Blockchain technology is having an impact on multiple industries and sectors around the world, and none more so than in automotive. Vehicles are no longer just a mode of transport, they are mobile data centres in a fashion, and this is where blockchain is having a positive effect. The technology provides security and transparency like nothing else, something which the industry has been keen to adopt.
The blockchain revolution in the automotive industry began back in March 2018, when the Mobility Open Blockchain Initiative, otherwise known as MOBI, was formed. This saw industry heavyweights such as BMW, Ford, General Motors and Renault come together with leading companies from the tech and blockchain sector.
MOBI had a meeting in February with their members, this time to discuss how blockchain and distributed ledger technologies can be of use within the automotive industry. They shared goals on utilising blockchain technology in the future to improve quality of life, safety and ensures a greener outlook.
As you would expect, blockchain has a lot to offer the automotive industry, and its influence can impact multiple areas, from manufacturing through to owners of a vehicle. During manufacturing parts are needed, and there are times when they can go missing or break for example. However, by using blockchain, manufacturers can track parts and their condition every step of the way, with the time-stamping that is also available.
Blockchain could also allow for things such as smart insurance, which would undoubtedly be well received. Just like a user has an account on their gaming console, blockchain could enable the same for insurances, which would allow drivers to be able to transfer their cover from one vehicle to the next with ease.
As far as car owners go, there comes a time in most lives where a vehicle is sold or bought. Now in addition to be able to complete the transaction via your Luno Bitcoin wallet, blockchain can also alleviate any concerns regarding vehicle history and the like. A blockchain-based registry, where vehicle history is stored, wouldn’t allow for alterations which could mask the truth, making the process more transparent. Smart contracts could also be utilized to help with the transaction, cutting out the need for third-party involvement along the way.
The possibilities are endless with blockchain, and technology will undoubtedly be a significant influence on the industry over the next decade or so. We’re already seeing initiatives being acted on by the likes of Ford, Hyundai and Volkswagen. With big names from both the automotive and tech industry already on board, it’s a sign that times are changing, but these are early days, and there’s undoubtedly plenty more to come from blockchain technology where vehicles are concerned.