Crypto Daily Topic

Blockchain in the Aviation industry: is it Just a Fad? 

The growth of any industry is pegged on its ability to keep up with evolving technology. For the service industry, it becomes even more important to adopt emerging technologies to improve customer experience. Blockchain is one such emerging technology that is set to catalyze the growth of numerous industries in the wake of the fourth industrial revolution. 

But for the better part of its existence, Blockchain’s potential to disrupt industries only sounds good on paper, with little to no implementation in the real world. As such, it’s impending penetration into the aerospace industry may seem just like a fad with no hopes of implementation. Still, the industry features highly fragmented distribution channels, minimal business model innovations, not to mention its inability to effectively use data and analytics to improve key operations. However, all these could change if airline companies are willing to experiment with Blockchain. As a service industry, air transport stakeholders need to consider using Blockchain to improve customer experience. 

So yes, Blockchain in the aviation industry is not just a hyped craze. In fact, it could mean the difference between the leading airline company, and a less competitive one, is the one that is first to adopt the technology. 

What can Blockchain do For Airlines? 

The intrinsic characteristics of the aviation industry align impressively well with the capabilities of blockchain technology. As such, it’s poised to provide a fertile ground for innovations within the industry in the following ways: 

Efficient data management

The airline and the broader travel industry are characterized by data sharing among multiple actors, from flight booking to immigration, to hotel check-ins and everything in between – all, which creates a complex web of data reconciliation that runs behind the scenes of every touchpoint of a traveler’s trip. 

For an airline company, managing flight data and any other information entail the use of electronic aircraft maintenance records (EAMR). These record systems often operate in isolation, creating data silos that inhibit efficient data sharing. 

Case in point; it’s common for the passenger service department of an airline company to use a separate database from that of the crew management. This compromise, not only operational integrity but also puts revenue generation at stake in case something goes wrong. Since almost every department maintains its own database, it becomes time-consuming to extract data, say, in the event of an audit or investigation of an aircraft accident. Further, there may be discrepancies between data stored in different silos leading to flight delays or other unplanned expenses. 

With too many systems in play, airline companies could benefit from a decentralized database that can facilitate seamless data exchange among various departments of the same company. This way, flight operations will run smoothly with fewer resources spent on maintaining databases. Data reconciliation will also get easier with Blockchain as any update or changes of the recorded information are updated in real-time across all departments. 

Identity management 

In the air transport context, identity theft can be used to commit fraudulent activities, including terrorism, consequently putting other passengers at risk. Although the use of biometric systems has subsidized cases of identity theft, centralized identity management systems aren’t entirely safe from manipulation. Now enter Blockchain. Once an identity is recorded and validated on the network, it is secured using hash cryptographic function, rendering it immutable. The passengers will only be required to carry a unique code — similar to a private key — for verifying themselves. To further suppress the chances of identity theft, the airline authorities can liaise with the state security officials who will be added to the blockchain network to scrutinize the details of every passenger. 

Baggage tracking 

Most airlines outsource their cargo logistics to trusted handlers. Even for airline companies that have in-house cargo logistics, they are riddled with a mix of manual and automated processes creating weak links on the cargo management chain. The outsourced parties suffer from non-standardized processes as well. 

Similar to the identity management use case, every baggage will have a unique code that’s encrypted in the blockchain network. Each phase the luggage goes through, from origin to recipient, its code can be scanned and the location updated on the network in real-time. But, it’s easy to achieve such functionality using traditional technology, why to bother using blockchain technology, you ask. 

Well, if a baggage tracking system was to run on conventional technology, it would create network congestion as it struggles to synchronize data of countless passengers’ baggage and cargo in real-time. What gives Blockchain baggage tracking systems an edge is the fact that it’s decentralized. 

As such, it’s less reliant on the network bandwidth, meaning airlines won’t experience network congestion as the system synchronizes the baggage code. Further, the digital ledger tracks luggage at critical checkpoints throughout the trip; from the initial handover to when, the baggage is loaded into the plane until it’s finally delivered to the passenger. This saves airlines money spent on securing baggage and settling cases of lost goods. 

