Aeron is a blockchain technology company focused on improving aviation safety through the use of a decentralized record system. Aeron is actively developing a global, decentralized, small aircraft and flight school database and online portal, and through a public funded token sale plans to become the global standard in aviation safety and transparency.
The problems Aeron is trying to solve revolve around erroneous or falsified flight logs, pilot experience, aircraft maintenance records and tracking of spare parts, etc. The company claims, for example, that a major issue in today’s global aviation industry is flight operators under-reporting flight hours to save major maintenance costs for the airline. A decentralized, transparent ledger of such records addresses these issues, making it possible to verify data from multiple sources and find discrepancies.
In essence, Aeron views the modern global aviation management systems as outdated and obsolete and plans to reform the industry by storing aviation records on an immutable database that anyone can reference at any point, and which is encrypted and protected from both attacks and malicious behavior.
How does it work?
Aeron’s core system is the decentralized database for global small aircraft and flight schools. That decentralized database is called the Aeron Register and is built on the Ethereum blockchain and will require ‘gas’ for transactions. In the company’s whitepaper, they specify certain use cases: the passenger, the pilot and the company, but they do not specify how the Register actually works, technology-wise. The pilots, the passengers and the company using Aeron will all have to manually input data into the integrated system through apps and web services, depending on the use case. A pilot application will be used by pilots for personal flight logging, while a company application will collect and verify data from aircraft operators, maintenance organizations, flight schools, and fixed base operators. Blockchain storage will make it easier for aviation authorities to detect any mismatched or falsified data and consumers such as flight school students will have access to the verified global database via aerotrips.com.
Once an aircraft’s or pilot’s log records are stored on the blockchain, they’re available for public audit and cannot be altered or forged. The system will make it possible to track and validate pilot experience and aircraft maintenance, including the tracking of spare parts, The system will make it possible to track and validate pilot experience and aircraft maintenance, in… according to the required standards – though how these will be enforced is not addressed.
Powering all of this is the use of smart contracts the Ethereum blockchain provides. Each Aeron smart contract will contain various log records. Smart contracts will also execute rental deeds or chargers for the aircraft, or execute cost sharing agreements between private pilots and their passengers, with defined protocols to ensure transactions occur in compliance with local regulations.
Aeron says it will work with national aviation authorities and international aviation agencies, including EASA and FAA, to demonstrate the integrity, reliability, and transparency of its system and promote its acceptance. The company envisions its platform as providing a single point of reference for licensed private pilots, aircraft owners and operators, aviation enthusiasts, and people interested in aircraft charters, leisure flights and pilot training.
Project roadmap, taken from Aeron.aero
Aeron’s revenue model is based on fees for write access to the database (with log entry signing and blockchain validation), and on commission fees from transactions between platform users (starting at 2% and averaging at ~5%). Payments will initially be in fiat and processed by a traditional payment system, and cryptocurrency payments will be enabled where possible. Payment will also be possible with ARN tokens.
The ARN Token
The Aeron (ARN) utility token will enable write access to the Aeron database and other on-chain events, in the form of subscription or transaction fees. It is also envisaged as a means of payment for small aircraft charters or promotional leisure flights, via partnership arrangements between the company and aircraft owners. To incentivise participation in the ecosystem, Aeron will offer a seed quantity of Aeron tokens to flight schools, aircraft operators, and aviation companies, and offer discounts for service fees or commissions paid in ARN vs. fiat. ARN will also be the currency of the aerotrips.com club, offering premium access to special offers and discounts.
The company is also exploring the possibility of linking the value of the token to the value of the Aeron platform via “a fee-burning mechanism that slowly decreases token supply”. Currently, however, Aeron provides a link to its Howey Test self-evaluation, whereby ARNs are designated as unlikely to be a security.
60% of the fixed 100,000,000 ARN supply are being offered for sale, equating to
60,000,000 ARN. These will be sold in two stages with limited presale, followed by the general sale. ARN can be obtained online at a price per token of 1 ARN = $0.5 (fifty US cents) with payment in cryptocurrencies accounted at a current exchange rate at the date of transaction. Bitcoin (BTC) and Ether (ETH) will be the only methods of payment accepted in the general sale.
