The Automotive Industry is making progress toward its goal of expanding beyond the realm of merely providing a mode of mobility. More than anything else, the automobiles of the 21st century are most similar to mobile data centers. They are equipped with processors and sensors that are mounted within the vehicle, and they collect data about it. Blockchain development services have the potential to boost levels of trust and collaboration between businesses, consumers, and even vehicles. This can be accomplished by facilitating the creation of transactions that are both more secure and traceable, as well as by enhancing users’ access to information that is more open and honest. The implementation of blockchain technology in the automotive industry in the years to come will almost probably evolve to the point where it is required for the manufacturing of vehicles of the next generation.
The Existing Scenario of the Automotive Industry!
Expanding the use of data and information is a component of the new models of transportation that are the subject of research and are currently being put into practise. This has resulted in the aforementioned systems, which can be categorized as intelligent, becoming an increasing amount more complicated and crucial. The automotive industry has come to the realization that the concept of ownership is fully “liquid” at this point, and that consumers are no longer interested in the “vehicle” product but rather in the mobility service. This realization has caused the industry to shift its focus away from the “vehicle” product and toward the mobility service.
Let’s Define Mobility Blockchain Platform (MBP)
Transaction networks that are totally secure can be enabled by ecosystems that are built on blockchain technology, such as the Mobility Blockchain Platform. This eliminates the requirement for third parties to function as intermediates or aggregators in the network. It enables end-to-end mobility, also known as door-to-door mobility, to be billed on networks that are completely decentralised. Door-to-door mobility is another name for end-to-end mobility. The peer-to-peer and end-to-end architecture provides smaller stakeholders with more leverage, which is crucial because these stakeholders would otherwise get lost in the turmoil of transport systems.
By employing blockchain technology, a number of separate companies that provide autonomous mobility and services can combine their separate solutions into a single product that has the capabilities of being multi-stage, multi-mode, and multi-operator. End users enjoy benefits such as enhanced service depth and a more simplified experience, while operators gain the option to integrate items that would be beyond their capabilities in terms of service delivery and marketing respectively. The utilization of blockchain technology makes it possible to streamline the process of record-keeping for both automobiles and persons.
The following is a list of some of the most important elements of the MBP:
Access
Using open-source protocols that have been defined and application programming interfaces (APIs), the blockchain makes it easy to integrate a variety of capabilities and services. Through this method, dealerships for automobiles can gain access to the resources and services provided by other networks.
Verification
The use of blockchain technology allows for the execution of a verification procedure that is both standardized and open-source, and it may be used to check the identity credentials of participating firms, equipment, or assets. It is possible to do this in order to guarantee that only those individuals who are authorized to view the information are able to view it. The procedures of verification can also be used for the aim of managing one’s identification if one so chooses.
Discovery
Discovery is featured in MBP and functions as a request and offer method for allocating the many services that are provided. Because of this, participants in the network are able to dynamically access and check the availability of the services that are offered on the network. Discovery is also present as a technique for locating new services and may be found here.
Contracting
Contracting means exercising control over the process of contract signing in order to guarantee the legality of smart contracts that are executed digitally. Selling is another name for the process of contracting.
Settlement
By supporting the precise recording of liabilities due by multiple parties in a single area, the shared ledger makes it simpler to resolve disputes and fulfill other payment commitments. This makes it easier to meet additional payment obligations.
What kinds of applications may Blockchain Technology find in the Automotive Sector?
Several use cases for blockchain technology may be found in the automobile sector, notably in the production sections of the automotive industry. These use cases include the following:
Monitoring of the Supply Chain
Even a very little adjustment in demand on the part of the retailer can result in a considerable shift in demand on the part of the distributor and the manufacturer. The term “bullwhip effect” has been used to describe this phenomenon. The inability to manage delays and sourcing limits along complicated supply chains that contain numerous constituents can have a detrimental influence on output as well as profitability. Taking Renault as an example, the company has made enormous investments in the digital transformation of the driving experience. The automobile manufacturer has come to the conclusion that the use of blockchain technology is the best way to meet its needs for the supply chain.
The market for blockchain technology used in the automobile industry is anticipated to expand at a compound annual growth rate (CAGR) of 31.19%, going from USD 0.35 million in 2020 to USD 5.29 million in 2030. This is an increase from 0.35 million US dollars in 2020.
Detection of Counterfeit
When applied in the automotive industry, blockchain technology provides more precise tracking of the origin of components and materials that go into the production of vehicles, all the way back to their point of origin. By carrying out the process in this manner, we ensure that no one is left out of the supply chain. The issue of counterfeiting is extremely complex, and our knowledge of it is only just beginning to scrape the surface. According to the World Trade Mark, the current influence that piracy and counterfeiting have on the worldwide economy, which is $4.2 trillion, will be decreased from the economy by the year 2022. This reduction is expected to take place.
