Chicago-based Boeing Company has announced signing an agreement with the Honeywell to track and sell over $1 billion worth of airplane parts using the blockchain technology.

The company has unveiled the partnership at the Hyperledger Global Forum 2020 held in Arizona, USA.

During the event, Lisa Butters, the general manager of Honeywell, said the parts Boeing intends to sell were uploaded to the company’s GoDirect Trade platform late last week.

Blockchain paves the way for trading airplane parts online

The aviation industry has traditionally relied on a web of paper certificates related to airplane parts, details of each part, as well as the original manufacturer and current safety measures.

Since the documents move between several locations, this has prevented the development of online airplane parts market due to concerns about forgery and losses.

Accordingly, GoDirect Trade seeks to open the aviation parts industry to digital commerce. Butters estimated that nearly 3 percent of the $14 billion market is carried out online.

In addition, airline parts are usually resold four times before being decommissioned. This reflects the great benefits of distributed technology in certifying the authenticity of the relevant documents.

GoDirect facilitates $7M sales in first year

Butters said GoDirect Trade has facilitated $7 million in sales during its first year. She expected this figure to more than triple by the end of 2020, explaining that the company has approx. 6,500 registered users representing 2,400 companies.

Butters said:

“GoDirect Trade runs on Hyperledger Fabric. If anyone argues about the fact that this is a permission-based network that is supposed to be decentralized then they are killing the dream of enterprise blockchain before it starts.”

“There is no way you will get Fortune 500 companies participating in blockchain networks and sharing data if there are not permissioned around that. You need some constraints for enterprises to operate in,” she added.

Earlier, Cryptolydian reported Juan Miguel Perez CEO and co-founder of Finboot, a Spanish blockchain software firm, as saying that the corporations that advocate responsibilities for Environmental, Social and Governance (ESG) initiatives should adopt blockchain technology.

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