Banks can either embrace digital transformation with cutting-edge tools or risk becoming obsolete. Central to this transformative landscape is blockchain technology. Originally the backbone of cryptocurrencies such as Bitcoin, blockchain has evolved far beyond its initial application.

With its decentralized, transparent, and immutable nature, the use of blockchain in banking presents an enticing prospect for financial institutions seeking to optimize their operations – and expand their customer offering.

Common Problems in the Banking System

It’s no surprise that banking behemoths worldwide are pooling resources to explore this technology’s potential. Collaborative research and innovative initiatives are setting the stage for a banking ecosystem where blockchain isn’t just an afterthought but a core part of operations. But what are currently banking’s biggest challenges? Here are a few examples:

Ensuring Consistently Secure and Transparent Transactions

Blockchain applications in banking technology offer several key advantages in the banking sector. Firstly, it ensures secure and transparent transaction recording, a leap from traditional banking, where transactions are logged in a centralized database.

The blockchain operates on a semi-decentralized system, permitting only trusted entities to host validating nodes. This design minimizes the chances of the entire system getting compromised from a single weak point, thus curtailing the threat of fraud and cyber–attacks.

Inefficiency Caused by the Use of Intermediaries

Furthermore, blockchain technology in banking can significantly enhance efficiency and diminish expenses. Traditional banking processes involve intermediaries like clearinghouses and custodians, which extend the time and cost of transactions. With blockchain, the need for these intermediaries is drastically reduced, facilitating swifter and more economical transactions. Such efficiency can translate to substantial cost reductions for both banks and their clientele.

The Slow Process of Settlement

Banks often grapple with protracted settlement procedures riddled with numerous intermediaries. This is where the application of blockchain technology in banking can shine. The cumbersome processes inherent to traditional banking can be sidestepped using blockchain as opposed to centralized processing methods. As a result, transactions are not only traceable within hours instead of days but also streamline operations for both banks and customers, ensuring quicker turnaround times and more straightforward procedures.

7 Blockchain Benefits in Banking

There’s a long list of banking challenges that can be addressed by using blockchain banking solutions. Just a few of the use cases we see include:

Enhancing Security

Banks commonly face cyberattacks, technical glitches, and human errors that expose customer data. The use of blockchain in banking improves security through cryptographic protection for identity verification and data distribution without the need for intermediaries. Furthermore, blockchain reduces data breach risks by eliminating single points of failure. Smart contracts offer automated transactions, adding another layer of security.

Payments

Cross-border payments can benefit from blockchain’s direct lender connectivity, sidelining intermediaries like SWIFT – while SWIFT’s past vulnerabilities also make a clear case for blockchain applications in banking. Blockchain transactions are secure, fast, and low-cost, making international remittances more efficient.

Accounting, Audit and Error Reduction

Blockchain’s immutable records streamline accounting and audit procedures, likely enhancing regulatory compliance. Smart contracts manage exchanges, minimizing trust issues and reducing errors.

Overall, blockchain has the capability to ensure more control and implement further safeguards, drastically minimizing the risk of fraud and improper use of company resources. With blockchain, every transaction is transparent and easily verifiable, leading to more consistent and accurate processing by banks.

Lending and Borrowing

Blockchain in banking could revamp traditional lending by improving verification, reducing bad loans, and bolstering KYC and AML measures. Likewise, syndicated loans, which require multiple banks’ coordination, can benefit from blockchain by sharing KYC and AML data.

In conventional systems, it can be a tedious process for lenders to assess a borrower’s credit history, especially since detailed credit reports from third-party bureaus might not be available for many small business operators. Blockchain, on the other hand, introduces mechanisms that can enhance the accuracy, transparency, and secure sharing of credit histories.

Trading

Blockchain can revolutionize clearing and settlement in trading, reducing costs and increasing efficiency. When thinking about trade finance, blockchain also has a role to play because blockchain can digitize the paper-heavy trade finance sector.

Trade finance, an industry still reliant on outdated paper processes, can take up to 120 days for individual transaction processing, but blockchain offers a solution by digitizing the trade finance lifecycle, enhancing security, transparency, and efficiency, and modernizing document authentication and financing structures.

Asset Management

Blockchain impacts asset management by streamlining asset and stakeholder processes. It enables automated fund launches, digitizes assets for better market access and liquidity, and integrates customizable privacy settings for secure transactions.

Additionally, blockchain enhances user experience by embedding shareholder rights into digital assets, which reduces human error and promotes transparent governance. It fosters efficient cap table management, automated fund administration, and transfer agency in asset management. 

Enhanced Compliance

The immutable nature of blockchain also bolsters compliance. By granting access to auditors and governmental authorities, every transaction can be viewed with unparalleled transparency on the blockchain.

Moreover, banks have an improved capability to detect and flag suspicious transactions swiftly, making the auditing process more efficient. This advancement benefits financial institutions and fintech companies alike, as they can now furnish digital records promptly, facilitating a swifter and more straightforward audit.

Popular Cases of Using Blockchain in the Banking Sector

Now that the benefits of blockchain in banking are clear, let’s take a look at a few use cases of blockchain in banking. In this section, we look at two most illustrative examples: CBDC projects and Onyx by JPMorgan.

CBDC Projects by Various State Governments

These days, Central Bank Digital Currencies (CBDC) are undoubtedly the hottest blockchain-related trend in banking. The concept of implementing digital tokens instead of physical tokens – banknotes – as national currencies has drawn global interest. That’s why more and more countries are actively researching the benefits and potential flaws of digital currencies issued by central banks.

One of such countries is Australia, where the Reserve Bank has conducted a CBDC pilot program. The results of this program outlined four financial aspects that can use digital currencies to their advantage. Overall, the potential Central Bank Digital Currency may lead to the following improvements:

• Ensuring uniformity among new types of private digital money. For example, such types include bank deposits in the form of digital tokens, as well as stablecoins backed by reliable assets. Here, the role of a CBDC is to ensure interoperability regarding new forms of digital money. 
• Promoting further innovations in asset markets. The main point of interest in this context is the implementation of specialized platforms using the DLT – distributed ledger technology. It gives the possibility to perform asset tokenization, including real assets, financial assets, and other types.
• Enhancing smart payments. The introduction of a digital token supported by the central bank can enable various complex transactions that are not currently supported by payment systems. Another related possibility here is the rising popularity of smart contracts using CBDCs. They enable performing automatic payments upon meeting certain predefined conditions. For example, this allows performing simultaneous automated transactions between several parties, reducing the need for reconciliation.
• Improving the resilience of the country’s digital economy. CBDCs provide an alternative method of payment for businesses and individuals. The most beneficial feature in this context is that this form of digital money does not require an account in a commercial bank. Additionally, with the help of modern technological advances, it may allow performing electronic transactions in “offline” or emergency situations, for example, during blackouts.

