The aviation industry suffers from centralized processes and inefficiency. Critical data is siloed into private systems and logbooks, and there is no safe universal network capable of collecting and synthesizing data with respect to privacy thanks to outdated recordkeeping and privacy practices.
AeroChain serves as a business-to-business protocol for the defense and aerospace industry. Utilizing blockchain, the company enables smoother supply chain collaboration, maintenance management, digital token exchanges for materials and services, shared aircraft ownership, aircraft financing, and more.
Why blockchain is vital to the aerospace field
One of the challenges aerospace faces is digitizing its supply chain, which is essential for meeting future challenges and coordinating a supply chain that stretches across the world. According to Dean Group, one in three companies are still operating offline, using email, fax, and phones as primary methods of communication. 41 percent of companies have digitized the way they interact with customers, but those who fail to do so risk estranging their buyers.
Supply chains demand exceptionally powerful computing power, so processes need proportionate scalability as the industry grows. Cybersecurity is also a risk: while consumer-facing attacks are the ones that reach the news, prominent organizations in the industry consistently work to deter potential breaches. Blockchain technology can help with all of these obstacles, providing a scalable and decentralized solution.
Potential use cases
Blockchain’s peer-to-peer network and decentralized ledger will allow aeronautics professionals the ability to record data that was previously overwhelming or easily lost. SAE International says:
“One potential application of the technology relates to the registration of components in a blockchain after they are manufactured together with all relevant data such as serial codes. If a component is installed in an airplane, this information can be saved again in another blockchain and if the part then malfunctions, maintenance technicians can use the information stored to review the exact number of flight hours and to decide whether to replace or repair the part.”
In 2017, Accenture surveyed multiple aerospace and defense companies regarding what technologies they believed could affect the most significant change, and blockchain was one of the most popular. One use case is solving the problem of multi-echelon supply chain management, which poses the question: how can professionals oversee supply chain orchestration and visibility across multiple tiers? Because blockchain is a public ledger, it records all data stored in its system and renders it immutable. All relevant parties have access to this information, so third-party verifiers or other intermediaries are unnecessary. Blockchain can improve tracking accuracy and enhance the way supply chain partners coordinate, reducing the risk of mismanagement and impediments.
The aviation industry will also benefit from constantly updated data. AeroChain’s blockchain, for instance, can provide what Accenture calls “golden” sources of mutualized data: information in its purest, most recently completed and validated form. Traditional ledgers usually consist of slightly divergent data stores, but blockchain ensures data does not require constant reconciliation.
What AeroChain offers
Blockchain is decentralized, which means data is never stored in a singular place. A peer-to-peer network discourages cyber attacks because hackers would need to breach multiple places at once in order to scam the system.
While blockchain’s nature encourages publicity, AeroChain’s application also enables privacy. The company employs a “tell, don’t show” philosophy, so users are not asked to share an excess of information. Instead, when users like FAA members or private aviation companies want to ensure that data pilots or other businesses give them is accurate, they can check the Aero system without actually revealing what the data is.
Think of it this way: when people enter bars, they need to provide proof of age, so they show their IDs to bartenders or bouncers. IDs have much more than owners’ dates of birth, though; they reveal facts people may not be comfortable with strangers knowing. In an ideal situation, customers would be able to give same-quality IDs without sharing things like weight, height, and important numbers. AeroChain makes this idea a reality: blockchain users would only need to divulge information relevant to a specific project or supply chain, and nothing about themselves or what the data is for.
A native cryptocurrency called Aero Token facilitates the AeroChain protocol. These tokens are used to track, verify, incentivize, and compensate stakeholders for participation, as well as trace data from point of entry in order to audit the entire process from sale to compensation (which motivates users to remain truthful). The Aero Protocol is also capable of connecting apps built by existing commercial entities and new decentralized versions to store data securely.
Blockchain technology is revolutionizing numerous industries, and aeronautics is one that can reap countless potential benefits – so AeroChain is ready to share these benefits with the entire sector.