Blockchain technology is providing auto manufacturers with a real opportunity to shed their current wasteful business practices and embrace a new, more efficient means of conducting business. There has already been some exciting blockchain develops occurring within the auto sector. Let us take a moment to examine how blockchain technology is changing the auto industry forever.
Blockchain technology is perfectly suited for logistics such as supply chain management. Auto manufacturers utilize distributors from all over the globe. By placing their supply line into a blockchain-based protocol, manufacturers can gain valuable insight into inefficiencies currently being encountered in their supply chain.
This would allow manufacturers to focus on streamlining the building of their vehicles, In turn; the added transparency could reduce the price of construction. These savings could be passed on to the consumers. IBM is already working on a platform to do exactly this.
Vehicle Ownership Rights
Blockchain technology will also have a resounding effect on how we buy, sell, and transfer ownership of our vehicles. By tokenizing their cars, manufacturers are able to transfer ownership of their vehicle as easy as it is to send BTC. A tokenized auto ownership platform could usher in a new error of ownership rights in the auto industry.
Platforms such as CarFax.com have earned millions in profits by providing people with the ownership history of their vehicle prior to purchase. Blockchain technology could increase the capabilities of these systems and allow buyers to see a detailed report on the vehicle in question. The report could even detail the build and manufacturers used to create the vehicle.
The innovative platform VinChain has developed a title tracking and vehicle registration system. Users can see the true history of their vehicle prior to purchase. They can also verify and transfer ownership of their car through the platform.
Vehicle Location Monitoring
Auto manufacturers must coordinate huge fleets of vehicles to conduct their business. From supply trucks to sales staff, tracking vehicle usage is paramount to any auto manufacturer. The current systems in place rely heavily on paperwork submitted by employees and combined with GPS information. By using the consensus capabilities found in blockchain technology, auto manufacturers could now track huge fleets with ease. This data could then be used to determine where expenses can be cut and more efficient means of conducting business could be introduced.
IBM just released a public statement in which they announced a very similar program. The program utilizes the Internet of Things (IoT) to create a super sensory network. The program is a joint venture with IBM and the Columbian-based logistics giant AOS.
Self-Driving Car Applications
Self-driving cars are set to begin a massive takeover throughout the auto industry. Already, manufacturers such as Tesla Motors offer self-driving cars to their customers. While this technology is still new, most consider this the future of the auto industry. A blockchain-based system could allow self-driving cars to exchange information with each other. Even more interesting is that your car could actually be rewarded for its contributions to the larger self-driving car blockchain.
Currently, self-driving cars rely on a myriad of sensors, GPS technology, and highly sensitive cameras. While these technologies are essential to any self-driving car, they are not perfect. The recent death of a pedestrian in Tempe, Arizona by a self-driving Uber vehicle highlighted just how difficult it can be to create a self-driving vehicle that can outperform human counterparts.
Blockchain technology could provide a more robust data field for vehicles to utilize. It could even include additional non-driving related data such as customer accounts, previous pick up locations, and really any other piece of helpful information considered of value. AI machine learning combined with blockchain technology will help to propel our vehicles into the 21st century.
The prestigious university MIT has been researching how to integrate blockchain technology into self-driving vehicles for years and they have come across some amazing results. Interestingly enough, the researchers are most concerned with the effects that a malicious cyber-attack could have on any systems put in place. Basically, the best Ai and blockchain technology is only as good as the security of the network it resides on.
My Ride is Around the Blockchain
It appears that the future of the automotive industry is set to see some significant upgrades thanks to blockchain technology. There are already so many innovative concepts in the works. You can expect these projects to expand as their findings fuel further research in the sector and hopefully, in the near future, you will be playing on your phone while your car effortlessly drives you to your destination.
By Blockchain Industry Group
The Blockchain Industry Group (BIG) is dedicated to promoting the adoption of blockchain technologies and digital currencies by actively collaborating with and promoting the efforts of our global blockchain community.