In the case of the Australian CBDC, it represented a direct claim on the Reserve Bank of Australia. However, other countries are actively experimenting with other types of digital currencies and their integration into national financial systems. For example, the Bank of England is currently developing a digital pound or “Britcoin” by testing the features of public blockchains and other distributed ledger types. Similarly, the European Central Bank is preparing the pilot program for the digital euro. 

Now, according to the Atlantic Council, 130 countries have CBDC-related programs, compared to only 35 countries in 2020. Moreover, 11 states have already launched their respective digital currencies. So, as you can see, blockchain technology in the form of Central Bank Digital Currencies is the next big thing in financial systems around the world.

Onyx by J.P. Morgan

In 2020, J.P. Morgan, a subsidiary of one of the largest global banks, JPMorgan Chase, launched its blockchain-based platform. The creators of this platform, called Onyx, aimed at revolutionizing the flow of assets and financial data around the world. For this ambitious task, Onyx uses blockchain technology to enhance and automate various steps of payment and settlement processes. 

Onyx has several components that are focused on providing different services. For example, Liink is a peer-to-peer network for the secure exchange of information. Coin Systems and its JPM Coin are designed to mitigate the flaws of existing payment systems. Digital Assets is a platform that enables converting financial assets into blockchain tokens in order to provide transparency and improve their mobility and utilization.

Overall, J.P. Morgan has surely found a way to integrate the benefits of blockchain technology into the banking sector. Onyx is constantly developing, bringing more services and improvements for its clients. The extensive list of features includes smart contracts with programmable payments, asset tokenization, cross-border, multi-currency, or machine-to-machine payments, and much more.  

Conclusion

As you can see, the banking sector is undergoing significant changes these days. Conventional methods can barely keep up with the pace and demands of the modern world. That’s why even the oldest banks have to undergo digital transformation, including the implementation of blockchains. Banks need technological advances to enhance their services and bring their clients higher levels of convenience, transparency, and security. 

Blockchain isn’t new, yet its potential in banking has still not been fully explored because of the industry’s conservative view and behavior. The fear of experimenting with blockchain and other technologies is fully understandable because of the risks. However, refusal to adapt to modern rules and technologies will very likely bring significant challenges in the future.

As a company that has 15+ years of experience in creating digital solutions (including blockchain-based) for the banking industry, we are open to collaboration with businesses of all sizes. A Neobank startup or an established fintech enterprise – we can satisfy every business need in blockchain and technology.

Our blockchain consulting and development services cover a wide range of solutions for banking, fintech, insurance, and many other industries – DApps (distributed applications), smart contracts development and audit, wallets and exchanges, AML/KYC compliance, and a lot more. If you’re looking for an experienced and reliable team that can build complex solutions from scratch and integrate them in your banking ecosystem, don’t hesitate to drop us a line and tell us what you need. 

Use all the advantages of blockchain to the fullest with Intellectsoft!

The post How Blockchain Changing the Banking Sector? appeared first on Intellectsoft Blog.

Both AI and blockchain have the power to revolutionalize traditional industries, and it’s common for key executives to examine these technologies with interest and fear.

At the same time, the zest of insurance companies in AI and blockchain is weaker than on average, comparing to other market sectors.

As Deloitte states, only 1.33% of insurance vendors actually bought AI tools; it’s more common for them to pay attention to the internet and software — the indicator here is 32%. When it comes to blockchain, the technology itself is mostly associated with decentralized finances, digital currencies, and the banking sector.

Nevertheless, it’s applied in insurance too: out of 200 blockchain solutions registered by McKinsey Panorama FinTech 20 were insurance-related. And their number is increasing with the growing interest and better understanding of these technologies.

In general, blockchain and AI still demonstrate relatively weak positions in insurance, comparing to the other industries. Due to these frequency lagging and additional implementation problems, we’ll show in which technologies you can invest today to gain an immediate competitive advantage.

What’s the Main Application of AI in Insurance

The ways AI improves the regular processes in insurance are numerous, but all of them are closely connected with data management.

In the current age of “datafication” of businesses and the growing power of Big Data, AI provides sophisticated yet intuitive tools for processing the information and drawing relevant insights. You can use them for your own good in many ways.

In the insurance sector, AI can help change the approach in data management from primitive data gathering to its effective processing.

For example, you can get working software to provide custom insurance packages to the clients based on the personal data collected during the entry surveys. It can advise car insurance based on the number and characteristics of clients’ automobiles. Or you can offer a particular health insurance package linked to the lifestyle specifics of each customer.

And all these advantages and personalization — without the need to spend time and human resources doing all the paperwork, linking a CRM software, learning your personnel how to work with it, and gathering the team of analysts to provide the insights.

AI can do everything by itself to give you concrete answers to the question “what to do with terabytes of data we’ve been collecting for years”. And an important next step: the technology can transform all these insights into repetitive tasks.

Just imagine how much time it saves you on doing some other important business tasks! That’s the competitive advantage essence of AI in insurance.

How Blockchain in Insurance is Applied

The short answer to the question “what is blockchain insurance?” is smarter financing. Its perspectives go far beyond money management and include higher customer engagement, better scaling, and effective digitalization.

In short, blockchain for insurance means the greater power of customer-controlled personalized data.

Thus, the main good the technology brings is to empower the traditional models with highly innovative and personalized solutions. In particular, you can manage records and process payments faster.

Another set of advantages includes better budget management, risk mitigation, improvements in customer service, and building mutual trust in communication with key stakeholders.

In practice, blockchain provides insurers with the effective tools to prevent frauds, simplify the application process, improve directory accuracy, and create records with full customer profiles.

Top 5 AI Insurance Examples

Here’s the list of key AI insurance services and innovations you can invest in these days to gain a competitive advantage in the market.

AI in Auto Insurance

In the automotive industry, an AI insurance company can offer a customized approach. As a special service, you can adapt your current process and prepare to switch to self-driving cars in the near future — as the Coronavirus global lockdown in 2020 showed, it’s important to be ready to implement new working models immediately.

In general, AI technology can assist in getting new revenue streams and being in touch with your clients through chatbots and customized communication templates.

AI in Life Insurance

When it comes to your personal life, AI can provide relevant insights with automated input management. This tool collects information about clients’ previous life events, along with their frequency, to offer personalized services and packages that really matter.

AI in Insurance Startups

InsurTech is a highly prospective direction of AI insurance development. Small firms like Clover, Fabric, GetSafe, and Trov offer selective software services on a decent level to cover the growing interest of insurance executives in the technology.

Among the solutions offered, you can request claims-handling chatbots, smart consulting on insurance packages, and quotes generation.

Lead Generation

AI insurance can help in attracting new clients and turning them into sales appointments. The software can scan social media, forums, and email databases to search for potential leads and offer them insurance services.

What’s more, the intelligence component in the technology can reveal itself in making a highly personalized message with the pre-designed template.

For example, it can offer travel insurance to a person who announced on Facebook he’s about to visit a foreign country. All the processes will happen automatically.

