The technology of the future has always intrigued and raised the excitement of the people around the globe. There have many developments in this domain, but nothing has inflicted the world in a manner that Blockchain and cryptocurrency have done. Blockchain and cryptocurrency evolved in the year 2009, and since then it has grown only for good. It won’t be wrong to say that Blockchain has hit the global landscape as none of the other technologies has in the past. Every day you could hear some company plunging in the pool of Blockchain and these are not just the startups, these are big venture like Facebook, Microsoft, Amazon, etc. These companies are investing in analyzing how Blockchain can influence industrial growth in a positive way. The automotive industry is no different; Blockchain is also influencing the automotive industry.
As per the study of IBM around 62% of the automotive industry experts believe that Blockchain is going to influence the industry. They are ready to implement Blockchain for commercial usage. In this blog, I will be focusing on how Blockchain can influence the industry positively and also benefit the customer alike.
What is happening in the automotive industry?
IBM has developed a new platform which is going to be one of a kind for the automotive industry. This has been developed with IBM Insitute for Business Values or IBV along with Oxford Economics.
The data collected by IBM revealed that Blockchain implementation would impact finances, mobility services, and supply chain areas positively. Apart from this, the secondary market of the automotive industry like distribution, manufacturing, retailing and installation of parts can also be influenced by Blockchain. What it means is that Blockchain’s feature of traceability makes it easy for the manufacturer and supplier trace the products and auto-parts. In the current scenario, part traceability via lifecycle of the vehicle is very restricted, thus creating a way for replacement of the original parts with counterfeit parts. With the help of Blockchain-based solutions in the automotive supply chain, we can overcome this problem to some extent. On one side, this can be helpful for the automotive industry and manufacturer ensure the installation of authentic parts whereas the customers can also get to know about the product and be assured of their safety.
What will Blockchain do?
When it comes to automotive industry, then Blockchain cab be of great help, it can remove the bottlenecks of that the automotive industry is currently facing and bring in some new changes which can be for the benefit of both the supplier and the consumer.
As per the reports, Blockchain will bring in the following changes:
- It can be used in tracking of automotive parts and thus the manufacturer or the company can be assured that the original parts are installed.
- The consumer can also track and trace the origin of the product to check if the parts are authentic or not. When was the part first installed or replaced or repaired?
- Since time-stamping is one of the key features of Blockchain, it will become easier for companies and consumer to track and trace all the information.
What is the industry saying on this move?
With this development, the automotive industry is going to transform massively. As per reports, around 54% of the executives believe that Blockchain involvement will fetch more investment.
50% of the OEM believe that Blockchain will influence fleet management services.
47% of suppliers believe that Blockchain implementation will enhance the flow of information in the network.
It is not only IBM that has brought forth the implementation of Blockchain in the automotive industry but at the same time companies like MOBI or Mobility Open Blockchain Initiative is exploring Blockchain usage to make mobility secured and safe.
The automotive industry is at a budding stage when it comes to Blockchain application. There are various developments taking place at various levels. With Blockchain coming into the picture, we can think about having an efficient automotive industry. The reason companies are focusing so much on Blockchain implementation is because it will make mobility easier, safer and efficient.
Blockchain can not only be directly influencing the automotive industry, but it will also help the consumer by claiming for the insurance. Well, accidents are not something that one would like to encounter. But, in case there is an accident then claiming for insurance would be a daunting task. With Blockchain, you can easily do the follow for the insurance and claim it. The Blockchain is a shared ledger where the insurance companies can directly pull the data from the shared digital history.
In times to come, we are going to witness some huge transition in the automotive formation industry and Blockchain are going to play a key role in the same.