The remaining 40% of the fixed supply (40,000,000 ARN) are not available via the token sale and will be allocated as follows:
- 20% will be allocated for network growth to incentivise participation in the ecosystem.
- 18% will be retained for the development and management team
- 2% will be used to cover the administrative costs of the token sale.
The token sale will be offered until all 60,000,000 ARN have been distributed. Early buyers will receive special bonuses connected to the timing and amount of purchase.
Artem has more than 15 years of experience in telecoms and finance. Ex-CEO of two national cellular operators and a serial entrepreneur in hi-tech industries. Chartered Financial Analyst (CFA) charterholder since 2009. Also CEO of Avenor (designer, manufacturer, and supplier of wireless devices for the telecom operators).
Nadezhda is an aircraft operation and air traffic management engineer with over 11 years of experience, specializing in full cycle of production aeronautical databases, flight crew training programs, flight simulators and computer based training development. EASA PPL(A) holder since 2013. Also head of CBT at Transas (provider of high tech equipment, software applications, integrated solutions and services for the maritime industry).
Ruslan has been building scalable IT projects for over 16 years and is the CEO of Inxy.com (a web hosting and business intelligence company).
Ali started as a contractor in Titan Corps military ops division, and continued as a UN and military logistics agent as well as an entrepreneur, with over 12 years experience in logistics management and finance. EASA certified pilot since 2011. Also Business Development Manager at MarketPublishers.com.
Dmitri is a long term resident of China, fluent in Mandarin, founder of several language schools, and ex-CEO of Water Energy, a new energy startup in Xiamen. Crypto analyst and investor.
Andreas is a Founder and CEO at Andreas Fleischer Events, an international full service marketing agency. With a wide network of contacts in Germany and other EU locations, Andreas is offering guidance and lobbying support to Aeron.
Kate is a seasoned Product Designer with more than 10 years of experience in UX and UI design. A full stack designer, specializing in startups, usability consultant, lecturer and author of UX courses. Also product designer at People.ai.
Pavel is a specialist in stochastic analysis applications in financial markets, big data analysis and machine learning. Previously head of marketing at MarketPublishers.com and CMO at Promodent (chemical market research). Also CTO of aerotrips.com.
Kirill is a manager focused on business modelling and customer experience for over 12 years. Worked with the world’s biggest companies like Coca-Cola and Intel. Also CEO of Postcardbox.
Maria is a copywriter and PR Consultant with over 7 years experience in IT. Formerly corporate communications manager at Kaspersky Lab.
|Token Sale Dates||
September 19, 2017 – October 23, 2017
60% of the total supply or 60,000,000 ARN
1 ARN = $0.5 (fifty US cents)
There is a minimum purchase of 200 ARN tokens (the equivalent of $100)
|Technical White Paper||
It is 46 pages long, and presents various problems and Aeron’s own solutions to them, mainly being the Aeron Register. Not much is explained about the use of blockchain technology in their supposed solution, only general benefits to the use of blockchain itself in Aeron’s context. Not much is said about their blockchain talent or their technology itself. It is well written, however, and mostly oriented as a business plan.
Transparent involvement. Core team contains a mix of business and technological expertise, but lacks blockchain expertise, so it seems.
Utility token to be used with Aeron’s Register and aerotrips.com
Yes, data validation is the key, as in theory nothing prevents a pilot from making a flight log entry at comfort of his/her home, without actually taking a flight. Whether such entry goes into a paper logbook or into an electronic record, including blockchain, it will remain equally fake. Aeron concept relies on cross-validation of records from multiple sources and marking records as trustworthy once they pass one or multiple checks: the most straightforward is the positioning data, as a smartphone can record a GPS flight track (in case the app is enabled); additional data sources are log entries from an aircraft operator or a flight school (for the same aircraft as claimed to be flown by a pilot), or snapshot from Air Traffic Control data (for the same flight) in select areas where such data is available for processing.
