Blockchain can be used at airports and in aviation business for retail sales, ticketing, loyalty systems, identity, aircraft lifecycle management and maintenance along with source of truth for flight plan data.

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August 2018
Blockchain: enabling airport business
Susan Dart

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Topics
What blockchain is and is not and why it is brilliant
How blockchain is affecting, and enabling, businesses
State-of-the-art in blockchain technology
Typical Use cases, example and airport possibilities
Quick overview of Australian solutions
Creating your own blockchain business via an ICO
Conclusion

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Blockchain is not ….
Ready as COTS (Commercial Off The Shelf) solution today
− IBM and MS have blockchain-as-a –service
− There are thousands of startups and thousands coming
Ideal for every business scenario today
− Well suited for supply chain scenarios and untrusted multi-vendor situations
− Caters easily to new crypto economies and business models
Easy to understand and use today
− Many types of blockchains
− Many skill sets needed to deploy a project
− New types of skills needed
− New programming style needs to be mastered (append-only)

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BLOCKCHAIN
REPRESENTS
A TRUST
MACHINE
manufactured trust
through clever
software
Blockchain is open-source technology that
maintains data as a shared record distributed
over many computers of people that do not
know each other.
Instead of having a central authority, the entire
network of combined computers is responsible
for the integrity of the data, and via consensus,
approves changes made to that data
Blockchain is a Trust machine

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Technicalities: Merkle hash tree, blocks, transactions

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Real-time dashboard

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Why is it brilliant?
DECENTRALISATION
•Encryption
•No central control
•Secure & Borderless
•No central point of failure
•The source of truth
•New business model
•Anonymity
PEER-PEER
CONSENSUS
•Revolutionizes the way
people interact (mining,
trustless transactions)
•Shared consensus
•Shared governance
•Consortiums
REAL-TIME
TRANSPARENCY
•Open source code
•Audit trail
•Time stamped
•Immutable data
•Complete provenance
DEMOCRACY IN
TECHNOLOGYAND
DATA
•Democratization of data
•Anyone can be a miner
•Tokens creation
•Marketplaces
•Distribution of costs
SOCIAL STABILITY
•Community contributes
•“give back” mentality
•Social goodness
•Universal access
•Greater economic
participation
•ICOs (Initial Coin Offerings)
INCENTIVISATION
•Rewards
•Mining
•Monetisation
•Token ecosystems
•Self-sustaining system

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How blockchain is affecting, and enabling, businesses:
(1) de-centralisation
Traditional:
Inefficient
Expensive
Vulnerable
Blockchain:
Consensus
Provenance
Immutability
Finality
Digitally signed &
encrypted
transactions

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How blockchain is affecting, and enabling, businesses:
(2) programmable economies (cryptocurrencies)
Economy
Utility
token
Monetize
Smart
contract
Mining

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State-of-the-art in blockchain technology
1. Bitcoin: 2008 best known public $BTC cryptocurrency
2. Ethereum: 2013 Ethereum public, open-source block chain featuring smart
contracts. Gas fee for contract operation $ETH
3. Ripple: 2012 gross settlement system with company acting as validator $XRP
4. Hyperledger: 2015 permissioned open source blockchain from the Linux
Foundation community to support high-performance, standardized business
transactions
5. NEO: 2014 “Ethereum of China” digital identity; smart contracts $NEO
6. IOTA: 2015 uses Tangle acyclic graphs; resolves scalability challenges of
existing blockchain technologies without transaction fees; geared to
emerging Machine-to-Machine economy and Internet of Things $MIOTA
7. Hashgraph: 2016 fast; eliminates massive computation and energy needs
8. Elastos 2002: a completely de-centralised operating system with integrated
blockchains and a safe “smart web” using carrier box, merged mining $ELA

