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Reformation in the Automotive Industry With the Rise of Blockchain Technology

The adoption rate of blockchain technology is enhancing presently, owing to the numerous developments due to its implementation in the automotive industry as it is at its pole position for technological progressions over the years. Blockchain technology enables easy maintenance of records known as blocks which are connected using cryptography, wherein every single information is safe and bound to each other. Hence, the blockchain is decentralized in nature, which makes it hackerproof and secures the data from being compromised. Blockchain technology has reformed the automotive industry in numerous ways.

Below are some noteworthy blockchain developments –
• Smart Contracts
Blockchain technology aids easy and conclusive verification of every transaction related to digital assets at any time, enabling easy regulation by smart contracts. Smart contracts utilize cryptocurrency to attain contract terms and exchange value automatically. It enables two-way communication and easy handling of a transaction for the automobile vehicles, without the involvement of financial institutions. Employing smart contracts can simplify Identifying authenticated riders, setting up transactions like battery charging schedules and costs for autonomous vehicles. Adoption of smart contracts on autonomous vehicles, for instance, on a steamer platform, can automatically receive data from other vehicles, traffic channels, weather stations and other sources, which is required for driving.
• Digital Payments
Blockchain technology supports secured and automatic digital payments, which facilitate the autonomous vehicles to make payments for parking, tolls, electric vehicle charging, car-sharing and in-vehicle services seamlessly. Prominent cryptocurrency such as Bitcoin, Ethereum, Litecoin and others are all initiated by blockchain technology. AT&T is one of the companies adopting digital currencies method to carry in-vehicle payments. IBM and ZF introduced an advanced digital assistant for cars named Car eWallet, which enables secured and convenient payments, independently performing tasks and authorizing payments without involving the user. Bosch made another greater implementation of this technology; the company teamed with IOTA to discover several blockchain-based micropayments amongst autonomous vehicles.
• Automotive Security & Privacy
The constant rise in autonomous vehicles is enhancing the need of software codes employed for controlling vehicles. Thus, an increase in the number of connected devices in the ecosystem poses a higher stage for potential security threats. The innovation of smart car connectivity features the security of data exchanged between vehicles, software vendors, smart homes and others. It also offers privacy to the car owners adopting blockchain technology and assures proper access control, data integrity and identity management. These blockchain-based security systems guard autonomous vehicles against malicious cyberattacks and privacy breaches. Cube, a security platform in the auto industry is also introducing autonomous car security platform based on deep learning, blockchain technology and quantum hash cryptography.
• Easy authentication of ownership of cars
In the present era, where the world is moving forward with updating technologies, there are some things yet to be reformed, for instance, consumers still carry their licenses and vehicle registration when travelling in their cars. Hence, adopting blockchain technology can simplify the tasks. In addition, acquiring a car’s ownership or change over ownership is a brief process. In the case of rental cars, the law enforcers can quicken the authentication process, ensuring the police has sufficient time to complete other aspects. Thus, various advancements of blockchain have not only simplified tasks for the automobile users but also the law enforcers, leading towards easy authentication of ownership. Moreover, blockchain provides real-time data about the vehicle’s life, its mileage, repair history and if any accidents, etc. making the purchase of the car a safe and transparent process.
For instance, Volkswagen introducing blockchain-based tracking system that prevents odometer fraud, prohibiting the fraud car sellers from manipulating odometers from producing false mileage values and misleading customers.
• Streamlined Supply Chains
The automotive supply chain incorporates complex functions consisting of several types of parts, distributors, software and firmware suppliers, dealers, regulatory agencies and insurance companies. Blockchain technology enables transparency of precise information amongst the different parties, enhancing just-in-time logistics, levitating inventory turns and diminishing erroneous orders. It facilitates effective transaction costs like surcharges applied by third party sources as well as guards the product and assembly ownership, trading, authenticity, purchase and license use of each component and many more enabling easy collaborations of supply chain partners.
For instance, Toyota Research Institute (TRI) exploring blockchain technology for developing the latest mobility ecosystem to leverage the autonomous driving technology. Also, Hyundai is collaborating with IBM focusing on building new supply chain financing ecosystem utilizing Hyperledger Fabric. The project focuses on increasing automation and customer experience adopting cost-effective method.
To conclude, efficient adoption of blockchain has enhanced the cybersecurity for vehicles largely, featuring secure payments, effective identity management and better data validation. Thus, blockchain is an innovative technology adding opportunities in the field of the automotive industry, building greater trust and security, essential for self-driving future.

Inkwood Research

Author: Inkwood Research

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