in Features

Blockchain for aviation asset management

Posted 5 July 2017 · Add Comment

Bas de Vos, Director of IFS Labs at IFS, explores the potential benefits of using blockchain technology as a way to securely reinforce aviation asset management.

Blockchain is one of the most discussed and intriguing technologies out there today.

I will not go too deeply into the specifics of how it works since that has been covered by many other sources. Suffice to say that it is a huge, global distributed ledger or database running on many devices and open to anyone within the blockchain. In the Blockchain, information, or anything of value can be stored. Its purpose is to ensure a 100% secure, verifiable and traceable database protocol.

So far, most use cases have been focused on the financial sector, including transaction management where costs are reduced by keeping property ownership and records or using it to track high-value goods, such as diamonds. There is, however, a huge untapped market in asset management - specifically in the commercial aviation industry.

Aviation – A highly regulated market with complex supply chains
A modern aircraft consists of roughly two to three million parts. It is crucial to know the provenance of these parts, i.e. original manufacturer and exact product model and version, in order to ensure they have the right specification and that they are not counterfeit. In addition, many of these parts are so-called 'tracked items'. Not only their provenance, but the entire maintenance history of these parts needs to be transparent.

Today, the many participants in an asset’s lifecycle - from manufacturers to transporters, maintainers and operators - each have their own disparate systems for managing assets. Consequently, it is quite difficult to establish and maintain a single version of the truth when looking at that asset’s entire lifecycle. Often, these records can be incomplete or non-digitised, where communication between the different participants is often conducted on paper or even verbally. Lack of standardisation leads to limited traceability and the cost for non-compliance can be high.

Yet what if all of these participants submitted a transcript of the transactions into a purpose-specific, distributed ledger — like blockchain, which only authorised participants would have access to?

The manufacturer would initially start the blockchain for the asset and each participant would add the relevant blocks to it. The distributor would let the chain’s participants know that the asset was transported from point A to point B, while the operator would register the number of flight hours that the asset has undergone.

Using blockchain for this asset management scenario would give you a 100% verifiable, traceable and trustworthy history of the asset’s lifecycle in real-time. Each individual participant in the chain still has the features and benefits of their own business applications to run their business.

Potential benefits for the blockchain participants:

  • Improved data quality through minimised need for manual data entry by the various participants
  • A single, traceable record of serial numbers
  • Complete and more accurate maintenance history
  • Increased trust between service providers, suppliers and operators
  • Reduced cost for compliance
  • More flight hours for the aircrafts due to improved reliability of parts

Integration is key
So how can we achieve these benefits? There are several players that need to work together to make this happen: the technology providers must work together with the regulating authorities, such as the FAA, and the airlines and their partners, as well as with software vendors. We all need to work together and be willing to share information to integrate with the Blockchain.

We are not there yet, as there are still several challenges to overcome. Things like technical performance need to be considered, as latency of transactions and computing power could stand in the way for achieving consensus within a chain. Data ownership, privacy and security must also be addressed.

There are certainly a few things to consider before blockchain succeeds in asset management but there is huge potential and a possible competitive edge for those who are willing to get in on the ground floor.

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Royal Navy test fires new anti-ship missile

A target boat took a direct hit in the Irish Sea as the Royal Navy successfully tested its new missile to defeat terrorists and suicide bombers.

Construction begins on F-35 infrastructure at RAF Lakenheath

Work has started on buildings that will be home to two US Air Force F-35 squadrons at RAF Lakenheath.

US Ambassador highlights special security relationship at Heathrow

Heathrow hosted US Ambassador to the UK yesterday, who heralded Heathrow’s strong security partnership with US authorities, thanking the airport for its efforts to keep the skies safe for transatlantic passengers and make travel

TT Electronics unveils new modular current sensor approach for aircraft electrical systems

Provider of engineered electronics for performance critical applications, TT Electronics, today unveiled an innovative approach to developing customised solutions for the harsh environment requirements of the aerospace and

NCSC releases 2019 Active Cyber Defence report

The National Cyber Security Centre (NCSC) released its Active Cyber Defence (ACD) report yesterday, revealing that a scam to defraud thousands of UK citizens using a fake email address spoofing a UK airport, was one of a wide range of

Baines Simmons appoints Mike Da Silva as consultant

Baines Simmons, part of the Consulting & Training division of global aviation services group Air Partner, is pleased to announce the appointment of Mike Da Silva as consultant. He will report directly to Mike Wallace, Head of

ODU 0201311219
See us at
DSEI JP BT1605201119SMI ActiveP BT1206121119VIDSE BT1605060320ADSS1000DBT1706171019SMI FAV BT1006141119SMI GMS BT1906071119