By
Temitope Olatunji
April 18th, 2024
Ethereum blockchain is expected to automate all stages of bookings and improve flight tickets sale.
Russian airline PJSC Siberia Airlines has partnered with Alfa-Bank to employ the Ethereum blockchain for flight tickets sale.
The airline known as S7 and Alfa-Bank have initiated the project aimed to speed up payments leveraging the advantages of the blockchain.
The first attempt to process the service payment basing on the Ethereum blockchain smart contracts through a letter of credit with Alfa-Bank was made last December. As a result, the airline came up with a customized platform that automates all stages of bookings including execution of payment application, verification of adequacy of funds deposited in the account, writing off of amounts and status updates.
“We have made the world’s first transaction for flight ticket purchases through the open API [application programming interface] blockchain to the bank, but I am sure that such a pattern will soon be used by many companies all over the world,” Pavel Voronin, deputy general director for information technologies at S7 Group, said. “The blockchain platform allows optimizing business processes significantly. It automates any mutual payment pattern, even a very difficult one, such as warehouse supplies, for example. Human participation is almost unnecessary when using such an instrument: there is no need to issue invoices, perform reconciliations, and prepare certificates.”
S7 unveils an ambitious roadmap planning to extend the platform for non-ticketing purposes as well, including its transactions with caterers, and fuel and airport service providers.
The employment of Ethereum blockchain by S7 follows the similar recent announcement of Aeroflot. Russia’s largest airline is ready to introduce digital currencies and a technology related to it into its operations and prepares to start using cryptocurrencies for flight ticket payments. The analysis of demand for such kind of payment and possible risks will show the viability of the project.
Russia is obviously taking steps in crypto and blockchain spheres. In June, Vitalik Buterin discussed the possible use of blockchain technologies with Vladimir Putin who supported the idea of establishing business contacts with potential Russian partners. The conversation took place at St Petersburg’s International Economic Forum.
According to the statement of Igor Shuvalov, the first Deputy Prime Minister, Vladimir Putin finds the idea of new digital economy creation attractive. As for now, at least three directions of Blockchain application including goods tracking and development of identity and ownership rights protection systems are being explored and tested.
The deputy chairwoman of Russia’s central bank Olga Skorobogatova agrees that it is high time to develop national cryptocurrencies as this is the future.