Blockchain in Aviation Industry

The distributed ledger technology (DLT)/blockchain technology enables different organizations to share data in a database so that no one participant has control. Before blockchain technology, database integrity would have only been achievable by having a committed third-party power it. The blockchain technology guarantees integrity by having a stringent protocol for modernizing the database comprising approval from the other associates.

With blockchain, data is stored in blocks, each of which contains its history. Because every block is verified and sealed, the information provided in it cannot be altered and is saved in such a way that it is noticeable for everybody. This transparency makes it remarkably difficult to manipulate and corrupt the data and is of distinct benefit if several companies are working collectively and therefore using the same data – for example in aircraft maintenance.

In future, components could be recorded in a blockchain after they are manufactured concurrently with all relevant data – for example, serial codes. If an element is introduced in an airplane, this information can be stored again in the different blockchain. If the part then malfunctions, support technicians can utilize the data collected to review the accurate number of flight hours and to determine whether to restore or fix the part.

It’s clear to see why practicing blockchain technology for intensified reconciliation, and data distribution is a compelling value proposition for the aviation industry. The most productive and disruptive possibilities go beyond manageable financial transactions. Consider the following:

Ticketing

An e-ticket is, in reality, a database record—data that would have been printed on a paper ticket dematerialized, collected in and called up from an extensive database. The blockchain for aviation can dematerialize it and further tokenize this asset. Through the utilization of smart contracts connected with the asset, airlines can add business reasoning and terms and conditions around how the ticket is sold and utilized. This opens the door for tickets to be sold by different partners, and in real time, from anywhere in the world.

Loyalty

Loyalty is a significant business in air travel. In common loyalty points schemes, travelers often have to anticipate until points settle and accumulate to use them, and they are confined to where they can spend them. By tokenizing loyalty points on the blockchain, travelers can get immediate value by redeeming them on the spot. They can also use them more broadly for a specific user community of partners. Think of it as a marketplace or exchange model. With intents acquired as “currency” amongst more providers, travelers get a more comfortable and faster-to-use program that is more relevant to their personal choices.

Security and identity

Protecting data privacy is a definite issue when it comes to passenger records, flight manifests, and crew information. Not to mention the security implications that are in play in today’s world if this data is not adequately protected.

Maintenance

The blockchain can help the industry guarantee that parts obtained are legitimate and can offer a “virtual copy” changeless record of the provenance of every element on the plane, every time it has been handled and by whom, from the beginning of the aircraft’s existence.  This visibility is profound and can take the practice of maintenance, safety and aviation security to new levels.