In the last few years, there has been a great deal of innovation in the automotive industry. Whether we talk about self-driving cars, AI or entirely new business models, the niche has progressed.
However, despite all this, there are several inefficiencies and security issues. The concerns grow especially when we consider autonomous vehicles.
The good news is that blockchain has the potential to solve most of these automotive problems. It has an in-built provenance feature which allows enhanced visibility over the entire lifecycle(s).
Moreover, data security is always dealt as a prime concern in this Distributed Ledger Technology.
Are people willing to go for it?
This is a very critical decision and therefore, it rests at the will of executives. Well, the majority of them are pro-blockchain.
IBM recently published a report, making it evident that more than 60% of the automotive industry executives are willing to adopt blockchain. Since there are hundreds and thousands of small parts involved, it is vital to keep track of their transportation.
In some cases, their verification is very important before configuration. Therefore, executives are greatly counting on blockchain to overhaul the supply chain management in the niche.
What are the use cases in this industry?
For instance, recently, Porsche received a loan with the help of BBVA’s blockchain platform. So it is pretty evident that blockchain is not only limited to provenance.
In fact, it allows complete financial activity tracking as well. Considering financial use case, we could apply it to cabbing as well. Many people are willing to pay in crypto because of low transaction fee and efficiency.
When it comes to large scale fleet management systems, the current infrastructure is bound to fail one day. Therefore, if we switch to a blockchain-based alternative, we could offer a great deal of scalability.
The smart contract technology has changed the landscape of the automotive industry and how we perceive agreements.
Instead of writing down several documents and that too, on the risk of being forged, companies could use smart contracts!