Role of Connected Vehicles and Blockchain in the Automotive Sector

Blockchain in Automotive Sector

Technology is developing rapidly, and the web has altered the way folks communicate or do their everyday tasks. In other words, the universe is much more connected, and you can see almost everything on the internet.  In a world where everything is connected through the internet, why will cars not do the same? Yes, you may be aware of this new technology known as connected car technology. Connected cars have turned out to be the new norm in the world of the automobile sector.

What Do You mean by Connected Cars?

In common language, any vehicle or car connected to the internet is known as a Connected Car. Generally, these vehicles connect to the internet through WLAN (Wireless Local Area Network). A connected car can even share the internet with different devices inside and outside the vehicle. Also, at the same time, it can even share data with any external device or service. Connected cars can always access the internet to perform functions or download data if the user requests it.

You know connected cars have clear perks. They are potentially safer and less dangerous for the environment. These vehicles also present the car industry with a chance to innovate and create robust relationships with its consumers than ever before.

Blockchain and Automotive Industry

Blockchain is a technology that became popular for its application in cryptocurrencies such as Bitcoin. Automakers are exploring this technology as a way to enhance security in growingly connected vehicles. As the normal car gets closer to getting connected, electric or autonomous, there will be a corresponding boost in the requirement for a more advanced database to match. Here, blockchain can become the answer.

Blockchain technology is a distributed database. In this technology, the storage devices for the database or information are not linked to a single processor. Rather, it upkeeps an increasing list of ordered records known as blocks. Every single block has a proper timestamp and a link to a preceding block. Hence, it makes it impossible for anyone to alter any block without altering the rest of the blocks behind it. Users can edit different parts of the blockchain that they possess by having the private keys essential to write to the file. Here, cryptography promises that everybody’s copy of the distributed blockchain stays kept in sync.

Furthermore, blockchains are safe databases by design, and hence, they are brilliant prospects for recording medical records, secure documents, financial transactions, identity management, and verifying provenance. You know, blockchain has the potential to eradicate the middleman in trade and transaction procedures.  Following are a few of the many ways that blockchain can have a role in the automotive sector.

Use of Blockchain in the Automotive Industry

The ability to distribute data more efficiently and securely is one of the benefits blockchain offers. The conditions on the road, their state, and the status of different automobiles are all things that self-driving vehicles must be aware of at all times.  Conventional iIoT makes such a procedure more difficult because of its communication systems.

The decentralized ledger of blockchain suggests that each node has access to all the information promptly and correctly. To boost complete connection, companies are now working on including improved vehicle monitoring and communication. The first stage of safe autonomous ecosystem creation is to develop decentralized networks to convey data conveniently.

Supply Chain Management

The transparency provided by distributed ledgers in the automobile sector can ensure that production, shipping, and suppliers all view the same supply chain. It makes the installation of counterfeit components nearly impossible.  There can also be a proper QR code in manufacturing that ensures that the data is available to all the concerned people only if the unique hash value in the secure QR code matches with the unique value of the QR code on the blockchain network.

Moreover, automotive manufacturers and distributors can use different blockchains to manage the huge amounts of data produced and administered regularly. One blockchain might include vehicle component bills of lading; the other might encompass quality-inspection records created during the production process. Yet, another might store WIP information for each assembly line from start to end.

Similarly, automotive industry experts can also incorporate smart contracts in manufacturing blockchains to release sales orders automatically at particular stages of the production procedure. There can be an automatic grant of contracts to the provider with the most inventory at hand, improving supply chains.

The Bottom Line

Connected vehicles and blockchain have already started influencing the automotive industry. Especially, blockchain, as a secure and distinct kind of encryption, has the power to become one of the main technologies to enable the vehicle industry to join the new generation of smart vehicles. Blockchain can revolutionize how information is managed in future automobiles, whether by preserving financial data or improving the trustworthiness of collective ownership. To know more about blockchain solutions or encrypted QR code in manufacturing, you can talk to us at ProofEasy.