Every part of the multifaceted automotive business environment from components suppliers and manufacturers to customers and safety regulators depends on a network of transactions and knowledge that starts long before a vehicle is manufactured and extends far beyond its purchase.
From support for evolving hardware and services to understanding the provenance and location of defective or counterfeit parts, the amount of data that automotive industry players must keep track of is exploding.
Blockchain can help build efficiency, transparency, and trust with a shared,
Today’s cars don’t seem to be simply standalone transportation devices they’re complicated, networked software platforms on wheels. Vehicles progressively have to be compelled to integrate secure, seamless mobility services, handling micropayment and other interactions with ride-sharing services, smart vehicle registration, smart transportation infrastructure, and electric vehicle charging.
- Supply Chain
Auto manufacturing is truly global. Parts are sourced worldwide and completed vehicles might be driven anywhere on earth. To contend with counterfeit parts and defect-driven product recalls, traceability is crucial in understanding a vehicle’s post-sale movements. To maintain safety and reliability, manufacturers should be able to track vehicle movements for regulators and purchasers.
From parts orders and fleet-purchase financing to managing letters of credit and arranging insurance coverage, every step of the automotive supply chain is underpinned by payments. Blockchain’s traceability and transparency make it perfect for keeping track of transactions
that drive purchases, shipping arrangements, dealer transactions and millions of micropayments in mobility services. Blockchain backed smart contracts go far beyond tracking and visibility to include funds released only on satisfactory delivery.
Role of blockchain applications in automotive domain
- Smart Contracts
The new forms of automated transactions can be initiated and regulated by smart contracts, which are computer programs that execute automatically on behalf of predefined conditions and enable complete and conclusive verification without an intermediary e.g. a financial institution.
Therefore, smart contracts facilitate to drive automation to a brand new degree within which assets start to move by themselves under the constraints set by their users.
- Leasing and other Digital services
By allowing an automatic yet continually recorded and verifiable transaction, the blockchain apps in
automotivedomain will dramatically change the way one insures and leases its car in the future. Combining the technology with the steady growing connectivity and process capabilities of moder automotive creates a vehicle with all the quality upsides of a regular car while integrating the security, integrity and validity aspects of a contract into its automatic transactions.
Finalizes the service check by initiating a payment process and documenting the service check-in the blockchain, therefore making it a tamper-proof transaction. Choosing this way of documentation offers government authorities a simple, transparent and validated access to important car information. Linking this information directly to the car and its underlying blockchain ensures
a nearlyforgery-proof documentation over the whole vehicle’s lifecycle.
- Smart assembly and Supply chain
Trusted suppliers are thoughtfully designated and managed, as well as checked and certified for quality, reliability,
andconsistency. Blockchain allows the development of secure digital product memory records from the sourcing of material, to how and where they were manufactured, including their maintenance and recall history.
Any transaction or record can be made part of the blockchain, so its use can extend to digital communications, product identification or even customer claims. Smart contracts allow automating complex multi-step processes. Blockchains might considerably contour processes, particularly those who place confidence in regulative and compliance approvals.
Blockchain applications in