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Blockchain is everywhere – Rise of Blockchain in the Auto Sector

Blockchain platforms have been developed for food supply chains, commercial transactions, and myriad financial services.

Today blockchain is making its way into the automotive industry in some exciting and important ways. Over the last year, Porsche, Toyota, BMW, Volkswagen, Renault have announced initiatives to integrate blockchain into the automotive sector.

Hear it now:

Sebastien Henot, manager of business innovation at Renault Innovation, opting for the low-hanging fruit of using the technology to better manage carmakers’ supply chains.

Blockchain can bring cost savings to supply chains thanks to new levels of transparency and auditability. That would be vital help in the unfortunate event of recalls,” Henot told.

That process could also mark the birth of automobiles with their own unique digital identity

“If you have an Audi and you want to sell it to buy a Renault, it would be very useful for the Renault dealer to be able to access the Audi birth certificate and see a standardized history,” Henot said.

Connected cars & shared ownership

We can expect that, by the 2020, one in five cars will be connected to the internet. Before adopttion of autonomous vehicles for widespread use, companies must earn the trust of the public.

Blockchain can be used in multiple aspects of shared ownership of automotives. For example, a blockchain-based digital identity profile for each temporary user or partial owner could be used to calibrate shared cars with their preferred climate and seat settings. More than one company has eyed blockchain as a possible method of facilitating the shared ownership of vehicles.

Having a blockchain-based system that tracks exactly which parts are in which car (including information about part age, prior usage, and current condition) can provide customers with access to the data they need when making decisions about buying used cars.

Changing industry

While these applications of blockchain technology certainly have strong cases for changing many aspects of the automotive industry, innovators are really only just beginning to scratch the surface of blockchain application in the automotive sector.

There are hopes in the full potential of blockchain to bring big social change within the mobility industry.

 

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