Scope of Blockchain Technology in Automotive Industry
Automation industry sees immense potential in the blockchain technology to revolutionize its current workflow and establish a much efficient one. Blockchain is a decentralized distributed ledger that stores data and transaction data in an encrypted format supported by immutability feature. The ledger eliminates any intervention allowing peer-to-peer transaction and maintains data privacy and security as well. Immutability does not allow changes in the stored data but can be viewed by entities over the network injecting transparency.
Versatile Payment Options
Users are now shifting towards subscription services, share rides, and pay-as-you-go payment models which can be easily supported by blockchain and managed much efficiently than the current system. It also can bring road construction and maintenance companies and traffic courts in tandem for more efficient and advanced tax payments. Also, with blockchain cryptocurrencies they will find grounds in real-world payment system as they would be easily incorporated.
Joining hands with Analytics
Blockchain will provide a track of poor maintenance and insurance claims that can be put to analysis. Insurance companies can modify their service level agreement terms accordingly. Personalized plans for customers could be provided based on their practices saving the cost of insurance companies and manufacturers. Customers with good track could be offered better service compared to the one with bad track enhancing the company’s customer service and experience.
Validation of Resources
Automotive industry currently suffers from counterfeit resources deluging the market. There is no convenient way to track parts. Blockchain can offer a solution to it as from manufacturer to retailer the whole supply chain will be recorded within the network allowing validation of parts.
Data Security and Safety
Automation of vehicles is leading to extensive use of connected devices in the automotive industry which is connected to the centralized database of company and users. Hackers see these devices an easy target to breach security to get hands-on data of the centralized storage. But as blockchain is distributed ledger and self-authenticates the users it will be hard to breach, even if somehow the breach happens only a small data set would be affected not the complete database.