Innovative Engineering Concept
Because more contemporary engineering thoughts and solutions are able to be exchanged more quickly across an industry utilizing blockchain technology, the same amount of time can be used to produce high-complexity goods. For example, the Mobility Open Blockchain Initiative (MOBI) is a charitable organization whose mission is to accelerate the adoption of standards in the automotive and mobility industries and to promote the use of blockchain technology. Another example of an organization with this mission is the Internet of Things Alliance (IoT Alliance).
Identity management
It is soon becoming one of the most crucial use cases for blockchain technology. It is absolutely necessary to have a crystal clear grasp of the individuals who are taking action and the credentials of those individuals, such as engineers, auditors, technicians, and attorneys.
Quality Control and Assurance
People use blockchain technology for quality assurance, which involves them looking at a product’s complete life cycle to analyze several criteria, including qualifications, quality, defect trends, and other factors. This is of great assistance when it comes to the process of reselling automobiles. When purchasing a used car, the potential purchaser has the ability to verify that the vehicle has been well-maintained, that it has passed all quality inspections, and that it is free of any faults.
Key Advantages of Blockchain Services for Automobile Owners
There are a variety of ways in which car owners may profit from services based on blockchain technology. The digitalization of passports, payment methods, and wallets makes it possible to make in-car purchases of movies, applications, and other services. This opens up new possibilities for consumers. This add-on to infotainment technology is a valuable feature because it enables one to pay for products while driving. This makes it a very useful addition.
Tokenization of Carbon Credits
Because we now live in a time when concerns about climate change and the environment have reached a new degree of significance, the quantity of carbon emissions that a vehicle produces is of essential relevance in this day and age. As a consequence of this, the carbon emission of a vehicle can be tokenized into a non-fungible token (NFT) certificate, which can then be stored in a blockchain ledger. Doing so will lower the risk of fraud and pollution check that is linked with that vehicle. Once it reaches the permitted amount or falls below it, the rewards are eligible to be credited to car wallets, where they can be used for a variety of purposes, including the charging of electric vehicles, the service of vehicles, and many other uses that are quite similar to these.
Tokenization of the Vehicle Sound
Due to the fact that each vehicle manufacturer employs their own one-of-a-kind sound qualities, the sound of the engines that are created by these companies can be customized and come in a wide range of tonalities. Because those notes can be applied to the blockchain-based NFT coin, the end user will be able to put them on the car and plug them in according to their preferences. This will be possible because those notes can be applied to the blockchain.
Digital Passports
When it comes to the market for pre-owned autos, a buyer can never be one hundred percent certain that the records of the vehicle of their choice have not been tampered with in any way, even if they do their best to inspect them. Nevertheless, this issue can be easily solved and put to rest if the whole history of a car is stored on a blockchain. This will allow for greater transparency and accountability in the automotive industry. Because of this, it is now feasible to communicate vital information regarding a vehicle with third parties such as insurance companies. The user will have access to a reliable technique for confirming the history of a particular vehicle as a result of this.
Wallets and Other Forms of Payment
As a consequence of the convergence of fast developing technologies, smart cities will give birth to a brand-new economic system based on mobility. This new economy of movement is typified by tokenization and widespread pay-per-use mobility. The Internet of Things allows previously static objects to become dynamic services. The usage of AI makes the services more appealing to potential customers. After that, monetization of the services is possible through the use of tokenization. Car wallets are the name given to the important enabling apps that are responsible for bringing everything together.
Insurance Management System
The management of claims, the regulation of payments, and the approval of claims are all areas that stand to benefit from the implementation of a system that is powered by blockchain technology. The outcomes that are desired from this project include personalised insurance proposals and prices, expedited claims processing (documents, submission, review resources, and verification), and subsequent pay-outs and service contracts for funding and carrying out repairs.
Final Takeaways
The automotive industry has always been at the forefront of technical innovation; manufacturers are continuously looking for new methods to integrate cutting-edge technologies to their products and are constantly searching for new ways to do so. It is abundantly clear that the implementation of blockchain technology in the automotive industry has the potential to bring about significant improvements to the sector as well as support the development of other cutting-edge technologies and trends. After examining a number of different ways in which the technology could be put to use, it is abundantly clear that the implementation of blockchain technology in the automotive industry has the potential to bring about these improvements. It plans to achieve these objectives by modernizing its production processes, instituting a record-keeping system that cannot be altered, and enhancing the performance of its supply chain operations.
