Blockchain in automotive industry is a hidden domain because everyone understands blockchain is all about cryptocurrency. It has the potential to transform every industry, including finance, healthcare even politics. Innovators always prioritize automotive giants; unfortunately, they have missed exploring the efficiency of the distributed ledger.
Blockchain is a decentralized ledger technology that enables all members of a network to store, share and preserve information. Some recent research shows that blockchain business will reach up to $176 billion in the coming few years. Nowadays, the automotive industry is exploring multiple ways to leverage blockchain solutions. In 2018, BMW aimed to integrate blockchain development services into automobiles known as the Mobility Open Blockchain initiative.
5 Key Trends of Blockchain in Automotive Industry
Smart Automotive Manufacturing
The automotive supply chain is a complicated mechanism involving countless parties, and delays are very common there. The blockchain in the automotive industry ensures the sharing of data between distributors, software providers, OEMs(Original Equipment Manufacturer), and regulatory agencies. Furthermore, it ensures accuracy, problem detection, transparency, and instant transactions.
Integration of blockchain solutions offers high-level security to autonomous cars as it connects manufacturers within a database consisting of information about experiments, simulations, and failures. In short, blockchain empowers the autonomous driving industry by making it safe and cost-effective.
Seamless Car Sharing Experiences
Everyone can’t own a car, but in the past few years, car-sharing services are common in the market. Although these are very beneficial for every common man there are some challenges like lack of traceability and transparency. Sometimes, people have faced issues when smart keys failed to unlock a car.
Blockchain identification solutions make it safer and faster for people to showcase their possession against their cars. Additionally, blockchain in the automotive industry is the best solution to manage all car-sharing rental transactions timely.
The most common problem that everyone faces, forgetting their documents. As technology is overcoming every challenge, blockchain has the power to prove ownership rights against your property. It does not need any paperwork as records are stored in distributed ledger and impossible to change for unauthorized individuals.
More interestingly, blockchain has the capacity to keep a record of every car part. It makes car theft-proof as it is easy to track stolen parts that will save billions of automotive industries.
Taxation and Payments
Taxation is a critical evil especially, road taxes. It is necessary to make the payment process smooth and free of stress. Blockchain in the automotive industry will help to have a transparent and hassle-free tax payment. Smart contracts are efficient enough to store data like vehicle type, capacity, and road type. As a result, the taxes for a van will differ from the loaded truck, and citizens can pay taxes without facing any difficulty.
Proving a Car’s History
While buying a car, you need some to inspect its parts and check customs and police records. After investigation, you are still in doubt that your new car will deceive you on the next turn.
The integration of blockchain in the automotive industry can keep all the records, including repairs, accidents, taxation, and custom. It will authorize buyers to verify the history and buy can decide confidently either to buy or not.
Blockchain is the future of security in all the domain including the automotive industry. It makes clear sense that car manufacturing firms will dive into this cutting-edge technology. In addition to this, Blockchain in the automotive industry will solve global issues like pollution, fraud, and traffic control. Either you are a manufacturer or car owner, you can avail of our Blockchain development services to make your auto safe and easy to track.