The aerospace industry is one of the fastest-growing industries in the 21st Century. It reached $838 billion in revenues in 2008. Then, even the global pandemic failed to stop its success. Experts estimated that in the next 20 years, there would be a demand for 40,00 planes, be it for private aviation or commercial airlines. Of course, as the demand grows, the need for tools that will allow them to optimize performance does too. Thankfully, technology is ever-evolving. Thus, more tools that they can utilize comes out. For instance, companies can use AI and 3d printing for their operations. But aside from those, there is a new cutting-edge technology that they should consider. It is the blockchain.
Overview On Blockchain Technology
When people hear blockchain, they immediately think about cryptocurrencies, such as Bitcoin and Ethereum, or NFTs. While those are its most famous applications, there is more to blockchain technology than that.
Blockchain is an advanced record-keeping technology. Essentially, it is a digital ledger of transactions. Its function is similar to a database, but it does things in a very different way. Specifically, it stores data in “block” chained together, thus the name, instead of keeping them on tables.
What makes blockchain great is its security and immutability. Blockchains are impossible to hack. Furthermore, it prevents changing and cheating the system.
Blockchain Solving One of Aerospace Industry’s Biggest Problems
Simply put, what they do not know about their planes causes companies to lose money. But you might ask – why won’t they know everything about their airplanes? The thing is, the data showing a plane’s history and condition are stored in at least 40 different systems. That already says how inefficient the current system is. But, it is worse than you think. These systems are in the hands of various parties. If you add that to the fact that one must manually collect the information, it results in a time-consuming process. That person may also find it difficult to do that since some of those parties could be competitors. Therefore, they may be reluctant to share data.
All of these inconveniences and conflicts could be avoided using blockchain technology. With blockchain, all members of the network will have access to all the records that they need. No longer would they need to scan stacks of PDFs and contact different entities. Also, it guarantees that there will be no lost or misplaced invoices.
Furthermore, they would not need to worry about their competitors cheating the system or hiding information. The blockchain allows for transparency, where each transaction is permanently recorded. Meaning the data entered is irreversible. If one entity interacts with an aircraft and refuses to record it on the blockchain, in the long run, it will bite them in the back. Ultimately, blockchain offers a decentralized, immutable, and transparent system that is fair and square.
Needless to say, a blockchain-enabled ecosystem offers so many benefits that the aerospace industry should not pass on.
Who Will Benefit From Blockchain’s Application
As implied above, aircraft manufacturers and maintenance companies will appreciate the improved traceability of parts. They will also benefit from the ability to create innovative revenue models.
Likewise, startup companies working on traceability, outsourcing, and air-traffic control solutions will also benefit from a blockchain-enabled ecosystem.
Furthermore, private aviation companies, airlines, and cargo carriers can use blockchain to ensure the availability of their aircraf47t.
Blockchain Makes Maintenance Easier
As mentioned above, each aircraft has a bunch of files and reports about its current condition. But where did that problem stem from?
Depending on the size and type of the aircraft, it could include a hundred thousand or even several million parts. Maintenance, Repairs, and Operations should inspect each part to ensure it is still functioning as intended.
But, there is no readily available single snapshot in the current setup that can show an aircraft’s condition or history. That makes the maintenance cost a lot of time and money.
Blockchain technology helps overcome that challenge. It offers a system that all the members of the peer-to-peer network can access and see. By storing all the information about a plane’s condition and history on the blockchain, maintenance becomes easy.
A blockchain adds a “digital birth certificate” to airplane parts. These get updated each time the part moves on the supply chain or gets installed on a plane. Furthermore, the status of the components also gets updated each time a technician services or inspects the plane. These “birth certificates” could include the aircraft’s tail number and configuration, the part’s location in the aircraft, and its manufacturer. Also, it can contain information about the technicians that interacted with it, along with the location where the technician performed the service.
This exceptionally detailed, immutable record of the aircraft’s parts makes for a “digital twin” of the plane. Without inspecting the aircraft, involved parties can see its current condition just based on what’s written on the blockchain. It provides the much-needed real-time snapshot of the plane. That will be useful from the moment the aircraft exits in the assembly line until the day it retires from service.
Other Benefits Of Adopting Blockchain
As we have established by now, blockchain offers traceability of airplane parts. It keeps the aerospace companies informed about their current status. Now how can that help in the finance department?
First, companies can reinvent maintenance. Blockchain has made all the details about each component available to all parties. With that, they can engage in predictive maintenance. They can identify in advance which parts of the plane would soon need supersession. Furthermore, it makes obsolete the need to tear down an aircraft to inventory its parts. Thus, allowing them to save money.
Aside from those, it will show buyers from the secondary market that the airplanes are well-maintained. That will make them more likely to make the purchase.
With all of these said, you can see how blockchain technology can improve the aviation industry. Lots of benefits come from it. It would be a mistake not to give it a shot.
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