Blockchain Frequently Asked Questions

SkyThread is a blockchain-enabled data network provider focused on empowering commercial aviation stakeholders to unleash more than $30 billion in value by rapidly accelerating error-free data exchange among participants. The company has developed a trustworthy, federated system of record coupled with industry-leading validation logic that makes data permanent and unchangeable. We call this authenticating “Data for the Life of the Aircraft.” The system is compatible with existing legacy IT systems and requires no capital investment from aviation stakeholders such as airlines, lessors, airplane manufacturers, regulators, and suppliers. The data exchange rules are governed by the Independent Data Consortium for Aviation, an industry, consensus-driven, neutral consortium comprised of diverse industry stakeholders, of which SkyThread is a member.

What is Blockchain?

Blockchain is a shared technology allowing any participant in a decentralized business network to see the system of record (ledger) of a transaction. Blockchain technology offers a simple and easy way to record events in a way that is immutable and tamper-proof thanks to five capabilities:

•       Smart Contracts: Codifying agreements that underpin transactions

•       Tokenization: Turning assets into pervasive digital twins

•       Provenance: Tracking of the status and location of assets that change custody

•       Digital ID: Managing digital identities across the value chain

•       Certification: streamlining certification for safety and security.

What are some additional benefits of using Blockchain?

  • Remove information uncertainty. Thanks to its immutable data structure, cryptography, and verified transactions, Blockchain eliminates mistrust and the ‘blame game’ among stakeholders and aides conflict resolution.

  • Optimize Ecosystems. Thanks to traceability, everyone has visibility to a complete history of transactions by all parties (as dictated by agreed-upon authorization defined in a Blockchain Smart Contract.)

  • Unleash Ecosystem interoperability. Blockchain promotes disruptive visions for better analytics of process related business decisions. It also can help break down information silos, and enable fast and easier business transactions.

  • Blockchain in aviation becomes a self healing network. As you can imagine, with dozens of companies contributing to the maintenance and operation of an aircraft, we may encounter a part that has a record on the chain but goes “dark” when it’s handled by a non blockchain participant. As soon as that part is handled by a participating member, the information gap is efficiently and successfully “closed”.

Where is Blockchain useful?

Blockchain is useful when external parties do not fully trust the information provided to them but need to share data. There have been several blockchain trials and experiments in aviation, but often they are conducted between a trusted OEM and supplier, or between airlines that already cooperate in an alliance or in a joint-venture. When all the parties working in a blockchain have an established relationship built on trust, blockchain is not needed. In today’s world where dozens of companies support the maintenance and operation of a single aircraft, trust and data sharing become critical and blockchain becomes useful.

How does Blockchain ensure data integrity?

Blockchain ensures that the data transactions within will be executed exactly as programmed, without the possibility of alteration. This is because the ledger, the core data store in a Blockchain system, is immutable and irrevocable. Thanks to the redundant distributed nature of Blockchain, there is also no single point of failure.

Immutability and irrevocability are achieved through the rapid, fool-proof detection of attempted tampering of Blockchain data, and through the redundant distribution of Blockchain data. If a node in a blockchain is tampered with, the design of the Blockchain ledger will provide quick detection, and the tampered node can then be quickly restored from another unmodified node thanks to Blockchain’s redundant distribution. Proper Blockchain system design successfully minimizes the risk that all nodes can be tampered with in unison.

Rapid detection of attempted tampering is achieved by Blockchain’s unique data structure. Once a verified transaction is entered into the Blockchain, the transaction’s data is time-stamped, cryptographically hashed, and added to the blockchain as a chronological appendage. The hashing process of a new “block” of data also incorporates meta-data from the previous block’s hash, creating a “chain” of hashes going back from the most recent transaction to the Blockchain’s genesis. If data is altered in any one block, its hash would change and instantly invalidate all of the chained hashes in the Blockchain, providing for rapid, fool-proof detection.

Does Blockchain need an intermediary?

In a traditional shared data store, a trusted third party would be relied upon to intermediate transactions. This intermediation creates additional costs and slows down processes, and the third party must maintain a high level of confidence by all stakeholders that it is doing a good job as a neutral custodian or steward of the shared data. In contrast, a Blockchain, due to its proven immutability and distributed design, allows multiple parties to share data without the intermediation of a third party.

The SkyThread Blockchain, with intended oversight by an independent consortium, is a deployment of a private blockchain paired with a central authority. However, the role of such an authority is to set data standards, to ensure fair usage of the blockchain, to audit transactions when necessary but not to directly intermediate or adjudicate transactions.

Where is my data?

Physically, data in a Blockchain is replicated across the different nodes that make up the Blockchain. In a Blockchain, nodes leverage a common ledger platform, such as HyperLedger Fabric, and it is common for ledger platforms to sit in high availability, global cloud environments such as AWS or Microsoft Azure.

In private Blockchains, it is common for nodes to establish consensus on requirements pertaining to the physical storage of blockchain data. It is SkyThread’s intent that the independent consortium will set requirements for SkyThread Blockchain data storage. SkyThread is also building in strict controls for data owners to ensure that their data will be placed only where they want it and that their data will only be accessed by owner-approved actors and only for owner-approved uses.

How does Blockchain enable traceability and audits?

The timestamped data in a Blockchain makes it easier to verify and track information. Blockchain also creates the basis for a highly secure audit trail, as it provides a common source of information, allowing users to instantaneously exchange encrypted data.  This timestamp will also provide SkyThread with the ability to create a Digital Twin of any aircraft at any time for analytics and part forensics.