BlockchainTechnology

Blockchain Automotive

What uses does blockchain have in the automotive industry and how will this technology improve drivers’ everyday lives?

 

 

 

 

What uses does blockchain have in the automotive industry and how will this technology improve drivers’ everyday lives?

 

Blockchain Automotive

Blockchain Automotive

the blockchain technology offers the perfect infrastructure for self-driving cars

What uses does blockchain have in the automotive industry and how will this technology improve drivers’ everyday lives?

When they hear the term “blockchain”, most people think of bitcoin.

While cryptocurrency is the best-known example of how this technology is used, blockchain offers a solution to a variety of future issues and can also make life easier for motorists, for example when they’re buying a used car.

A few years ago, driverless cars sounded a bit like science fiction.

Today, pilot programs allowing self-driving cars to start moving customers around are being implemented in California.

So how long until we can expect autonomous cars to drive us around everywhere? Not that long.

In February 2019, a two-day colloquium that brought together all members of MOBI took place at the BMW Group IT Centre in Munich.

The event was primarily intended to promote and develop common standards for applying blockchain and distributed ledger technologies (DLT) in the mobility industry.

The clearest manifestation of blockchain revolution gaining momentum in the automotive sector is perhaps the launch of MOBI (Mobility Open Blockchain Initiative) in May 2018

that brings together major automakers (BMW, General Motors, Ford and Renault) and leading blockchain and technology startups and premier organizations such as IBM, Accenture, and ConsenSys.

NGOs and academic institutions such as the World Economic Forum and Blockchain at Berkeley are also involved.

“Blockchain technology itself is not the end-all solution,” explains Dr.

Andre Luckow, Head of Distributed Ledger and Emerging Technologies at the BMW Group. “What it does is give us the technical foundation we need to create helpful and effective solutions.”

Blockchain technology gives us the technical foundation we need to create helpful and effective solutions.

Dr. Andre Luckow Head of Distributed Ledger and Emerging Technologies at the BMW Group.

 

 

the blockchain technology offers the perfect infrastructure for self-driving cars

Our supply chain is often derided by critics as lagging behind in IT intelligence; Blockchain offers a tremendous opportunity to revolutionise the existing digital infrastructure.

With the looming onset of Brexit, there has never been a more opportune time to implement a system of transactional and organisational protocols that do not require manual intervention

they are blind to geographical borders and can streamline the passage of any type of freight or service by harnessing IT power to track, organise and deliver information and thus goods and services without having reference points that are fixed by place, time or organisational identity.

Blockchains are a new form of a database. They store transactions (such as transfers, deliveries, or purchases) in blocks.

A blockchain works decentrally.

All participants first determine what information should go into the blockchain – they agree, so to speak, on certain rules of cooperation.

Then they store all transactions on the blockchain as equals and monitor each other.

There is no central server that could fail or be manipulated.

Anyone who tries to change data, later on, would have to do so with more than half of all participants.

Each block receives a digital fingerprint known as a “hash”.

And each block contains the hash of the previous block and thus its encoded content.

This means that all blocks are linked together (hence the word “chain”).

So if someone were to change a block of data, the manipulation would immediately attract attention because the content and fingerprint would no longer match.

Changing one copy does not automatically change the whole chain, making it more difficult to manipulate data.

At the same time, the ledger is public, creating even more barriers for fraudulent activities.

Blockchain can be applied to many challenges of the supply chain in such obvious areas as the maintenance of complex records and the tracking of goods and services.

Major benefits are a much less easily corruptible and better-automated alternative to centralised databases.

In the realm of tracking and checking materials and services, a blockchain-based supply chain management system enables much accurate record-keeping and provenance tracking as the product information can be accessed through the help of embedded sensors and RFID tags.

The history of a product right from its origination to where it is in the present time can be traced through blockchain.

Moreover, this type of accurate provenance tracking can be used to detect frauds in any part of the supply chain.

Ranging from parts suppliers, manufacturers to sellers, the automotive supply chain is a highly complex and broad sector with multiple participants.

Delivering real customer value requires analysis of existing IT and business processes along with solutions that abide by the permissions of security, confidentiality, and authorisation. Blockchain can turn out to be an ideal solution

For automotive suppliers, blockchain can be used to protect their brands from duplicate products and to create customer-centric business models.

Blockchain technology is speedily gaining ground in the automotive sector.

As its much limitless applications, motorcar firms have exploited the blockchain to control data and transactions to integrate themselves with the sharing economy, and to manage their offer chains.

The founders of MOBI hope that they can use blockchain technology to shape a future of mobility that is greener, safer, and improves the quality of life in the cities.

For achieving this, standardization efforts have to be made.

Only with a set of clearly defined universal standards can the stakeholders develop an open, independent platform that would enable the industry-wide application of blockchain technologies.

the blockchain technology offers the perfect infrastructure for self-driving cars

 

Blockchain and automotive

Supply chain management. Car parts could be lost in delivery, stolen, replaced, damaged, etc. Blockchain would allow the manufacturer to have a complete follow-up of these pieces.

In the case of a recall, blockchain would also facilitate the procedures:

since it carries the information on the origin of the piece, we could control if any modifications have been made to it or if a manufacturing defect occurred.

 Manufacturing processes. There are numerous opportunities to take advantage of blockchain technology throughout the automotive manufacturing process.

We can use blockchain to store data from bills of lading for vehicle components and quality-inspection records created during the manufacturing process to WIP information for each vehicle assembly from start to finish.