Fraud Management

AI can prevent severe fraud-connected problems in insurance companies. In this case, the technology will investigate the possible factors and threats while handling claims to get an objective picture of the previous events.

If a person claims he became a victim of an earthquake somewhere in Mexico, AI will scan the news from this country to check whether an earthquake actually took place and who were the victims according to the hospital reports.

This way, investing in AI technology will save money on paying investigators and covering frauds.

Blockchain in Insurance: Use Cases

Blockchain and insurance together create several interesting examples. Here are the exact things insurance blockchain startups can do.

Blockchain in Life Insurance

Like AI, blockchain can facilitate dealing with life insurance. In the case of this technology, its main strength is providing extra cost-effectiveness.

Smart contracts effectively track and deal with insurance on the micro-level, thanks to its regulated decentralization principle. As another dimension, the devices from the Internet of Things (IoT) world can assist insurers in tracking threats and preventing frauds.

Customer Engagement

One of the main problems at the stage of data collection is the unwillingness of clients to give sensitive answers to insurance agents. Blockchain can assist you here.

By guaranteeing higher protection and greater control over personal data, the technology encourages clients of insurance companies to share their information freely. You can request it as Know-Your-Customer (KYC) data service, where clients not only share identity information on a smart contract basis but also re-use it for faster and safer verification in other companies.

Blockchain in Auto Insurance

The technology can bring the payouts on auto insurance to the next level. For example, in the case of a car accident, both sides will get the necessary information to build trust: a client will get an immediate payout, while the insurer will see that the car is repaired by a licensed service provider.

In contrast to traditional models, blockchain can do it faster and through a credible network, which significantly increases speed and customer satisfaction.

P2P Insurance Operations

Smart contracts can increase customer satisfaction with insurance services when it comes to immediate payouts and claims handling. This use case is implemented by P2P flight insurance from InsureETH.

The startup offers software that scans flight information from verified sources and provides automated insurance coverage for a delayed or canceled flight.

This way, the insurance company and the client can save time and nerves during appointments and handling extra paperwork to get compensation.

Greater Cost-Effectiveness

Blockchain can save insurers money on various stages of the working process: while identity verification, checking contract terms, reporting claims, and collecting data from third parties.

In this context, it can cover the tasks normally handled by several executives in a firm and reduce the negative effect of a possible human mistake to a minimum.

Main Challenges of AI and Blockchain in Insurance

In practice, AI and blockchain complement each other: while blockchain offers advanced tools to gather information, AI can process and analyze it effectively. Nevertheless, many companies face severe implementation problems while trying to apply them both simultaneously.

In theory, the technologies sound like a brilliant idea — but it’s not easy to apply them smartly. Thus, first and foremost, it’s important to find a reliable vendor who can introduce AI and blockchain skillfully.

AI Limitations and Implementation Problems

To work in a satisfactory manner, AI needs lots of data. If your insurance company is not accustomed to collecting masses of information from clients, AI tools will have nothing to analyze and provide insights from.

In this context, it’s important that all this data is closely linked to both organizational and customer needs, meaning that information should be both relevant to insurance company activity and be about your client.

If you offer life insurance, it’s important to clarify all the risky things your client does. But checking the breakfast preferences is not a relevant question in the survey.

Blockchain Limitations and Implementation Problems

Blockchain needs certain pre-defined conditions too. Like AI, blockchain reveals its best in complicated transactions that involve numerous parties and complex reporting.

If your insurance company relies on direct transactions and has a trusted intermediary you’re totally satisfied with, you don’t need this technology. Moreover, blockchain can bring you problems in terms of scalability, safety, and standardization.

In particular, it’s not recommended to implement it for all your financial operations at once — as its consensus-based validation is not adapted yet to fast growth.

Besides, specific cyberattacks and the need to develop standards from scratch also call for taking a wise approach and switch to blockchain step-by-step and at a moderate pace.

Insurance Industry Limitations and Implementation Problems

In addition to technological complexity, the insurance industry itself is not totally ready to switch to AI and blockchain. Here, the main problems refer to data collection, the power of traditional approaches, and prejudices towards new “unknown” technologies.

Considering the essential need for cooperation during the early implementation stage, these factors can become a severe obstacle and the main reason for failure.

Among the stakeholders whose involvement is critical, consider C-level executives, tech startups, regulators, and customers. To facilitate the process, attract a software development consultant from a reputable company.

How to Implement Blockchain and AI in Insurance

If you need consultation on the need and perspectives to implement AI and blockchain in your business, feel free to contact us! We, at Intellectsoft, can recommend and build for you the requested solution and offer a wide range of extra custom insurance software development services.

You can choose the one you need by yourself or after talking to our consultant. Contact our experts and find out more about AI and blockchain technology in insurance and how your insurance company can start benefiting from them today!

The post Top Services Empowered by AI and Blockchain in Insurance: Tools You Can Request in 2021 appeared first on Intellectsoft Blog.

It’s worth noting that such a statement resulted in 5% Bitcoin value growth.

At a present moment, the purchase of Teslas is possible on the territory of the US only, but soon we expect the opportunity to pay for it with Bitcoin all over the world.

Bitcoin as well as the overall blockchain technology still stays on top and it will only keep gaining momentum after the latest news.

 Blockchain technology has a powerful potential to introduce a new level of transparency, automation, and efficiency for businesses and can be implemented in various ways.

Most organizations find it challenging to understand and apply the full power of Blockchain and DLTs to get tangible business results.

Our team is passionate about utilizing our technical capabilities, experience, and product mindset to help our clients effectively extract real business value by implementing blockchain and DLT across their organization.

We have access to the biggest pool of blockchain engineering, cryptography, and cybersecurity talent in Eastern Europe.

Intellectsoft’s expertise has already helped dozens of SMBs and enterprises including E&Y, London Stock Exchange, The World Bank, Nestle, and Shell.

Feel free to discover more about Blockchain Technology from our webinar where we will give you an exhaustive overview that will help you learn more and implement blockchain solutions for your enterprise.

The post Buying Tesla with Bitcoin: the Never-Ending Potential of Blockchain Technology appeared first on Intellectsoft Blog.

In “PART 2”, we’ll keep revealing two more strategies and sharing scientific data, so you can be sure to include all the necessary details when you create your next fintech strategy.

5 Fintech Strategies for 2021: Summary

1. Real-life adoption of Big Data and enhanced analytics
2. Changing and shifting legacy systems
3. Move to online banking
4. Developing blockchain and platforms
5. Automatic robotic processes

Blockchain Solutions

Blockchain is among the technologies that shape the world’s future. It’s already the core of numerous innovations and is about to define the digital landscape of 2021 in 4 ways:

• ICO Launch Support
• Cryptocurrency operations
• Smart Contracts
• Identity Management

2020 Global Blockchain Report by Deloitte shows that blockchain has turned into an integral part of organizational innovation as “a top-five strategic priority” for companies. Among key advantages already offered, these digital solutions contribute to cybersecurity empowerment and the DeFi (decentralized finance) development. In a broader social context, the know-how helps establish sustainable food safety, provide digital identities to impoverished people and refugees, and prevent uncontrolled weapons tracking.

