Comparing trends of the past and the present in the automotive sector makes it safe to state that the future has a lot in store for wheel freaks.
Be it the provisionof on-demand services, personalized choices comprising autonomous, shared, and connected cars,Blockchain is the buzzword in theindustry.
It is one of the concepts that has become the talk of the town for its unique approach. Many people toss this concept out of the window, assuming it to be too fancy. However, a closer evaluation baffles your mind and convinces you of its efficacy.
Using this technology, you can buy a car with cryptocurrency or sell your vehicles if you are a dealer. In return, you accept the crypto coins leading to safe and fast transactions. It is a whole new world of opportunities to dive in.
According to the Allied Market Research, the global automotive Blockchain market will hit the value of $428.57 million in 2020. It will reach $5.61 billion by 2030, registering a CAGR of 29.3%.
The growing inclination of the automotive industry towards Blockchain is making people curious. They are willing to know more about the domain and reap the rewards.
Table of Contents
What is Blockchain?
A Blockchain is a distributed database. The storage device for this database is not connected to a central processor. Instead, it maintains a list of ordered records, known as “blocks.”
Each block has a timestamp and is associated with the previous block. It makes it impossible for one block to change without modifying other blocks too.
Users can edit some Blockchain parts if they have the private keys required to write a file. Cryptography makes sure that a copy of everyone’s Blockchain stays synced.
How Blockchain simplifies the car-buying process?
Blockchain is changing the face of the automotive industrywith its wide-ranging application. However, its most significant impact can be seen in the trade and transaction process. Below, we shed some light on how Blockchain is making the process of car-buying simpler:
Blockchain enables secure and automatic digital payments. In turn, it helps autonomous vehicles pay for tolls, parking, sharing, services, or charging for electric cars.
The existing payment methods for dealers, automotive OEMs, or spare Blockchain technology completes monetary transaction within one minute or less.
There is an ongoing hustle in this arena, with different entities trying to enhance their portfolio. For example, startups like Helbiz and DAV are working on their token systems or ICOs to enable digital payments in autonomous vehicles.
Blockchain has also made the car-buying process ‘paperless.’ Customers don’t have to sign any documents if theyor any other cryptocurrency. It is done by the application of a ‘smart contract’.
Unlike the traditional means of buying cars, where documents have to be signed for the transfer of ownership, a smart contract is a digital contract that automatically executes itself when terms are agreed upon by both buyers and dealers.
The customer journey is comparatively painless and hassle-free than before. You can pay with cryptocurrencies for the car you want at low transaction rates. Your details stay hidden as you undergo a secure, cashless payment process.
Safeguarded Autonomous Data
Vehicles are becoming autonomous. The increasing reliance on tech and software makes them more vulnerable to cyber-attacks. It is the reason why Blockchain deploys cryptographic roots that prevent reverse-engineering.
The Distributed Ledger Technology of Blockchain facilitates data storage and offers immutability.Even when a self-driving vehicle navigates the street, the Blockchain can take charge of recording details associated with the trip.
This localized data includes everything from information about the road to the general traffic patterns. Other vehicles of the network can then access this information and make decisions accordingly. The data generated is reliable, secure, and accurate.
Vehicle History Verification
The database stored on Blockchain will examine a vehicle’s authenticity, history, and accurate pricing. Typically, there are various cases of dealership frauds when it comes to buying a car, and many of them are linked to the presence of a middleman in the car buying process.
The Blockchain technology comes as a trouble-shooter in the scenario. By paying in cryptocurrency, one can eliminate the middleman from the process. Buyers can connect with sellers on the Blockchain platforms, view individuals’ reputation, and choose according to price, quality, or any other factor.
Supply Chain Management
The automotive supply chain is complex. It contains various kinds of hardware, software, firmware distributors, dealers, insurance companies, regulatory agencies, and much more. It also works on product transfer that costs a lot of time and money due to intermediaries’ involvement.
The use of Blockchain offers transparency in supply chains. It ensures that manufacturing, shipping, and suppliers view the same supply chain. It also makes it nearly impossible to insert counterfeit parts.
Multiple Blockchains can be added to manage massive data generated by manufacturers and suppliers daily.
According toResearch, 30% of manufacturing companies with over $5 billion in revenue will finalize“Industry 4.0” pilot projects using Blockchain by 2023.
As a consequence of this robust growth, evolution in the automotive supply chain is inevitable despite the looming challenges.
Product and assembly ownership, trading, authenticity, purchase, and license use of each component can be safeguarded with the Blockchain. The buyer can easily view the vehicle’s supply chain and make the payment if they find it credible enough.
Most insurance claims are fraudulent, which results in high operational costs and ineffectiveness of the insurance industry.
Blockchain closes this loophole by allowing for transparent logging of the vehicle sensor data. Some online car buying forums also facilitate the acquisition of insurance when purchasing a car. They partner with Blockchain-based insurance companies to provide this service.
Blockchain has opened up a world of opportunities in the automobile sector. Whether it is to secure the financial information or make shared ownership more trustworthy, it can significantly modify data-management methods in the future.
Buying cars, sifting through available models, and reviewing vehicle history has become easier than before due to Blockchain application. It enhances cybersecurity for vehicles, enables secure micropayments, strengthens identity management, and improves data validation.
So don’t worry if you have eyes on the latest vehicle launched by your favorite automotive brand. You can easily buy it using crypto coins.