The advantages of the blockchain
Automotive companies will spend $169 billion on implementing new technologies in their organizations by 2025, with about 0.6% of investments on the blockchain. The advantages of the blockchain for automotive are obvious, but there are many ways the automotive industry can use the technology to its advantage. The main advantages of this technology are Immutability, no records in the chain that can be modified; transparency, data security, no intermediation, and high speed of operations. Image Courtesy of Pixabay.com Immutability The main benefits of immutability in blockchain technology are obvious, it keeps all transactions on the public ledger, so every single transaction cannot be altered.
How it can transform the automotive industry
The transport industry has relied on intermediaries and middlemen for years, therefore gaining speed and efficiency was a challenge. With the blockchain, transactions between companies, suppliers, and clients are registered and verified without the need for an intermediary. Therefore, the transport industry would benefit from the use of blockchain as much as the banking and finance industries, which could drastically improve its processes. In an interview with Cointelegraph, Federico Bernardini, Head of EMEA at Eris Industries, outlines the potential and opportunities that could be created by this technology. “First, using blockchain as the backbone to authenticate vehicle ownership and to authenticate trades can improve the whole e-commerce process,” said Bernardini.
The end goal of implementing blockchain technology in the automotive industry
Change the way the automotive industry works. First, car companies need to accept that blockchain is not a fad and that it will become a part of their overall business operations. Second, and equally important, they need to have a long-term mindset, be prepared to implement disruptive technologies, and invest in the right areas. The first area that needs to be tackled is financial reporting. For example, Google has created an interactive dashboard for Toyota, for more than half a decade, giving it valuable insights into customer behavior. The second area is the tracking of product information and supply chain management, which can be done with blockchain. In this case, the data can be displayed across a multitude of devices without the need to trust a third party.
Examples of companies using this technology and how it is transforming their operations
Distributed Ledger Technology (DLT) is a ledger with a distributed set of records, an unchangeable record of events that is updated and cannot be altered. It allows fast, secure, and nearly instantaneous transactions without the need for intermediaries. Using a distributed ledger technology is much faster than traditional ways of tracking information such as recording in a central database. This technology will make the customer experience easier. In the era of digitalization, everything is already digital. However, with the blockchain, there will be no need to go through the trouble of exchanging paper documents and get paperwork signed for your car’s insurance.
Blockchain technology has many advantages for different industries and industries that use the technology are developing fast. The next phase in the automotive industry will be the use of Blockchain. The next decade will be the first period where the automotive industry will adopt the technology into their business model and this technology will become part of their daily life. This is just the beginning of the journey. Many other industries will change as we enter the next stage of the adoption of blockchain in business. I’m excited to see how blockchain will change the world.