Since it was first introduced to the public ten years ago, blockchain technology has gone long. Blockchain, which was once envisioned as the backbone of a new electronic cash system, has grown into much more. Today, technology is seen as one of the pillars of a future digital economy, which can disrupt a wide range of corporations. And with blockchain in automotive industry, it might be able to solve a few of the most crucial issues of the automotive industry.
Given the size and complexity of today’s automotive industry, it’s not unexpected that it’s confronting several issues. Complex supply chains, vehicle dealership networks, and after sales services are just a few of the factors that necessitate reliable processes and solutions to avoid failure. Fortunately, automakers now have a robust new tool in blockchain, which may help them decrease costs, streamline operations, and enhance supply chain management and accountability.
The apparent advantage of adopting blockchain in production is its transparency, but a less evident one is that counterfeit concerns may be avoided. This is achievable since each car component has its unique identification number.
Another benefit of blockchain technology is that it is linked to national legislation. However, everywhere that cryptocurrencies may or may not be used to make payments, it is a significant benet that should be considered.
This is where blockchain in automotive may make the process easier, possibly even eliminating the need for agents. Because of the high openness provided, changing automobile ownership is a breeze. Smart contracts may also be utilized to ensure that buyers and sellers have a simple time dealing with the selling process.
Automakers are continuously seeking new ways to use cutting-edge technology to their advantage, and the automotive sector has always been at the vanguard of technological innovation. After looking at a few different use cases for the technology, it is evident that blockchain in the automobile sector can provide significant benefits.
Authored By:
Gaddam Shashank
BBA Entrepreneurship Development (2020-23)
(Originally contributed to BizTech Student Journal)