A report posted by IBM suggests that up to 62% of automotive businesses will invest in blockchain to manufacture the cars of the future. Moreover, the report also identified that blockchain technology for vehicles, their manufacture and supply chains as well as other processes may launch in full swing by 2021.
You would also be surprised to know that a couple of the world’s most renowned and beloved automotive names such as Porsche, Mercedes and Volvo have sunk their teeth in blockchain applications, and have created prototype software to propel new car features and functionalities.
There really is no question that after the financial sector, blockchain tech will soon take over the automotive industry as well. And this wave of new tech would completely disrupt the global industry.
In addition, many automotive companies, approximately 95%, are making plans to invest moderately to massive amounts of moo-lah into obtaining blockchain technology. Many companies have already funded various startups by endowing them with the funds and technology needed to develop cutting-edge, implementable blockchain-based functionalities and solutions for truly next-gen vehicles.
The Blockchain Effect on the Automotive Industry – Driving Futuristic Change
The entire bases of the modern ‘connected car’ will have a harmonious synchronization of advanced automotive technologies and blockchain. This powerful amalgamation will be set to provide a highly desirable change that will have the capabilities of addressing important issues and complications that the global automotive industry faces.
At the moment, some of the biggest movers and shakers of the automotive sector are talking about how they can introduce blockchain-pilots. This means they are looking to make massive technological changes across the entire vehicular ecosystem or at the very least, wherever blockchain tech implementation is possible and viable.
The Best Use-Cases of Blockchain Technology for the Automotive Industry
To get good idea of how blockchain technology is impacting the automotive industry – for example, how different online car companies are offering transactions in cryptocurrency, like autocoincars; mentioned below are some of the best ways of how blockchain is going to change the automotive sector:
- Security and integrity in business and commerce
One of the most integral aspects of any type of business is the security and integrity of modern payment process and financial functionalities. This is where a lot of complications typically surface because of the manual nature of entering all the key data. It is the same with managing said data.
The best way to keep critical financial data secure is to keep it independent. Blockchain technology or Distributed Ledger Technology is designed to help keep this data secure and immutable. The tech will streamline and automate the processes, enabling independent third parties to manage and store accurate records of any car’s total lifetime.
- Managing the supply chain of the car business
Car manufacturing requires components and parts in the hundreds. Car assembling is a very extensive and detailed process. It comprises of a broad network of companies, individuals experts, thousands of activities, resources and hours. With such a daunting management task and the complex nature of the supply chains associated with building cars, there is no doubt you would have to expect various parts and components being damaged, stolen, defected, missing or simply replaced.
With the help of blockchain every company or organization that is associated with manufacturing a car or car parts, will be able to keep a bird’s eye view of their supply chain. They will be able to track and monitor all shipments of components and parts from the time they are listed and produced to when they are shipped and used in the car.
- Secure and enhanced mobility
When it comes to revealing confidential information, you have to sort of give it up when it comes to car insurance companies, maintenance, and repairs, or even when you get it polished and cleaned by the professionals. There is always a third party involved, and you always have to reveal some sort of personal information. However, blockchain tech will enable you to perfectly manage the type of information you can provide to different third parties.
In addition, mobility as a service or (MaaS) through blockchain integration enables different types of transportation amenities and services to come together as a single mobility utilization service that you will be able to access on demand.
- Impact on the connected card tech
However, blockchain will particularly cause a big disruption in one of the aspects of the car industry – and that is connected car technology. The car of the future or the next revolution in this industry will all be about complete autonomous mobility with transparent and secure communication. Currently, there are plenty of different trends that are molding the future of connected car tech.
Connected car technology is basically the amalgamation of the Internet of Things and its digital compatibility in the cars along with serious and cutting-edge advances in this tech to enable vehicles to connect and communicate with one another over a broad network.
- Maintaining information regarding car history
This is another amazing way that blockchain is going to change the future of the automotive industry. You already know that buying a new car can be an expensive undertaking. However, you also know that it comes with certain risks and uncertainties.
For example, if you buy a used car, how do you know whether the car has had multiple owners or if it were in a major accident, and that the seller just wants to get rid of it and make a profit. You really can’t. But thanks to blockchain, you would be able to see the information on the car online and independently. You would be able to see how many owners it has had, whether or not there are payments outstanding, insurance complications, or if it has been in a major accident.
So there you go – a brief yet interesting dive into the absolutely fantastic ways that blockchain is going to impact the global automotive industry in as little as three years. Do you have any suggestions for us? Please share those with us in the comments section below.
Latest posts by Evie Harrison (see all)
- Blockchain Technology and Vehicles: 5 Ways Blockchain will Change the Car Industry - October 1, 2019
- 6 Things You Should Think About Before Starting Your ICO - November 14, 2018