An Ethereum-based Solution to Leased Aircraft Audits BitLease An Ethereum-based Solution to Leased Aircraft Audits Team 8: Andres Florez, Paul Lee, Junaedy Liem & Lyanna Lim

Problem: Current leasing process is highly convoluted Multiple parties generate records in aircraft leasing Record review is challenging due to a lack of organized and reliable database Manu-facturer Airline MROs External auditor Lessor $ Aircraft MRO Service MRO service Lease Compliance report Records Review of physical documents Rebuild aircraft maintenance history Verify signatures in maintenance documents of internal auditors vs. regulator’s database Identify possible modifications to records Current leasing process generates multiple, independent records that mandate costly audits at the end of each lease 2

Solution: BitLease will solve cumbersome aircraft lease audit process BitLease eases record storage & auditing BitLease enables immutable record keeping that benefits lessors & lessees Manufacturer BitLease is an aircraft leasing implementation of Ethereum Enables & enforces smart contracts between lessors, lessees and all other leasing parties Immutable records on private, permissioned blockchain enables faster, cheaper audits MROs Records Airline Records Records Bitlease BitLease reduces the cost and time of aircraft leasing audits 3

Solution: High feasibility due to market structure and existing technology Once leading lessor adopts BitLease, airlines will follow Lessors are few and concentrated: Top 10 lessors have 66% market share Requires only one lessor buy-in Lessors have significant information asymmetry once aircrafts are on lease Physical audit is mandated by international aviation agencies Simplifies processes for regulators & lessors Solution exists in already-established blockchains Airlines already use internal software for MRO purposes Guarantees privacy to all parties involved Leverages existing Technology 5-7 months to deployment Projected expansion to multiple lessess and airlines within one year Leverages existing Technology $770k investment in exchange for 30% share in BitLease BitLease is valued at $2.4M Market Share: http://4.bp.blogspot.com/-ZfuCWrRn16Y/VM9t9Y-5yEI/AAAAAAAAB6Q/pX7IAKR5Bss/s1600/top%2B50%2Blessors%2Bby%2Bfeet%2Bvalue.jpg CAGR: http://www.prnewswire.com/news-releases/global-aircraft-leasing-market-research-report---industry-analysis-size-share-growth-trends-and-forecast-2014--2021-300381376.html 4

Future Work: Potential Upside for other Applications Oil & Gas Equipment: Oil & gas companies which lease drilling rigs and crews from oil-field services companies can utilize blockchain to record equipment lease and equipment repair and maintenance. Heavy Industrial Equipment: Lessors and lessees of land drilling and excavation equipment, heavy construction machinery etc can utilize blockchain to keep records. Medical Equipment: Hospitals and clinics which rent medical devices for fixed-term use can keep records on the blockchain ledger. Container Ships: Charter owners (lessors) and liner companies (lessees) can also utilize this blockchain technology to keep records of lease contract conditions and repair records Market Share: http://4.bp.blogspot.com/-ZfuCWrRn16Y/VM9t9Y-5yEI/AAAAAAAAB6Q/pX7IAKR5Bss/s1600/top%2B50%2Blessors%2Bby%2Bfeet%2Bvalue.jpg CAGR: http://www.prnewswire.com/news-releases/global-aircraft-leasing-market-research-report---industry-analysis-size-share-growth-trends-and-forecast-2014--2021-300381376.html 5