Repair and maintenance of aircrafts 

The repair and maintenance of different parts of an aircraft need to be logged to serve as a reference to the airworthiness of an aircraft. Usually, records of this maintenance are recorded in bulky manual binders before being loaded in separate databases.

Blockchain can be used to electronically store these records minimizing chances of clerical errors that would otherwise be fatal. The electronic trail will be accessible to the maintenance technicians and aviators, both of who would work harmoniously to ascertain if the aircraft is safe enough for flight.

The same functionality could be replicated on aircraft fueling processes. Using a blockchain application, real-time fuel data would be shared among concerned stakeholders; in this case, the fueling company, the airline, and the bank. In the event fuel levels drop to a certain predetermined level, the fueling company gets a notification and responds accordingly. Once refueled to an agreed limit, automatic payment from the bank to the fuel supplier is initiated via smart contracts. The goal here is to speed up the refueling process and eliminate inefficiencies experienced when handling the process manually. 


Blockchain application in the aviation industry goes beyond data management. The technology can also be used to tokenize e-tickets using smart contracts, thereby eliminating paper-based tickets and electronic passes. The tokenized tickets will have their own business logic and terms such as value and time of usage, allowing passengers to sell and buy tickets from anywhere in the world. Ultimately, the use of blockchain technology in aviation will inspire innovations of sustainable business models aimed at reducing costs and improving operations. 

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The Best Emerging Blockchain Companies You Should Know


The Blockchain technology that came into reality in 2008 didn’t really gain much attention back then. However, as Bitcoin began to skyrocket in 2017, many understood the working of cryptocurrencies and the technology behind it. Several technologists started to find a replacement from their current technology with blockchain, as they found it to be the next revolutionary tech.

In fact, more than 90% of the US and European banks are into researching blockchain options. They believed that this technology could revolutionize the finance, government, insurance, and personal identity security, and several other spaces. In this article, we have listed out some interesting blockchain-based companies that have great potential in the future.


Domain – Fintech and Lending | Origin – Denver, Colorado

As the name of the company suggests, this company is involved in loan lending. Salt’s platform allows its users to leverage out their cryptocurrency for cash loans. Borrowers can get cash loans by leveraging coins like Bitcoin, Ether, or even Dogecoin, for a period of 1-36 months. This platform is accessible in most US states and several countries. The loans began at $5000.


Domain – Gaming | Origin – Sherman Oaks, Calif. and Seattle

Mythical Games is an online platform that creates games and experiences that feature the ownership of digital assets. This is backed on the blockchain technology that allows the creation and verification of a clean record of ownership of unique digital assets. The first blockchain-based game, Blankos, was launched in 2019.

GEMINI (Website)

Domain – Fintech, Cryptocurrency, Trading | Origin – New York

Gemini is a popular digital asset exchange that facilitates users to buy and sell cryptocurrencies. It is a blockchain-based platform for trading of cryptos and for cybersecurity purposes. Individual traders and institutional investors can trade all the major cryptos, including Bitcoin, Ethereum, and Litecoin, via their platform.

CIVIL (Website)

Domain – Digital media Journalism | Origin – Brooklyn, New York

The company Civil was created with an aim to build sustainable journalism with the help of blockchain. With the company’s software, journalists can launch their independently operated newsroom. And this done through the company’s own CVL token. Since this journalism runs on the blockchain technology, the stories published can neither be edited nor deleted.

DOC.AI (Website)

Domain – Healthcare, Artificial Intelligence | Origin – Palo Alto, California

DOC.AI is a healthcare company that uses blockchain in addition to machine learning to make predictions on the personal health of people. Basically, this company combines all the patients’ records that are available by every medical source and compresses it into one secure app. So, users can manage all their medical records all in one place and also get predictive analysis on that data. They even get compensation for sharing their data for medical research.

And the list of companies goes on and on. Below is the list of some more blockchain-based companies that are doing pretty great in business and are expected to grow bigger in the future.

Circle | Celsius Network | Wax | Bloq | Tradove | Learning Machine | Oasis Labs | Chronicled | Lemonade | Voatz | Blockstack

That’s about some of the most popular companies that offer services that are based on blockchain. If you have any questions, let us know in the comments below. Cheers.