Five ways blockchain is transforming the automotive industry
Blockchain technology is set to become one of the biggest disruptors of the auto industry, and will impact everything from manufacturing to repairs, the way dealerships operate, and everyday driving. It’s an exciting technology with a vast number of applications.
Here’s a look at five main ways in which blockchain technology will impact the automotive industry for everyday people:
One of the most noticeable areas of transformation that blockchain technology will bring is the way vehicles are serviced and maintained. Blockchain-based technology like VINchain’s innovative onboard diagnostic (OBD) device and app allows vehicle owners to monitor the condition of their car and be alerted when maintenance is needed before problems occur. It also allows dealers to cut down on service times by knowing in advance what parts and maintenance a vehicle may require.
Insurance is an expensive, yet essential part of vehicle ownership. Premiums are often calculated on a driver’s predicted behavior, instead of actual behavior, leaving good drivers to pay more than they should. Claiming from insurance companies after an accident can also be frustratingly slow. This is another area where blockchain technology can prove incredibly effective in saving vehicle owners money and time. Devices like VINchain’s OBD allows insurance companies to track individual driving behavior, rewarding good, safe driving with lower premiums. And since all of a vehicle’s data is collected and available in real-time, it makes claiming after a crash a much quicker process
Electronic transactions using blockchain-based methods are already making their way into our daily lives, and it’s only a matter of time before so-called e-payments become the norm in the automotive industry too. Soon car owners will be able to automatically pay for everything from parking to fuel, services and maintenance, tolls and even in-car entertainment through a connected e-wallet in their vehicles. The inherent security of blockchain technology will make these payments safe and secure.
In the past, financiers had to submit a lot of potential lenders’ personal information in order to run things like credit checks, verify employment, and determine a lender’s risk by looking at insurance profile. It was a slow, tedious, and not very secure process. Blockchain technology lends itself extremely well to financial transactions, and is why cryptocurrencies like Bitcoin is built on the technology. It’s super secure and almost impossible for unauthorized parties to gain access or alter information. These advantages, will speed up the vehicle financing process exponentially by making it simpler and quicker for would-be vehicle owners.
Predictive maintenance can make cars safer by ensuring a vehicle is always well maintained and in top condition. Blockchain-based devices like VINchain’s OBD can warn drivers of potential mechanical issues while, allowing them to take the necessary actions to ensure safe driving. Autonomous vehicles have sensors that ‘look’ out for hazards or potentially dangerous road conditions. This technology is bound to be integrated into ‘regular’ cars, and will provide a whole new level of driving safety. Blockchain technology will play an integral part in ensuring that data from these sensors are transferred quickly and securely in order to warn drivers and passengers.
Blockchain technology is not just a buzzword or fly-by-night technology, and the impact it is already having on the automotive industry is an indication of how important a role it will play in the future of vehicle ownership.