How Blockchain technology is contributing to the Automotive industry
Auto Coin Cars: The economy, at present, is emerging with new forms and techniques. There is a strange yet catchy blend of tech and money that has surprised the whole world. Also known as Blockchain, it is a trend likely to transform the entire economic landscape.
What is Blockchain?
Essentially, a Blockchain is a distributed ledger of transactions duplicated and spread across the entire network of computer systems. Each block in this chain contains multiple transactions. Every time a transaction takes place on the Blockchain, it adds to the ledger of every participant. To get detailed knowledge of this technology works, you can get certified through various Blockchain Course available online.
Each block has three crucial elements:
- The data it contains
- A 32-bit whole number, nonce, is randomly generated upon the creation of a block. It later produces a block header hash.
- The hash is a 256-bit figure embedded with the nonce. It must begin with a significant number of zeroes.
Mining is the process of introducing new blocks to the chain. Meanwhile, nodes are the electronic devices to maintain copies of Blockchain and keep the network functioning. Given the complexities and intricacies involved, it makes sense to state that Blockchain is a revolutionary technology.
It helps reduce risk, stumps all scammers, and brings transparency in a scaleable way for myriad uses.
The MIT Technology Review believes that the whole point of using a blockchain is to let people, especially those who don’t trust one another to share valuable data in a secure and tamper-proof way.
Applications of Blockchain
The Blockchain is an exciting new alternative to the conventional currency. Its centralized banking and transaction methods have changed the way we handle financial transactions. According to Statista, worldwide spending on Blockchain will reach an estimated 15.9 billion by 2023.
Companies in nearly every industry are moving forth to make the most out of this new medium. Almost every industry is exploring ways to deploy Blockchain, from healthcare to agriculture, to smooth its operations.
Of these, it is the Automotive industry that shows the most progress. The existence of smart contracts, supply-chain communications, and proof-of-provenance are some of its features, turning arduous tasks simpler than ever before.
How is Blockchain transforming the Automotive Sector?
According to Frost and Sullivan, a marketing research company, Automotive Companies will invest a lot in tech development. Such entities are likely to spend around $169 billion on implementing new technologies in their companies by 2025.
There are many ways Blockchain is positively disrupting the automotive landscape. It contributes to diverse segments, as highlighted below:
The automotive supply chain is complex. It juggles between hardware, software, dealers, regulatory agencies, firmware distributors, and so much more. It also deals with product transfer, which consumes plenty of time and resources.
Using Blockchain in the automotive supply chain brings transparency and optimizes the shipment procedure. It can deploy multiple Blockchains to manage the massive data generated and monitored by automotive companies. One Blockchain might have bills of lading for vehicle parts, and another contains the records created during the manufacturing process.
Plus, smart contracts in manufacturing blockchains allow releasing purchase orders at different intervals of the manufacturing process. It seamlessly weaves the entire process through shared inventory, invoicing, payments, pricing, and logistics information.
In 2016, the US witnessed around 53 million cars being recalled about issues that could put the vehicle owners at risk on or off the road. Having your vehicle insured using Blockchain technology is the ultimate way to safeguard yourself in such circumstances.
However, it is also true that most insurance claims are fraudulent. They use hidden methods when issuing policies and managing licenses. This brings baggage of high costs and ineffectiveness.
Blockchain addresses this problem through transparent logging of the vehicle sensor data in a decentralized network. The immutability feature of the Blockchain and proof of provenance will allow insurance companies to leverage their operating activities. Auto Coin Cars
Every time a car insurer receives fraudulent information, the smart contracts will validate the submission. Insurers can also check if the vehicle needs a serious repair and verify the vehicle owner’s narrative. The technology brings new telematics add-on services to provide insurance companies with driver locations, vehicle speed, acceleration, braking behaviors, etc.
Such substantial contributions by Blockchain have compelled Toyota, the famous Japanese car manufacturer to partner with tech icons like MIT, Oaken Innovatives, BigchainDB to devise Blockchain-based applications for insurance purposes.
Blockchain technology has enabled the manufacturing of autonomous vehicles. They can run on an autopilot mode, which will allow the vehicle to park itself. Such wheels would also carry out other tasks as commanded on the digital computer of the car.
The first time Blockchain garnered public attention was via Bitcoins. The cryptocurrency was a novel concept, and the public was quite fascinated with the idea of a decentralized money ledger.
To this day, digital currencies are the primary arena using Blockchain technology. Companies like Auto Coin Cars make it possible for car buyers to purchase their favorite vehicles from across the world using digital coins.
Automated Vehicle Maintenance
Cars using Blockchain often have on-board computers like the Engine Control Unit. This contains information on all the error logs so the service professionals can swiftly diagnose and fix the car in as little time as possible. Using the same data, they can track the maintenance status and make necessary tweaks when required by a specific part.
Renault has successfully leveraged this technology in its new launch. The French automaker has started to pilot a digitized car maintenance program. It will use Blockchain as a shared ledger to track auto repair and maintenance history. Auto Coin Cars
Some of the challenges faced by the automotive sector still remain unresolved. With Blockchain infusing into the landscape, we believe the industry will continue to unveil new solutions to their existing problems. Despite the current concerns and hesitations around the domain, we think it is the next big transformation taking the automotive industry by storm. Auto Coin Cars
Do you agree or disagree? We would love to hear your thoughts!
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