As technology continues to evolve in the 21stcentury, cars and vehicles are becoming much more than just a mere mode of transport. Nowadays, we hear news of the latest models in the automotive industry. Complete with onboard sensors and smart technology, it is no longer a huge surprise to see vehicles operating with data centres and computers that capture and process information.
When blockchain technology first emerged into the world, various executives in the automotive sector had their misgivings and hesitation towards it. However, blockchain started to gain momentum after a few years in the industry. Major businesses and corporations realised the true impact and benefits blockchain could bring to the table.
What does blockchain bring to the automotive industry?
- Blockchain technology enables the manufacturer to have complete tracking of car parts and pieces. This minimises the risk of parts being stolen, damaged, modified, etc. As blockchain carries the data of the piece’s origin, manufacturers can tell if a manufacturing defect had occurred or if any modifications have been made to the piece. Supply chain processes can be significantly streamlined, especially those that depend on compliance and regulatory approvals.
- The financial and transactional processes can be streamlined via blockchain technology. Processes that rely on manual data insertion can be efficiently updated throughout the lifecycle of a vehicle.
- Blockchain can be used to store data throughout the car manufacturing process. Be it quality-check records or bills of lading for car components, information that is important for each vehicle assembly can be safeguarded and accessed with convenience.
- The more connected a car is, the greater the risk of being targeted by malicious cyber attacks. Cyber security companies offer the strong cryptography of blockchain that prevents data from being changed or accessed by the wrong people. With a blockchain-based system, data can be securely exchanged between smart homes, software vendors, vehicles and others. Blockchain offers a decentralised model in approaching smart car connectivity, reducing any problems that would be caused by a single point of failure.
- With blockchain, identity access management for carsharing is made secure. Personal settings and profiles can be saved in the vehicle, without being leaked to unauthorised parties. The carsharing procedure for users can be simply facilitated via a single registration point in the blockchain.
- Rental companies are able to monitor via blockchain if the cars are in maintenance, cleaning, etc. They would be able to tell what is happening and conduct a follow-up on the car.
- Several processes in the vehicle leasing and financing section can be automated and optimised, thanks to the creation of blockchain-based smart contracts.
- For car owners, using a blockchain registry would result in easier verification of the car’s history, therefore providing full transparency when purchasing a car.
As you can see, the technology of blockchain has brought numerous advantages to the automotive sector. The list of benefits is not exhaustive and the industry is sure to continue finding innovative ways to enhance and streamline operations.