While the blockchain has always been a matter of hype than at-scale applications, the technology has for sure experienced rapid development in the last three years.
Blockchain not only offers vehicle manufacturers with numerous advantages but also enable other departments within the automotive ecosystem to utilize its potential. The technology can bring self-driven cars mainstream. It also can connect efficient commercialization of the developing automotive industry and bring transparency and trust between sellers and buyers.
Why there’s a need to use blockchain in Automotive?
1) To establish value and 2) create trust between machines and stakeholders.
What sets most automotive companies apart is the customer’s trust in the quality of their products and brand. With blockchain applications in Automotive, companies can have a digital ledger to track each product’s development process, such as the source of raw materials, their maintenance history, how and where the product got manufactured and much more.
Similarly, each component of the product, including production data and design quality, can be easily tracked using blockchain technology based automotive solutions.
Not only this but also the authenticity, purchase history, provenance, trading and licensing can all be protected using blockchain. It will allow multiple supply chain partners to corroborate the quality of being authentic of their products.
If we want our vehicles to become ‘smart,’ all services and their underlying business frameworks need to be reworked as whole using blockchain.
As all transactions happening on blockchain are safely recorded and verified, the future of car leasing and insurance can be changed to enhance.
In a nutshell, insuring a vehicle could be turned into a more on-demand and dynamic process. Future insurance policies would work according to real-time vehicle data provided. With Smart Contract Blockchain applications, a vehicle would have its insurance policy.
Likewise, a leased vehicle would manage all contractual transaction requisites using smart contracts applied upon it.
Consequently, monthly leasing payments will get enforced in transportations, and upon payments fails, these would automatically decline the service.
For managing the manufacturing process and generating vehicle, the automotive sector uses many ERP and operational systems.
In turn, these systems communicate with numerous other systems downstream, which work on several data feeds to execute their actions.
Eventually, it ends in bloating the size of the IT team that conciliate between these various systems and thus, increasing complexity in the IT landscape. Blockchain applications in Automotive address this situation by reducing the risk of two or more systems using outdated or contradicting information by applying the method of a single source of information, in real time. It also diminishes the need to have alternative systems required to reconcile any inconsistencies between systems.
Subsequently, systems and people can work more efficiently and, therefore, act faster with more confidence.
Blockchain applications in Automotive Industry can unexpectedly streamline its cumbersome and complex processes. It can alleviate the need for compliance and regulatory approvals. It’s the CIOs, CFOs, and CTOs who will make a strong business use case for implementing the blockchain applications in Automotive Arena. The technology is ready to prepare vehicles for an upcoming advanced future where they would interact with it in many different ways.
For more vital insights into Blockchain Technology, here’s a pool of information.