To manufacture the cars of the future, major automobile manufacturers are adopting blockchain technology.
And studies indicate that blockchain applications may be implemented as soon as the next three years. The vehicles we drive today are significantly evolving not just in terms of driving and comfort, but they are becoming much more than just a great means of transport.
The cars in this generation have now become fast moving data centers that are equipped with sensors. These sensors are capable of capturing and leveraging every single detail and information about the vehicle.
With the implementation of blockchain tech and applications, cars can be programmed to perform secure and traceable transactions, provide streamlined access to information, and guarantee complete transparency of information.
There is no question blockchain has the power to significantly propel and enhance trust and collaboration with car users as well as businesses.
The role of blockchain in the automobile industry
Sure, the automobile industry has invested plenty in some of the best and emerging technologies in the 21st century, but when you talk about blockchain, there are just a handful of companies that are making the shift.
As per a research study posted by IBM in 2018, up to 62% of automobile executives and leaders are all in for blockchain, and state that this technology will be the next disruptive force in the industry as soon as 2021.
You can already buy a car for sale using cryptocurrency; it isn’t farfetched to think that you would be able to make transactions using your car in the near future either.
What can blockchain do for the automotive industry?
There is no doubt the automotive industry is among the most ambitious when it comes to harnessing the power of new technological developments to streamline supply chain operation, launch new product functionalities and features, etc.
The industry invests billions in new technology to drive revenue and enhance their market share every year. There are platforms that facilitate the selling of cars for cryptocurrency like autocoincars.
The same is going to be true for blockchain. In light of this, mentioned below are some interesting advantages that blockchain will bring to this industry and the end user:
- Vehicle manufacturing
Company supply chain management will enjoy enormous advantages of blockchain. For example, there are tons of scenarios where different and valuable car parts could be damaged or lost in delivery or stolen, etc.
Blockchain can effectively enable the manufacturer to transparently retain total follow-up of all the prices involved for car parts. So, in an event when the manufacturer has to make recalls, they would be able to leverage blockchain to facilitate the entire procedure.
Blockchain applications would help store all the necessary information required for the origins of the car parts. In addition, the manufacturer will also be able to control any enhancements or modifications made in the car parts or if there was a defect, to begin with.
- The process of manufacturing
Blockchain offers a plethora of benefits for car manufacturers to optimize and streamline their manufacturing processes.
For example, blockchain can be used for storing critical data when it comes to documents such as the bill of lading for various car assembly parts and components.
Similarly, the tech can also be used for securely storing quality inspection data and records, which is essential for the manufacturing phase of any vehicle.
Blockchain can also be used for storing work-in-progress reports and information from the start of the manufacturing process to its final stage.
- Financial aspects
Blockchain can also be used for streamlining various financial applications and aspects for car manufacturers such as data insertion, the cost of transactions, the total transactions, transactional revisions, etc.
You will not need to manually insert the data; blockchain applications will update and store all information from the start to finish of the lifecycle of the vehicle.
- Securing data and car safety measures
Sure, one of the main caveats of driving a car that is also a moving a data storage center is that it still vulnerable to dangerous cyber-attacks.
However, thanks to the incredible cryptographic roots of blockchain technology, it is simply impossible for anyone to modify or hack any sort of data stored in blockchain servers. In addition, there is no cybercriminal alive that can reverse-engineer blockchain’s cryptographic roots.
Almost all modern vehicles come with advanced telematics, which is basically software and applications designed for V2V (vehicle-to-vehicle) navigation, various passenger safety and security protocols, communications, etc.
Car manufacturers can leverage blockchain tech to secure all the information that is sent, stored, and received by the telematics, which means you will not have to worry about someone hacking your car.
- Easy and transparent buying or selling of any vehicle
For potential buyers and sellers, blockchain technology will provide transparent and secure registries that would make it ridiculously easier for verifying the ownership history of any vehicle.
The same goes for the history of its conditions, for example, the buyer will be able to instantly see whether or not the car has been in a minor or major accident, thanks to repair reports.
But perhaps the biggest advantage blockchain will provide users is the fact that you will never need a middleman to buy or sell your car.
That is all thanks to the smart contract, which is going to legally and securely enforce the transaction of the product, so you can completely eliminate the third party and save money.
- Blockchain for end user finances
Thanks to blockchain applications and their cutting-edge features, you can get smart contracts made that will significantly enhance all the major processes when it comes to leasing or financing a car purchase.
For example, if you sell your car on monthly installments, you can use blockchain system to deactivate the car if you do not get paid in any month.
So there you have it – some incredible ways that blockchain technology will positively influence the automotive industry in the coming years. Do you have any more tips for us? Please let us know your views in the comments section below.
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