TECH TALK
for autonomous decentralized peer-to-peer telemetry (ADEPT), which uses a blockchain database to build a distributed network of devices — a sort of decentralized Internet of Things (IoT) devices. According to them, an appliance such as a dishwasher could initiate “smart contracts” to issue commands to a detergent retailer for supplies. (Amazon or retailers would probably execute such orders). This type of approach enables the device the ability to pay for the order and later receive word from retailer that the detergent was paid for and shipped, further automating basic processes driven by secure communications and remote-sensing technology. This information would be broadcast in the form of an alert to the washer’s owner, who could be notifi ed on their smartphone. This would also handle software updates or energy management automatically as well. While cyber issues are a concern, the use of a secured blockchain message would alleviate much of this. Such an approach is directly applicable to many industrial processes or remote operations which function with minimal personnel, although aircraft would not be one of them (due to safety concerns). Many smart factories and inventory systems already have similar capabilities, but, as this example displays, it will be possible to expand this to smaller and smaller devices that have data communications capabilities. A company named Tallysticks
leverages blockchain (distributed ledger) technology to better manage immutable recordkeeping, enhanced data security and smart contracts functionality. This enables businesses to automate the invoicing and the invoice fi nancing processes, making it easier, cheaper, faster and more transparent. This works with existing ERP systems, so it avoids the need to replace existing installed software. This recordkeeping documents
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DOMmagazine.com | dec 2016 jan 2017
when, how and if invoice issuances, payments, fi nancing and settlements were performed. There are many more examples of
how ownership of a document can be established and then transferred, as well as other assets such as land, buildings and even auto registrations. Each of these can be modifi ed for use in establishing ownership of aircraft, engines, parts, equipment and cargo.
USE CASES FOR BLOCKCHAIN IN AVIATION, AEROSPACE AND
TRAVEL Many smaller airlines, hotels and other travel providers are already accepting Bitcoins as payment, but not actually implementing blockchain on their own (their fi nancial partners are). One of the fi rst actual announced eff orts is from air transport industry IT and network fi rm SITA, which has revealed that it has been working with a blockchain implementation to support digital passports in the form of a single, secure token on mobile and wearable devices. These tokens would be created using passengers’ biometric data to identify them at airport touch points. This could then remove the need for travelers to present their e-passports and other travel documents at every step of the journey. These tokens would be stored on a mobile phone and support “privacy by design” so that passenger data can be secure, encrypted, tamper-proof and unusable for any other purpose. Frequent travelers would welcome such a solution to help speed them through long business trips. Another area where blockchain
would serve aviation well is in the supply chain. There are several announced eff orts for generic supply chain needs already, but aviation has some special needs due to certifi ed parts, and traceability issues centered on safety.
In a nutshell, supply chain management is the supervision of materials, information and fi nances as they move in a defi ned process from supplier to manufacturer to distributor to retailer to end user. Supply chain management involves coordinating and integrating these fl ows both within and among many companies. With blockchain, as products change hands across a supply chain from manufacture to sale, the transactions can be documented in a permanent decentralized record. (Think of it as chain of custody.) This would make for large reductions in time delays, costs associated with paper records (note that PDFs are essentially electronic paper), time spent gathering such records, and human errors in generating documents. A number of startups have already risen to the challenge. Fluent off ers an alternative platform for lending into global supply chains. Provenance is building a traceability system for products and materials. Skuchain builds blockchain- based products for the business- to-business trade and supply-chain fi nance market. Aircraft, aircraft parts and engines could certainly make use of this, if industry-specifi c needs would be met by these software vendors. In fact, the aviation aftermarket may be the area which would benefi t the most from better parts lifecycle tracking and reduced friction in parts-related transactions. Quite frankly, the aviation
aftermarket spare parts process is a nightmare. They have the need to document parts due to safety reason. The transaction of spare aircraft parts between two parties requires several complex paper forms to be exchanged. Larger fi rms have some of this process digitized and are able to accept or provide some form of digital records. Even then, these are generally in the form of PDF or image fi les and these are not considered truly digital. There are
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