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- 1 Blockchain technology boosting the growth of the automotive industry
- 2 Plenty of new companies are deciding to have blockchain technology on-board
The automotive industry you see these days is evolving at a remarkable rate. The vehicles in the 21st century will be more than a mode of transport in a few years. This rapid evolution across the automotive industry can be linked to many factors, including blockchain technology. Blockchain technology has the strength and potential to enable the automotive industry to scale new heights. Moreover, many automotive executives have already discussed how blockchain technology could impact the automobile industry. For instance, it would make supply chains more secure while creating a transparent and efficient network.
Benefits of blockchain technology in the automotive industry
There are plenty of benefits that blockchain technology can introduce to the automotive industry. Here are some of those benefits which can help you understand its actual capabilities:
- Transparency
Transparency is a key component when it comes to the automotive industry, and blockchain technology is known for delivering excellently on that front. Its distributed ledger system will allow automotive industries to ensure that manufacturing and shipping occur seamlessly throughout the supply chain so that foreign or counterfeit parts aren’t able to insert themselves into the chain.
- Fast and secure transactions
Blockchain technology is highly demanded by many industries for its security features. Every transaction within your automotive industry will be checked and verified while boosting overall speed.
- Immutability
With rapid automation come greater dangers. Thus, the automotive industry will need to strengthen itself technologically. This can be ensured using blockchain technology, which is known for being immutable. Thus, all the data stored in an automotive company’s servers are impossible to change or remove for third-party infiltrators.
Practical examples of blockchain technology in the automotive industry
Many big corporations across the automotive industry have already started implementing blockchain technology in their businesses. Some of those examples are summarised below:
- Porsche and XAIN
Porsche is a luxury brand in the automotive industry. In contrast, XAIN is a Berlin-based start-up company that provides blockchain and artificial intelligence solutions. However, both have decided to join hands to explore the impact of blockchain technology on vehicles.
- Toyota, BigChainDB, and Oaken Innovations
Toyota, one of the biggest players in the automotive industry, has suddenly decided to start a collaboration with BigChainDB and Oaken Innovations. The main purpose behind this joint effort is to produce blockchain-based applications. BigChainDB has contributed by building a database solely based on blockchain, and Oaken Innovations has produced a platform for sharing data securely using a blockchain.
Conclusion
Blockchain technology has continued to grow in relevance within the automotive industry by introducing various innovative features. However, it has not yet truly found itself properly integrated, as some consider it fairly new. However, many companies across automotive industries have already started taking shots by integrating blockchain technology into their operations. In light of this, it would not be far-fetched to say that the day is not far away when blockchain technology finds its place at the top.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
