How can blockchain technology improve airport baggage tracking?

1 What is blockchain?

Blockchain is a system of storing and transferring data in a decentralized, distributed, and secure way. It uses cryptography to link and verify blocks of information, creating a tamper-proof record of transactions that can be shared and updated by multiple parties. Blockchain is best known for powering cryptocurrencies like Bitcoin, but it has many other applications in various industries, such as finance, healthcare, supply chain, and aviation.

2 How can blockchain improve baggage tracking?

One of the main challenges of airport baggage tracking is the lack of interoperability and standardization among different stakeholders, such as airlines, airports, ground handlers, and customs. Each entity has its own system and protocol for handling and tracking bags, which can lead to inconsistencies, errors, and delays. Blockchain can offer a common platform and language for all parties involved, enabling real-time visibility and traceability of baggage movements across the entire journey. Blockchain can also enhance security and trust, as each bag can be assigned a unique digital identity and a smart contract that defines the rules and conditions for its delivery. Any unauthorized or fraudulent activity can be detected and prevented by the blockchain network.

3 What are the benefits of blockchain for baggage tracking?

By leveraging blockchain for baggage tracking, airports and airlines can benefit from improved efficiency and accuracy, which can save time and money for both airlines and passengers. Additionally, blockchain can enhance the customer experience by providing passengers with more transparency and control over their baggage. Moreover, blockchain can reduce losses and claims by creating a clear and immutable record of ownership and responsibility that can facilitate the identification and recovery of lost bags. All of these benefits together can improve operational performance, compliance, loyalty, satisfaction, and reduce anxiety and frustration.

4 What are the challenges of blockchain for baggage tracking?

Despite its potential, blockchain is not a one-stop solution for airport baggage tracking. There are still several challenges and barriers that need to be addressed, such as technical complexity and scalability, regulatory and legal uncertainty, and cultural and organizational resistance. Blockchain technology is relatively new and requires high levels of expertise and infrastructure to implement and maintain. Moreover, there are different types of blockchain platforms and protocols that may not be compatible or interoperable with each other or with existing systems. Furthermore, the legal questions surrounding blockchain such as who owns and controls the data, how to ensure privacy and security, and how to deal with disputes and liabilities need to be addressed. Additionally, blockchain implies a shift from a centralized and hierarchical model to a decentralized and collaborative one, which may challenge the existing power structures of some stakeholders. Therefore, trust and cooperation among all parties involved, as well as education on the benefits and risks of blockchain are necessary.

5 What are some examples of blockchain for baggage tracking?

Blockchain for baggage tracking is still in its early stages, but there are some promising initiatives and pilots that are testing and demonstrating its feasibility and value. For instance, Air France-KLM partnered with Winding Tree in 2018 to conduct a pilot project to track and manage luggage on flights between Paris and Amsterdam using blockchain and RFID tags. Similarly, Emirates collaborated with IBM in 2019 to launch a pilot project to track and reconcile baggage movements on flights between Dubai and New York using blockchain and smart contracts. Additionally, SITA, the global IT provider for the air transport industry, established a blockchain-based registry in 2020 to enable secure and seamless baggage tracking across multiple airlines and airports.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?