Blockchain Technology Opening New Doors for the Automobile Industry
After disrupting the financial and supply chain industries, the blockchain technology has finally arrived at the doors of the automobile industry. Over the last few years, CIOs and other leaders in the automotive sphere have expressed keen interest in pushing blockchain into the industry. The blockchain technology can aid in addressing some of the most pronounced problems in this industry related parts authentication, vehicle tracking, and electric car infrastructure.
For example, in several logistics operations, phony auto parts that appear genuine get into the supply chain and subsequently land in the dealer service centers. But while installing or any other manufacturing operations, these inferior parts often fail, resulting in repeated downtimes. Though automakers have implemented several anti-fraud technologies and operations to counter this practice, somehow phony parts always seep into the supply chain.
With the blockchain technology, the automotive industry can eradicate the menace of phony parts by creating a unique ID for each part. Along with these, each part also has an immutable timestamp to add value to authenticity verification. Owing to each part's unique and distinctive ID, an end-user can efficiently verify the authenticity of a part and check avoidable downtimes to a minimum.