Huge Potential in Sight as Airlines Embrace Blockchain

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The aviation industry is quite huge, generating about $838 billion in 2018 alone, it is a complex and interconnected industry with rapid growth rates that continues to skyrocket every year. The demand for new commercial aircraft may reach approximately 40,000 planes over the next 20 years.

As companies that produce, operate, and service aircraft expands, many are researching methods to implement AI, 3D printing, and other cutting-edge technologies, the Blockchain technology is not left out of this race as it could prove vital in this regard.

Blockchain jobs in United States and Canada

Potentials of Blockchain being Utilized in the Aviation Sector

Blockchain technology seems to be shaping up towards mainstream adoption, one of the indicators we can see is that Airplane giant Boeing recently partnered with multinational aerospace conglomerate Honeywell to use its GoDirect platform in order to track and sell $1 billion worth of excess airplane parts using blockchain technology.

The new partnership agreement was made known at the Hyperledger Global Forum 2020 held at Arizona. The general manager of Honeywell, Lisa Butters, stated that the parts were recently uploaded to the GoDirect Trade Marketplace.

GoDirect Trade

With the new partnership, GoDirect Trade seeks to open the aviation parts industry towards digital commercialization. In a market that is estimated to see only 3% of the $14 billion markets taking place online. This is according to Lisa Butters, general manager of Honeywell.

Aviation parts are mostly re-sold four times before being taken out of circulation. The advantages offered by distributed ledger technology in being able to certify the genuineness of relevant documentation were also highlighted.

It is worth noting that Honeywell’s GoDirect platform consists of a customized version of Hyperledger Fabric’s open-source code. This was launched less than two years ago.

Butters states that in its first year, GoDirect Trade facilitated $7 million in sales. This is expected to be tripled by the end of this year. There are approximately 6,500 registered GoDirect clients representing 2,400 companies.

HyperLedger Fabric

Speaking to a news representative  earlier in the week, Lisa Butters dismissed criticism of permission-ledgers. This includes remarks against HyperLedger Fabric being utilized by GoDirect, stating:

“GoDirect Trade runs on Hyperledger Fabric. If anyone argues about the fact that this is a permission-based network that is supposed to be decentralized then they are killing the dream of enterprise blockchain before it starts. There is no way you will get Fortune 500 companies participating in blockchain networks and sharing data if there are not permissioned around that. You need some constraints for enterprises to operate in.”

Unlike the Bitcoin blockchain which anyone can build on, Honeywell Hyperledger Fabric is different. It requires that companies be given permission to make use of the platform. That means that companies such as Boeing will have to set up a digital storefront on GoDirect Trade. This can be done within two minutes according to Butters. When the storefront has been created, trusted companies can load their own excess and obsolete materials directly to the platform. 

Blockchain jobs in United States and Canada

Additional Companies Stepping Up

Aside from Boeing, several agencies related to airlines have been shifting towards blockchain adoption. On March 4, Ernst & Young, Microsoft, and ConsenSys announced the launch of their open-source baseline protocol which comprises a smart contract and tokenization platform based on the Ethereum blockchain designed for enterprises. The platform’s code has been made available to selected developers by invitation, with a public launch set to take place later this month.

 

Alo Kingsley has been a writer since 2017 in blockchain/cryptocurrency related topics, being an enthusiast and writer he has an immense interest in the decentralized power inherent in Blockchain and the growth of the disruptive innovation of blockchain in Africa as well as the workings of consensus algorithms. He is currently a digital marketer/Technical writer with two blockchain projects and other publications which includes blockchain.news, cryptotvplus, masternode.buzz, forkast.news amongst others.

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