Blockchain will change the future of the transportation industry?

The application of blockchain technology and supply chains in car manufacturing and the operation of vehicles in a sharing economy could disrupt the car industry.

“Interruption” is a word that often causes fear. But in reality, we should take a broader view and treat disruption as part of a larger transition – an ongoing push to grow and adapt in a changing transport and energy landscape. change. 

The transformation will happen with many minor disruptions, and not all of them will be as sudden and obvious as the arrival of Uber changing the traditional passenger transport model, or Facebook becoming the dominant player in the media world. pine. 

Blockchain  Hive os usb –  technology is just one highlight of the transformation of transportation services that are influenced by the wave of electrification, the rise of customer-oriented services and ubiquitous connectivity. between vehicles, equipment and grid systems.

Originally developed to support cryptocurrencies and financial services, blockchain is now used in many industries to validate data, build automated business processes, and new business models. . 

Interest in blockchain has also increased in the transportation sector. Industry giants such as Daimler, Jaguar Land Rover, BMW, Honda, Ford and many other startups have collaborated on many projects or pilot applications of blockchain technology. 

From verifying vehicle history, better tracking supply chains, automating transactions, enabling secure vehicle sharing or making insurance costs fairer, carriers have integrated technology. this and launch interesting applications. 

What is blockchain blockchain technology?

Essentially, blockchain is a technology that helps create a single, reliable record of data for a system or network of many devices. Most importantly, blockchain networks are not owned or operated by anyone individually, but by the entire network. 

Vehicle owners, service providers and car manufacturers are the three central actors in the transportation services ecosystem. Applications of blockchain technology directly impact all three of these actors. 

If a vehicle is the hardware foundation for transportation services, blockchain technology is a software candidate that could make these services possible. Blockchain will ensure the accuracy of the underlying data, helping to make transactions and automatic payments in a safe, error-free manner. 

The rules for all transactions between the parties are based on code rather than a written contract, and these codes cannot be changed without the digital consent of the majority of the parties. Furthermore, every transaction between the parties whether financial or otherwise is recorded by an encrypted, tamper-proof linked ledger, shared and copied across various devices. 

This encrypted link ensures that any changes to the history made on one device are visible to the rest of the network.  

Imagine you want to buy a used car but aren’t sure if the seller will be honest about the vehicle’s crash history, flooding, or mileage. Blockchain technology is the answer to such questions. 

 

Blockchain technology creates a safe trading platform

 

Private transportation has major changes over the past few decades. In short, cars are getting smaller combustion chambers and more computing power. The average car in 2018 is contained between 100 and 200 million lines of code in the software. 

Many vehicles have cellular network connectivity and are capable of operating third-party apps, including personal assistants, navigation, and infotainment services. These capabilities allow the service provider to stay connected with the customer even after the vehicle leaves the showroom. 

For transportation service providers, blockchain technology will change their world even more. Blockchain-based micropayments (small value) will allow service providers to create promotions as well as a business model that attract customers and they can completely knock competitors rely on traditional technology. 

Imagine an Uber competitor, using blockchain technology to pay their drivers hourly or in real time instead of weekly as Uber is doing. The immediate rewards will fundamentally change a driver’s relationship with the sharing economy, as it does with any other service that individuals would benefit from participating in.  

With the application of blockchain in the search for economic optimal solutions, smart charging applications and vehicle-to-grid or V2G – a system that helps electric vehicle owners to resell excess stored electricity. to the national grid during peak hours.  

V2G is not the only way for car owners to generate revenue from their vehicles. Share & Charge, owned by Enel X, acts as an analogue of Airbnb for charging stations. Through the platform, electric vehicle owners can purchase the right to charge their vehicles at a private charging station at a price and time set by the owner. 

In the US, eMotorWerks and LO3 Energy, pioneers in energy trading, have tested a peer-to-peer trading model that allows electric vehicle owners to buy electricity from households. 

 

In both cases, identification, transactions and payments are done using blockchain technology and smart contracts.

 

Vehicle owners will also benefit from an increasingly seamless customer experience. Blockchain helps create the foundation for secure and easily auditable transactions between devices. 

 

In the future, thanks to blockchain technology, private vehicles can pay parking fees and tolls on their own without the need for driver involvement, the same way we use payment applications. current electronics on smartphones. 

These advancements will benefit drivers as well as lay the foundation for the efficient management of fleets of autonomous vehicles. Such apps are being developed by companies like Filament, Car eWallet and Daimler. 

Blockchain improves supply chains for car manufacturers

Not only that, original equipment manufacturers (OEMs) for automakers can also experience the benefits of Blockchain technology, as one of the early uses of this technology is increased visibility. , transparent and efficient management of information in the supply chain. 

Blockchain in the supply chain allows companies to have access to a complete, tamper-proof record of the path and history of products or materials through the supply chain network. The information stored in this record can be shared with other parties in the customer network or even with competitors if needed. 

In 2019, Volvo announced that it was using blockchain to improve the traceability of cobalt – the chemical ingredient used in electric vehicle batteries – to ensure its products had proven origins. ethical standards. Cobalt is mostly mined in the Democratic Republic of the Congo – where many workers have to work in inhumane conditions. 

Blockchain will not solve all the challenges that car manufacturers are facing in supply chain management, and it may even create some new ones. However, the impact of the technology remains significant, as IBM predicts that taking advantage of blockchain will increase global GDP by 5% and trade volume by 15%. 

The application of Blockchain technology not only helps to create a secure transaction platform in transportation services, but also helps improve the supply chain of car manufacturers better, even contributes to a significant increase in global GDP. tell.