Applications Of Blockchain In The Aviation Sector

Experts say the aviation industry is a logical fit for blockchain networks because it provides an incorruptible, digitalized, and incredibly efficient way to manage components and supplies, among other things. Is blockchain just buzzword-speak, or may it have real-world implications for the aviation industry?

Many individuals today have little to no knowledge about blockchain technology, despite it being hailed as the “biggest development since the Internet’s inception”.

Decentralization, nodes, and the distributed messaging protocol are just a few of the technical terms that are thrown around by blockchain experts when talking about the technology.

The Role Of Blockchain In The Aviation Sector

Adapting to new technology in the aviation industry is a constant process. In the previous few decades, there has been a dramatic increase in innovation. New technology, on the other hand, entails new dangers. The airline industry is grappling with several critical concerns, two of which are cybersecurity and the customer experience.

When it comes to flight safety and security, blockchain technology in the aviation sector can help. Because it uses an innovative approach to data collection and encryption, it’s virtually impossible to hack.

Cybersecurity is the most pressing concern. Data connection communications between the controller and the pilot are among the latest innovations in cockpit communications (CPDLC). ATC monitoring and communication can be improved by using CPDLC.

Because of this, there is a significant decrease in the likelihood of a mid-air collision, as well as in the quantity of non-essential radio conversations. The only problem is that they aren’t covered by any kind of insurance.

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There are also security hazards associated with the management of the flight department over the web. The likes of scheduling, remote systems, blockchain papers, and cloud-based information are some of the assets susceptible to security concerns. Even though all of them are critical to the aviation sector, they are all vulnerable to hacking and manipulation.

The additional levels of encryption and security gave by blockchain implementation would be tremendously beneficial to the protection of important data. It would address most, if not all, of the aviation cyber security challenges. Blockchain technology has yet to be implemented in aviation. However, several airlines are putting it to the test.

One of the blockchain technologies that is gaining interest in the aviation industry is smart contracts, which may self-execute based on stated parameters.

Repetitive procedures, which can include billing processes across different airlines and travel agencies, loyalty points or rewards settlements, travel insurance acquisitions, and airport fee payments can be used by these systems.

Additionally, smart contracts can be applied to a variety of other processes, including customer experience management, revenue accounting, payment reconciliation simplification, tracking of aircraft components, baggage, or deliveries, and the reduction of reliance on intermediaries by providing customers with direct access to ticketing and other airline offers, amongst other applications.

Applications Of Blockchain In Aviation

1. Digital Travel System

Fragmentation costs cause inefficiencies in all airlines. Extra features like upgrades and premium services, as well as people transferring to other providers or operators to save money, are the main causes of price disparities.

Airlines, travel agents, and other participants in the sector can use a standard system for booking an entire trip with the use of blockchain technology, which has the potential to ease these cost savings.

Travel expenses that aren’t directly tied to air travel, including travel expenses like transportation and hotel accommodations, would be covered by this policy.

2. Flight Security System

Airplane accidents or flight disappearances (such as Malaysia Airlines Flight 370 in 2014) rely on flight data to ascertain the cause of the accident or to follow the course of the aircraft to discover the wreckage or begin search and rescue activities.

Blockchain can assist in collecting and preserving all data associated with a single aircraft, such as manifests, flight trajectories, luggage onboarding, and other factors. The data may be exploited for a range of purposes, such as tracing out the whereabouts of missing luggage or getting information such as the names and seat numbers of persons on board the flight.

3. Ticketing

It is possible to make mistakes when issuing tickets, as well as system disruptions, with legacy ticketing systems. Blockchain-powered smart tickets are still a theoretical concept.

Although a paperless ticket is not yet an option, smart contracts can be used to construct a ticket that includes specifics like access to a business or first-class lounge as well as other services. The danger of disorder resulting from occurrences such as system crashes is eliminated because the tickets are logged on the ledger.

As a result, there is no need for customers to always go about with their physical or digital tickets, including other means of personal identity.

4. Identify Administration

As a result of identity forgery, the aviation industry is at risk of terrorist attacks at airports and on flights as well as other criminal activity. On the blockchain, biometrics can be used to verify an individual’s identity.

Once the identification has been validated, it is permanently recorded on the blockchain, which is decentralized and secure. Additionally, blockchain may lead to biometric passports replacing paper passports in the future, hence reducing human error.

5. Consolidated Frequent Flier Programs

Airline loyalty programs differ significantly from frequent traveler programs, and there is a lot of potential for improvement when it comes to customer incentives.

Because of the flexibility that blockchain technology provides, it may be possible to merge the loyalty programs of multiple airlines under an alliance, providing customers with a wider range of redemption options. To make services like revenue sharing, loyalty point redemption, and point accrual more efficient, the blockchain can be employed as well.

6. Revenue Sharing Among Airline Alliances

An efficient revenue-sharing strategy is needed because there are three (3) major airline alliances across the world. The alliance’s revenue-sharing mechanisms are inaccurate, causing tensions between airlines and delays for customers.

Allowing for a single, pre-determined method of distributing revenue, Blockchain reduces overall costs and ensures that flights are not delayed due to revenue-sharing issues.

7. Overbooking

An airline will overbook flights to avoid losing money from vacant seats, last-minute cancellations, and passengers who arrive late for their flights.

Overbooked customers may be denied boarding or have their bags towed from the plane, which might lead to bad press for the airline. A blockchain-based solution to overbookings, such as tokenized tickets and smart contracts, could help airlines better manage to overbook.


Using blockchain technology, users in the aviation industry can only see the information they are allowed to see. Also, this could help the industry learn more about their own companies while keeping their information safe from competitors. Therefore, blockchain is the best way for the aviation industry to use technology.

Kolade Elusanmi

As a cryptocurrency and digital assets writer, I am knowledgeable about the latest developments in the world of digital currencies and their impact on the global economy. I also have a deep understanding of the various types of gift cards and their use in the modern retail landscape. With my expertise, I strive to provide informative and insightful articles that help my readers stay up-to-date on the latest trends and issues in these dynamic fields. I hope you enjoy my writing.

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