For businesses, blockchain solutions promise significant facilitation and productivity boost. For example, it helps to trace the lost and previously unnecessary data for accurate decision-making. Also, blockchain is irreplaceable in ownership protection, providing easy-to-track distribution that protects the rights of creators. Finally, the technology shapes the future of transactions, with further development and greater popularity of smart contracts and cryptocurrency operations.

Robotic Process Automation (RPA)

According to McKinsey insights, the adoption of robotics automation technologies has accelerated during the pandemic, especially in processing workflows. In 2021, we expect to witness the growing popularities of these RPA technologies:

• Account reconciliation,
• Automated mailers,
• Monthly account reviews, and
• Regulatory reporting.

In essence, the installation of robots is already a new industrial trend. Even though Hollywood movies tended to dramatize the situation with apocalyptic movies, reality shows that humans and robots work well together. With the robots’ involvement, it’s possible to simultaneously do the job or delegate certain processes and tasks that are better completed if done automated.

The reality of social distancing makes robotic process automation a good solution not to stop manufacturing. Moreover, it can serve as the basis for remote collaborative coding and any other way of automating the routing processes remotely. As another core use case, the RPA industry helps to deal with staff shortages. In particular, it can cover the elementary tasks of entry-level personnel effectively.

The Future of Fintech: How to Make It as Bright as It Seems

Of course, nobody knows the future. We can only make predictions from the current dynamics and prepare for the possible changes based on these forecasts. By taking into account the statistical data from key analytical centers and our experience in the field, we see the future in financial software — with or without Coronavirus, this black swan factor of today.

To make the most of Fintech opportunities, we recommend picking the IT partner who knows how to help you grow. You can refer to us. At Intellectsoft, we offer a wide list of financial software development services — including online banking, blockchain & cryptocurrencies, digital wallet apps, AI and ML solutions, securities trading automation, and RPA enhancements.

Talk to our experts and get a personalized recommendation on the benefits Fintech can bring to your business!

The post 5 Most Promising Strategies For Financial Software Development in 2021 [Part 2] appeared first on Intellectsoft Blog.

FinTech companies and startups’ changing dynamic forces them to be more adaptive to stay afloat or pivot during these difficult times. Financial institutions from all over the world change the way people practice their finance. These are all credited to the growth of new digital trends such as Cryptocurrency, Contactless, Trading.

The upcoming webinar “The Future of FinTech: Insights, Trends, and Use Cases Defining the Industry in 2021” offers fintech visionaries access to the unique resources for accelerating the infusion of digital finance in their business.

Throughout the live 45-minute talk, our top minds will develop a robust digital fintech blueprint for the financial companies, tapping into Intellectsoft’s IT expertise and know-how of the fintech sector.

Register Now

In this webinar, you’ll hear from industry experts who will discuss five promising trends shaping the fintech industry in 2021, including:

• Online banking
• Mobile wallets
• Cryptocurrency and blockchain
• Artificial intelligence and machine learning
• Trading and securities

The webinar also reveals never-before-seen use cases of emerging technologies for digital finance and generates a common language for accelerated collaboration across the executive’s organizations. Participants explore a strategic overview of real-life solutions application, leaving with a strategic roadmap that ensures sustainability across all the stakeholders.

Emerging FinTech trends that are most likely to impact fintech businesses in 2021

Learning Outcomes Include: 

• Exploring global fintech trends every leader should look out for in 2021
• Revealing how to make your fintech business stand out in the post-digital world
• Discovering today’s featured examples of Intellectsoft clients’ technology solutions that can help you provide better and more efficient services
• Discussing how to evolve in 2021 using emerging technologies and more efficient solutions

Meet Your Hosts for the Webinar: 

After the webinar, all participants will have a chance to discuss the topic with our experts in a Q&A session.

Click here to sign up and learn more about the webinar.

The post Webinar: The Future of FinTech. Insights, Trends, and Use Cases Defining the Industry in 2021 appeared first on Intellectsoft Blog.

How mature is blockchain in healthcare, and what are the barriers to adoption? Blockchain for healthcare ranks as the number four industry of interest. Moreover, the International Association for Trusted Blockchain Applications (INATBA) creation allowed engaging all stakeholders in a practical discussion on blockchain solutions for health.

Ways Blockchain Is Taking Over the Modern Healthcare Industry

How Will Blockchain Affect the Cost of Healthcare?

Master Patient Index and Cost per transaction. There is an overwhelming amount of duplicated data, which translates into additional storage cost. Furthermore, over 50 different electronic healthcare record (EHR) software systems operate in various hospitals, sometimes in the same city.

MedRec by the MIT team, for example, is offering a transparent and accessible view of medical history. Their project runs on the Ethereum blockchain and is currently under development in partnership with a newly-established Healthcare Information Technology Center in Israel. Simultaneously, it is running tests of a data set from Beth Israel Deaconess Medical Center.

Taken from MedRec

What Healthcare Data Should Be Put on the Blockchain?

Notably, not all information should be stored within the blockchain, but a distributed ledger can help manage the data more transparently and securely. For instance, IBM is disrupting veterinary medicine by allowing to create and store USDA certificates on the blockchain.

Apart from certificates, there can be proofs of ownership and timestamps of environment conditions, so critical for logistics in the pharmaceutical field. IBM is also working on this in partnership with KPMG, Merck, and FDA.

Finally, mass-market gadgets like smartwatches and fitness trackers can track patients’ state of health. Connecting them with EHRs throughout a lifetime makes it more efficient for the insurance industry to evaluate risks and calculate premiums.

How Has COVID-19 Pushed for Blockchain Adoption?

McKinsey has reported that the COVID-19 pandemic had accelerated telemedicine usage, rising from 11% to 46% in the US consumer adoption. According to them, around $250 billion of current US spending on healthcare could be virtualized.

Gartner reports that healthcare blockchain use cases include a digital asset market amid record-keeping and increasing efficiency. Learn how the Ocean Protocol has aided governments to collect and interpret critical data for improving healthcare.

X-Ray vision by the Ocean Protocol

Will Patients Own their Data?

To say that data access will improve is an underestimation. Having full ownership over your medical data will be more user-friendly and less time-consuming. A recent case is an EU-funded project MyHealthMyData, which is exploring how sensitive medical data is shared.

How will the interaction with doctors be affected? Taken the rise of telehealth, there will often be no need to interact with a doctor to access personal data. Moreover, blockchain will improve healthcare with its key features.

