Blockchain has the potential to solve some of the most pressing industry issues.
Verification and History
Mileage Fraud will be defeated by blockchain as a transparent, anonymous un manipulated database is set up to track mileage. Accidents and repairs including maintenance can also be recorded via blockchain. Having this database could drastically reduce fraud and the use of false records.
The vehicle manufacturing industry involves a large number of components, stakeholders and processes. Blockchain can help each stakeholder get a clear picture of the supply chain by tracking sales, service and shipping creating an increased sense of accountability.
Each car generation rolls out with advanced autonomous functions, automating payments and processes becomes crucial. Smart contracts can improve this in many ways. Reducing the barriers such as requiring credit cards and bank accounts could allow payment to happen easily. Using smart contracts, the settlements can go ahead based on defined parameters. Within the leasing and financing space, smart contracts could provide the ability to deactivate the unlocking system of cars with outstanding lease payments.
Blockchain can also be used in the public transport sector where bus and train depots can charge customers and track vehicles more efficiently than ever before.
Blockchain can improve car sharing. With the rise of companies such as Uber and Lyft many new start-ups are following their steps that could eventually threaten these industry giants. Chen Weixing, the CEO of Funcity, an app development company, and the founder of the Chinese ride-sharing system Kuaidi Dache, recently said he wants to construct an Uber equivalent that functions via blockchain.
The technology of blockchain allows the transparent logging of a vehicle’s sensor data in a decentralised network. The smart contract then allows this data to be verified and implemented into an insurance plan.
A black box verified by blockchain could accurately record data and verify disputes following an accident. Peer-to-peer insurance solutions like Teambrella promise to guarantee payment to the customer in instances where an insurance event occurs. There are many possibilities but first insurance companies will need to overcome many regulatory and legal barriers before this becomes the norm.
The industry is already beginning to embrace new technology. Some of the world’s most renowned automotive brands are already investing in blockchain and pushing forward with solutions. A report by IBM claims that over 60% of automotive businesses will invest in blockchain to manufacture the cars of the future.
While new challenges are presented this is not uncommon when embracing and integrating new technology. It is clear that blockchain will be used to unlock the potential of the mobility sectors.