Blockchain technology has the potential to change the world as we know it and the automobile industry is no exception. Automakers across the globe are exploring how blockchain technology could impact the future of the car industry. Blockchain technology is a digital ledger, which can store transactions made in cryptocurrency. The blockchain makes it possible for data to be recorded and shared by a community of users without the need for an intermediary like financial institutions or governments. It provides transparency through decentralization while at the same time ensuring security irrespective of its decentralized nature because all data on blockchain blocks are encrypted with cryptography.
Blockchain first appeared on the radar in 2008 and was originally used as a financial transaction database. But now, blockchain can be used for more than just currency exchanges - it's being applied to everything from digital identity management to car purchases. Let's take a closer look at how blockchain could change the future of the car industry.
Supply Chain Management
One of the major areas where blockchain can assist the car industry is supply chain management. Since automobile parts have the tendency to get lost, stolen, damaged, or replaced in the supply chains, they can be efficiently managed with the help of blockchain. With the transparency offered by distributed ledgers, car companies can make sure that the manufacturing, shipping, and suppliers see the same supply chain, thus preventing any theft or insertion of counterfeit parts.
Blockchain can take care of a variety of manufacturing processes in the automobile industry. For instance, blockchains can be employed to store data from bills for vehicle components, records of quality inspection created during the manufacturing process, and other information that is related to manufacturing for each vehicle from start to finish. Blockchain can impact how information about a vehicle's history is recorded throughout its lifetime, from production line testing to final inspection, etc.
Another area where blockchain shines in the car industry is smart insurance. Using blockchain, manufacturers can store the vehicle’s sensor data securely and transparently in a decentralized network. In any case of an accident, the data on the blockchains can be used to resolve the circumstances of the accident. It can also assist in automatically transferring the insurance to other vehicles in case of any car crash.
Car Safety and Protection
As connected vehicles and self-driving vehicles are becoming mainstream across the globe, blockchain can make them safer and more responsible. Blockchains can be employed to record the road, infrastructure, and general traffic patterns and can share them with other vehicles on the road, thus preventing any accidents or crashes. In essence, the strong cryptography in blockchain ensures that the data stored in the blockchain is safe from hackers. End-users can also benefit from blockchain since it can enable complete transparency in the car selling or buying process with no middleman for transactions.
Improved Business Models
Blockchain’s single version of the truth is helpful for the implementation of the Internet of Things (IoT) in cars, which can reduce costs through data accuracy and real-time monitoring; moreover, blockchain technology will also lead to greater efficiency as it reduces human error during transactions. In addition to this, blockchain-based applications could be used to create new business models that would generate revenue and help car manufacturers and suppliers to increase their profits.
Blockchain is a tool to disrupt the automotive industry
Blockchain technology has the potential to revolutionize many industries, including the car industry. It can potentially lead to a future where manufacturing and using cars can be much safer and efficient. You can eliminate data fragmentation, accelerate and facilitate processes, and track and verify vehicle components in real-time with blockchain solutions. With more and more industries and companies across the world joining the blockchain revolution, the possibilities of employing blockchain in the car industry are endless.
At Rubix Network, we are leading the change in next-gen blockchain technology. We are the proud inventors of the PoH (Proof of Harvest) consensus, a mechanism that reduces carbon emissions by 100%. Our proofchain architecture enables the building of highly scalable, secure, decentralized applications with built-in privacy. We can also help you develop custom smart contracts for your specific needs.We can create and build turnkey solutions for automotive industry and let your enterprise , startup meet the revolution of the blockchain technology !