Here’s How Blockchain Technology Will Transform the Automotive SectorOctober 23, 2018
Blockchain will soon transform the automatic sector. That’s thanks to its decentralized data ledger features. The blockchain tech is set to enable end users with autonomous vehicles and optimized routes through fixing day-to-day traffic problems.
The technology has been a huge buzzword for a bit of time now. Thanks to its associated transparency, privacy, and security; the digital ledger has discovered a lot of applications in systems wherein multiple users engage with one another for transactions of any type. You see: the deployment of the technology in the automotive sector was first attempted and tested by Porsche in partnership with the Berlin-based startup, XIAN. The car company first utilized the technology to unlock vehicles, which make them theft-proof.
Introducing Blockchain Technology in the Automotive Field
- Facilitating Better Carpooling Alternatives
The idea of autonomous vehicles can be prolonged to the carpooling services with the assistance of the blockchain technology. A sought-after illustration of this is La’Zooz, an Israeli startup company that provides decentralized carpooling services to its clients. A passenger, a driver, or even a developer of the app gains tokens when he or she donates to the system. Such tokens are stocked on a blockchain and could be utilized to book a ride.
- Establishing Autonomous Driving Systems
People all prefer shorter courses with less traffic to work. Modern’s navigation systems guide you to accomplish that; however, only on a personal level. On the other hand, blockchain technology collects more useful data, meeting it on a single platform which is always open to all.
A self-driven vehicle registered on the technology would record information for each route it follows. Further, the data would be composed of everything, from the general patterns on the route to the weather conditions. These data, from different autonomous cars, would be consolidated on one portal to be shared along with other vehicles too.
- Revolutionizing Car Trade
One of the salient features of blockchain is creating smart contracts. Such contracts can be utilized to transform the way payments are done in the automotive sector. On the trial of Porsche, they utilized blockchain smart contracts to pay electricity employed by every car.
Each time a vehicle user charged their car at a charging station, the technology made a smart contract on the chain, deducting the needed number form the account of the user to the station. The similar method would be subtracted from the bank account of the buyer regularly to be paid to the vehicle firm. The blockchain technology would record the remaining balance as well and cease withdrawal after all due payments were achieved.
XinFin, on the other hand, is a rising blockchain technology that platform which aims to connect the $5 trillion worldwide infrastructure deficit by allowing institutions and/or governments tie blockchain based digital based to IoT enabled equipment to raise foreign direct investments and allow P2P financing.
Even though the automotive sector is only getting started with blockchain technology, there is no doubt that the result will just be groundbreaking.