Under the acceleration of the smart automobiles, the puzzle of extracting valuable insights from massive amounts of big data is the focus point of today’s era. With the intervention of blockchain technology, the extraction of big data will have a revolutionary development opportunity in the automobile industry. This article focuses on the analysis of blockchain application in the automotive industry and its potential for development.
Practical application of blockchain in smart cars
As the development of smart cars accelerates, discovering valuable information from massive amounts of big data is the focus point in today’s era. From the industry’s perspective, the effective use of big data will not only lead to more precise services along the entire life cycle of a car, but also aims to replace the automobile itself as the main profit point. With the introduction of blockchain technology, it will provide revolutionary development opportunities for automotive big data.
Recently, VISA and DocuSign announced a partnership program and will use blockchain technology to create specific solutions for the car rental industry. Under this partnership, car rental procedures can be simplified and be more secured. The customer only needs to select the car that he wants to rent, and the transaction is sent through the public account in the blockchain ecosystem. The customer then signs a lease agreement and insurance agreement, which will be uploaded to the blockchain network for confirmation. The application of blockchain can further simplify the process of car rental and expand its application to other businesses in the automotive industry.
Application of blockchain in automotive industry:
The modern nature of blockchain can optimize the overall operation of the automotive industry. The possibilities for application are very broad, including the following:
- Vehicle Maintenance Procedures
Through the application of blockchain technology, the procedures for car maintenance and repair can be simpler and more secure. The blockchain’s network database not only records the parts used in automobile manufacturing, but also helps us distinguish between automotive parts manufactured by humans and robots. This large database can systematize the entire vehicle maintenance program and reduce the occurrence of counterfeit cottage vehicle components; increasing the overall safety of vehicle maintenance. The dealers can also safely transmit the data to the owner through the large database in the blockchain network, thereby improving the transparency of the entire vehicle maintenance process. This increases the owner’s trust in the vehicle maintenance process.
- Car permits and registrations
The smart contract enabled by blockchain can change the entire operation of car licensing and registration. Technically, the blockchain enables the registration and tracking of all valuable human items while smart contracts can improve the security and transparency of the entire process. When car manufacturers record registered vehicles on the blockchain, we can also use the system to track vehicles. This integrated system will reduce incidences of car thefts and increase consumer trust in the trading of second-hand cars.
- Car sharing
The transparency and security of smart contracts has opened up a wide range of development potential, with Porsche already testing to lock/unlock cars through smart contracts. In the process of unlocking a car with a smart contract, the customer first needs to pay the deposit through a digital wallet. Through the interconnection of blockchain network and the confirmation of the store’s contract, the customer can then unlock and drive the car directly. With the help of IoT technology, store owners can track car locations during the car leases and automatically provide insurance through smart contracts.
- Artificial Intelligence (AI) and self-driving cars
Blockchain can help artificial intelligence in achieving more value. As AI is using milliseconds to undertake massive decisions, blockchain can assist in tracking AI’s decision-making and prevent tracking accidents.
From the above, we have learnt that blockchain has a wide range of applications in the automotive industry. As long as the applications are rolled out with appropriate timing, the automotive industry will go through a transformative developments.