Blockchain – the future of the automotive industry

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Blockchain could be a key technology in the automotive industry. And it will be very logical.

To date, this area is experiencing problems associated with high risks in the system of collecting, sending, receiving and storing data.

The blockchain, which is capable of providing a high level of security for working with information in large supply chains, can undoubtedly solve these problems. In particular, the main advantages of using innovative technology in the industry will be decentralized data storage, encryption, a high level of verification.

The data transmitted and stored in the blockchain cannot be changed without the coordination of the interacting parties, which will make it possible to safely collect and protect information.

Supply chain management system

Another important advantage of the blockchain in the automotive industry is the possibility of its use for supply chain management, which will allow you to accurately track the movements and points of distribution of goods.

For example, in 2016, Toyota Financial Services joined forces with the R3 CEV consortium with the long-term goal of using blockchains to manage supply chains of cars and connected automotive systems because of the obvious potential of technology in this area.

Insurance claims

The blockchain is also able to optimize the insurance industry as much as possible. In the future, insurance claims for the use of original parts when replacing car parts are likely to be based on intelligent contracts or so-called private keys in order to register the process as quickly as possible, attract specialists and automate insurance payments.

For consumers, technology can offer personalized insurance quotes based on the data customers choose to participate in insurance companies. This will lead to a fairer insurance market, where people pay based on the quality of their driving, and not on estimates without taking into account individual circumstances in case of insurance claims.

Tracking

Due to the increased need for security in transferring data, the blockchain will allow car leasing companies to better and safer track the movement and mileage of the cars they rent.

This will be achieved through the use of dealer management systems (DMS), which are placed in the blockchain. Such a solution will provide reliable data transfer drivers that will allow more accurate tracking.

Blockchain can also be used to provide much greater transparency in the used car market. Since the data relating to the life of the vehicle will be reliably collected and stored, potential buyers will be able to get an unprecedented level of verified information about the car they want to acquire.

Automotive space is one of the fastest growing areas in terms of the introduction of the blockchain into workflows. Autonomous vehicles will become a reality in the event that reliable sources of data transfer and connections of a high level of interaction between them appear. Blockchain offers such solutions, and the world government understands this, so the technology is waiting for a bright future and universal acceptance at all levels.

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