The Blockchain in Automotive Industry is the future and It will be starkly different from that of today. It will need to be highly integrated and offer on-demand and personalised services that will include autonomous, shared and connected.
Blockchain has the strength to play a major role in underpinning the industry transformation that is coming. Blockchain is the key technology that underpins bitcoin and other cryptocurrencies but also much more than that. There are many main opportunities to utilize blockchain across the automotive industry that can transform products, services and processes.
Blockchain in Automotive Industry Practical Applications
The use case groups were developed from an early analysis of over 40 use cases which were short-listed and combined to cover the breadth of the automotive market and blockchain applications.
The Three Use Case Purpose Categories are:
- Verification and Process Improvements is to improve process efficiencies across the back office and supply chain.
- Vehicle Management and Incentives is to improve vehicle information and usage data across the every industry.
- Finance, Payments and Insurance is to improve transactions processes and information relating to finance.
Vehicle Management and Incentives
Across the value chain there are a number of blockchain use cases are aimed at empowering vehicle management and incentives.
The four use cases within vehicle management and incentives are described
Dealer and Customer Incentives
- A blockchain based solution that records customer and dealer purchases and issues loyalty points that can be redeemed and utilized as a currency within the OEMs loyalty network.
- For instance, the dealer could supplement purchase of parts with customer-redeemed loyalty points at a discount. Once the loyalty points are utilized, the dealer’s account would be updated for participants on the network to view.
Extended Vehicle Ledger
- A blockchain based solution that securely updates, stores, traces and shares vehicle data across OEMs and with external parties in real time.
- The vehicle ledger could add the storage of a car’s maintenance and ownership history and would enable OEMs and other authorised parties to view and update the vehicle data to the blockchain.
- Users will receive payment through the global ledger for services rendered, e.g. the purchasing and selling of a vehicle, repairing a vehicle or the purchasing and selling of the vehicle data to third parties (autonomous vehicle data).
- A blockchain based solution that uses in car connector is to send vehicle mileage data on a regular basis to its digital logbook. If odometer tampering is suspected the display mileage can be checked against the recorded mileage on a
system via a smartphone application.
A car owner can check their mileage on the blockchain and when they sell their vehicle, receive a certificate of accuracy that confirms the veracity of their car’s mileage
- A blockchain based solution that executes and records agreements and monetary transactions is to enable vehicle owners to monetise trips. This solution would interconnect smart and autonomous vehicles, car-sharing providers and the end-users in a secure and reliable manner.
- Users and car sharing providers can register on the blockchain and exchange data seamlessly and securely. Such data could include vehicle exact location, keys to unlock the car, agreement terms and user payment information.
Assessing Blockchain Opportunities
Blockchain’s Value – Based on Business Benefits
The criteria is to assess the value to business of the blockchain opportunities are based on the Enterprise Value Map. This is a tool which rectifies factors stimulating business growth. The criteria include key factors that support organisational for growth through:
- Strong Revenue Growth which includes the factors that’ll support price and volume
- Better Operating Margins which includes the factors that’ll support the selling and administrative side as well as cost of goods sold
- Improved Asset Efficiency which includes the effectiveness of property, plant and equipment as well as inventory
- Expectations which includes the factors that’ll affect company strengths and perceptions.
As industries as diverse as Automotive, Healthcare, banking and real estate have continued to embrace blockchain technology, Locus IT has made it a priority to remain on the cutting edge of its advancement. We provide Blockchain development services and enterprise-class implementation solutions for platforms, protocols.