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How Blockchain could revolutionize the automotive industry

The cryptocurrencies are rapidly consolidating their role as the next big news of technology, becoming more common and emerging from their reputation of being used for illicit transactions on the black market. The automotive industry he is increasingly embracing this new technology, bringing what is known as blockchain into the lexicon of the industry.

What is Blockchain, exactly?

In short words, blockchain is a public digital ledger that allows you to distribute information but not to copy and store it on multiple channels. Information can be stored securely without the risk of hacking or theft. This new technology can, among other things, record financial transactions, reduce odometer scams, monitor cars that drive on their own and eliminate fraudulent auto parts.


How Blockchain is changing the automotive industry

Blockchain is an emerging technology and we do not fully understand everything it can do. Blockchain has the potential to revolutionize the way we do things and act like a new Internet of sorts. This recent development brings with it new ways of doing things. For the nascent car industry, where growth is happening faster than they can keep up, blockchain could be the answer.

Self-driving cars

Through the blockchain, cars can develop the ability to communicate with each other, using automatic learning to better understand the surrounding environment. This could mean that cars could essentially predict traffic congestion, as well as finding ways to improve safety and reliability.

Improvement of security

Our current Internet and data systems constantly endanger our personal data. Blockchain technology aims to change it. For example, if you are trying to sell a vehicle, blockchain could create a contract that should be properly submitted before it can take effect. Blockchain can also eliminate the problem of rollback of the odometer. This would greatly reduce the risk of fraud, essentially preventing sellers from being scammed.


Insurance

Blockchain could be useful to speed up the entire compensation claim process while at the same time improving security. It could also make it possible to create peer-to-peer policies. For those who do not have the requisites for traditional insurance policies, they can still share the risk, this time however, among their colleagues, making them self-insured.

Another possibility is insurance based on use. Blockchain could measure this automatically, without relying on driver reporting.

Supply chain

Blockchain would make all OEM auto parts trackable, with their position in a single position. This would reduce the need to track parts and reduce spare parts. The parties would be immediately authenticated, ensuring that they are genuine.

While these technologies they are still far from becoming widely adopted, the automotive industry is readily embracing these new ideas. The blockchain is bound to revolutionize the way the auto industry does business, and could only change the whole world.

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Image; Depositphotos

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