Finances. All processes that require manual data insertion, include transactions or transaction costs, as well as revisions, among other things, could be streamlined.

The Blockchain would accelerate these processes and keep them updated throughout the lifecycle of a car.

Vehicle safety and data security. The more connected a vehicle is, the more susceptible it becomes to potentially deadly cyber-attacks. Thanks to blockchain’s strong cryptographic roots that cannot be reverse-engineered, it is the perfect place to store data since it cannot be changed.

Telematics. In the connected car space, telematics includes software-based navigation, vehicle-to-vehicle (V2V) communications, and a host of other services that can affect vehicle safety and passenger security.

We can use blockchain to keep safe the data sent and received by telematics systems.

The heightened level of encryption prevents hackers from viewing or using this data.

Smart insurance. Blockchain technology enables the unmanipulable and transparent logging of the vehicles’ sensor data in a decentralized network.

This unimpeachable documentation of a blockchain “black box” could help to resolve the circumstances of an accident, especially when it comes to autonomous vehicles.

Blockchain could also enable insurances to be taken into other vehicles like a user profile, for example in carsharing.

the blockchain technology offers the perfect infrastructure for self-driving cars

Buying or selling a car. For car owners, blockchain-based registries would mean easier verification of the vehicle’s history (e.g. whether it has been in an accident) allowing, therefore, major transparency when purchasing a car.

Another pro would be having an overview of the parts of the vehicle: the users could look up the origin of the carpets and solve repair-related problems.

Not to mention, that thanks to a smart contract, the seller and buyer could enforce the transaction of goods without the need for a middleman.

 

Blockchain use cases in the mobility sector

the blockchain technology offers the perfect infrastructure for self-driving cars

Leasing and vehicle financing Thanks to blockchain-based smart contracts we could optimize and automate various processes in the vehicle leasing and financing section.

For example, if a car’s leasing rate hasn’t been paid yet, it is possible to prevent it from being used by deactivating the unlocking system.

Carsharing Blockchain technology could enable a secure digital identity at carsharing.

With blockchain, personal settings and preferences could be saved in the car safely avoiding exposure to unnecessary parties.

This could also enable P2P carsharing.

Meanwhile, blockchain could facilitate the carsharing procedure for users as a single registration in the blockchain ecosystem is good to be used for all carsharing offers from different service providers in the ecosystem.

Car rental company Blockchain would allow the rental company to monitor if the cars are in cleaning, maintenance, etc.

It would be easier to know what is happening, have a follow-up and decide whether to count with that particular car or not.

Vehicle Insurance Blockchain plays an increasingly important role in the automotive as well as the insurance sector as it allows for storing

vehicle’s real-time mileage information and collecting and handling data from vehicle sensors regarding the driving style of an insured individual, for example.

Building on top of that, insurance companies can offer dynamic pricing and personalized quotes to individuals, incentivizing customers to drive carefully and save money.

Notably, smart contracts built on blockchain are also capable of easing and automating the process of submitting a vehicle insurance claims by incorporating special clauses for road incidents.

These are triggered by analyzing relevant vehicle sensor data that indicate that an accident occurred.

Identification & Tracking Perhaps one of the most promising use cases of blockchain is the verification of transactions and processes, thanks to its transparent and decentralized nature.

Because a blockchain ledger, essentially, represents a copy of all transactions that happened to date, each of them is always up-to-date.

Changing one copy does not automatically change the whole chain, making it more difficult to manipulate data.

At the same time, the ledger is public, creating even more barriers for fraudulent activities.

This is where OEMs can massively benefit from as it needs a reliable way to fight the market for unoriginal car parts.

To put it into perspective, the European Union estimates that as of February 2018, around 2.2 billion euros are lost each year to counterfeit products by car tire manufacturers alone. Blockchain can significantly lower this number.

the blockchain technology offers the perfect infrastructure for self-driving cars

Examples of Blockchain Initiatives in Automotive Industry

We can already find a variety of different blockchain initiatives from the leading manufacturers.

For example, Ford has launched a blockchain pilot on the IBM platform to ensure ethical sourcing of cobalt.

By tracking the supply chain of cobalt on the blockchain, Ford hopes to ensure that companies are not using child-mined cobalt in lithium-ion batteries.

Conclusion

the blockchain technology offers the perfect infrastructure for self-driving cars

The automotive industry has long been considered the engine of the world’s technological progress.

Yet, the sector is facing a number of challenges with promoting, selling, insuring, and recalling vehicles and their components.

Blockchain technology is already proving it is an answer to the majority of these issues by providing car companies and their partners with a reliable and transparent tool to collect, store, manage, and use the car data in a more efficient manner.

The business landscape is clearly interested in what blockchain has to offer, with industry leaders including BMW, Ford, Renault, and General Motors, forming the Mobility Open Blockchain Initiative to speed up the blockchain adoption in the automotive market.

The automotive industry’s neck-breaking development pace and its social importance make it vital for all stakeholders to stay ahead when it comes to bleeding-edge technologies to discern innovators from their competition.

The hope is to bring back more clarity in their much-complicated supply chains, and the industry is seeking decentralized opportunities within finance, insurance, eco-driving, car sharing, theft prevention, and many more.

Blockchain is likely to become indispensable for the automotive industry in the years to come in order to make these next-generation cars into a reality.

Blockchain Automotive

 

 

ARANCO
ARANCO GROUP

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