An excerpt from the McKinsey report

Adopting Blockchain in Healthcare

Privacy and Security

With regulations like GDPR and HIPAA, patient privacy is not optional but a default. Organizations that operate with identifier and health information – hence, protected health information (PHI) – can leverage blockchain for such properties as

• Confidentiality
• Integrity
• Availability

Performance and Interoperability

Current healthcare interoperability standards – HIE (Health Information Exchange) and HL7 FHIR (Fast Health Interoperability Resources) – can be used at full potential when paired with customizable blockchain frameworks like Hyperledger. They show impressive throughput and scalability when dealing with lightweight metadata, audit, and transaction information.

Deloitte argues that smart contracts can assist with mitigating inconsistent rules and permissions. These contracts are self-executable on blockchain and can automate and standardize the PHI exchange while providing distributed secure access.

How to Deploy Blockchain?

Healthcare legacy systems urge for an extensive infrastructure transition. There are numerous opportunities, as well as challenges. We, at Intellectsoft, empower companies that are looking for innovative solutions.

One way to start with blockchain for healthcare is to choose the BaaS model. Another option is to deploy its network to collaborate with multiple partners and improve medical information sharing between data owners and service providers.

Talk to our experts and find out more about the differences and how your organization can start benefiting from day one.

The post Blockchain in Modern Healthcare. Adopting Real Cases by 2021 appeared first on Intellectsoft Blog.

Summary:

1. Healthcare
2. E-commerce and Online Shopping
3. Entertainment
4. Restaurants and Food delivery
5. IT & Tech Industry
6. Construction
7. Hospitality
8. FinTech
9. Sensing and Shaping the Post-COVID Era

Today, for the global sectors, COVID-19 presents two challenges: largely idled sectors disrupting trade and reduced demand from consumers. A few examples to consider, Chile is reeling from reduced copper demand. Germany — from auto parts shortage.

In this article, we examine how different industries react to business and economic turbulence caused by the novel pandemic through innovation and digital capabilities. We discover this through the example of 8 industries that try to win over the battle using digital and innovation capabilities.

Healthcare

As each industry emerges from its acute response phase, many will find that they are entering a “new normal.” Expect the way healthcare is practiced and marketed to be no different.

Beyond the negative impact of a traditional economic downturn, COVID-19 presents additional challenges — fear from the virus itself, collective grief, prolonged physical distancing, and associated social isolation — that will compound the impact on our collective health.

Reported signs of distress related to COVID-19 in the US.

As the way healthcare is practiced evolves, so too will the environment and platforms through which that care is delivered. There will be new needs that emerge; new content will be needed, in new formats, manifesting in new marketing assets.

Digital Transformation in Healthcare and Other Solutions

There are three areas that healthcare marketing leaders should focus on, as the impact on their business and the subsequent need to adapt will be significant:

• Telehealth

The acceptance and utilization of telehealth services within the US were already on a sharp incline before the COVID-19 crisis erupted globally.  Since then, medical and municipal leaders are leveraging the platform as a tool in combating the spread of COVID-19, accelerating adoption in the process.

From a Payer perspective, CVS Health, Aetna, Cigna, and United Health are just a few of the payer organizations recommending patients move to virtual care – going so far as to waive copays for utilizing the service.

Consumers are showing increased interest as well, with SEMRush reporting a 146.15% increase in searches for “in-home doctor visits” and a 53.97% increase in “in-home medical care” searches.

• Urgent care

Urgent Care Centers are quickly becoming the front door in a person’s treatment journey.  A study from the Urgent Care Association found that a median of 35% of patients utilizing UCCs do not have primary care physicians, reflecting the fact that Healthcare is shifting to much more of an on-demand service. Medicare and Medicaid patients made up almost 27% of UCC patients in 2018, confirming that the shift is not driven only by the young or affluent.

The organization is flanking the physical services with digital efforts, with almost 30% of the landing pages on CVS.com Minute Clinic specific. Not to be outdone, Walmart launched the first of its augmented health facilities in September 2019.

• Almost everything goes online

Medical conferences and congresses are a huge priority for companies in the Health sector. These events are valued by commercial organizations, advocacy groups, and healthcare professionals as key opportunities for medical education, peer-to-peer engagement, and the release of official study data.

While some of those activities have been digitally distributed in parallel, a vast majority of that activity is face-to-face. The COVID-19 crisis is forcing digital transformation in IT solutions for healthcare industry to take new turns.

Intellectsoft Healthcare Solutions

Since healthcare and economic environments force medical experts to take extra shifts, this greatly affects their own quality and safety of life.

The idea behind Intellectsoft’s solution was to empower medical professionals with a simple tool that gives them flexibility, control, and more. We created an on-demand healthcare staffing solution consisting of two parts:

• iOS and Android app with an Uber-like feel (for the Nurse role);
• Web Admin Panel (for Hospital Administrator or Security Supervisor role).

Some of the most significant features included there are a nurse and hospital management, shift management, notification center, data export, etc. Solutions of this kind can be a major stride within the current time frames because they help doctors stay focused on more essential things and certain patients with reaching for treatments.

As consumers and organizations have no other choice, the COVID-19 crisis is accelerating the utilization of digital platforms. While there have been financial, behavioral, and attitudinal roadblocks to adoption in the past, the need to overcome the crisis is superseding those roadblocks and increases the number of first-time users.

E-commerce and Online Shopping

Today, as B2B digital transformation statistics say, online shopping is the fastest-growing slice of the pie, dominating the scene and continuing to invest in digital capabilities.

Traditional, smaller players are also eyeing the online scene. Many traditional small markets have taken to online channels to hawk products, conduct online auctions, and even to carry out customer relation-building, for example, passing tips on how to prepare dishes using their products.

However, most authorities are warning organizations to prepare for the long haul. Virtually every company involved in global trade feels the impact.

Digital Transformation in B2B E-commerce

Digitalization had swiftly come into B2B E-commerce sectors a long time ago. But since recent times the situation has drastically changed, the technologies and trends have changed too. Although some things remain untouchable. Still, most of the E-commerce sales are made through mobile devices (73%). Progressive Web App (PWA), with its native-app-like experience, is also here to stay.

Artificial intelligence, machine learning, personalized customer experience, and predefined analytics — all complement an evolution of B2B consumerization. Data remains the primary fuel for accelerating the development of any organization involved in sales. Focusing on eternal questions: what data to collect and how to process it effectively remains unsolved even today. 

In response to social distancing, many businesses will make their E-commerce operations a key priority.

Solutions

Here is what we suggest you can do right now to mitigate the impact of coronavirus on your E-commerce business:

• Even as early digitalization investments are paying off, the current inability to fulfill delivery of online purchases suggests digitization efforts by businesses have only been focused at the customer-facing end. Supermarket chains should consider integrating their online shopping platforms with the stock-holding information of their physical branches.

• COVID-19 may accelerate the growth of the online grocery sector. People did not just flock to physical supermarkets, but also loaded virtual carts with groceries from online platforms. With government directives to allow workers to work-from-home and to avoid non-essential trips to shopping malls, this trend of online shopping is likely to persist.

