In recent years, cryptocurrencies have brought increasingly more interest in blockchain technology. This has allowed the application of this technology in a number of different industries, and the automotive sector is no exception.
The car industry has always been one of the first to incorporate innovation and adopt the latest technologies. For instance, even though they seemed impossible, electric cars, self-driving cars and even flying cars are slowly becoming a reality. This is why it’s more than likely that in the coming years, blockchain solutions will strongly influence the auto industry. Here’s a brief look at some of the benefits that can be expected from merging blockchain with transportation.
Greater security, fewer risks
Most governments have formulated new rules to uphold the security of data. In Europe for instance, a fine of up to four percent annual global turnover or €20m can be levied on data controllers in case of a breach. Such fines may ruin not only the financial situation of an organisation but also its reputation.
The modern automotive industry faces complex security risks related to sending and collecting data. By incorporating blockchain technology, vehicle businesses can provide clients with the highest possible levels of security. This is particularly important due to the growing popularity of autonomous vehicles that are becoming more and more connected.
Some of the features that are already quite common include real time maps, infotainment systems and the ability to make calls or check emails while sitting in the car. The availability of such features means that the driver’s important information is stored in the car, which makes it crucial for the vehicles to be hack-proof.
ZF has come up with a car eWallet that can essentially convert cars into mobile businesses. This technology will allow users to link their vehicles directly with services and infrastructures, make secure self-payments for tolls, parking and even for charging their electric vehicles (EVs). This will open up many new opportunities for both service providers and the vehicle manufacturers.
There are many suppliers and other entities involved in car manufacturing processes, which makes its material management a very complex, time consuming and expensive task. A blockchain-based system would benefit the industry by reducing the chances of errors, lowering costs, improving efficiency and providing transparency of exchanged information.
In 2016, Toyota and R3 CEV Consortium came together to collaborate on research and development of different blockchain-based solutions, especially focusing on minimising supply chain disruptions.
Blockchain is also likely to strongly influence the insurance industry. The new generation of vehicles are expected to be equipped with private keys that will smooth out the process of filing insurance claims or making insurance payouts within seconds.
Users can also expect a personalised insurance quote that would be based on the information they choose to provide to the insurance companies. This would make the insurance market much fairer as motorists will only pay on the basis of their driving quality and not on general estimates.
Better vehicle and freight tracking
Blockchain will make it much easier to track vehicles or the goods being transported in them.
Having determined the GPS coordinates of a vehicle, tracking devices can immediately transfer them to other blockchain connections. These coordinates are then automatically identified and precisely documented in a decentralised database. This means that every single party that is involved with the particular vehicle can stay updated about the whereabouts of the vehicle and the stations it passed.
These factors make the blockchain technology particularly important for transportation of perishable goods as they rely heavily on timely deliveries, which are highly improved with blockchain.
It is clear that blockchain holds the answer to many problems in the automotive sector, from improving efficiency to making transactions secure. It offers solutions which will help make autonomous vehicles a safe and practical reality. This innovative technology definitely is a game-changer with endless possibilities for the transportation industry.