Pairing Blockchain With the Auto Industry

Many industry leaders are exploring ways in which they can use blockchain to make products and services more secure and efficient. At this point, some of these efforts are only speculation, but the initial predictions for how blockchain technology will be utilized are promising. One arena where blockchain could be extremely helpful is in the auto industry.

For example, the supply chain which is the foundation of the auto industry would be greatly helped by technology that makes the tracking of cars, parts, payments, and services simpler. With blockchain technology, anyone with access to it could track where their vehicle was, what manufacturer built a certain part, and the stage a transaction was in. This would remove much of the mystery that can surround the sale, service, and distribution of vehicles of all types. Transparency would allow for better safety checks and the easy backtracking of faulty materials, making recalls more efficient and helping customers get back on the road with a minimum of bother.

And, once the cars are on the road, there is the issue of how they are used — Uber, Lyft and various ride-sharing services have enjoyed enormous success, but have also had many issues in paying drivers appropriately, dealing with customer service issues and so on. Blockchain technology allows for a decentralized system that isn’t controlled by a third party and so could manage all these processes without being held up in procedural limbo.

Insurance companies could also make use of blockchain, tracking claims, payments, and other consumer information, with the reverse being true and allowing for smoother processing of information in an industry which can often be seen as difficult to navigate.

Furthermore, blockchain technology has many potential applications when it comes to the gathering and leveraging of data gathered by vehicles. As in-car devices are increasingly linked to the operation of vehicles, information about the drivers and passengers will be collected by insurance companies, auto manufacturers and other companies to whom the information may be sold. Blockchain technology could be utilized to make sure that no information is shared without the permission of the consumer and that what is shared can be tracked or limited as their needs and interests change.

Of course, blockchain may not be applicable to every aspect of the auto industry, but there are enough use cases that it’s well worth investigating the possibilities and doing trials to see where it might be most beneficial both to the industry itself and consumers.