How Blockchain Could Revolutionize the Automotive Industry
Numerous industries across the world cannot seem to escape the revolution that is blockchain. The automobile industry is indeed no exception. The technology could completely change the way people insure, buy or sell their cars, and some analysts say the potential is unlimited. The use of blockchain technology holds infinite possibilities for the automotive industry, very few car gurus have yet to understand the myriad of options. Here are some ways blockchain could change the automotive industry.
The Technology In its purest form, blockchain acts as a digital ledger that is made public. However, the technology holds so much more power than just a simple digital ledger. Eliminating the need for third parties to host data is the real power behind the technology. Many industries are learning how to use blockchain to improve data security, transparency, and speed of use. There is no risk of hacking data that could include contracts, payments, and other forms of encrypted data. So, how could this technology revolutionize the automotive industry?
Driverless Cars Also known as autonomous cars, the technology could have the potential to allow these cars to communicate with each other. Driverless cars could share data regarding traffic conditions, road conditions, and sharing information about their surroundings. Improving the reliability and safety of autonomous vehicles is one of the most significant challenges so far, and blockchain technology could dramatically improve the safety of driverless cars. Additionally, blockchain could markedly increase the feasibility and usability of autonomous vehicles.
Security/Insurance The protection of data regarding the buying and selling of cars could be drastically enhanced using blockchain technology. Buyers and sellers could set up a smart contract that does not allow a transaction to finalize unless both parties contracts are correct. Blockchain could revolutionize the car insurance industry. Not only will it enhance the security of each transaction, but it could speed up the claims process to unprecedented levels. Blockchain could streamline the entire process, including using smart contracts to process insurance claims and providing proof of ownership during the process. What is most intriguing is the possibility of offering peer-to-peer policies. Blockchain could eliminate the need for brokers or intermediaries, which would create a type of self-insuring process where individuals could submit insurance policies. --Adam Jiwan, Spring Labs