Over the past few years, several automakers have begun exploring blockchain technology and its integration. It includes blockchain for autonomous vehicles, as well as integration with the supply chain. Blockchain may even become popular in the automotive industry in the same way that revolutionary technologies such as artificial intelligence, machine learning, high-performance GPS, and sensors are.
In the United States, five automakers (BMW, Ford, Renault, General Motors, and Honda) have recently begun developing a blockchain vehicle ID system and payment processing. The collaboration is aimed at evaluating the vehicle recognition system developed under the Mobility Open Blockchain Initiative.
This initiative includes digital IDs that are linked to ownership. A wallet and service history are allocated to cars allowing each vehicle to pay automatic fees without specialized hardware.
The partnership currently envisages the system being extended to connected electric vehicles. Hence, transactions for tolls, repairs, and rest stops, for instance, can be automatically recorded and charged when the car charges its battery and plugs into the system.
The mechanics of the system assigns individual cars with digital IDs, connected to details such as ownership and service history. This data will be used to identify cars on the road, letting the driver pay fees automatically without specialized tags necessary for current electronic toll systems.
Did you know that blockchain payments in cars might be a thing? If you’ve been trying to get the connection between the automotive industry, bitcoin and blockchain explained, take note!
Other industries may have implemented blockchain in marketing, as well as blockchain trading, and blockchain accounting. Although any actual connection between cars and bitcoin might seem unclear, the automotive industry is also focusing on offerings that use digital currency.
Under the auspices of the connectivity project, GM and Honda have researched into smart grids using blockchain. The project could lead to owners of electric vehicles being paid for feeding power into the grid.
Blockchain automotive efforts
Mercedes-Benz parent company Daimler AG and mechanical engineering company Dürr AG performed a pilot transaction on the trade finance network called Marco Polo of blockchain software firm R3 not long ago. Before that, the automaker, in collaboration with Frankfurt bank and Commerzbank, also checked blockchain-based machine to machine truck payments.
On the other side of the world, Indian car producer Tata Motors aims to incorporate blockchain technologies into its internal processes as part of a newly introduced startup program. The company’s plan for blockchain-based technologies includes a parking marketplace and real-time fuel quality tracking.
A long time coming
Well-known automotive brands are using blockchain technology. Hyundai Motor Group has been bringing the first EV performance control onto the market through smartphones for some time now. To have the highest degree of protection for customers, this organization has chosen to make use of blockchain.
When it comes to using emerging technology, the Volkswagen Group has proven itself equally innovative. In April last year, it released a press release that stated it had entered into open cooperation with the industry regarding responsible mineral extraction, which will also be put on the blockchain.
Automakers and blockchain might not be such an odd combination. Blockchain payments, identification, and more can come together. Some of the top automotive brands seem to show this. Do you feel that blockchain is more beneficial or more harmful to your industry? Leave your answer in the comments section below.
Thomas Glare has been writing since he was a teenager. He’s mentored startups at hackathons and been involved in branding, strategy and was a content producer for a large newspaper’s digital team. He’s been working from home for a long time and knows a thing or two about remote working tools as well. In his free time, he likes to play strategy games like Book of Ra.
Editor’s Note: The opinions expressed in this article are those of the author.
Photo attribution: Maiconfz (pixabay.com)