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Blockchain to become the next big disruptive force in the auto sector: Study – The next big thing!

The next big thing!

The next big thing!

A majority of global automotive sector executives believe that blockchain technology will become a disruptive force in the industry.

Although the industry is still in very early stages of development, the study by IBM Institute for Business Value in collaboration with the Oxford Economics said blockchain has the potential to strengthen trust and collaboration between businesses, consumers and even vehicles.

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Transparent & secure way to do business

Transparent & secure way to do business

Blockchain is a distributed ledger technology offering a more transparent and secure way to conduct business with information on a blockchain existing as a shared and continuously reconciled database.

Say as many as 62 per cent of surveyed executives say blockchain will be a disruptive force in the automotive industry within three years, the study said.

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Removing friction points in the auto industry

Removing friction points in the auto industry

According to the study, the executives surveyed believe that blockchain can have a high impact on improving information friction points faced by the automotive industry.

"Fifty-five per cents of OEMs and 47 per cent of suppliers say blockchain will improve information in their business networks," he said.

Moreover, 52 per cent of original equipment manufacturers (OEMs) and 40 per cent of suppliers felt that information can be improved.

It further said 43 per cent of OEMs and 29 per cent of suppliers felt blockchain would improve the ability to access a particular transaction.

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Not so ready for the change?

Not so ready for the change?

"Global data clearly revealed finance, supply chain and mobility services as top areas where blockchain could reduce frictions," the report said.

However, when it was found in China, Germany and Mexico.

The industry is in the very early stages of implementation blockchain at commercial scale, say to the study.

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Lack of awareness

Lack of awareness

Blockchain strategies, "it said, adding 39 per cent of OEMs and 51 per cents of supplier respondents were only slightly aware of strategies.

42 per cent of OEMs and 33 per cent of suppliers, it added.

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