On October 22, Algorand announced a partnership with VeriTX Corp, a flexible digital marketplace for decentralized manufacturing. The companies will work together to develop a digital supply chain for aircraft parts, utilizing Algorand’s blockchain technology.
According to the announcement, the new project will enable customers such as commercial airlines to save significant resources in manufacturing aircraft parts. It will also allow them to gather specific logistical and economic data in order to maximize efficiency.
VeriTX stated that, by 2025, the combined market size for digital aircraft parts is expected to reach $3.1 billion as the US Army, Navy, and Air Force move toward a digital supply chain. The company also claimed that an Air Force maintenance commander, not named in the statement, estimated that VeriTX would yield a 30% cost savings, a 90% reduction in waste, and a 25% increase in aircraft performance.
“We chose Algorand as the blockchain infrastructure to power our platform, after looking at several technology providers and rigorous due diligence,” said Col James Allen Regenor, USAF (ret), VeriTX CEO. “Algorand was the ideal solution to onboard our ecosystem partners to the network, because of its flexible architecture, low transaction fees and transactional throughput scalability.”
The company revealed more information about how it will digitize the parts manufacturing process, breaking it down into four steps. VeriTX will first allow sellers to design parts digitally, including the idea, prototype, and their final design, “ranging from traditionally forged metal engine parts to polymer-molded interior parts used in aircraft cabins”.
After that, sellers can upload those parts on the VeriTX platform, including all the necessary information for customers, such as pricing, specifications, and provenance. Finally, buyers will be able to purchase a particular digital part by exchanging digital assets on the platform to then push to point-of-use to start the 3D printing process. VeriTX will further assist sellers by connecting them to their partners, who can print the parts and have them ready for pick-up or delivery if needed.
In the announcement, VeriTX further claimed to have proven the impact of their digital supply with real-world cases. According to the information provided, F15-Eagle fighter aircraft parts, which typically take 265 days lead time from order to delivery, got ready in just 6 hours. The platform also escalated the same processes for Polymer aircraft parts, which were supposedly ready in 1 hour instead of the usual 133 days, and commercial airline parts with 50x lead time reduction.
“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 manufacturing.”