The automotive sector has always kept a keen eye on new technologies in the hope of streamlining operations, introducing new end-user functionalities, and driving revenue growth, and now it has its eyes on blockchain technology allowing it to create a natural synergy between the complex ecosystem of the auto sector, interacting on many levels including design, manufacturing, distribution, tracking, marketing, selling, finance and servicing of vehicles.
Benefits of Blockchain for Automotive:
There are many ways the automotive industry can use the blockchain. Most of them are based on the main advantages of this technology regarding Transparency, Immutability, High speed of operations, and many more with which blockchain eliminates existing inefficiencies, improves business processes, and opens unique opportunities within the industry with its feature-rich characteristics. Blockchains’ capacity for secure, verified digital transactions in real-time provide cost savings, faster and more efficient operations, and service, and most importantly guarantees safety and convenience for drivers.
We are going to list some of the benefits this cutting-edge technology brings to the car manufacturers and users:
Blockchain Use cases for Automotive:
- Efficient Automotive Interactions – Blockchain enables companies to share data instantly and safely across vehicle component distributors, dealers, service mechanics, insurance providers, and other ecosystem participants. It includes data about vehicle repair requests, replacing parts for assembly lines or aftercare stockists, or payment processing information.
- Secure Vehicle Parts authentication – By generating unique timestamped IDs for every component, blockchain solves the issue of ensuring the genuineness of car parts.
- Process Optimization
- Automated Leasing and Finance Processes – A blockchain-powered system connects all parties involved in a secure environment. It guarantees transparent operations like KYS(Know Your Supplier) checks, storage of contracts, and automated payment.
- Warranty Claims Management – With blockchain, companies can synchronize service schedules of vehicles with immutable records of actual usage. Notably, data in the blockchain database remains accurate, tamper-proof, and easy to track and trace.
- Supply Chain Management – With the blockchain automotive supply chain, stakeholders can establish a smooth order/sell process, simplify documentation workflow, and make faster payments between parties.
- Automated Vehicle Tracking