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The automotive blockchain is causing a sensation, but experts support a balance between enthusiasm and skepticism to prevent companies from being transported.
Many in the fleet industry are excited about the potential of blockchain, particularly for applications such as vehicle registration, insurance, supply chain management, finance and fleet management, but others are advising the future.
A recent AutoMobility round table in Los Angeles highlighted some of the differences with the experts, on the one hand urging caution and the need for an adequate examination of the company's clear value and others claiming that everyone adopts it.
What is Blockchain?
Blockchain is a shared digital ledger, stored on a centralized distributed network – a data tree if desired. It is easy to monitor and highly secure. Nothing can be changed without the consent of the network. In fleet management applications, alongside the fleet manager, people involved in a blockchain transaction could include: financial institutions, customs agents, government authorities, brokers and drivers.
For fleets, blockchain promises better productivity and efficiency. Fleet managers could implement technology to improve resource utilization, security, data accuracy, visibility and so on.
For what kind of fleet applications could the blockchain be used?
Some of the blockchain applications could be used for: fleet maintenance, increased security, visibility and accuracy of data, transport and reduction of inefficiencies.
In terms of fleet maintenance, the chains of suppliers of the future will allow the fleets to know everything about a vehicle from the second coming off the assembly line and this will remain in its life cycle: every oil change, warranty repair , parts replacement and so on would be visible.
Contracts, transfer of documents, security of transferred items, driver safety, parts management and traceability of goods could become easier and safer thanks to new blockchain-based applications.
In terms of efficiency, this is particularly relevant for commercial fleets (light commercial vehicles and heavy vehicles) where demand for their services can be better matched to supply – no more empty vans or empty vehicles or trucks that do not use roads .
Problems with Blockchain
However, there are problems. Blockchain is expensive to implement and requires huge amounts of server power to prevent latency and cope with the vast number of transactions required by applications.
It is estimated that 250 million connected vehicles are traveling by road worldwide by 2020 and with 20 million connected devices worldwide that will double every few years, there is potentially a big role for blockchain in protecting transactions or push out of the air from car manufacturers to suppliers.
As with any new technology, there will always be the first to adopt the rules that are able to push the limits and be part of its initial evolution to become mainstream. Blockchain is no different. What is different, however, is that in this case the automotive industry can learn from the trials of crypto-currency players and start with a more mature platform. Only time will tell if it will really reach its automotive potential.
