Gazprom, S7 and Alfa-Bank Complete Smart Contract Based Aviation Refuelling Transaction – Trustnodes

Gazprom, S7 and Alfa-Bank Complete Smart Contract Based Aviation Refuelling Transaction

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One of the biggest oil and gas corporation in the world, Gazprom, together with Russia’s biggest airline, S7, and their biggest commercial bank, Alfa-Bank, have announced the world’s first smart contract based aviation refueling transaction has been completed.

“Aviation companies now have the opportunity to make instant payments for fuel directly on refuelling aircraft, without pre-payment, bank guarantees or any financial risks to the parties involved — an approach resulting in manifold improvements in the speed and efficiency of financial transactions, as well as reductions in labour costs,” Gazprom Neft says.

S7 says, according to a rough translation, that the first refueling of the aircraft through a smart contract was tested by the crew of S7 3013 Novosibirsk-Krasnoyarsk flight at Tolmachevo International Airport.

Neither gives a date of when this occurred, nor do they provide much detail on the underlying tech, but describing the front end process, S7 says:

“Based on the digital smart contract in the AFSC (Aviation fuel smart contracts) system, S7 Airlines coordinates the preliminary volume of fuel and its price. This data is used to assign a technical task to the driver of the tanker at the airport.

After the pilot-in-command requests the operator for the exact amount of fuel required for the flight, an online application is sent to the airline’s bank to reserve the appropriate amount on the account. Instant confirmation from the bank gives start to refueling.

At the end of the refueling, the funds are written off, and the reporting documents are sent to the commercial services of S7 Airlines and the fuel supplier. The whole process takes 60 seconds.”

Sixty seconds. That’s about two ethereum blocks with S7 and Alfa-Bank previously utilizing ethereum’s technology for letters of credit and for selling flight tickets.

Whether that was ethereum’s public blockchain or a private blockchain is not clear, but one can imagine using eth for a blockchain based transaction might have been easier than tokenizing fiat. Pavel Voronin, Chief Information Officer, S7 Group, says:

“Our next step is a service to automate accounting in refuelling. This means automating trading operations between three parties — the bank, the airline, and the refuelling company. Under established procedures, once refuelling is complete, reconciliation takes place and settlement is made.

Technology means transparency in reciprocal settlements is improving, meaning we can abandon a range of manual operations, and speed-up processes.”

Gazprom is majority state owned, although technically private, with Putin known to be a big fan of blockchain tech.

Previous news from Russia has suggested they are trying to blockchenize their SWIFT payment system, among many other things, with interest in the tech increasing after sanctions.

Making this the latest news to suggest adoption and implementation of blockchain tech in Russia is continuing to grow.

Copyrights Trustnodes.com

 

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