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Blockchain protocols (part of governance)
POW (Proof of Work) consensus:
• Works in untrusted networks but relies on
high energy use and is slow to confirm
transactions
• Non-democratic since large mining farms
dominate this
• Example: Bitcoin
POET (Proof of Elapsed Time)
consensus:
• Efficient but requires processor extensions
• Put on chips to lock up power
• Hardware-based (Intel)
• Example: Hyperledger Sawtooth
POS (Proof of Stake) consensus:
• Works in untrusted networks but requires
intrinsic cryptocurrency
• Uses much less resources
• Example: Nxt
Solo/No-ops consensus:
• Validators apply received transactions
without consensus which is very quick but
can lead to divergent chains
• Example: Hyperledger Fabric V1
PBFT-based (Practical Byzantine
Fault Tolerance)
• Efficient and tolerant against malicious
peers but Validators need to be known and
totally connected
• Example: Hyperledger Fabric V0.6
Kafka/Zookeeper:
• Ordering service distributes blocks to peers
• Efficient, fault tolerant but does not guard
against malicious activity
• Example: Hyperledger Fabric V1

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Use case example

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Airport Use cases
Cryptocurrency purchasing: Brisbane Airport is first aviation hub to multiple cryptocurrencies
Ticketing: The blockchain can tokenize the e-ticket. Through use of smart contracts, airlines can add
business logic and terms and conditions around how the ticket is sold and used. This opens the door
for tickets to be sold by different partners, and in real time, from anywhere in the world
Loyalty. Travellers often have to wait until points settle and accrue to use them, and they are limited
on where they can spend them. By tokenizing loyalty points on the blockchain, travellers can get
instant value by redeeming them on the spot. They can also use them more broadly as a marketplace
or exchange model. With points accepted as “currency” among more providers, travellers get an
easier and faster-to-use program that is more relevant to their personal preferences
Security and identity. Protecting data privacy is a clear issue when it comes to passenger records,
flight manifests and crew information which can be protected via the blockchain
Maintenance. Blockchain technology can transform maintenance logs, which at best are in
cumbersome databases and, at worst, are in paper binders. The blockchain can help the industry
ensure that parts procured are legitimate and can offer a “virtual copy” immutable record of the
provenance of every part on the plane, every time it has been handled and by whom, from the
beginning of the aircraft’s existence. This visibility is profound, and can take the practice of
maintenance, safety and aircraft security to new levels
Flightchain: British Airways, Heathrow Airport, Geneva Airport, Miami International Airport and SITA
Lab recently participated in a collaborative project to explore if and how blockchain technology can
help to create a “single source of truth” for flight data

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What is an
ICO?
As per the definition given by ASIC
(Australian Securities &
Investments Commission) 2018
version 1
● An initial coin offering (ICO) is a
new form of funding, used by a
business or individual to raise
funds from various types of
investors through the internet
● ICOs generally operate by
allowing investors to use
cryptocurrency to purchase
coins via the internet for a set
period of time
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ICOs so far in 2018
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Some Australian
blockchain companies
● Horizon State $1.4m
● Powerledger $34m
● Havven $38.6m
● Canya $12m
● Shping $8.5m
● Cronobank $6.8
● Intimate $5.5m
● Sharering $3.8m
● Blockgrain $5.5m
● Blockbid $3.2m
● Loki $9.4m
● Brontech – data market
● E-Nome – genomics and
pharmaceutical testing market
● ScalaMed – online prescriptions
● Agridigital – agriculture supply
chain
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Be prepared!
Conclusion
Blockchain is the future
It’s a very passionate community
Airports and airlines are doing proof-of-concept projects as well as allowing
cryptocurrencies in retail shops
Be prepared:
− Fintech is investing heavily into blockchain solutions
− Venture capitalists are diverting funds to blockchain startups
− People are leaving their jobs to start up blockchain companies
− IT, lawyers, accountants are re-skilling themselves for blockchain
− New roles (crypto-economists; blockchain architect; UX designer, ICO adviser) in play
− Programmers are learning new languages and how to write smart contracts
− Businesses are doing POCs with blockchain
− Everyone is educating themselves
− It’s an intense and over-whelming time with fast-pace blockchain evolution
− There are hundreds podcasts, videocasts, AMAs, social boards, Medium articles
− Github is an important open source of code and knowledge

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