Blockchain in the automotive industry - Services

2020-05-14 | CryptoCurrency.ong

With blockchain, payments would be made in a matter of seconds, without any human interaction and without leaving your car. The same automated payment system can be applied to car sharing, tolls, etc. IBM began working on this blockchain system in 2017.

Car manufacturing companies have constantly embraced groundbreaking technology solutions to solve challenges in sectors like manufacturing, supply chain, logistics, sales, marketing, customer support and basically everything else as well. This decentralized ledger technology can help to build a state of peacefulness in customers, manufacturers and service centers with its transparency and immutability.

Faster transaction

Payment process for a car purchase is very time consuming. The manufacturer has to wait weeks before it receives the payment for shipment of a car. A Blockchain based system would enable greater transparency of accurate information between the different parties and reduce the settlement period before the manufacturer receives payment for the delivered cars. Read more about blockchain in the automotive industry— manufacture and purchase in our related article here.

Blockchain loyalty tokens

The inefficiency of loyalty programs that are currently in use causes the reward points go largely unused. On a blockchain based loyalty program, the loyalty token’s unique identifiers can be updated on each participant’s ledger and made available on the network.

Blockchain usage scenarios in the mobility sector

• leasing and vehicle financing: due to smart contracts, companies could optimize and automate various processes in the vehicle leasing and financing section. E.g.: if a car’s leasing rate hasn’t been paid yet, it will be possible to prevent it from being used by deactivating the unlocking system.
• car rental company: the blockchain technology would allow the rental company to monitor if the cars are in cleaning, maintenance, and be up-to-date on their status. It would be easier to know what is happening, have a follow-up and decide whether the car is available or not.
• carsharing: with blockchain, your personal settings and preferences could be saved in the car safely, which could also enable P2P carsharing.

Real life example for blockchain usage in the services sector

IBM is currently developing an automated payment system designated specifically for vehicles. This system would be able to automate payments for tolls, car sharing, parking, charging and various other payment systems. Upon completion, this technology could revolutionize the automotive industry completely. Depending on the systems in your city, this process could take minutes.

With blockchain, payments would be made in a matter of seconds, without any human interaction necessary at all, and without leaving your car. The same automated payment system can be applied to car sharing, tolls, etc. IBM began working on this blockchain system in 2017. According to the company’s official statement, they’re planning to begin testing sometime in 2020 with a public release to follow.

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