EXPERIMENTING BLOCKCHAIN IN CIVIL AVIATION

Blockchain technology, which is disrupting almost all the economic sectors, is now expected to make their place in the Aerospace and Defense (A&D) industry as well.

Blockchain technology can be used primarily to improve data sharing in the A&D industry and it can further enhance product design, manufacturing, and maintenance of life-cycle in the A&D industry.

The A&D industry has one of the world’s most vast and complex supply chains. Blockchain technology offers a new, transparent and secure way for the industry to track and trace multiple components. At the same time, it deters duplication and improves maintenance capabilities of the supply chain. Blockchain, if used in combination with technologies like digital twins and digital threads, could ultimately be a game-changing innovation for this sector.

Blockchain for Aerospace & Defence – Adoption

According to recent reports by Accenture, Aerospace and Defence enterprises are all set to adopt blockchain technology in the next three coming years.

“86% of Aerospace and Defense (A&D) companies will integrate their corporate system with blockchain technology by 2021.”

Further, the report suggests that Blockchain Technology features- secure, decentralized, and immutable- can help aerospace and defense entities lower maintenance costs, increase vessel and aircraft availability, and eliminate errors in tracking parts.

Immutable Blockchain for Aerospace

Blockchain technology can help address numerous data challenges related to the supply chain of the A&D industry. More than 70% of the A&D executives surveyed think that companies can be found struggling with increasing waves of corruption. The reason is more falsified data penetrates their data-driven information software and systems.

In addition, 73 percent of them believe that automating data-driven systems can enforce huge risks, including fake data, data manipulation, and inherent bias.

Indeed, Blockchain for Aerospace & Defense companies enables creation of a single source of truth where information can be stored, shared, and data is authentic always.

Blockchain for Aerospace & Defence – Can ‘Immutable’ feature improve their Supply-Chains?

Several features of supply chains in the A&D industry seem to benefit from blockchain. Specifically, the supply chains have many stakeholders that must share highly technical data about parts and materials. Blockchain can help to eliminate the chance of duplicated or falsified data and verify its accuracy as it can provide a secure and immutable chain of data.

Currently parties across A&D supply chain – aircraft manufacturers, airlines, and maintenance providers store configuration data in their own systems and hardly look to integrate that information with other companies’ data. The technology can also help in maintaining a continuous flow of aircraft configuration data through the maintenance of the entire supply chain of Blockchain for Aerospace & Defence.

Moving Forward

The blockchain is designed to provide highly secure, immutable, and traceable data records across a distributed platform. The A&D industry is a geographically distributed supply chain that serves an equally distributed set of operators, all of whom value data traceability, immutability, and security.

While A&D characteristics may appear to be a natural match to the blockchain strengths, companies should understand that Blockchain is still maturing so now is the time to learn and prepare as they begin their journeys in Blockchain for Aerospace & Defence.

CAN BLOCKCHAINS CHANGE THE WAY AEROSPACE AND DEFENSE COMPANIES EXECUTE BUSINESS IN 2019?

HURDLES IN USE OF BLOCKCHAINS FOR AEROSPACE AND DEFENSE INDUSTRY

The Blockchains for Aerospace and Defense Industry have gained immense limelight when the world has been experiencing decision transformation for the initial impact. Unfortunately, even though the enormous buzz created by blockchains, there is still a significant lack of information. It is acting as a setback for the tech business industry.

According to a survey conducted in 2018, a shocking only 20% of employees were clear in perspective about what the company was precisely doing with blockchains. People admitted that they had a very feeble idea of how their company was looking to incorporate Blockchain in the business process. There were a substantial fraction of 20% respondents who said that their companies are yet to get their first hand on the Blockchain. However, there can be numerous reasons which withhold the business from incorporating blockchains, but there is a need to look at that change for making you a sustainable business in the digital transformation age.

PRESENT SCENARIO – AEROSPACE AND DEFENSE INDUSTRY

In-depth, complex supply chain management requirements

Supply chain management is an integral process of A&D companies. Generally, there are numerous systems and subsystems which are efficiently integrated for the exchange of information. And finally, building a supply chain management system which barely meets the basic requirements and comes with the possibility of failure due to heavy load. The commercial aviation business has an intricate design of operations which collectively decide their modus operandi for delivering quality service is in the domain. This requires massive coordination from the on-ground staff, logistics, and the pure aviation wing. A significant problem is waiting to be solved.

Highly dynamic database

The Aerospace Industry involves rigorous use of some of the most active use cases of a database. They require immense precision due to the critical nature of operations. The operations are dependent on the information available through records alongside concurrently occurring transactions. It is a multi-stakeholder operation which at times causes deadlocks and wrong allocation of resources; if handled through a conventional database management system.

