Blockchain Technology Application in Automotive Industry
August 21, 2019
Blockchain Technology Application: With its dispersed and decentralized nature, blockchain technology innovation holds an enormous capacity for changing the automobile market. There are numerous blockchain usage cases in automobile, some of which we will be discussed here.
The automobile market recognizes the possible effect of blockchain innovation. The adoption s still in the early phases. There is a broad spectrum of practical blockchain use cases in the automobile. These use-cases will help in improved collaboration among all participants and enabling capabilities for new business models.
Blockchain in Vehicle Manufacturing
1) Tracing and confirmation of parts
In a blockchain-based production supply chain of vehicles, details associated with car parts such as its producer, date of production will be recorded and saved on the blockchain. As the vehicle parts change hands while moving from the producer to the end consumer, info will keep updated on the blockchain. This process will make it possible for all the stakeholders (such as the service center, vehicle maker, and client) to trace and validate the origin of automobile parts.
A blockchain-based system will supply a unique digital ID for each part made, which will include essential information, such as producing data and ownership-related info. In case of part failures or mishaps, blockchain might assist in determining the origin, choose who needs to be accountable and settle conflicts.
2) Targeted recall
An option based upon blockchain innovation will make it possible for vehicle producers to determine vehicles with defective parts, and issue targeted recalls or service bulletins for these vehicles.
A blockchain-based solution will drastically reduce the costs of recalls. The blockchain solution will also track the status of the product recall. For instance, the solution can track the vehicles received by the dealer for repair. This kind of tracking can be used for regulatory reporting to the government on the status of recalls.
3) Process Optimization
The automobile production procedure has a chance of application in different use cases. A distributed journal can include costs of lading for car parts, quality-inspection records produced throughout the production procedure, and WIP info for each automobile assembly from start to end up. This process would assist the needed authorities to track the parts in real-time.
This blockchain use-case in the vehicle supply chain provides inventory details to the producers like never before. With such a level of visibility, manufacturers can predict demand spikes, recalls, and manage their production schedules effectively.
4) Linked supply chain
Blockchain innovation can be used to each of the stages of the supply chain: from item creation, creating and advancement to circulation and funding. It will link automobile supply chain from produces automobile companies to buy or offer, track effortlessly, and spend for items once they reach their location.
This process will have the following effect:
The pertinent information will be captured, kept, and updated on a blockchain. Deals will be seen and validated by all the participants in the blockchain network. The initiation of payment processing might be done immediately through smart contracts.
Blockchain Technology Application: Linked IoT sensors and smart gadgets might determine the condition of containers. IoT applications assist in keeping an eye on, handling, and managing devices from another location and develop brand-new actionable insights from real-time information. IoT gadgets can tape-record and preserve the entire history of a vehicle consisting of repair work and maintenance history.
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