• Another possibility is for online shopping platforms to partner with businesses that specialize in delivery fulfillment such as UberEats, Grab, Glovo, and Bolt Food. B2B digital transformation trends are another milestone companies should consider today.

Intellectsoft Solutions in E-commerce

Since 2012, we’ve specialized in custom E-commerce application development, building E-commerce platforms dedicated to client’s needs or modify existing solutions to help scale-up businesses. A multi-category E-commerce platform based on digital tokens is one of the most significant solutions we’ve developed before.

The solution includes a number of software systems released atop of the blockchain network to allow for a seamless experience in different stores. Multiple stores built on top of a shared blockchain network. Merchants can open their account without any extra effort and start selling goods or services for internal cryptocurrency. Customers can securely buy, transfer, and exchange online and offline goods while receiving loyalty points for future purchases.

Get in touch with our top minds to find out how your business can start benefiting from our innovative solution today!

Entertainment

Around the world, COVID-19 is having a marked impact on media supply, consumption, and advertising. Demand for content-streamed, live, and multi-layered — is skyrocketing while new content creation has been largely turned off.

Since cinema and amusement parks across the globe are all shut down for uncertain times, thousands of entertainment organizations suffer formidable losses and fail to receive any kind of income. The outbreak triggered online entertainment and how some companies are finding ways to engage differently with consumers and the new reality.

Digital Transformation in Entertainment

• Demand for all forms of media — TV programs, short-form video, music streaming, and online gaming, particularly in geographies currently under stay-home instructions, has surged. Digital transformation in entertainment is expecting more new turns in the foreseen future.
• The supply of new content may be limited to a few weeks for some formats (e.g., daytime dramas). New TV series currently being launched were completed prior to production sets shutting down.
• Network resiliency and capacity continues to be a focus, as the demand for content surges. In the European Union, streaming platforms are reducing video quality to ensure networks are not overwhelmed and that customers can still view content.
• While sports companies come to terms with a wave of cancellations, many are seeking new ways to reach their customers digitally. Many are looking to eSports or online simulated events to provide content to fans, with even professional athletes engaging in eSports competitions.
• Musicians are going online and relying on streaming platforms as live shows are canceled.

Intellectsoft Solutions in Entertainment

Our partnerships with comprehensive streaming TV, film, and sports apps and websites have brought our clients and us valuable experience and knowledge of this industry.

Our solution was a cloud-based, highly scalable elastic platform with advanced search and ingestion layers functionality to support a multi-million users base with a steep growth curve. Among the most significant benefits our client got were:

• Cloud scalability and elasticity;
• Fast users growth potential;
• Streamlined rich client application.

Restaurants and Food delivery

Despite some concerns, food delivery companies gain their momentum and become a popular option as people practice social distancing. It’s hard to pinpoint exactly how much growth there has been in this sector, but higher demand has led to higher pricing in some areas. What more to expect?

Digital Transformation in Food Industry

Uber, for example, recently provided Uber-only drivers with information on adding Uber Eats food deliveries to their services. Within the first week, around 15% of Uber drivers had completed their first food delivery.

Fine dining establishments, small-town restaurants, and fast foods are now switching to offer delivery services to their customers. At the same time, restaurants that did not previously offer take-outs are now considering this option as never before. Some restaurants choose a third-party delivery service to partner with, and each offer comes with unique benefits.

Uber Eats and Deliveroo, among others, have launched contactless “leave at your door service” to help drivers and customers follow social distancing and quarantine rules.

In addition to understanding already in place strict food hygiene standards, consumers may also be interested to learn if the businesses have:

• New practices for social distancing in the kitchen or during delivery pickups;
• Policy for staff members who display symptoms of COVID-19;
• Changes in food delivery guidelines, such as containers that allow for easier disinfection or better customer experience.

Though it is uncertain where the digital transformation in food industry and the delivery trend will go in the post-COVID-19 era, many businesses are working as hard as they can to ensure they meet consumers’ expectations and remain relevant by providing an excellent service.

IT & Tech Industry

The effects of COVID-19 and are having a significant impact on the technology sector, too. However, the disruption has caused reevaluation on organizations’ business continuity plans (BCPs) as well as the acceleration of remote operations and online meetings. Let’s dive in to see what has changed more and what solutions organizations appeal to remain afloat.

Digital Transformation in IT and Other Solutions

• Companies with remote-working technologies already see increased demand as organizations accelerate their remote-working capabilities.
• Security software will see third-order benefits from a growing remote workforce. Organizations race to secure endpoints, cloud-based tools, log management, and VPNs. So, IT spending on security software will increase too.

• Due to enhanced remote work scenarios, IT digital transformation will play a larger role in future BCPs. Thus, CIOs and senior management will need to ensure a resilient, secure network, disaster recovery systems, and more devices for the ones working remotely.
• The need for ever-faster access to data and automation will drive the focus on network equipment and communications, speeding up 5G network and equipment introduction.
• An increase in the use of tele- and video-conferencing software as more companies encourage employees to commute.

Intellectsoft Business Continuity As Crisis Response

As a part of our Business Continuity Plan, within a couple of days, the global Intellectsoft team organized the smooth transition to remote operation without affecting any core systems and business processes to operate as usual during this period.

As we are always fully committed to continue providing our customers and partners with the products and services they depend on, our senior leadership team remains vigilant and is monitoring the situation in real-time to respond rapidly to continuous change.

Construction

Today, the most vulnerable industries are those lacking digitalization and tech maturity. The construction industry is one of them.

Creating $1.3 trillion worth of structures each year only in the USA, the construction industry remains one of the most under-digitized industrial sectors. Longer-term construction companies across the globe will have to contend with decreased demand as governments face rising deficits, and residential and commercial projects are dampened by unemployment and low GDP growth.

To stay one step ahead of the crisis, the sector requires a different approach to the overall strategy. Digital transformation in construction industry is a burning topic for both — senior management and government. What are the solutions construction companies have today?

Solutions

Today, key questions executives and boards should be asking are: do we need to rethink our company’s digital strategy to remain financially solvent, and how can we use technology to gain operational leverage. And the digital transformation in the construction industry becomes inevitable.

The importance of transformation in different types of construction departments.

Digital Transformation Construction Industry Solutions

The construction giant’s partnership with Intellectsoft has brought us tremendous experience and practical knowledge of this area. We have witnessed how modern technology could transform and improve further processes. It also carried the customer over to the next business development stage, ensuring the company’s end-to-end digital transformation.

We hope to see more and more construction companies implement innovations and disrupt digital transformation in the future, such as:

• Scheduling and resource management system & real-time reporting platform;
• Asset tracking and management system;
• Vendor ecosystem & compliance solution;
• Decision-making dashboard based on Big Data analytics.

Join us at our upcoming Construction webinar hosted by industry top minds on Thursday, April 23, at 12 p.m. Eastern time. 

