Blockchain’s inevitable fusion with the automotive industry and their real-world use cases and application
Disrupting the automotive industry, blockchain pushes the boundaries of supply chain, data processing, support, and theft prevention
Lately, it seems that the automotive industry is going through a lot of changes and improvements; vehicles are becoming more “smarter”, manufacturers are embedding more sensors capable of executing various tasks from assessing post-crash injuries to tracking and disabling stolen vehicles. To top it all off, we are slowly but surely shifting towards the era of autonomous vehicles. It is estimated that by the end of 2025 more than 8 million ‘smartly developed’ cars will be en route while having higher levels of automation installed. It appears that the automotive industry is still tackling old challenges in terms of supply chain management and vehicle safety issues whilst new problems emerge which require cutting edge technical solutions.
In alliance with the automotive industry, blockchain provides unprecedented solutions to some of the most pressing obstacles, but also greater accountability and oversight into supply chain and vehicle data processing comprehension. From a business operating model, blockchain enhances the existing processes making them more efficient. Blockchain can be utilized solely; however it has a bigger impact if applied in unison with other technologies such as big data, IoT, and AI.
Extracting Vehicle-procured data
Smart cars are pushing the boundaries of autonomy by spawning various types of data that must be saved, share and ultimately sold. They can generate data up to 1GB per second which car manufacturers can later utilize and enhance the newer models. It is estimated that the market for monetizing car data will amount to $750 billion by the end of the 2030. Currently, the most modernized vehicles have vehicle-to-vehicle transponders, GPS systems, front and back cameras, onboard processors, etc. Letting 4k GBs worth of daily data exposed and unsecure for potential misuse is not an acceptable outcome.
Using state-of-the-art blockchain encryption, vehicle-derived data will remain secure, and drivers will always have an insight into who they are sharing their data with, but also bestow the users with more leverage in terms of consenting to how their data is used.
- Filament & Reno — enable an immutable vehicle history with cryptographically verifiable service records that are maintained on a distributed ledger, used to determine an accurate value of pre-owned vehicles, and support smart-contract based business logic.
- Volkswagen & IOTA — aimed at performing frequent remote software updates of car components with a high level of automation. IOTA envisions becoming the underlying protocol for car makers and suppliers to ensure secure updates and transparent access to audit trails.
Remote vehicle support
If you are car maintenance-savvy, repairing spare parts may not break the bank for the most part. However, proceeding with driving a car that’s in a demand of a checkup is formula for larger, more expensive issues.
Imagine linking your mechanic to your car’s data remotely so that he can assess and troubleshoot all the challenges that the car is experiencing. Furthermore, once a driver exceeds the speed limit and gets a speeding ticket, personal information provided can be stored in a decentralized ledger that an officer later can use for a fine registration. The aforementioned elements are just some of the basic remote applications of blockchain into automotive industry, and are aimed at making car’s lifecycle more durable and the process less complicated.
- Renault — announced that the “digital car maintenance book will enable Renault to provide their customers with new services in an ecosystem alongside insurers and dealers. Blockchain technology is able to create a reliable trust protocol — tamper-proof and streamlined.
Rewarding the law-abiding drivers
There’s no denying that the reduction of speed limit doesn’t necessarily results in the drop in traffic fatalities. People are still breaking the law ignoring the fact that speeding is considered as the main factor in traffic deaths, that is, 31% of all roadway fatalities.
Car manufacturers have, albeit found a different approach to make the roads a safer place. Through blockchain-based incentives, car manufacturers aim to transmit information about drivers’ habits to the manufacturer’s database, assess the information, and transfigure it into a proprietary token which is bestowed to drivers‘ account in the amount equivalent with the safety of their driving. If large expenses and loss of life haven’t done the trick why not try a different, more rewarding model and see what the outcome will be.
- Daimler — launched a €100 million ETH bond to evaluate a tokenized clean driving reward system.
- Kasko2Go — rewards safe drivers with reduced premiums, so that the right behavior is rewarded. That, in turn, incentivizes good driving in the first place. And then back that community up with technology that helps make the solution fraud-free.
Supply Chain Transparency
The automotive manufacturing process is more disseminated than many realized. If that car is “Made in USA” that doesn’t necessarily imply that it is assembled 100% there. All the vehicle needs to qualify for such a title is 75% of the car’s parts to be manufactured in the States. Needless to say, majority of the vehicles do not fall under that category and most don’t rise very high above it, either. If a manufacturer cannot remain transparent about the production of car’s parts and supply chain, why should a potential buyer have a blind trust in the brand and venture into something unknown?
As per any supply chain, blockchain ledgers comes into play to enable better superintendence and further enhance communication and management between members of the supply chain, surge productivity, and detect sources of flawed shipment or a fixable supply chain impediments.
- Mercedes-Benz Cars and Icertis — the transmission of contracts to each member of the supply chain is the prerequisite of cooperation with suppliers, especially in terms of sustainability and ethical conduct. The Blockchain prototype opens up completely new ways to make purchasing processes simpler and safer.
- MOBI — MOBI is a nonprofit smart mobility consortium working with forward thinking companies, governments, and NGOs to make mobility services more efficient, affordable, greener, safer, and less congested by promoting standards and accelerating the adoption of blockchain, distributed ledger, and related technologies in the mobility industry.
The problem with car thefts has never been more pressing. According to The Telegraph, nine out of ten car thieves in UK are never caught, and keyless technologies are pushing the issue to a grander scale. What is even more, about 76% of vehicle thefts in the country are closed due to inability to ever identify the suspects. To put matters into perspective, grand-theft-auto victims lost close to $6 billion in 2016 alone. With the growing amount of theft casualties, people are starting to wonder: How can we stop these villains?
Recent blockchain developments generated next gen authentication systems which keep thieves at bay. Car manufacturers are predicting that the projection of this authentication-distinct trait will be implemented to vehicle security systems no later than 2023.
- Surrus — is now offering a solution to the problem with a decentralized system for searching and returning stolen cars, covering only 3% of the entire territory while also offering a blockchain based car theft insurance with an instant compensation.
- Porsche & XAIN — allied so as to find a blockchain business model enhancing vehicle’s security and impenetrability.
Fathoming the essentials and propounding an ultimate blockchain and automotive zenith
It indeed takes time to absorb the unlimited varieties of blockchain and automotive unification. What is even more exhilarating is that the car manufacturers didn’t take blockchain for granted and in unison with other blockchain-savvy brands they have started to implement disruptive features that it brings to the table. The challenge therefore lies in knowing how to get people close to these features and spearhead the technology to a massive, worldwide adoption.
CoinPoint, being the leading marketing giant in the blockchain world, has boldly ventured to achieve the aforementioned zenith and propel the blockchain in automotive industry steeply. Targeting the right audience, focusing on brand development, and product’s exposure, we are well aware of the proceedings compulsory for the products ultimate success.
CoinPoint is a premium marketing agency founded in 2013. Owned by CoinPoint Group Inc., the agency is now working with a number of all-scale businesses in the crypto space. With a wide range of clientele from cryptocurrencies markets, blockchain, and fintech, CoinPoint has already opened offices in Europe and the Asia-Pacific. With these headquarters strategically positioned, CoinPoint stays on top of the latest trends and innovations across the globe.