How Blockchain is Paving New Path for Automotive Industry

As several technologies that are not limited to a particular industry or service, blockchains also are not limited to only cryptocurrencies. The technology is extensively being espoused and utilized by other industries, especially the automotive industry. It is likely to become essential for the automotive sector in the coming years with the intention of making the next-generation cars into a reality.

Today’s advanced cars are turning to data centers with on-board sensors and computer systems that capture information about the vehicle. Blockchain has the potential to bolster trust and collaboration among businesses, consumers and even vehicles with more secure, traceable transactions and better access and transparency of information.

As per the Frost and Sullivan report, 10% to 15% of connected vehicle transactions are likely to be on blockchain by 2025.

Automotive Sector Influenced by Blockchain

The automotive space has always kept a keen eye on new and emerging technologies in order to streamline operations, release new end-user functionalities, drive revenue growth, among others.

Several promising technologies that had an enormous impact on other industries might have passed the automotive industry. But when it comes to blockchain there are already a few companies investing in this technology.

In a 2018 IBM study, 62% of executives across the automotive industry are convinced by blockchain technology and reported that the technology will be a disruptive force in the auto industry by 2021. Conversely, the study found that 54% of Pioneers of this space plan to deploy their first commercial blockchain network at scale within the next three years.

Blockchain technology could empower a secure digital identity at carpooling systems. It protects personal settings and preferences in the car safely avoiding revelation to unnecessary parties. This could also enable peer-to-peer (P2P) carsharing.

With blockchain-based smart contracts industry leaders could optimize and automate various processes in the vehicle leasing and financing section. If a car’s leasing rate hasn’t been paid yet, for instance, it is possible to thwart it from being utilized by neutralizing the revealing system. Blockchain-powered solutions could also enable the car rental companies to monitor if the cars are in cleaning, maintenance, among others.

Since blockchain solutions are transparent, they are increasingly being adopted to empower secure communications and digital payments between connected vehicles or vehicles. The technology has gained or gaining lots of traction in the automotive industry.

The technology assists in solving core mobility issues like scalable sharing vehicle ownership and the incorporation of multiple mobility stakeholders consisting of consumers, OEMs, mobility and transport providers, city and infrastructure providers among others.

At present, a large number of  blockchain arrangements are available in the marketplace, ranging from public open source networks to private blockchains that necessitate clear consents to read and write.