Blockchain has become a vital part of the future of the automotive industry. Vehicles are slowly evolving into more than just modes of transportation; they are now becoming mobile data centres with incorporated sensors and computers that collect and process various data. The automotive manufacturing industry is the same. Massive leaps in technology are redefining the entire sector, including supply chain management.
Blockchain has the means to create collaboration and trust amongst consumers and corporations by providing more secure and transparent transactions. It is also improving access to information. Large car manufacturers, like Jaguar Land Rover, have already trialled the use of blockchain technology to create sustainability within the supply chain.
How the blockchain is being used by vehicle brands
Using this technology, a combination of GPS data, biometrics and QR codes are being used to digitally verify the movement of materials, such as leather for seats, at each stage of the supply chain. By defining the verification process, a repeatable blueprint for tracing a single piece of leather at each stage has been created.
It’s no surprise that big manufacturers, like Jaguar Land Rover, are investing in the blockchain field. It has the potential to evolve the automotive industry and when combined with artificial intelligence (AI), it can create even more opportunities for development and improvement.
Integrating the blockchain
Here are some of the ways that blockchain can be integrated into the automotive industry:
Carsharing – An original equipment manufacturer (OEM) provides vehicles on a timeshare basis. Transactions between owners, operators and third-party service providers are instantly settled using a single-source, usage-based payment system and trips are tracked on the blockchain.
Payments – E-contracts are a significant asset that the blockchain helps to power because they enable direct, secure money transfers from a buyer to a seller, without the use of a bank or other intermediaries.
Personal information – Drivers’ information can be stored safely and securely on the blockchain, allowing for carsharing vehicles to fit the driver’s preferences, including the seat, mirror, temperature and radio settings.
Blockchain technology is impossible to alter or tamper with, and it has the potential to create sustainable supply chains that will revolutionise the way that car manufacturers connect along the supply chain. This disruptive technology is not just for cryptocurrencies; its benefits are far-reaching and will likely impact all industries in the near future.
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