Auto Industry Looking at Blockchain
There are exciting dreams about self-driving vehicles, and other science-fiction like advances in automobile technology, and people see Blockchain as the technology to make that happen. However, the Consensus 2018 conference revealed a more pragmatic and down-to-earth approach being taken by auto makers with regard to how Blockchain technology can be harnessed.
Current Applications for Blockchain Technology
Some of the applications for Blockchain technology in the auto sector has been explained by Renault Innovation Silicon Valley’s manager of business innovation, Sebastian Henot.
The way his organization has used this technology is to streamline auto makers’ supply chains. According to him, Blockchain can be used to significantly reduce costs in supply chains by adding increased levels of transparency as well as auditability. Henot says that this kind of data will be vital for auto companies, especially in case of vehicle recalls.
Another way that Blockchain could be used is to give each and every auto its own unique identity. This way, every single vehicle will have its own history. So, if a person want to sell his Renault and buy an Audi, then the Renault dealer can access data about the car and assess its complete history.
Some other ideas include tracking mileage using Blockchain tech. Second hand car dealers have been known to falsify odometer readings (mileage of a car), to show less mileage so that the value of the car increases. However, with blockchain, it would be almost impossible for them to change those readings, leading to less Odometer Fraud in the industry.
There are numerous ideas using this technology that auto makers are looking at, including tokenized incentive schemes for users. And it is because of so many diverse ideas popping up that four of the world’s largest auto makers have teamed up with technology companies to form the biggest ever consortium that will be looking at how to apply Blockchain tech to the auto industry.
The Mobility Open Blockchain Initiative (MOBI) includes auto giants such as BMW, General Motors, Ford and Renault. From the technology sector, IBM and Accenture are a part of the founding team, as are representatives from the Crypto industry Consensys, IOTA and Hyperledger. Car parts manufacturers are also being represented by Bosch and ZF.
Beyond Just Cars
While most people talk of cars when talking about the auto industry, according to Henot, in the long run, the future of the auto industry is not just about the about making vehicles autonomous, but actually getting them to communicate with one another and looking beyond just cars.
This would mean that there would be a network of autos – not just cars – that would be interconnected, such as autonomous drones, rovers and even marine vehicles.