Russian Airline S7 Pilots Blockchain Use In Tracking Payments For Fuel
One of the most important consequences of the emergence of cryptocurrency and blockchain technology into the sectors of the traditional economy is that the tech is being explored in nearly every conceivable industry for a variety of different ends. As a general rule of thumb, any organization or company that needs to track and store information securely could benefit from the research and integration of blockchain technology into their existing IT infrastructures.
The airliner industry remains one of the most significant in the world, and it has always been among the most important. For travelers, the flying process can be tedious and difficult. But behind the scenes at major international airports, the scene is even more chaotic and difficult. For Russia’s biggest airline company, S7, one major concern in the backend processes of the organization is the process by which fuel use and payments are tracked across the company’s ledger.
Stepping up once again to solve a potential problem, blockchain technology has quickly presented itself as a probable alternative to the concerns of the massive airline company. In an official press release yesterday, the airline remarked that it has conducted a trial run with a blockchain-based decentralized application. Working closely with fuel-supplying company Gazpromneft-Aero, as well as the Alfa-Bank in Russia, the company has successfully used this application to share data regarding both demand and use of fuel on the shared ledger, which all three involved financial parties are able to manage.
For one, the airline hopes that the speed of transactions involved in the fueling process can be increased significantly. This is right up the alley of blockchain technology, which is prized for its ability to conduct unencumbered and quick transactions with minimal transaction fees. Additionally, the airline remarked in their official press release that the tech is able to do away with “a number of manual operations” which typically bog down the payment and fuel buying process.
At its core, this application of blockchain technology serves as a three-way trading operation. The airline, the bank, and the fuel supplier are the only three parties important to the process of selling and buying fuel for the massive jet engines that motivate profit and interest in the former’s business. But in the status quo, the information associated with a transaction must pass through hundreds of hands through the three organizations to even begin the transaction itself.
But with the blockchain, this all changes. Now, an automated system will be used and tracked by both parties to monitor the exchange of information, money, and even fuel. Though it is currently unclear exactly how the exciting technology functions, more information is likely to be released.
S7 is one example of a company embracing the increasing research in the blockchain department. Last year, the company had considered giving passengers their tickets using blockchain technology by Ethereum. Now, this use of blockchain ledger technology will allow the company to re-allocate important resources to more important areas of interest as the automated system handles the tedious parts of fuel purchasing.