Increasing Significance of Blockchain for Automotive Solutions

The automotive market of the future will be very different from the one we have now due to the introduction of technologies like blockchain for developing modern solutions. It will become more integrated and provide on-demand and personalized services, including autonomous, shared, and linked vehicles. Blockchain app development has the potential to play a significant role in the upcoming industry change.

We analyzed characteristics that may be used to tackle a variety of business difficulties while evaluating blockchain potential across the automotive value chain.

What is blockchain, exactly?

A blockchain is a digital, decentralized, distributed ledger that allows a community to record, share, and retain information.

Near real-time

It allows for the near-instant settlement of recorded transactions, removing friction and lowering risk.

Reliable and authentic

A blockchain has no single point of failure and is durable in the face of outages or attacks because it is shared by various people.

Transparent

All participants can see transactions, and identical copies are kept on numerous computer systems, boosting the capacity to audit and trust the data.

Irreversible

Transactions can be made irreversible, which improves record accuracy and streamlines back-office activities.

Immutable

It's nearly impossible to make modifications to a blockchain without being detected, boosting trust in the data it holds and minimizing the risk of fraud.

Digitized

Because practically any document or asset can be written in code and linked to a ledger entry, blockchain technology offers a wide range of uses.

Also, Read | Strengthening Automotive Operations with Blockchain Solutions

Blockchain Use Cases for Automotive Solutions

Parts provenance/trace and verification

A blockchain-based traceability solution for capturing, storing, and updating data about automotive parts, such as spare components. It will allow the service center, automobile manufacturer, and customer to track the origin of spare parts back to the date and location of manufacture.

Supply Chain Management

A blockchain-based technology that enables automobile companies to easily order, sell, track, and pay for items once they reach their destination. Parties on the blockchain would produce, amend, examine, and verify documentation. Payments might potentially be made in real-time between parties at any point during the process, depending on the terms of the agreement (e.g. between seller and customs authorities, seller and shipping company, and between seller and buyer). As a result, linked IoT sensors and smart devices may monitor the state of containers and other data that might be stored on the blockchain and used to inform final settlements, such as whether items have been damaged.

Also, Read | Increasing Automotive Supply Chain Efficiency with Blockchain

Specific Vehicle/Parts Recall 

A blockchain-based technology that allows automakers to identify automobiles with problematic parts and, as a result, issue targeted recalls or service advisories for such cars. Customers will be less inconvenienced, and the cost of the recall will be lower. This program will also keep track of the recall's progress, such as cars received by dealers for repair or cars fixed, which may be utilized for government regulatory reporting.

Also, Read | Automotive Operations on Blockchain Smart Contracts

App Development for Ride-Sharing

A blockchain-based system for car owners (individuals) to monetize journeys by recording and executing agreements and monetary transactions. This solution would securely and reliably connect smart and/or autonomous cars, car-sharing providers, and end-users. Users and car-sharing companies would create accounts on the blockchain and share information safely and simply. Vehicle location, keys to open the automobile, agreement conditions (e.g., cost per mile, insurance details), and user payment information are examples of such data. Following the completion of the trip, the solution would process all payments and update the user's record with a trip history.

Also, Read | Developing a Ride-Sharing App like Uber with Blockchain

Payment Mechanisms for Electronic Vehicles

When an electric vehicle owner charges their car at a third-party charging station or discharges their electricity from their EV to the grid, a blockchain-based system controls contracts, billing, and payments to guarantee the energy network's stability (e.g. transporting energy from rural areas to cities).

Incentivization for Customer and Dealer 

A blockchain-based solution that tracks dealer and customer purchases and rewards customers with loyalty points that can be redeemed and used as cash inside the OEM's loyalty network. For example, the dealer may provide a discount on components purchased using customer-redeemed loyalty points. The dealer's account would be updated for network participants to see after the loyalty points were redeemed.

Also, Read | Advancing Innovation with Blockchain in Automotive

Some real-world examples of distributed ledger technology.

Currently, blockchain and the automobile sector are putting their points of contact to the test in several sectors. Here are some real-life cases of automotive leaders using or testing distributed ledgers:

Ford

To assure ethical cobalt sourcing, Ford has launched a blockchain test using IBM's platform. Ford intends to prevent firms from using child-mined cobalt in lithium-ion batteries by tracing the cobalt supply chain on the blockchain.

Volkswagen

Volkswagen is developing a blockchain-based tracking system to combat rampant odometer fraud in the automotive sector. Buyers will save money if dishonest automobile vendors are prevented from manipulating odometers to obtain false mileage numbers.

Hyundai

Hyundai and IBM have established a new collaboration to enhance blockchain technology and cloud-based AI. IBM will use open-source Hyperledger Fabric to build a new supply chain financing ecosystem. The project's goal is to automate manual operations, lowering costs and shortening lead times while also boosting customer satisfaction.

GM Motors and BMW

General Motors and BMW are supporting blockchain technology as part of the MOBI program to exchange self-driving vehicle data among themselves and other automakers. MOBI's blockchain standardization initiatives are also a step forward in the industry's use of blockchain technology.

Also, Read | Blockchain Automotive Solutions | Making Drivers' Life Easier

So, what's next?

Despite these obstacles, the industry is evolving and adapting to this new technology. Some of the most well-known automobile firms in the world are already investing in blockchain and developing solutions. MOBI is a blockchain adoption initiative that brings together technology businesses, academic institutions, and non-profit organizations.

Oodles' blockchain development team can help you unlock the possibilities of blockchain automotive development. Eliminate inefficiencies, optimize company processes, and take advantage of the industry's unique potential provided by blockchain.

Increasing Significance of Blockchain for Automotive Solutions

Increasing-significance-blockchain-for-automotive-solutions

We analyzed blockchain characteristics that may be used for addressing business difficulties while evaluating potential across the automotive value chain.