Blockchain, a common data file or ledger for transaction history that cannot be altered, has the potential to change how business aviation companies manage their data, AeroChain founder and CEO Anthony Shook said.
Shook’s company developed an open source, layer-two blockchain for aviation.
Speaking recently at the NBAA (National Business Aviation Association) Business Aviation Convention and Exhibition Innovation Zone, Shook gave examples as to how blockchain could be applied in the industry.
Applications include storage and maintenances of employee records and payment systems.
Blockchain is more secure than encryption methods, Shook said, making it a viable option for transactions and payments. Each currency has its own blockchain. This prohibits money from being spent twice and provides more security.
The best known blockchain-based payment methods are Bitcoin and cryptocurrencies.
“There is some volatility in the market right now, but you still might want to consider transacting in cryptocurrencies, which provide a more seamless way to conduct transactions and may attract new clients,” Shook said.
The biggest challenge to blockchain is the changing value of currency in a short timeframe. To overcome this, Shook recommended business aviation companies set up a blockchain account and build a buffer. The buffer can help mitigate sudden changes.