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The advent of smart cars with creative concepts and innovative solutions has taken the automotive industry toward future smart technologies. But with user requirements at the peak along with automation competency, the top companies such as original equipment manufacturers (OEM) worldwide are struggling to reflect a good balance between the technology and requirements. It’s not only about the cars or automotive industries, but it can be expanded to 5G connectivity systems in achieving smart city interactions and AI in recruiting systems. Presently, the rise of blockchain technology with its new heights of offering effective transaction, and without the requirement of established intermediary has led automation to shift towards integrated blockchain techniques.
At present, blockchain technology is hyped due to its enhanced applications and pervasive computing. It has offered numerous benefits to automotive industry concerning effective communication amongst the users, novel financial transaction policy along with scalable business architecture. The key aspects that can be expected from the integrative blockchain-automotive process will be in terms of creating value and trust amongst the user-industry perspective, in which IoT is limited today.
The main limitation that designers face these days is in terms of integration amongst numerous devices. Autonomous cars comprise of millions or billions of devices interconnected with each other, and there is a requirement of efficient, secure, and highly immutable database to achieve effective communication amongst these devices. Moreover, the ledger or data captured should be shared amongst automotive OEMs, dealers, part distributors, and insurance providers to share the data for their future requirements. This can be achieved through blockchain technology. Tesla has recently developed block-enabled tollbooth, with the concept of automatic pay as the car passes the tollbooth—triggered by the machine-to-machine transaction.
In the auto-financing sector, blockchain technology helps financial sectors to provide loan with minimized verification steps. It comprises several steps such as customer bank validation, transactional set-up and verification, credit score, and analyzing legal structures through blockchain-incubator which helps financial sectors in developing user-friendly financing system. Furthermore, the current insurance claim process comprises extensive manual documentation, retrieval, and evaluation before the claim is sanctioned. Entering these events through distributive ledger technology, and allowing blockchain with smart contracts will automatically reduce the burden on service technicians and automate payouts.
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Though the blockchain technology is highly advantageous, the critical parameters such as scalability, security, and low standardization still remain as bottleneck across the industry. Also, the dynamic and geographical variable regulatory regimes emerge as critical analysts in the blockchain space. These limitations should be considered for further research to leverage blockchain technology efficiently.