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Opportunities for Automobile Companies in Capitalizing on Blockchain

Automakers are currently investing considerably in blockchain technology. In the competitive automobile industry, companies are actively developing blockchain technologies, with ambitions to become market leaders. GM Global Technology Operations LLC proposed stored data can be shared among blockchain users, including the location and density of vehicles. The system is expected to develop route navigation, toll collection and gas station services through appropriate data management and analysis. In addition to this kind of service while driving, blockchain systems can also be used for sharing resource and legal records, so that various services in the automobile industry can receive technical support where appropriate.

When mentioning car manufacturers and blockchain, it is impossible not to mention the automobile manufacturing alliance organized by the world’s four major car dealers in 2018. Volkswagen believes that the gold alliance of the automobile industry: BMW, Ford, GM and Renault, will combine to introduce dynamic industrial innovation and push for the Internet of Things (IoTs) revolution. The use of blockchain in the car industry will also become more extensive and complex with the establishment of this alliance. Not only does the collaboration aim to promote a specific type of distributed ledger, but it also focuses on establishing a standard application programming interface in the field of payment and data transmission in automobiles. For example, after the blockchain system is bound to the vehicle, the system would record different charges, such as parking fees, car wash fees and toll charges. Bringing all the expenses together raises convenience for car owners/drivers. This technology can also be synchronized to verify the effectiveness of driving licenses, reduce workload of government departments and increase road safety.

Without doubt, blockchain plays a much bigger role beyond the conventional automobile industry, furthering its influence on the development of driverless technology, car sharing/pooling and car insurance. First of all, regarding driverless technology, which has been under public scrutiny, it is absolutely necessary to bring blockchain technology into practical use. It should connect the surrounding sensors in one piece and obtain instantaneous environmental information, so that the driverless car can operate effectively. In addition, smart contracts (enabled by blockchain) are characterized by auto-execution and high credibility, making this technology a “guarantor” between the platform and the user. As for car insurance, blockchain can save all driving records efficiently, and insurance companies can use the reliable data to set more accurate insurance premiums. Blockchain also has a crucial role in auto insurance in discovering and avoiding fraudulent behaviour as the data stored is unlikely to be changed by the owner.

Drivers maybe concerned about the safety of the technology and may fear that driving data can be stolen or illegally exploited. Yet, the underlying technology of blockchain can effectively improve the security and privacy of the system through the decentralized consensus mechanism but at the same time, provide data exchange services.

At the same time, the alliance is facing a lot of competition. As the market for driving data contains at least 1 trillion of dollars in business opportunities, the major platforms are looking for opportunities to study relevant technologies and plan different policies to capture more driving data. Of course, this alliance also has its corresponding methods, they are expected to use distributed books to control another data for sensor data. With this technology, the amount of data will increase significantly, but the prerequisite is that in the future, both automatic and general vehicles should have remote sensing capabilities and LIDAR Light up technology.

At the same time, this alliance is also facing fierce competition. Since the market for driving data contains at least 1 trillion dollars of business opportunities, the major platforms are looking for opportunities to research related technologies and plan different policies to capture more driving data. The alliance also has its own corresponding method; participating players are expected to control another type of data – sensor data in a distributed ledger. With this technology, the amount of data collected will increase significantly, but the prerequisite is that both automatic and general vehicles must have remote sensing capabilities and LIDAR optical technology in the future.

Summary:

Under the rapid development of the blockchain, the automobile industry has also been driven by its influence. The market for driving data contains at least $1 trillion in business opportunities, so many companies are scrambling to develop technology in this area. Among them, the most eye-catching must be the alliance of the world’s four major auto companies. They are looking to use blockchain technology to develop specific types of distributed ledgers, promote driverless technology, auto insurance, and other related industry developments.