Blockchain Powers VeriTX Digital Marketplace for Aerospace Manufacturing
October 26, 2020
plans to develop a digital supply chain
for aircraft parts using the Algorand
blockchain technology. The VeriTX
digital marketplace allows customers
such as the Department of Defense and
commercial airlines to save significant
time and money in manufacturing aircraft
parts and to gain valuable economic and
logistical data that can be used to
maximize efficiency. As the US Army,
Navy and Air Force all move toward a
digital supply chain, the combined
market size for digital aircraft parts
is expected to reach $3.1B by 2025. An
Air Force maintenance commander
estimated VeriTX would yield a 30% cost
savings, 90% reduction in waste, and a
25% increase in aircraft performance
Sellers upload parts on VeriTX platform. All the necessary information such as pricing, specifications, and provenance is included.
Buyers purchase digital parts. The platform enables the exchange of digital assets, which will eventually become tangible in the last step.
Push to point-of-use, then 3D print. For those who do not have 3D printing machines, VertiTX has machine partners who can print the parts and have them ready for pick-up or delivery.
The impact of the VeriTX digital
supply chain was proven with real-world
Polymer aircraft parts: Time from order to delivery was reduced from 133 days to 1 hour. Since the process was entirely digital, once the part was ordered, it was sent instantly to the 3D printer, which was waiting. Making (printing) the part took about 40 minutes. It was made at the airline's maintenance facility, so delivery was as soon as it was done.
Commercial airline: During a flight from Auckland to Los Angeles, a cabin part failed that would put a business premier class seat out of operation. Using VeriTX, the airline was able to order a digital replacement and have this part manufactured in one hour. When the plane landed in LA, the part was installed and the cabin was back in operation. Lead time reduction 50x. Saved $30,000 in potential lost revenue from the cost of the seat and the cost of flights to get the needed part and make the repair.
“What VeriTX is doing—removing friction
from transactions—is Algorand’s primary
mission. VeriTX is applying the
technology in a very tangible way that
showcases the power of blockchain to
reinvent established industries like
manufacturing in a decentralized
manner,” said W. Sean Ford, COO of
Algorand. “Taking out the middleman,
VeriTX is connecting buyers and sellers
directly to maximize efficiency and
actively reshape the future of