The automotive industry is witnessing huge growth with every passing year. In 2017 alone, 73.5 million cars were produced globally. It has been projected that by the end of 2018, the global sales of cars can increase up to a total of 81.5 million units! The fact that this is such a profitable industry showcases why blockchain technology is tapping into it.

Wait, what is blockchain exactly?

Don’t know what blockchain is? Don’t worry, you aren’t the only one. Since the technology is relatively new, a lot of people are not entirely sure what it is and how it functions. Well, you can understand blockchain with the help of two terms. Digital. Ledger. That’s all it really is. The blockchain is a decentralized as well as a digital ledger that allows effective recording and sharing of information. While the traditional mode of transactions takes time to record and be available to see, this is not the case with blockchain. Instead, the transactions are recorded instantaneously, leaving little room for friction.

Since making alterations to a blockchain without detection is impossible, this makes this technology very safe to use. There are fewer chances of scam and fraud when blockchain is involved. The fact that the world is moving towards digital solutions have made blockchain a lucrative technology. The need for mobility and innovation in the automotive industry have also made it an attractive tool for consumers, dealers, manufacturers and OEMs alike.

How is Blockchain changing the automotive industry?

When we buy cars today, we have the option of doing so with digital currencies. For instance, the AutoBlock allows you to purchase and sell cars using the blockchain technology. It does so while ensuring the security of the mode of transaction.

This is just one example of how blockchain technology has been changing the automotive industry. There are other ways technology can revolutionize the automotive industry as well. Here is how it can be done:

Let’s face it. Physical keys to cars can be easily stolen. And if they are stolen, you are basically giving an opportunity for anyone to drive off your car to the sunset. However, with the development of private keys, this can be stopped. How so? Through the use of blockchain which is operated by the manufacturer. The consumer can be given a private key (a code) to unlock their car. The only time the car unlocks was when the key entered matches the public key that the manufacturer has.

Rather than giving others your keys when the need arises, you can form smart contracts with them, whereby they are given fleeting access to your car. This can come in handy when you want a courier service to leave the delivered package in your car in your absence. Blockchain can do it for you without the process being unsafe.

Blockchain Applications in Supply Chain

We already see some driverless cars on the road. Blockchain can effectively redefine how these cars function. The idea of being in an autonomous car seems scary. After all, how can a car know about the condition of a given road or even be safe enough to be used?

Well, blockchain can truly revolutionize this niche by making such cars as safe as possible. The technology can allow for different cars to communicate with one another as well as access data. This, in turn, ensures that the cars know everything about the prevalent traffic in the route, the conditions of the road and any other data needed for a safe trip. The blockchain is the technology, if used properly, that can change the experience of driving in a driverless car.

The Autoblock service we mentioned, in the beginning, is an example of how transactions can be secure via blockchain. By getting into a smart contract, both parties are aware of the contract, and the deal is only finalized when the two parties agree to the contract. There is little room for fraud, which makes the transactions secure.

A very important part of the automotive industry is the car insurance niche. When you buy a car, you get it insured. This process is usually marked by hassles. Blockchain can transform this process for the better. Not only can claims be processed at a faster pace, but the process can be streamlined as well. Again, smart contracts come in handy as well. Also, blockchain reduces the need for middlemen in insurance, therefore reducing cost.

Blockchain allows the industry players to manage the data of various vehicles efficiently. This involves updating data in real time to allow it to be used by the industry as needed. For example, odometer fraud can be detected using blockchain. A connector present in the car can send real-time data about the vehicle mileage. This information, when available to OEMs, can be used to sell cars and value it correctly.

Blockchain Technology Use Cases in the Banking Sector

Even though we have entered the modern age, we still do a lot of old school things like carrying our vehicle registration and licenses when traveling in our cars. Surely, in a digital world like today, there has to be a better solution. Blockchain can be such a solution. Normally, the process of getting ownership of a car or changing the owner is lengthy. Blockchain has the power to make it instantaneous. Even in the case of rental cars, the law enforcers can authenticate the ownership quickly. This can ensure that the police can have more time for other aspects of their jobs. So, it doesn’t just make things easier for automobile users but also for the law enforcers.

Blockchain also has the power to transform how used cars are purchased. Normally, you rely on the word of the mechanic and car dealership to assess if the used car is as used as it claims. With blockchain, you can have real-time data about its life. You can know about its mileage, repair history and if it has been in any accidents. This makes purchasing used cars a safe and transparent process.

Applications of Blockchain in Healthcare

All in all, blockchain can revolutionize the automotive industry as we know it. However, only time will tell if its potential can truly be utilized.

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