How Blockchain Technology is Revolutionizing the Automobile Industry?

How Blockchain Technology is changing the Automobile Industry

The industry experts of leading Tata Spare Parts dealers are shedding light on some of the application for Blockchain Technology in the Automobile Industry. But before we get down straight to the matter let’s refresh our memories and quickly mug up everything that is Bitcoin, Blockchain and Cryptocurrency.

Blockchain has first made its presence known when the Bitcoin was in the process of making its roots permanent across the global economy, a wonderful way of keeping track of all the BItcoin transactions that Satoshi Nakamoto (2008) conceptualized in his White Paper, soon after the birth of Bitcoin. Blockchain represents how Bitcoin transactions are actually carried and is a systematic, secure and decentralized ledger for processing the Bitcoin transactions. Apart from its applications in the financial sector, Blockchain Technology has various useful applications in the automotive industry too.

While financial sector has been leveraging the potential of Blockchain technology for a couple of years, the automotive industry has just started exploring ways to incorporate this promising technology. The automotive industry is steadily moving towards the wonderful age of digitization that will alter everything we are previously used to because of the application of Blockchain technology in the automotive industry and the pace at which it is revolutionizing the sector.

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We know how a simple car feature of cruise control surpassing the real motive of improving the driving experience for the drivers has now been transformed and turned into self-driving cars which are taking the world by storm. A next big step towards the revolution of the automotive industry is how vehicles are now being able to communicate with each other and pass on information about the various road conditions and turns and takes they are going to take. The latest technological advancements in the field of the automobile have proved that vehicles are no more a mere mode of transportation and the integration of Blockchain technology will further solidify this fact and will bring out solutions to the most pressing automotive issues.

  1. There is no anyone who can alter the records in the chain, i.e it is completely immutable.
  2. All the transactions in the chain can be scrutinized and evaluated.
  3. It is completely secure, as long as the public ledger is properly functioning.
  4. No need of intermediates, each member in the chain can interact and communicate with each other directly because of no centralized body governing the system.
  5. The transactions are carried at a high speed as compared to centrally controlled operations.
  6. Each network member has a copy of the registry, so the point of data loss is completely out of question.
  7. Since all the data is encrypted through cryptography, data is completely secure and safe.

Applications for Blockchain Technology in the Automotive Industry

Automotive/Internet of Things Interactions

We are gearing towards an era where machines will control everything and do everything we know. We know how autonomous or self-drive cars are taking over the need of drivers in the vehicles, how machines themselves will contact with each other to transmit information regarding the road conditions and the routes they will take. The interaction and communication of machines and devices installed in the future cars will certainly require an immutable database of shared, secure, and highly permissioned access that only Blockchain technology will provide.

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This can be a shared public ledger between OEM auto parts distributors, suppliers, exporters or importers like the largest Tata Indica Parts dealers, automobile dealerships, auto service mechanics, insurance providers. This promising technology can also provide support ability for the components and spare parts within a vehicle to automatically sense for what it is made and what are its needs.

Car sales and Leasing

We often get cheated when looking for a second-hand car, the truth of its real condition we only get to know once we have driven the car a few miles and the problems start dropping in. A compromising odometer, faulty air-conditioner, way too old tires or the car is driven longer than what we have been told. Blockchain can help remove these discrepancies while purchasing an old/ second-hand car model. As we have discussed earlier in this blog, no records in the chain can be modified, they are immutable, you can cross check whether what the seller is saying is true or not by comparing the records stored in the blockchain. You will be able to check each and every aspect of the car before making your final call.

Auto Insurance

The current auto insurance claim system requires a plethora of documentation, submission, and reference resources to actually get to the point of claim verification. Having a proper record of these events over a public, distributed ledger will smoothen out the entire insurance claim processing and will also streamline the corresponding payouts and service contracts related to financing and carrying out repairs. The automotive quality equipment manufactures or car insures upon receiving fraudulent information via false claims or other false resources with the help of smart contracts or private keys can verify if the submission is genuine or not.

Supply Chain Management

Blockchain technology eliminates the risk of duplicate information or two systems boasting conflicting data or information. This is because Blockchain gives information from one original source, in real time, which strikes out the chances of two-way information. Both systems and people can proceed more confidently and much faster because they are getting true, accurate and trustworthy data at that moment. Blockchain technology helps in bringing speed and simplicity to complex and slow automobile business operations while significantly reducing the cost of running multiple IT operations.

The automotive industry is steadily gearing towards a phrase where it is building momentum to experience blockchain lancing outside of the realm of R&D or a lab testing. It is now the time that blockchain technology in automotive industry should be visualized as one of the essential stepping stones of a modern and new generation infrastructure that supports vehicles of the future.