We are designing a system to be compliant to generic industry standards, such as FAA PART 61 – CERTIFICATION: PILOTS, FLIGHT INSTRUCTORS, AND GROUND INSTRUCTORS, Subpart A – General, §61.51 Pilot logbooks and EASA Acceptable Means of Compliance and Guidance Material to Commission Regulation (EU) No 1178/2011, Subpart A – General Requirements, AMC1 FCL.050 Recording of flight time.
The usage flows are readily available and presently undergo testing with our partner flight school Griffon Aviation, the first licensed flight school on Cyprus, operating since 1994. They will be refined based on the feedback from the instructors and the students. Certain usage flows are featured in the Aeron whitepaper as well, see section with use cases.
We are finalising a blockchain database partnership to proceed with conversion of the usage flows into the smart contracts, and subsequent integration in the apps.
We are lucky to have the expert team, lead by our blockchain technology advisor Vladimir Feoktistov. Vladimir has been working as a lead programmer in financial, aerospace and data analysis sectors. His biggest project was development of the derivatives matching engine and risk management systems for Moscow Exchange. Vladimir was a Chief Technical Officer of trueflip.io leading a successful ICO and developed many other projects related to cryptocurrencies and blockchain. He helps Aeron to drive technical strategy and design architecture of the blockchain based database for aviation.
Even though our development team has a vast experience in web and mobile app domains, we’ve had a limited blockchain exposure. But we are learning fast. Further we are searching for blockchain talent and will be hiring more developers this year.
aerotrips.com is a part of Aeron business. Its a web portal available to general public and an online aggregator for aviation. Together with our qualified partners we will offer the following services – Air Taxi & Charters, Flight Tours & Excursions on light aircraft and helicopters. Our global database also includes flight offers from private pilots. Partnerships with flight schools and aero clubs allow us to propose the best solutions for aviation students and pilots. Our clients can build their experience through extensive selection of flight courses and a database of light aircraft available for rent around the world. Furthermore, pilots with flight logs and experience validated by Aeron system will be highlighted to general public.
We are pursuing a number of initiatives ranging from partnership with flight schools, to test Aeron system and join aerotrips.com with their training offers, to technology partnerships where we search for bits of technology to enable Aeron distributed database, to partnerships with cryptocurrency exchanges to list Aeron token and provide liquidity to token buyers.
A substantial proportion of Aeron budget is planned for government relations and lobbying with aviation authorities, to recognise Aeron database as an authoritative data source. That will take time, connections and resources. Based on Aeron roadmap, we would target to achieve endorsement by authorities in certain geographic areas by mid-2018, which should bring a steady inflow of users to Aeron ecosystem and stimulate demand for Aeron token.
There is a number of incentives. For Aeron services or commissions paid with Aeron (ARN) tokens, a discount will be offered as compared to the other means of payment. Pilots will be eligible to join the membership/loyalty club, with discounts available from the participating flight schools, aircraft maintenance companies and fixed based operators, including discounts shown per destination for any flight logged with Aeron application.
Passengers will also enjoy discounts for any payments done at aerotrips.com with Aeron (ARN) tokens, be that a demo flight booking or an aircraft charter.
The token sale has been launched on September 19th and we don’t expect any changes in token allocations. We believe that 18% of the tokens pool is quite sufficient to retain and motivate our talent and ensure longevity of Aeron.
As stated in the whitepaper, we explore this method for potential future application. It is not a commitment. Aeron (ARN) is a utility token and it does not have any equity component to it. We are following guidance from our legal advisors to take all reasonable measures to ensure that ARN is not treated as a security by any regulatory authority worldwide.
However we believe that regulations may evolve over time. ARN token smart contract incorporates a “burn” method, which allows to destroy tokens, effectively reducing the number of tokens in circulation. Once Aeron receives ARN for services rendered, the tokens will be put back into the circulation. However in the future, should regulations permit and subject to legal clearance, a certain proportion of tokens received for Aeron services could be burned, causing a deflationary effect and bringing additional benefit to the token holders. In case of a buyout of Aeron technology by a third party, a proportion of tokens could be burned to let the token holders see appreciation of tokens they own. All that is futuristic and undefined.