Applications of Blockchain Uses in the Automotive Sector

Blockchain will disrupt the automotive industry, and automotive firms are in the stage of building awareness and getting educated about blockchain technology.

FREMONT, CA: Blockchain can facilitate safe, traceable digital transactions in real-time, bypassing conventional financial institutions in the process. It has the potential to dramatically cut costs while improving efficiency and cause disruption across sectors. It is no surprise that automakers are watching blockchain with interest, such as making some selective space investments. While blockchain has the potential to upset the established order in its own right, it can be of relevance when used with the Internet of Things (IoT), big data, and artificial intelligence (AI). Read on to know more.

The automotive sector is quickly changing. Technologies like the Internet of Things, AI, and blockchain are paving the way for autonomous vehicles. Leaders are turning to blockchain to make vehicles autonomous and boost the efficiency of their supply chains. Synthetic identity fraud is the act of leveraging information from several identities and then combining it to generate a fake identity. With these identities, fraudsters can get credit cards and take out loans. This type of fraud costs the automotive sector millions of dollars a year, and GM is now turning to blockchain to stop it. This is being developed to help increase data sharing within the automotive sector.

Porsche has combined with blockchain startup, XAIN, to deploy blockchain technology in their vehicles. The blockchain would enable users to unlock their vehicles with an app and offer easier automated payment systems. The two firms have also stated that the technology could be developed even further to have autonomous driving.

IBM is presently developing an automated payment system tailored specifically for vehicles. This system can automate payments for tolls, car-sharing, parking, charging, and several other payment systems. Upon completion, this technology can revolutionize the automotive sector completely. Depending on the systems in the city, this process could take minutes. With blockchain, payments would be made in seconds, without any human interaction needed, and without leaving the car. The same automated payment system can be applied to car sharing, tolls, and many others.

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