Aircraft maintenance and changing partners

It might look like a problem indirectly related to a database, but the acuteness forces businesses to solve this problem separately. In the aerospace and defense industry, aircraft are once purchased and then precise, quality standard matching maintenance is performed on a very regular basis. This is a never-ending process which gradually gains importance as aircraft tend to dip in performance. The curve of maintenance duration is so long that it generally witnesses numerous vendors and participants. It is the long, complicated process which is experiencing different approaches of digitalization but none of them has completely solved the problem.

Data security and authenticity

Aerospace and defense industry generally operates in a very critical spectrum of data information and the secrecy of operations. It is the primary reason behind a dire need of a Highly Secure Data Storage and Management System. Apart from the room, there is a requirement of authenticity as well. Authenticity is the primary concern in B2B, B2C, and defense based businesses. There are many sets of information like company record, contracts and MoUs that have highly critical information which requires a version management system and complete security.

HOW CAN BLOCKCHAINS FOR AEROSPACE AND DEFENSE INDUSTRY CONTRIBUTE?

Blockchain-based SCM

The Blockchains for aerospace and defense industry capable of single-handedly hosting the most complex supply chain management systems for all use cases of aerospace and defense industry. Blockchains can be used to create digital authentication and quality checking-based supply chain management systems. There is a provision to use private blockchain infrastructure which doesn’t allow any other parties to communicate with the actual nodes of the respective blockchain. It requires authenticating handshaking.

Blockchains for aerospace and defense industry also enable safe and reliable peer-to-peer communication network which is an essential part of an efficient supply chain management system. Here, the information and operations can be tracked in the pipeline process by all the world stakeholders with utmost convenience. Blockchains have decentralization related features like immutability, high transparency, and reliable, trustworthy operations.

Immutability of Records

Immutability of record means that no intervening party of the blockchain infrastructure can anyhow make changes to the data or perform any missions with malicious intentions like forgery, misrepresentation, and involvement. This is one of the highly utilized features of blockchain technology that the database consists of a hundred percent immutable records. It adds immense credibility to the database and reduces the chances of errors, elevating the level of precision. Aerospace and defense industry is benefited because they maintain a large, dynamic pool of shared information which can compromise situation is if there is a tweaking of records.

Multi-stakeholder operations and multiple participant facilities

Aerospace and defense industry requires a long gradually important bargaining process of moving aircraft maintenance. Blockchains for Aerospace and Defense Industry keep a track of maintenance operations and ensure the highest quality standards. This can be done through Blockchain has all the information that can be set up on the Blockchain infrastructure replicating across nodes for various stakeholders.

As the maintenance vendors and quality check participants keep on changing with time, documentation of information and tracking of records is a tedious task. Blockchains for Aerospace and Defense Industry allow unknown third parties to authenticate themselves and communicate through the note based on technology. This is one of the oldest and the most first use cases of blockchains. Unknown third parties like maintenance vendors and quality check participants keep on changing with time, documentation of information and tracking of records is a tedious task.

Blockchains allow unknown third parties to authenticate themselves and communicate through the node based technology. It is one of the oldest use cases of blockchains. Unknown entities can be enabled to leverage decentralized consensus without prior information and knowledge of the background.

Use of highly efficient smart contracts

Smart contracts are the basic units of highly protected information which can either be compromised or destroyed by any party. It is one of the safest ways for the aerospace and defense industries to store their data and maintain a continuous decentralized consensus on terms, conditions and operations.

THE FINAL WORD

It is evident that the primary use cases and top-notch efficient features of blockchains convincingly coincide with the most critical problems of Aerospace and defense industry. As the technology world is gradually outlining primary use cases with similar issues of different sectors, we are reaching the fourth mini-revolution in Blockchain Technology called Blockchain 4.0. In this, it is speculated that blockchain will come out with a new face of Blockchain as a Service or BaaS. It will be retail-based services where various businesses can use the blockchain infrastructure through pre-built customizable blockchain-based business products. The exploration and realization related to blockchain or creating outrage. It will be interesting to see how they mature for a sustainable business of Blockchains for Aerospace and Defense Industry.

WHY 6 OUT OF 7 AEROSPACE AND DEFENSE COMPANIES ARE HEADING THEIR WAY TOWARDS BLOCKCHAIN?

Introduction

Blockchain has been touted as Incorruptible, Secure, Auditable and Decentralized digital ledger for storing data. Every transaction is validated by all the members (called nodes) after which they get confirmed and grouped in a block of data. Every new block of data become a chain of consecutive data that can be traced back to the original transaction.

