Blockchain innovation is particularly hot while empowering new monetary forms. Today, blockchain technology is no more constrained to digital currencies, but rather is generally implied and received by different major ventures like insurance industry, automotive industry, health care, education and more.
Blockchain in automotive industry comes with large degree of scope particularly the car business. As per Ice and Sullivan, 10– 15% of the associated vehicle exchanges are relied upon to be on blockchain technology by the year 2025. Companies like Toyota is investigating blockchain innovation in a joint effort with MIT Media Lab to build up another portability biological system that could quicken the advancement of self-sufficient driving innovation, especially with secure information sharing, vehicle/rideshare exchanges and utilization based protection. German provider ZF and IBM declared in 2017 that they were together creating Vehicle eWallet, an instalment innovation focusing on future versatility administrations. As per the two organizations, the Vehicle eWallet could be utilized via automakers and specialist co-ops to deal with tolls, leaving, electric vehicle charging, vehicle sharing and in-vehicle administrations. The above cited are few among the several speculations of blockchain in automotive industry, the lists are endless as you dig deep the versatility of blockchain in automotive industry.
The auto industry has a diversified ecosystem with many parties coming into play. Several departments like designing, production, finance and marketing, distribution and selling come into play in simultaneous fashion in the automotive industry. Unlike any major industry, the auto industry also comes along with a set of characteristics and concerns. There are many challenges in automotive industry like global supply chain, vehicle licencing, taxation proceedings, trust and security that remains obstacle in the path of auto industry sector.
Blockchain powered auto industry innovations can proactively look into major concerns and lay intuitive solutions.
Here I enlist a few advantages of blockchain in automotive industry.
Quick Exchange of Vehicles
Any automotive like vehicles and treks can be carefully signed on the blockchain and thereby the exchanges can be consequently settled in no time between proprietors, administrators and outsider specialist co-ops through a solitary source. The stage will likewise give access to an assortment of on-request portability arrangements.
Every automotive interactions and transaction can be carried under an immutable database keeping transparency supreme to every communication. The shared ledger between various parties like manufacturers, distributors, dealers, mechanics or insurance providers initiates themselves to sense their needs and thereby take timely measures. For example, a car could address the need of repair to drivers, trigger the need for replacement parts to the supply chain, automatically negotiate to price for conducted service and more.
It is a common scene in automotive industry, that the received auto parts are damaged and returning the faulty very difficult. In many cases, the auto parts turn out to be duplicate and difficult to track the authenticity of the automotive part. With the introduction of blockchain in automotive industry, one can create an anti-fraud web with distinctive ID for every part. These identification tags in blockchain can rule out the current challenges of authenticity. In case of fault or any usage limit, the manufacturer or the dealer can perform recall action in blockchain to timely correct the issue.
It is often seen that the automotive manufacturers take much time say weeks and months for a shipment of goods. There involves large play of intermediaries like dealers, distributors, importers etc. eventually giving birth to heavy paper works that ultimately slows down the entire shipping process. With the introduction of blockchain in auto industry, one can enhance speedy shipment of automotive goods, as every department is brought under distributed ledger database. The database assures timely and quick processing of information bringing greater transparency to the whole process. Blockchain in automotive industry helps with the distribution of accurate information between the parties, processing faster export/import, quick documentation and more.
Blockchain leveraged supply chain assures with optimised inventory levels and timely delivery of automotive goods and services. Thus the manufacturing wing within the automotive industry can ensure with just-in-time logistics, anti-counterfeit supply chain measures, real-time tracking of the vehicle and its parts, expediting reconciliation of deals if any, and finally secured payment from one party to another.
The above-cited examples are just a few drops of the ocean. The blockchain applications in automotive industry are certainly large surfacing many aspects of the automotive industry.
Today, we can say it’s just a beginning of blockchain technology in automotive sector, as innovators are in their inception stage of scratching the surface. The endless possibilities with conceptualized–blockchain incentives are yet to deliver by the tech giants for more eco-friendly, trustful and secured automotive transactions, efficient automotive insurance and financing, and more.