Blockchain Technology
Blockchain technology in automotive industry should be seen as one of the essential building blocks of a new kind of infrastructure that supports vehicles in future.
Let’s start with the simple fact-By 2025, participants in the automotive sector are expected to spend approximately 0.6% of their total IT spend on blockchain technology, alone. Ranging from supply chain management leasing, a variety of automotive industry verticals have been identified, where blockchain has potential to be a disruptor. The industry is, therefore, beginning to build momentum to experience blockchain penetration outside of an R&D or a lab setting.
Provenance and Tracking
With blockchain, a digital track for each product’s development, such as the source of the raw material, how and where the product was manufactured, their maintenance history, can be recorded.
Likewise, each part of the product, including design quality and production data, can be tracked.
Lease, Insurance and Other services
As transactions on blockchain are always recorded and verifiable, the future of car insurance and lease is bound to change. Insuring a vehicle would become a more on-demand and dynamic process.
Modern insurance policies would base themselves upon real-time vehicle data. With blockchain enabling smart contracts, a vehicle would choose its own insurance policy.
Supply chain and Business processes
Blockchain drastically reducing the risk of two systems having conflicting information. This is because blockchai enforces a single source of information, in real time.
It also eliminates the need for auxiliary systems that are needed to reconcile any errors and inconsistencies between systems. People and systems can, therefore, act faster and with more confidence.
Blockchain technology in automotive industry should be seen as one of the essential building blocks of a new kind of infrastructure that supports vehicles in future.
Let’s start with the simple fact-By 2025, participants in the automotive sector are expected to spend approximately 0.6% of their total IT spend on blockchain technology, alone. Ranging from supply chain management leasing, a variety of automotive industry verticals have been identified, where blockchain has potential to be a disruptor. The industry is, therefore, beginning to build momentum to experience blockchain penetration outside of an R&D or a lab setting.
Provenance and Tracking
With blockchain, a digital track for each product’s development, such as the source of the raw material, how and where the product was manufactured, their maintenance history, can be recorded.
Likewise, each part of the product, including design quality and production data, can be tracked.
Lease, Insurance and Other services
As transactions on blockchain are always recorded and verifiable, the future of car insurance and lease is bound to change. Insuring a vehicle would become a more on-demand and dynamic process.
Modern insurance policies would base themselves upon real-time vehicle data. With blockchain enabling smart contracts, a vehicle would choose its own insurance policy.
Supply chain and Business processes
Blockchain drastically reducing the risk of two systems having conflicting information. This is because blockchai enforces a single source of information, in real time.
It also eliminates the need for auxiliary systems that are needed to reconcile any errors and inconsistencies between systems. People and systems can, therefore, act faster and with more confidence.
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