Opportunity Assessment of Blockchain Technology in the Automotive Industry
Based on distributed ledger system, blockchain is a new and emerging technology which is ready to play its role in the automotive industry through its various applications. The technology is shifting control from the central operating system to end users. It is considered a secure mechanism for performing transactions with intermediaries gets eliminated. Decentralisation is the primary attribute of the blockchain technology which engaged all market participants in the system to increase transparency.
The blockchain technology has been making progress in the automotive sector with significant impact expected over the coming years. There is a wider scope for cryptocurrencies to replace conventional methods of payments in the ride-hailing market. Virtual currency can also help startups and established businesses to raise capital.
Blockchain technology can provide an easy way of making payments for charging/fuelling cars, using in-vehicle infotainment services, making toll payments etc. Making transactions through blockchain is just one aspect where the technology is paving its way, with further potential for the technology to be adopted for other applications in the industry.
Besides transactions, the blockchain technology can keep a transparent and secure record from designing to selling a car. A vehicle can also grant temporary access to registered users where log data about the vehicles usage can be registered through blockchain without tempering. Moreover, the technology can also be highly beneficial for the used cars market by providing a complete history of vehicles.
There are also developments of blockchain technology for various other applications. For instance, WISeCoin, ZF, Volkswagen started initiatives for using blockchain for transactions and award based systems where tokens can be exchanged. On the other hand, CarVertical is using the technology for keeping a record of car history, while Volkswagen is also using the technology for tamper-proof odometer. Commodity Inside understands that the blockchain technology is in its nascent stage with the passage of time there will be more opportunities to adopt the technology and gain benefits.
This article is based on the 2018 edition of our recently published report “Opportunity Assessment of Blockchain Technology in the Automotive Industry”.
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