential functionalities, such as the creation and exchange of renters’ funds. This research underscores the transformative potential of blockchain technology in the accommodation rental industry. As blockchain technology continues to evolve, further advancements in decentralized governance and smart contract scalability will be instrumental in driving mainstream adoption.