Blockchain is a shared, secure, and decentralized ledger that has sparked interest in the automotive industry. The Internet of Things will be transformed by blockchain technology in the next five years, making every single part of the automobile more intelligent and safer.
Blockchain in Automotive
Having a blockchain in your cars offers many different advantages for both manufacturers and consumers alike. In this post, we are outlining how this trend will affect businesses like yours over the next five years to come, from maximizing revenue and minimizing costs to sharing data with vehicle owners.
The automotive industry is experiencing an explosion in new products, services, and technologies that are fuelling demand for the connected car. From telematics to cloud-based security solutions, there is no shortage of options when it comes to managing your vehicle’s experience remotely. But what these possibilities don’t offer is data security for your data-rich vehicle.
Manufacturers can take advantage of blockchain technology in order to create a more secure environment within cars and on the road. This is because blockchain technology offers a number of advantages to these vehicles.
First, blockchain technology can offer greater security for vehicle data. In this case, the transmission of sensitive automotive data would be encrypted on a distributed ledger. This means that your information is secure; it cannot be accessed by hackers or stolen by an unscrupulous service technician. It is confirmed by multiple parties that the information is both encrypted and tamper-proof, and when it needs to be accessed, you have the power to control who can access it.
Additionally, blockchain technology facilitates improved operations for manufacturers. The technology behind blockchain supports rules that can help determine exactly how data can interact within a particular environment. Using blockchain in automotive applications allows vehicle owners to share their driving data with third-party services or car rental companies for a specific period of time. The technology partners can then determine how they want to access the data and how long they can have it.
If you’ve ever been involved with vehicle insurance, you have dealt with the issues of managing data is a very difficult thing. Blockchain can help because there are no intermediaries or management tiers between the dealership and insurers. The car owner will be able to secure his driving history to potential service providers and insurers instantly.
There are also a number of potential opportunities for car owners and companies that want to use blockchain technology. At this point in growth, the industry is still mostly focused on how it can be used to improve existing operations. But car owners and service providers will soon be looking for new ways to use the technology.
For example, a vehicle owner could use blockchain to track the history of his car’s maintenance and service records, while an insurance company could determine how best to manage a policy for the driver. Over time, each party will develop new use cases for this technology including functions that are not currently possible.
Firms across the automotive value chain are exploring blockchain as a way to facilitate greater collaboration and enhance transparency across the industry. In some cases, individuals have been able to develop unique business models centered around these technologies.
Blockchain is about bringing together multiple parties to solve a challenge in a new way. It could be used by services and providers who want to access and utilize data from vehicles directly, by manufacturers involved in the insurance industry, and even by car rental companies trying to track vehicle information.
For each of these cases, blockchain will help bring greater certainty for the entity that uses it and solutions for other entities using it. As more entities embrace blockchain technology, there will be greater overall benefits for both consumers and manufacturers alike.
There are many opportunities for businesses to use blockchain technology and create new business models that could help make the automotive industry better. With the growth of blockchain technology, more possibilities will emerge for how the market can thrive in the years to come.
For example, car manufacturer BMW has partnered with Microsoft and IBM to explore how it can improve its supply chain management by using blockchain technology. The car and tech firms are working together to develop platforms that will connect its product data to distributed ledgers. This will allow organizations along its supply chain to access information about the location and conditions of items in transit.
In a similar way, car manufacturer Ford has collaborated with transportation system technology company TransChain to develop a blockchain platform focused on vehicle data sharing. Ford plans to equip its vehicles with swappable digital twins that support interaction with other connected cars on the network. The twin cars will be able to collect and share data with vehicles on the network, including in other locations.
These are just a few of the new ways that car manufacturers, businesses, and individuals will soon use blockchain technology. From automating production processes to distributing data about vehicles among different parties, blockchain technology is transforming the automotive industry by creating a more secure and transparent environment.