Register for Webinar

Hospitality

Hospitality is taking proactive financial steps to mitigate the huge impact. It’s obvious today, both revenue and supply chains will be affected the most. Hotels, restaurants, theme parks, cinemas all went silent. The entire disruptive effect of the hospitality industry will have a significant, tremendous impact on the global hospitality industry and economy. And there is a question hangs heavy in the air — can digital transformation in hospitality industry change the rule of the game?

Solutions

Despite this, hospitality shows its maturity level: in working together, showing their true hospitality commitments in helping out our society where they can. Technologies like artificial intelligence, big data, connected devices, virtual and augmented realities are shaping the hospitality industry as we speak.

Only during the last two decades dozens of industry disruptors, such as Airbnb, Skyscanner, and TripAdvisor, have appeared on the market. Companies and organizations are expected to get out of the crisis more digitally mature, and those ones who find enough strength to focus on digitalization — are going to win the race. Here are some of the steps to consider today:

• “We may be apart, but we’ll get through this together,” says Airbnb experts introducing 50 new online experiences with unique activities for their customers. The home-sharing platform curates free online experiences to inspire people and stay afloat.

• Smart automation confidently moved into the industry through the Internet of Things technology. It has improved not only the convenience and comfort standards for clients but also reduced costs for businesses and organizations.

• Robots that handle food preparation and delivery, predictive analytics, and cloud storage — are the next big moves for automation in the industry.

While the COVID-19 shutdown has brought the industry to a standstill, it is also an opportunity for the companies to reevaluate their digital strategies and map out the right path ahead.

Intellectsoft Digital Transformation in Hospitality

From ordering concierge services in one tap to booking golf courses in less than a minute, our expertise in the Hospitality industry has an extensive history. Despite COVID-19, consumers continue to demand improved solutions and unique experiences. However, today the lockdown hit a stop button for most of the industry players.

During our long-term partnership with some of the key market players, we’ve witnessed that digital transformation remains one of the key drivers of industry growth today. Here are some of the solutions we’re proud to design for our clients:

• Turnkey solutions for the entire hotel;
• Internet of Things ecosystem that connects all amenities and guest services;
• Created an app that adapts to suit type;
• Comprehensive IT audit for software systems;
• Streamlined system, eliminating bugs, and making necessary improvements.

FinTech

Digital-only becomes the new industry norm in financial services, greatly accelerating a trend that started in the last decade. Digital transformation in FinTech triggers a “Big Pocket” battle between incumbents and challengers to win the (newly) online customer. Financial Institutions turn to Tech companies rather than in-house solutions to accelerate digital transformation.

Digital Transformation in FinTech

FinTech sector winners:

• Consumer and SME lending platforms: best-adapting mechanism to swiftly and efficiently deliver capital to key segments of the economy;
• Mortgage and life insurance digitalization: leaping forward with technology to disrupt the role of intermediaries, whose role was often face-to-face.

FinTech’ enablers’ around AI, IoT, and software solutions are in high demand:

• AI: bots for call-centers; account-opening procedures; loan automation;
• KYC: increased need for safe digital ID given volume of digital business transacted and robust solutions required for the protection of client assets.

Sensing and Shaping the Post-COVID Era

Crisis often leads to changes. This time is no exception. The shifts in social attitudes and behaviors we see today pave the broad path to new opportunities and ways of living and working. Some of which is here to stay with us in the long run. Some of which disappear right after the crisis is gone.

Crisis often leads to long-lasting changes. Source: BCG Henderson Institute.

Nevertheless, some changes show a positive dynamic. For example, we see a greater focus on crisis preparedness, system resilience, social inequality, social solidarity, and access to health care. These attitudinal shifts could, in turn, be reflected in significant policy shifts in many areas, including trade, border controls, health care, crisis preparedness, foreign affairs, employment, and social welfare.

This pandemic shapes new social norms and drives new social rules that humanity should get prepared for starting today. We, at Intellectsoft, empower companies and their workforces with innovation services and approaches to help them survive during these times. Are you and your organization looking for some? Talk to our experts and find out more about the topic and how your business can start benefiting from it today!

The post Digital Disruption: The Industries’ Way of Survival During the COVID-19 Crisis appeared first on Intellectsoft Blog.

Digital transformation is, no doubt, one of the key drivers of industry growth today. But since the sudden COVID-19 pandemic outbreak hit the “pause button” hard-full stop, the hospitality industry especially is losing its positions day after day.

Nevertheless, consumers always continue to demand improved solutions and unique experiences. The industry is rapidly adopting new technologies to exceed their expectations and digitize the customer journey with one-tap check-ins, digital concierge services, voice-activated devices, chatbots, smart in-room technologies, advanced analytics, virtual-assistant platforms, enhanced direct bookings, and more to come.

Travel. Transformed.

Many companies from the hospitality industry are still only entering the new exciting world of digitalization. To create a more seamless guest experience, more hotels automate and streamline the travel processes, developing the advanced tools necessary to capture the full potential of data.

Moreover, considering that millennials are increasingly dominating the travel sector, hospitality companies should be prepared to curate and personalized travel offerings and to make a data-enabled transformation work. This generation of tech-savvy travelers prefers using apps for bookings and getting more personalized interactions. The cultural change, as well as the long-term impact of automation, machine learning, and even robotics, are here to stay.

Intellectsoft’s experts have developed an in-depth overview of digital transformation trends in hospitality and what to expect from hotels of the future presented in this infographics:

View full size

What’s next

Some things never change. Companies powered by data and advanced technologies will always be driven by people. Hospitality organizations are no different. They have to keep pace and grow into agile, reinvent themselves to become more relevant, and deliver engaging customer experiences.

Leaders have to bring to the fore some fundamental questions about values, cultural changes, privacy, and cybersecurity if they want to keep up with automation and machine learning solutions.

We empower companies and their hospitality workforce with tools like travel AI and chatbots, and data-driven insights to transform into intelligent operations. Are you and your organization ready to shift the mindsets and get the most out of innovations?

Talk to our experts and find out more about the topic and how your business or project can start benefiting from it today!

The post Hotels of the Future: Digital Transformation in Hospitality [Infographic]  appeared first on Intellectsoft Blog.

In the past, Intellectsoft Blockchain Lab has reviewed blockchain technology trends. Generally, they fit within the three waves of digitalization when the first to disrupt the industry are startups and SMEs. During the second wave, the enterprise starts to catch up while carefully observing the market and studying ways to upgrade its business verticals. Finally, iconic corporations from a traditional and overregulated space with gargantuan infrastructure and decades of history begin to accept the new reality.

There is one case from an old good business that urges for blockchain implementation both in terms of cost savings and military-grade security — it’s aviation. In the future, the growth of this sector will depend on the increasing wealth of emerging economies with new consumers representing an astounding 6 billion people. Whereas the next-generation airline fleet introduces opportunities to optimizing operations, it will also require significant investment in the in-service commercial planes.

