Blockchain technology can make the automotive industry more safe and secure
Blockchain technology ensures transparency by providing a decentralised and incorruptible open digital ledger system, which is almost impossible to hack. It can go beyond just registering financial transactions and can be used for various purposes. Blockchain technology is at its preliminary development stage and has enormous potential for applying across various industries including finance, energy and automotive.
Blockchain can support the emerging developments in the automotive industry in various ways, where safety and security would be of significant importance. Big data, connectivity, ride-hailing and autonomous driving are some of the key building blocks reshaping the automotive sector. However, all these additional features require sophisticated security against hacking.
In March 2018, Careem, a ride-hailing company, admitted that the data of its 14 million customers and drivers were breached where the hackers gained access to the names, phone number and email addresses. In the future, autonomous driving will be used largely by the ride-hailing services which need to be protected against the risk of losing customer’s data to hackers.
Hacking into the vehicle system is not just limited to stealing personal data but can jeopardise human lives, particularly, in the case of autonomous technology. Several companies have started working on applying blockchain technology to ride-hailing. Recently, Weixing Chen, the founder of Chinese ride-hailing firm Kuaidi Dache which is now merged with Didi Chuxing, has announced to create a blockchain-based ride-hailing application.
Apart from making a car system secure and safe, blockchain can also perform other duties such as collecting fair, paying for parking, toll charges and refuelling/charging cars.
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