Blockchain technology has grown extensively in terms of its scope. Initially, it was first employed only in cryptocurrencies. Still, different industries around the world are now incorporating Blockchain more and more into their structure.
What is Blockchain?
The concept of Blockchain can be understood as that of a distributed database. Instead of connecting a common processor to the storage devices in a database; Blockchain consists of a list of order records known as blocks.
For each block, there is a timestamp and a link that connects it to the previous block. This connection makes it impossible for anyone to alter any individual block without changing its preceding blocks. Each user can make editions in their part of Blockchain by possessing a private key necessary for file writing. Here, the copy of each user’s distributed Blockchain is synchronized via cryptography.
There are several benefits of Blockchain such as:
- Their designs are highly secure and can record various amounts of data such as identity management, proving provenance, financial transactions, and medical records
- It makes trading and transaction easy by eliminating the need for a middleman.
Use of Blockchain in the Automotive Industry
1. Safe and Secure Payments
The initial use of Blockchain was seen in cryptocurrencies. It was incorporated in various cryptocurrencies such as Bitcoin and Ethereum. Similarly, it can be used in the automotive industry. For example, electric car owners can use this technology for paying the electricity to charge their cars.
In this process, a smart contract can be triggered to take an adequate amount from the owner’s bank account and deliver it to the charging station. This technique can also be employed to pay the monthly parking fees and other financial transactions.
2. Protected Autonomous Data
In self-driving vehicles, the Blockchain can record all the details regarding the trip. In this data, important information regarding traffic patterns and road infrastructure is also included. Since this data has become part of the Blockchain, everyone can trust it as altering, editing, and changing the existing blockchain data is very difficult.
As autonomous driving greatly relies upon data sharing, the shared data needs to be highly secure. Incorporating Blockchain in this will enable to ensure the integrity and security of the data. This data cannot be hacked and thus contributes to better autonomous driving.
3. Decentralized Ridesharing
Ridesharing platforms can add Blockchain and other autonomous technologies to benefit themselves and their customers in various ways. With Blockchain, these ridesharing platforms can get multiple benefits such as
- Data maintenance is ensured, and any intermediaries between drivers and customers can be eradicated
- Payments can be based upon predetermined conditions, and the payments to the drivers will only be commenced only when they have delivered the customer to their destination
- If the customer proceeds to cancel the ride, the blockchain-based smart contract can release some funds to the driver, as they have invested their time waiting for the customer.
Adding Blockchain to the basic structure of these ridesharing platforms can also be beneficial for the customers, as they can select the driver based upon his reputation, price, market factors, and quality.
4. Blockchain-Based Vehicle Ownership
It is anticipated that in the future, people will not own individual ownership of vehicles. Instead, a fleet of around ten to twelve cars can be owned by a group of people.
With Blockchain, these owners can access the vehicles as per their needs. Also, the activity regarding each vehicle can be recorded.
With this system, the automatic settlement of payments can also be decided by the owners’ discretion.
5. Supply Chain Management in the Automation Industry
With Blockchain in the automotive supply chain industry, insertion of any counterfeit parts in the supply chain stages such as manufacturing, shipping, and suppliers will become impossible. Moreover, multiple blockchain systems can be incorporated in generating, managing, and monitoring vast amounts of data.
Multiple blockchains can be used for various purposes. For example, one Blockchain can include bills regarding vehicle transactions, while the other can store quality inspection records.
Another way to use Blockchain in the automotive supply chain allows automatic release of purchase orders during specific manufacturing process phases.
Incorporating Alysidia’s Blockchain Solution in the Automotive Industries
Alysidia is a leading blockchain solution provider that is determined for optimizing software solutions. Our blockchain solutions are specifically designed to be incorporated into all levels of the automotive industry. You can learn more about Alysidia’s automotive blockchain solutions by visiting our website alysidia.com.