Why AOG matters: Aircraft Market Dynamics

When an aircraft signals to pilots that something is wrong, there is a delay. The plane is forbidden to take off until the issue is handled and the crew is safe to proceed a voyage. Such cases are commonly referred to as Aircraft on Ground (AOG) situations. It is also when each tick of a clock costs an airline thousands of dollars.

The problem may not concern original equipment manufacturer (OEM) or firms responsible for maintenance, repair, and overhaul (MRO) directly since a planned repair is a different case. But the moment an airline realizes a detail replacement is necessary as soon as possible, it is left one-on-one with the issue. Suddenly, its managers are forced to start searching for the exact piece at the current airport or nearby locations. It can be either an entire engine or a little tube in the lower shell of a fuselage.

Even if the crew gets lucky and their colleagues possess a missing piece, the price may triple or quadruple due to numerous brokers being involved. There is an entire secondary market for aircraft components where managers exchange information upon the request:

• Whether they have the needed part
• Part ID
• Maintenance history
• Rapid shipping availability
• Cost for the part and service

Since the airline loses more when the plane doesn’t operate, it is ready to pay almost any price the seller and a reseller would offer it. Moreover, the process itself is lengthy and costly. It is bizarre and yet true that airlines are eager to follow these bureaucratic procedures and even deliver a single piece using another plane since that still would be cheaper than losing reputation and money from reimbursement.

The problem only gets bigger as Oliver Wyman estimates in-service commercial airline fleet to increase up to over 35,000+ by 2027 from 25,000+ aircrafts today. With aircraft deliveries growing to 20,000 over this period, the retirement of older technology will total 10,000 in six years, resulting in 58% of the new-generation planes. Such a massive technology shift will significantly increase the need for the Used Serviceable Material (USM) market. Increased USM has the potential of reducing material costs for airlines and MROs.

Commercial airline MRO is forecast to grow at a 3.8% compound annual growth rate (CAGR) by 2027. Thus, the market demand will change from the current $80+ billion to almost $109 billion over the 7-year period. In fact, net fleet growth by region will vary: the major growth is observed in Asia, specifically in China and India. On the other hand, North America is going to lag behind Asia and Europe as the third-largest region.

An eBay for Airlines on Blockchain

In the aviation industry various factors matter: the source of the detail, its material type, modification number, the full time of usage and its current state, the history of the detail maintenance since it left a factory and all respective documentation available. Since the novel aircraft technology introduces additional construction materials (such as carbon fiber composites, hybrid fusions, and special coatings), it adds complexity to the MRO market.

New data collection and measurement tools are designed to offer advanced forecast capability. Platforms like Partsbase and E-plane already support this secondary market with a list of millions of inventory items and automated requests for quotations (RFQs). However, the need for properly harnessed maintenance for aviation organizations remains. Service companies must introduce a formalized approach to the necessary level of security that airlines demand and integration with their legacy systems of inventory management.

During a regular SOW meeting with a team of the client company, we presented a Proof-of-Concept for the new generation tracking and procurement system. We responded to the challenge by offering an elegant solution: a blockchain-based marketplace for selected manufacturers and trusted airline partners.

As depicted in the chart above, it aggregates data on ownership movement, parts condition and maintenance history, and is securely shared on a consortium blockchain network. Within such a network, each participant would have a chance to host their own node to enable real-time data security and decentralization. Our “eBay for Airlines” can help take action before a component fails and significantly enhance reliability, cultivate proactive decision-making and reduce costs.

Aviation Procurement Platform: Closer Look

Tech Stack

Our case with the client to deliver a supply chain platform for a revolutionary aviation needed to cover the following goals:

• Military-grade security
• Real-world assets tokenization capability
• Transparent parts and ownership history
• Provenance and maintenance tracking
• Fast search and purchase process

To achieve this ambitious task, we referred to Hyperledger Family of frameworks, in particular, Hyperledger Fabric in combination with modular platform architecture. It is the most mature enterprise-grade blockchain framework with consortium capabilities.

Hyperledger Fabric is an open-source private network with custom logic, simple permission levels, sophisticated queries and mixed data formats. With its medium speed, dynamic block time and block size, absence of transaction fees and native support by infrastructure providers, we chose it as a great fit for the aircraft management and procurement platform.

Platform core services

The system needs to include various vital components to guarantee access and accounts control, transaction validation, asset management, private data management, transaction execution. Specifically, a secured API layer with DDoS protection guards the main point of contact with its database and information exchange. Security and accounts services ensure the validity of digital ID and flexibility of settings to oversee account permissions, limitations and overall access.

E-commerce core engine handles e-commerce functionality management whereas an asset storage service tracks all assets, transactions and requests keeping their status relevant. KYC service communicates with KYC/KYB providers and stores encrypted user data. Notifications service provides multiple channels for communicating with clients: email and SMS.

Finally, the blockchain asset management layer covers all asset history and transactions and broadcasts information to a secured blockchain network. As a result, the history of all successful transactions is stored permanently on an immutable ledger and serves as a rock-solid proof for airline’s activities: MRO, insurance, and asset management.

Payment gateways related services

The irrevocable element of our procurement system is seamless interaction with legacy banking networks such as SEPA, SWIFT, Visa, or PayPal. Notably, the system can be as fast as its slowest chainlink. Therefore, we added a range of options not only for a quick search but also for payment and delivery.

This module covers fiat payments service that acts as an interface to banking service, an international wire transfer service, and localized rates, jurisdiction and limitations details. Perhaps, we will add virtual assets management in the near future. Although, the companies from our case are usually paying with net 60, meaning that even solutions like TransferWise are quite rapid.

On the other hand, the US dollar is currently considered a global reserve currency, especially within aviation. However, the world is changing so quickly that we might witness an emergence of an alternative. As an advantage, our system can introduce ether or bitcoin when necessary.

Shipping services

Shipping is the inevitable part of the process, and our system counts on integrations with the biggest shipping providers to bring maximal transparency and automation. This component enables worldwide coverage and includes:

• Integrations with DHL, FedEx
• Delivery status tracking
• Specific configurations for different locations and jurisdictions

Concluding the AOG Blockchain Case

Intellectsoft has been witnessing how the three waves of digitalization penetrated global industries: first startups, then enterprises and traditional companies. Aviation is among the most regulated sectors; simultaneously, it is the one that calls for radical optimization. We introduced one of the solutions that can save airlines millions of dollars while remaining excellent customer service. It simplifies a complex process of searching, querying, paying and shipping MRO parts in the overly formalized market and promises to achieve a competitive edge to those companies that implement blockchain in their business verticals.

Don’t hesitate to contact our team in order to explore all the potential of blockchain and discuss your project details to see how you can digitalize your processes and services to grow your business.

The post How Airlines Can Save Millions with Blockchain: Case study appeared first on Intellectsoft Blog.