Navigating the Future: Blockchain & Web3 in Aviation

December 12, 2023

PS

Paul Simroth

In a constantly evolving world, web3 has made big promises. In this article I want to give my perspective on the possibilities this tech has for the aviation sector and the impact it might have.

• Applications & Use Cases

Blockchain & Web3 in Aviation. Insights from a Dev

In a landscape perpetually shaped by technological evolution, the aviation industry is poised at the brink of a transformative era, with Web3 technology steering its course. This paradigm shift promises not only enhanced security, cost-efficiency, and passenger experiences but also a profound human touch. Here I want to delve into the ways in which Web3, particularly blockchain, is revolutionizing air travel, emphasizing real-world examples that showcase its potential impact. But before this can be implemented, there will be many challenges to face and to overcome.

Here I also want to give a short description of myself and why I am writing this post. I am a self taught web3 and blockchain developer, working with solidity and the Ethereum platform. I also have more than 8 years of experience in the aviation sector, having worked in different areas.

The New Frontier of Web3 in Aviation

Web3 and blockchain introduces a decentralized paradigm that ensures the secure and transparent but public storage of information. This helps to facilitate trustless relationships and transactions between parties, such as between airports, airlines and passengers, as well as other. The important part to know here should be, that public blockchains are indeed public. All information on there can be seen by everyone. This is why not everything should be moved on-chain. What data should be moved on-chain remains to be discussed and with the advent of zero-knowledge proof, meaning you can proof that certain data is true without making it public, there will be less hurdles towards trustless and decentralized transactions.

Streamlining and trustless processes

Blockchain holds the potential to streamline some aspects of operations significantly. Through the implementation of smart contracts in for example ticket sales, airlines can automate processes, reducing reliance on intermediaries like travel agents and leading to substantial cost savings. Furthermore, blockchain's role in supply chain management holds the promise of further operational efficiency. Using blockchain for supply chain management can have farther reach than initially appears. This can range from keeping track of cargo through different steps of the journey or tracking luggage of passengers.

Improved Passenger Experience

Web3, with its decentralized identity solutions and loyalty programs, focuses on enhancing the overall passenger experience. Offering personalized perks through blockchain-based loyalty programs contribute to a more seamless and enjoyable travel journey and could also stimulate a token economy by trading perks, tokens or NFTs. Uptrip by Lufthansa is an example which I recently tried myself. There you can scan your boarding pass and receive a card, which you can select yourself. For example, I could select two cards per flight. There are cards ranging from airlines and airplane types to destinations. You can collect cards and redeem certain perks. While I think there are still many things fit for the masses, it means a start in an interesting direction.

Advantages and Disadvantages

While decentralization and data immutability emerge as clear advantages, there are challenges such as privacy concerns and the technology's inherent speed limitations. As mentioned before, public blockchains are indeed as the name suggests public. All smart contracts deployed can be viewed and you can easily see what transaction sent to whom. Zero-Knowledge proof could be the key to solve this problem as this way one can proof, that data is correct without exposing the data to the public. This way you could for example proof, that you are the person you say you are without outright making your information public.

Possibilities for Implementation

Understanding the Project Lifecycle

For the successful implementation of blockchain projects at airports, a phased approach is essential. An initial phase of knowledge sharing among stakeholders to establish a common understanding is vital to produce a satisfactory result. This lays the groundwork for identifying project requirements, goals, challenges, and potential solutions.

Considerations for Implementation

While the potential benefits of blockchain in aviation are significant, there are also challenges and considerations that need to be addressed for successful implementation:

• Regulatory Compliance: The aviation industry is subject to strict regulations and standards. Any blockchain solution must comply with these regulations, and stakeholders need to work closely with regulatory authorities to ensure legal compliance.
• Interoperability: To maximize the benefits of blockchain, interoperability between different blockchain networks and traditional systems is essential. Standardization efforts and collaboration between industry players can contribute to achieving interoperability.
• Privacy and Security: Blockchain is often praised for its security features, but it's crucial to address privacy concerns, especially in the context of personal data and passenger information. Implementing robust privacy measures is essential to gain trust and comply with data protection regulations.
• Education and Adoption: The successful adoption of blockchain in aviation requires education and awareness among industry stakeholders. Training programs and collaborative initiatives can help promote a better understanding of blockchain technology and its potential applications.
• Scalability:As the aviation industry involves a large volume of transactions and data, scalability is a critical factor. Blockchain solutions must be able to handle the scale of operations in a seamless and efficient manner.

Clarifying Workflows and Responsibilities

In the subsequent phase, clarity in workflows and delineation of responsibilities become pivotal. Collaborative efforts among airport authorities, airlines, and technology providers are crucial to articulate shared goals and define roles within the project framework. This collaborative approach ensures that the implementation aligns with the diverse needs of all stakeholders.

Open Source vs. Closed Source Considerations

One critical decision in the project's developmental stages is whether it should be open-source or closed-source. The article delves into the pros and cons of each approach, considering factors such as innovation, security, and community engagement. The decision hinges on the project's nature, goals, and the desired level of collaboration.

Developing a Minimal Viable Product (MVP)

As the project progresses, the creation of a Minimal Viable Product (MVP) becomes a milestone. This initial version, subjected to testing and evaluation, serves as a foundation for further development. The article emphasizes the importance of defining the target audience for MVP testing, which could include airport staff, external partners, or even passengers, depending on the project's objectives.

Iterative Development Cycle

The article underscores the iterative nature of the project development cycle. Following the typical software development stages of requirements, design, development, testing, and maintenance, the blockchain project undergoes continuous refinement. This cyclical process ensures that the final product aligns with the evolving needs of the aviation industry.

Real-Life Impact

While real-life stories are crucial for inspiration, the article places more emphasis on the possibilities and considerations for implementing blockchain technology at airports. Nonetheless, the examples provided highlight the innovative strides taken by airlines like Flybondi, ANA, Etihad Airways or Lufthansa in embracing Web3 technology for tangible benefits.

Conclusion

Blockchain technology holds significant promise for transforming various aspects of the aviation industry. From enhancing security in digital identity verification to improving transparency in baggage handling and supply chain management, the potential applications are diverse. Existing projects and initiatives indicate a growing interest in leveraging blockchain to address specific challenges and create more efficient and reliable processes.

However, successful implementation requires careful consideration of regulatory compliance, interoperability, privacy, security, education, and scalability. Collaboration among industry players, regulatory authorities, and technology providers is crucial to overcoming challenges and unlocking the full potential of blockchain in aviation.

As the technology continues to evolve and more use cases emerge, the aviation industry has an opportunity to embrace blockchain for positive and lasting change. By fostering innovation, collaboration, and a commitment to sustainability, blockchain can contribute to building a more resilient and efficient aviation ecosystem for the future.