Blockchain Technology and The Future

Blockchain Technology has significant uses in the Travel Tourism & Hospitality sector in areas of management of client data, control over operating assets be they aircraft, hotels, restaurants, ships, cars and also in the area of logistics and business operations.

Blockchain Technology ("BCT") can and should be viewed in isolation from Cryptocurrency. BCT is increasingly being recognised in terms of producing great advantages in the areas mentioned above and as the next generation of technology for data gathering, retention and tracking. It is profound in the visibility it provides and the benefits the ensue - Security and Protection being major outcomes.

Apart from the potential of immense Commercial benefits flowing from access to key information -  the resultant transparency should also make the job of providing relevant information to Regulators much easier and more manageable.

One of the better descriptions of Blockchain Technology states that BCT can transform maintenance logs, in cumbersome databases and, at worst, in paper binders. BCT can help the various industries ensure that products and services procured are legitimate and can offer a “virtual copy” immutable record of the provenance of every component and service, every time it has been handled and by whom, from the beginning of its existence. It is immutable! 

Blockchain basics

Jason Patterson of Blockcognitive says of BCT that it is beginning to be utilised in areas encompassing Aircraft spare parts, Diamonds, Perishable items such as Food, Secure Data & Records of Transactions in financial services – in fact products and services from a multiplicity of Industries can and should benefit from the effective deployment of BCT.

A blockchain is an ever-growing list of records, known as blocks, linked and secured using cryptography, each block contains a hash pointer as a link to the previous block, a timestamp and historical transaction data. 

When a transfer of token occurs between two digital accounts, a record of the transaction is placed on the public ledger in the form of a digital blockchain and await confirmation of the validity of this transaction through the process of mining.

Digital wallets use a cryptographic signature that provide a mathematical proof to legitimize token transaction, accurately verifying the balance on the digital wallet and that each transaction uses only tokens currently held in the account.

The identity of the account holder and previous owners remains encrypted, ensuring anonymity for users although combining shared databases and cryptography, blockchain technology allows multiple parties to have simultaneous access to a constantly undated digital ledger that cannot be changed.

Private blockchains are a great new tool for businesses that need to make sure their records are secure, and precise. Unlike blockchains that use proof-of-work to validate transactions, private blockchains are operated via a server or network that doesn’t rely on mining to incentivize the blockchain’s operation.

Some have compared private blockchain technology to a regular shared database, but the inability to alter blocks once they are created is a new benefit that fits into most industry perfectly. Accenture’s, Mr. Schmidt, MD of aerospace and defence noted “It (blockchain) also helps us be in a better position to create the feedback loop from what we’re seeing in the asset, its life and its usage to enable changes to better improve the asset’s life.”

I have cited some examples of business sectors where Blockchain Technology is beginning to play a part.

Amazon Launches Blockchain Service

Amazon is launching a blockchain service to help clients develop blockchain networks without incurring the costs of creating their own platform.  The Amazon Managed Blockchain (AMB”) platform will be  a fully managed plug and play solution. Users can build platforms using either Hyperledger Fabric or Ethereum.  The new platform is another aspect of Amazon Web Services (“AWS”), Amazon’s cloud computing subsidiary which powers a large number of websites and services, including platforms like Netflix.  “AMB eliminates the overhead required to create the network, and automatically scales to meet the demands of thousands of applications running millions of transactions,” the service’s website says. The service is currently in preview, meaning those interested can sign up. If approved, they will be able to create a blockchain network, at which point they can either invite other AWS members or “create more members in your account to simulate a multi-member network,” according to an FAQ section.

De Beers Blockchain

De Beers unveiled Tracr, an initiative that aims to provide a single, tamper-proof and permanent digital record — from mine to consumer — for every diamond. And in September the Hong Kong giant Chow Tai Fook introduced a similar project developed with the blockchain provider Everledger.  Laurence Haziot, IBM’s global managing director and general manager for the consumer industry, said blockchain could be a lifeline for the luxury sector because it could enhance trust between a brand and its consumers.  “Blockchain helps to authenticate, in an instant, the apparent high value of any luxury item — from where it comes from to what it’s made of; from how many hands it has passed through to where and when it has been stored, stocked.

The Aviation Industry Sees Real Potential in Blockchain – 85% to use it by 2021

Accenture states over 85% of aerospace and defence companies are expecting to use blockchain in their businesses by 2021. Distributed Ledger Technology (“DLT”) offers some advantages for an industry that needs to keep strict records for safety reasons.

John Schmidt, Accenture’s said “an interesting industry statistic is the number of companies already working with blockchain – not necessarily having a system installed but working with the concept. More than half of them are working with the technology today.”

Aircraft maintenance is a vital part of making sure that planes are safe to operate, and blockchain-based records could help airlines make sure there weren’t any oversights that are potentially dangerous. Blockchain can be used to track everything that happens to major parts of an aircraft, like the engine, so that any problems have a better chance of being detected.

Accenture will be working with Thales to create a blockchain platform to establish more confidence in supply chains. They plan to use blockchain in order to create a secure record of every part that is used in an aircraft’s construction. Any issues would be easier to track down, across the entire industry.

Banking sector

The Banking sector is looking at Blockchain Technology in areas such as Clearing and Settlement, Transactions, Trade Finance, Identity and Syndicated Loans.

Anonymous