Blockchain Technology’s Potential to Transform Automobile Industry

22 Mar 2022

The automobiles in this century are more than just moving vehicles. Vehicles have all sorts of technologies such as sensors and computers that collect data and execute actions by themselves to provide better facilities. 

The automotive industry is now making strategic investments in blockchain technology. A blockchain is a distributed database shared with everyone on a public network. It can provide fast, secure, and reliable transactions, bypassing traditional financial institutions. 

Blockchain is reliable for managing data and executing transactions. Blockchain combined with IoT, big data, and artificial intelligence will have a potential worth much more than the current blockchain usage alone. 
Automobiles will be connected, shared, autonomous, and electric. 

How can Blockchain Transform the Automotive Industry?

Carsharing

The carsharing system is an old and widely used system. OEMs and third parties provide their services for carsharing. People who want cars for a few days can hire for a time duration while the ownership of the vehicle sustains with the owners. 

The payment process between the owner, third party, and the consumer takes place through a usage-based payment system. Some apps book the vehicles and settle the transaction. Blockchain tracks the trip and payments conducted.

Self-Driving

For autonomous vehicles to be safe, they need to process and analyze a huge amount of data. Blockchain can analyze and spread data throughout at high speed. 

Blockchain stores data such as speed limits, traffic conditions and analyzes it. According to the analysis, it executes actions. It also stores the driving patterns when the vehicle is driven manually. Blockchain is the most reliable method for self-driving.  

Insurance

Blockchain tracks the distance and usability of the vehicle. If the user does not use a car often, he can opt for lower insurance. In case of accidents or receiving insurance money, the incident can be verified. 

Location
Since blockchain technology identifies time, distance, and location, vehicle thefts are easier to track. The misuse of a vehicle will raise alerts using the RFID and data saved in the blockchain.

Safeguarding Autonomous Data

The blockchain collects data and includes every detail about the trip. With the localization of this data, people can get updates about the road condition, traffic updates, and infrastructure details. Other vehicles can access the information. It will be a credible resource as blockchain provides it. 

Once the data is validated and stored through blockchain technology, it is nearly impossible to alter the information. Only authorized people can access the real-time data. Blockchain will prevent hackers from encroaching the network and potentially holding OEMs hostage as a threat to the autonomous vehicle network.

Personal Data

The driver information is stored safely in the blockchain for car rental services. Blockchain collects data, such as seat adjustment, mirror adjustment, temperature, weak driving points, and music taste. 

Next time the blockchain and machine learning systems will adjust the vehicle if the same driver rents it again. Target marketing can use this information and source out via infotainment.

Supply Chain Management

Blockchain can manage vast data of the automobile supply chain. The transparency provided by the public ledgers makes it easier to track the manufacturers, suppliers, products, and shipping details in the same supply chain. 

Using multiple blockchains can segregate and organize the data without possessing any danger. One blockchain might contain bills of vehicle components, another for the shipment details or vehicle components, and one could store the WIP information of each vehicle assembly. 

The auto-generated smart contracts can be embedded in blockchain to release the supply and purchase order. Blockchain can help out in inventory management.

Recalls Vehicle History

In supply chain management, blockchain can provide manufacturing data such as when a certain component was manufactured or using what materials and technology were used to manufacture. 

Using all the manufacturing and real-time data, it gives alerts for servicing. If the vehicle was stolen or found abandoned, the unhindered details of it could still be found. 

Final Thoughts
Blockchain, a unique form of encryption, has the potential to be a groundbreaking discovery. If used aptly, it will also pave the path for a new era of smart vehicles. It can be used for financial information or generating data, making ownership of vehicles trustworthy, and revolutionizing self-driven cars. The vehicle management in all ways using blockchain will be an interesting journey as the possibilities are limitless.

 
 

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