Blockchain technology is still in a growing stage. Aerospace & Defense (A&D) companies can make a systematic approach to demonstrate the business value of Blockchain and set milestones in their digital approach. According to a recent report by Accenture, 6 out of 7 Aerospace/Defense are expecting to integrate Blockchain in their systems by 2021.

Why is Blockchain Relevant for Aerospace and Defense Industry?

Aerospace and Defense companies are already using multiple technologies, from ERP to PLM, to custom solutions, the list is huge. These technologies aim to reduce operational efficiencies and improve quality. Even after their implementation, challenges are still persistent in this sector that includes:-

Management of enterprises beyond tier one supplier.
Delivery of new value-added services in the aftermarket.
While handling cost at the same time.

The Blockchain is meant to surpass these limitations and can complement prevailing technology investments.

Features of the Blockchain suits enduring needs of the A&D industry, and therefore, Blockchain can prove to be valuable. Below are the characteristics of Blockchain that can fulfill the A&D industry needs:

Immutability

Aerospace and Defense industry deals with both private and public sector clients, involving huge transactions which can’t be compromised at any cost. These industries possess a need for tracking and inspecting transactions through different operational and supply chain partners. The Blockchain is Immutable, which means its data cannot be altered without the authentication of all the stakeholders involved. It acts as a single source of truth for all the nodes (stakeholders).

Auditability

Auditing is an imperative part of any organization, as it helps companies to monitor their data and determine the loopholes in their organization. Aerospace and Defense industry is no exception. It is also looking for ways to promote ownership and accountability. Blockchain can deliver value to the business by providing real-time tracking and tracing. It creates an unfailing and accurate audit trail that provides transparency by validating each and every data modification.

Cost Efficiency

When Implementing new technology, every company looks out at their budget and then make necessary decisions. The A&D industry being dependent on their existing technology needs something that can expand its proficiencies without compromising current technology investments. Blockchain can reduce cost by eliminating the need for intermediaries and by cutting down operational costs involved in settlements. It can easily supplement the present technology, adding an extra security layer on it.

Decentralization

Aerospace and Defense companies often face a challenge in managing supply chain reflectiveness and transposition across all the levels of the supply chain. Blockchain being a decentralized digital ledger provides the purest, most validated and comprehensive information possible. Assets are controlled and validated by their owners through a consent-based mechanism, and not by some third-party curators.

Security

Providing data security to the entire extended enterprise is a challenge for the Aerospace & Defense Industry. Through cryptographic encryption and hashing, Blockchain makes data secure, even when it is being transferred from one place to another. There is so much of computing power required for hacking a Blockchain that it becomes economically illogical for a hacker to steal any information since that much computing power can only be bought with a lot of money.

How Can Blockchain be Utilized in the Aerospace and Defense Industry?

Supply Chain Tracking & Configuration Mapping

Blockchain can help in eliminating the risk of fake data; it validates the authenticity of the information to create a secure and unchallengeable chain of data. It can track and deliver reliable aircraft configuration data during the course of the supply chain. The configuration data of airlines, aircraft constructors, and maintenance providers, is stored in their individual systems and they hardly tally their data with other party’s data.

It’s really important to know about the actual configuration of an in-service aircraft, and Blockchain provides a way where Aerospace and Defense companies can securely share, capture and validate data from a single source.

Manage Privileges and Rights for Software, Services, and Warranty.

At times, it becomes difficult to confirm the rights of employees, partners, and customers to use software, services, or avail warranty. Blockchain can enable disseminated digital rights management for technical publications and engineering data. Since it is a transparent network; the information is known to all the authenticated users, eliminating any chances of discrepancies and data mismatches.

Maintenance and Overhauling

Various parts of an aircraft have different maintenance cycles. They need to be sent to workshops for service work. These workshops offer different services, turn-around time, and prices. Managing between all these factors and bring out the best alternative manually is a tedious task.
Pre-defined Smart Contracts can perform these tasks autonomously reducing the cost of maintenance, downtime, and increase operational efficiencies. This can possibly cut-down the chances of aircraft failures in the future.

Certification of People and Parts

Allowing only authentic parts to enter the system and authentic people to use the system is even more important in the Aerospace and Defense Industry. Hence, their certification becomes an absolute necessity. Blockchain can be utilized to attach attributes to the digital form of the assets and certify them, publishing specific certificates for the whole network to access.

Conclusion

Blockchain is a new technology which is full of promises, but they are still not proven in large-scale deployments. Before exploring the promises made by Blockchain, Aerospace and Defense companies should follow an organized methodology intended to determine the organization’s business value. This will help them in identifying the capabilities of Blockchain to meet their specific requirement.
From supply chain to configuration management, Blockchain is sure to help Aerospace and Defense companies to beat their challenges and open doors to new opportunities for collaboration.