Blockchain Technology - A Boon to Automakers

Blockchain technology is taking over the world economy and changing the way key industries execute their daily functions. Of these the automobile industry has found this technology to be increasingly helpful in different work areas.

Let us quickly take a glance at the blockchain implementations in the automobile industry.

Tracking and Verifying Different Automobile Parts

Blockchain technology is a boon to automakers as it facilitates quick tracking of a defective part.

Blockchain creates a unique ID number for each automobile part, big or small and tracks it’s movement across the supply chain. Blockchain’s immutable feature timestamps each part of vehicles and a record of it is kept in the network.

Raj Chowdhury, Managing Director of HashCash Consultants explains the implications of blockchain in the supply chain management with a real-world example. He states that “ With Blockchain, you are able to track every part of the supply chain, allowing precise identification of the defective part. This helps automobile manufacturers reduce the number of recall.”

Vehicle Provenance Made Easy

Blockchain helps to track the origin of vehicles which facilitates buying of genuine automobiles from authentic dealers. Selling of fake or illegal automobiles exist greatly in the industry. Due to this reason implementing blockchain technology in this industry will help greatly in eliminating the fraudulent activities existing in the market. All parts of each and every vehicle is recorded in the database of the blockchain network. Each automaker who is a participant of this system can grant access to other participants through tokenization or with an encrypted key.

Efficient Supply Chain Management

Blockchain offers sending of every single information to the concerned participants in the automobile industry. Whether it is related to purchase of a new vehicle or repairing of an old one-blockchain facilitates transparency in every step of the automobile supply chain management. This reduces the chances of errors and conflicts, and speeds up the process by offering secured and accurate data.

Blockchain assists in the manufacturing and usage of more self-driven cars globally by offering the people transparent data and an open and decentralized marketplace, thus providing an open platform for innovations in the automobile industry.