As the average car approaches full-size connectivity, electric and autonomous propulsion, the need for a well-developed and coordinated database grows and technologies known for their use in cryptocurrencies such as Bitcoin are developed in response. As average cars move ever closer to connectivity, electricity, and autonomy, there is a correspondingly increased need for an advanced database that matches, and a technology known for its use in cryptocurrencies like Bitcoin is emerging as the answer.
As a distributed ledger technology, blockchain offers a transparent and secure way to do business. Blockchain not only allows a single data source, but also facilitates device-to-device transactions, smart contracts and real-time processing and settlement. Blockchain can provide transparency in the automotive industry by seamlessly integrating digital contacts, shared inventory, pricing, invoices, payments and logistics information.
Blockchain revolutionizing the way data is managed and the future vehicles, and it’s worth paying attention if it’s in securing financial information or making the shared ownership more trustworthy.
Blockchain is designed to accelerate automotive industry development of next-generation vehicles and improve the driving experience just as disruptive technologies such as artificial intelligence (AI) and machine learning (ML) work in sensor and positioning systems. The automotive industry can benefit enormously from blockchain by offering multiple directions of development to strengthen the supply chain, safety and security of vehicles and services in cars. Technologies such as AI, big data, and IoT combined with blockchain will have a huge impact and create opportunities for the automotive industry’s stakeholders.
The unique features of blockchain provide secure and traceable transactions, better access and transparency of information, and foster trust and cooperation between businesses, consumers and vehicles. Blockchain offers a way to maximize the benefits of these vehicles as the industry moves towards autonomous, connected and electric vehicles. Blockchain technology may also help drive new business models in the industry like alternative ownership of cars, user rewards programs, and other mobility services, to create brand appeal and loyalty.
Blockchain could also play an important role in the motor insurance sector by enabling the storage of real-time vehicle mileage data, the collection and handling of data from vehicle sensors, for example on driving style of insured persons. Blockchain could also facilitate car-sharing as a new and useful insurance practice; some may not know this, but blockchain technology could be crucial in developing autonomous vehicles. Blockchain use cases appear to apply to the supply chain and financial services, as well as the secure and secure exchange of driver and driver data.
Mobi and other automakers such as GM and BMW have teamed up to share data on self-driving cars using blockchain technology. A blockchain-based system makes it easy to share driving, but also vehicle ownership with one another. Distributed registers, such as blockchain, enable the transfer of necessary data between vehicle owners, researchers and manufacturers.
Over the past two years the large automotive industry has begun to deploy blockchain technology in the automotive supply chain for safety, automotive services, autonomous vehicles, manufacturing processes and insurance. BMW and General Motors experiment with blockchains with their Mobi Initiative in which they share data from their self-driving cars with them and other automakers.
While blockchain flexes its destructive muscles in several industries, the automotive sector offers immense potential. As automotive companies use these technologies and processes in their digital transformation efforts, the automotive blockchain market is expected to grow to $16 billion by 2026.
As more automakers, infrastructure and business discover new ways to integrate blockchain, consumers will witness a transformation of transportation driving Distributed Ledger Technology (DLT). From changing even the smallest aspects of the driving experience to improving driver safety on the road, blockchain could prove to be a revolutionary catalyst for autonomous experiences. With vehicles no longer just another means of transport, blockchain will play a significant role in the technological revolution that is to come.
Mobility, Supply Chain, Logistics, Retail, Lease, smart manufacturing, connected living, IoT and connected insurance are just some of the long-term functional areas where blockchain technology is revolutionizing automobile manufacturers.
A secure and unique form of encryption with the potential to become one of the most critical technologies will enable the automotive industry to enter the new era of intelligent vehicles. Although blockchain is still a relatively new technology and it is difficult to say when it will become widely used in the industry, it is easy to see that the benefits of this innovative technology are already within reach. A secure, unique form of encryption with the potential to be one of the key technologies enabling the automotive industry to leap into this new era.
As the entire automotive finance industry prepares for the inevitable future in which digital tokens are used to buy longer-term use of blockchain technology, the automotive industry is more important than we think.
While most of the world is thinking about how blockchain technology can be used to mine more and more Bitcoins, the automotive industry is trying to implant it into your future vehicle. Blockchain technology is already used by many financial organizations and is available for exploration by automakers, resellers, and insurers, while some companies have already declared their willingness to explore and implement their capabilities in their businesses. Despite its technological potential, the industry is still in the early stages of applying blockchain to its business products and networks.
The development of blockchain as a viable method of storing and communicating data is a promising addition to the equation. Blockchain technology has proven that it can solve most problems by providing automotive companies and their partners with a reliable and transparent tool for efficiently capturing, storing, managing and using vehicle data.