At the moment, the aviation industry benefits from rapid growth and development. However, the aviation sector still encounters many problems, including big delays or data breaches. But if airlines would consider implementing blockchain technology, they could improve their operations and transform the industry. According to experts, the aviation sector could match naturally with blockchain technology as it will bring many benefits, like better transparency, in-flight data security, aircraft maintenance or passenger comfort.
Although blockchain is a remarkable technology, most people still don’t know what blockchain is. However, blockchain technology has become more popular in recent years due to cryptocurrencies like Bitcoin and Ethereum. Cryptocurrencies are decentralized assets made on blockchain technology, and since the financial industry has gained considerable popularity lately, several sectors have wondered if they should integrate blockchain technology into their operations.
Let’s take a look at how blockchain technology can transform the aviation industry.
What is Blockchain?
Blockchain is a technology designed as a network for crypto transactions, but over the years, it has developed into an impressive innovation that can meet the needs of many industries and businesses. Blockchain is a digital ledger that can store any kind of data. The best benefit of blockchain is that it is secure and endures the integrity and accuracy of data. Here are the main features of blockchain:
Decentralization
Blockchain is decentralized, meaning no authority, like the government or any other person, is looking after its framework. This is why, on a blockchain network, you can use valuable digital assets or keep other essential information without the need for intermediaries.
Immutability
When something is immutable, it means that it cannot be altered or modified. Blockchain technology is unbreachable, and this is why no person can change the system without the knowledge of the other participants in the blockchain.
Enhanced security
Blockchain uses encryption in the systems, which adds very strong security features. It also uses cryptography, which is a mathematical algorithm that behaves as a firewall against attacks. So, anyone who uses blockchain will benefit from enhanced security.
The use cases of blockchain in the aviation industry
The aviation industry has grown tremendously in the last few years. But as the industry expands, so does the need for greater transparency, efficiency and security. Blockchain could help, as it offers exactly the solutions airlines need. Here are some potential use cases blockchain could have in the aviation industry.
Improved passenger comfort
Blockchain could really improve the customer experience in aviation. This is because it allows airlines to provide more personalized offers and a better travel experience, thus enhancing passenger comfort. By having a transparent record of passenger preferences, airlines could tailor their services to meet the needs of every customer. This might include in-flight entertainment, customized meals, or seating arrangements.
Also, by using blockchain technology, airlines could streamline the check-in and booking process, reducing waiting times.
Better Security
Flight data security is another important thing that can be significantly improved by blockchain technology. Unfortunately, now the risk of cyber-attacks is on the rise, including in the flight systems. But, blockchain offers a more secure way to store flight data. Blockchain will ensure the data remains tamper-proof, reducing the risk of manipulation and unauthorized access.
Greater efficiency and transparency
Blockchain technology can also enhance efficiency and transparency in the aviation industry. For instance, the data can be shared between many parties, including airports, airlines and regulatory bodies, so the airport operations will be more streamlined. Also, it can create a secure and transparent record of transactions, improving the efficiency and accuracy of financial operations.
The aviation industry could become more secure using blockchain technology.
Tracking luggage
Lost luggage is a common problem airlines face, which causes frustration and inconvenience for passengers. But, blockchain could offer a helping solution by providing a more reliable and efficient way of tracking luggage. Blockchain could create a decentralized and tamper-proof record of luggage movements, enabling passengers and airlines to track their luggage in real time and reduce the chance of misplacement or loss.
Enhanced maintenance operations
Maintenance operations are another important area where blockchain technology could greatly help. Regarding this, blockchain development companies could create solutions that would facilitate transparency by having a record of maintenance activities. Many parties, including airlines and maintenance crews, could share that record.
Besides maintenance operations, blockchain could also help with aircraft maintenance. This will ensure that the maintenance operations are recorded transparently and accurately. This benefits airlines, as it can improve the traceability of aircraft maintenance and monitor aircraft performance. Also, they could identify potential issues in an early stage before they become critical and lead to hazardous outcomes.
Overbooking
Overbooking is another problem aviation faces, which leads to frustrated passengers. But, this problem could be addressed with the help of blockchain technology. By creating a decentralized ticket sales record, airlines could manage overbooking better and reduce the risk of passenger inconveniences.
Loyalty reward programs
Loyalty reward programs are vital to any company, especially in the aviation industry, as this is a great way to keep customers happy and increase their satisfaction with an airline. And blockchain technology can give airlines a more secure network to manage their loyalty reward programs better. With this technology, airlines can be sure that the rewards are allocated transparently and fairly, and this will reduce the risk of errors, fraud or dissatisfaction.
Final words
Blockchain has great potential for the aviation industry. This tech could revolutionize the industry in many ways, from enhanced flight data security to improved maintenance operations. Also, with the help of blockchain, airlines could address some critical problems they face. Besides blockchain, airlines could also use other technologies, like artificial intelligence or the IoT, to help revolutionize this sector.
Blockchain has captured the imagination of several people around the globe. This is why, in the future, it will surely be more and more considered for several businesses in different industries.
