5 Ways to Leverage the Blockchain in the Automotive Industry

By Atman Rathod

If you are a finance fanatic, you have surely heard about the term cryptocurrency, which is primarily based on blockchain; but, did you know that the concept can be used outside the finance domain and is finding use in a wide variety of industries around us? Yes, this is absolutely true; blockchain is acting as the primary catalyst for the evolution of advanced technologies and the 4th industrial revolution.

Are you wondering about how blockchain, a concept that mostly finds use in the banking and finance industry, is used in the automobile industry? Truth be told, it is a bit complicated but undoubtedly a top-ranked industry that is sure to keep gaining popularity in the future. We have curated this article to help you better understand how you can use blockchain in the automobile industry.

Here, we will discuss the hidden potential that blockchain holds that you and other stakeholders of the automobile industry must identify at the earliest. Then, we will look at some benefits that you can reap with blockchain and its use cases. We will also list some popular companies that are already utilizing blockchain technology and that you can draw inspiration from. So, jump right into this article and prepare to learn about the best ways in which blockchain is used in the automobile industry!

What hidden potential does blockchain have that you must recognize at the earliest?

Since you are here reading this article, we are sure that you know what blockchain is; but, here’s a brief rundown that you might find useful as a refresher - blockchain is a technology that is a form of a decentralized and distributed ledger that allows all users with access to add, maintain, and share data. You can think of it as a Google Spreadsheet that you use to record important business information; but, an important difference is that Google Spreadsheets are editable by users (if they have permission) and the owner, whereas a data once recorded on a blockchain becomes immutable.

Now, you might be thinking - blockchain seems to be a useful concept for the finance industry, but how does the automobile industry leverage the blockchain technology? Well, you might have noticed that recently, all biggest automobile manufacturers are working on building self-driving cars; to ensure that these are self-reliant and can keep users safe, these cars rely on big data and draw conclusions from them.

Since the complete collected data must be stored, analyzed, and evaluated as and when necessary, you must ensure that it is safe from manipulation and is stored securely; and, what easier and better way to do that than using blockchain? After all, blockchains are quite secure and generally safe from cyber attacks, which is why you can ensure that your data is as correct as possible.

Imagine a scenario where your car loses network and has an accident since it does not have access to the dataset; this scenario would be completely eliminated if you leverage the blockchain technology in building your automobiles. This is because blockchain data is distributed and there is no connectivity downtime, which helps ensure that your car is never offline and you are always safe!

Some advantages that you can experience when you leverage the blockchain technology in the automotive industry

We have helped you understand the potential that blockchain holds and why we want you to leverage the blockchain technology at the earliest. Some other benefits that you can reap when you leverage the blockchain technology are listed below. We recommend you hire blockchain developers to ensure smooth and quick blockchain development.

1. Since blockchain is uneditable, it is a great way to ensure that you have proper documentation and can easily trace all business transactions and data.

2. Blockchain is quite manageable and secure which helps reduce different business costs and eliminates intermediaries.

3. Since blockchain is uneditable, businesses can ensure complete transparency, which helps reduce any worries that users might have.

How can you leverage the blockchain in the automotive industry?

Now that we have seen the numerous benefits that you can enjoy when you leverage the blockchain in the automotive industry, let us look at how exactly you can do that. A small note before we start - it might be difficult and complicated to leverage the blockchain in the automotive industry which is why we recommend you hire blockchain developers with professional caliber and expertise.

1. Securing raw materials from ethical sources

If you have been a part of the automotive industry or have ever owned a car, you know how the markets are flooded with duplicate spare parts. When talking about building and manufacturing cars, a common problem that manufacturers face is ensuring that the raw materials are derived from a trustworthy source.

Since it can be quite difficult to track down raw material suppliers, we recommend you leverage the blockchain to do it. When you track your supply chain with blockchain, you can ensure that your materials are derived from a reliable source and help guarantee high quality.

2. Helps track the car’s ownership history

The main problem that buyers of second hand cars face is that they cannot be sure that the provided vehicle records are correct; and, it is impossible for potential owners to track down the previous owner in case the sale is being conducted by a middleman. You can leverage the blockchain to store a vehicle’s complete history, which helps ensure that the ownership data offered to potential owners are accurate.

3. Enables better car and ride sharing management

Blockchain has huge potential and there are numerous ways in which one can leverage the blockchain in the automotive industry; but, the most prominent one is its application in the development of an innovative type of peer-to-peer car sharing app.

Here, you can think of apps like Uber as the middleman that are eliminated once these apps are implemented. We recommend you hire dedicated developers to leverage the blockchain for this concept and successfully develop the app at the earliest.

4. Build and manage a fleet of autonomous vehicles

A great area in which you can leverage the blockchain is for building and managing autonomous vehicles, also known as smart vehicles. You can easily hire blockchain developers to create a fleet management platform or application that allows self-driving cars to easily connect with each other and exchange data to ensure proper management of supply and demand.

You can also program these vehicles to regularly log different values like mileage, routes taken, and system issues that the user might be facing. If programmed properly, you can ensure that when a condition is met, system maintenance and car repair teams are notified automatically.

5. Smart contracts that efficiently manage and calculate payments and taxes

With so many payment and tax regulations afloat, it can be difficult to keep a track of these deadlines and any changes in rules and regulations. We recommend you leverage the blockchain to adopt efficient and transparent payment systems; and, you can also add smart contracts that help specify additional conditions like vehicle type and the car’s environmental impact.

Which automotive companies leverage the blockchain to reap the benefits?

The top automotive companies that hire dedicated developers to leverage the blockchain and get closer to success are:-

• Ford

• Volvo

• Honda

• Tesla

• General Motors

• BMW

• Toyota

• Audi

• Volkswagen

• Mercedes-Benz

Conclusion

Although blockchain has so much potential that can be easily leveraged to enjoy better business benefits, very few automotive companies have taken the leap to actually do so. We hope the above article provides you some direction and helps you understand how you can leverage the blockchain for better benefits and immeasurable success!

Author Bio

Atman Rathod is the Co-founder at CMARIX TechnoLabs Pvt. Ltd., a leading web and mobile app development company with 14+ years of experience. He loves to write about technology, startups, entrepreneurship and business. His creative abilities, academic track record and leadership skills made him one of the key industry influencers as well.