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The Auto Industry Believes Blockchain Will Disrupt It Within 3 Years

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62% of the auto industry expects blockchain technology to become a “disruptive force” within it by 2021. Even more so, 95% of car making companies want to make “moderate to significant” investments in the technology over the next couple of years, according to a report by the IBM Institute for Business Value.

Auto Industry Blockchain

Daring to Be First

The report is called “Daring to Be First,” and it claims that blockchain technology can bring with supply chain and transactional benefits. Some major report takeaways:

  • 62% of executives say blockchain will be a disruptive force in the industry within three years.
  • 54% expect new business models to influence investments in blockchain.
  • 54% of executives will implement their first commercial blockchain network at scale within three years.

A large amount of these changes come from the smart contract technology inherent with blockchain. Smart contracts are essentially automated “if-then” statements. The report goes on, “thousands of parts go into the assembly of a vehicle. The inability to track and verify the parts can result in parts that do not work properly when they are integrated with others. Performance issues and customer dissatisfaction can then occur.”

More specifically, blockchain technology help address the following challenges:

  • Finance: Issues with manual data entry, transaction costs, reviews, and more. Blockchain will help to streamline these processes and keep them accurate throughout a vehicle’s lifetime.
  • Supply Chain: Parts can get lost in delivery, stolen, replaced, damaged, and more. Blockchain-based supply chain solutions will help companies keep complete track of their assets and ensure everything gets to the place it needs to be.
  • Mobility: Third-party cleaning services, maintenance, and more are required for car-sharing companies to keep providing to customers. Blockchain offers a space for these users to keep track of what’s going on.

The report also notes that Porsche has been testing blockchain dapps since February 2018. So far, these have been used to lock or unlock cars, to make loans, and even to park vehicles, reports CCN. On this platform, car owners can track who uses their vehicles, where they go, and for how long. Of course, this could be of great benefit to applications like GetAround.

These statistics came from a surveyed “1,314 automotive executives across 10 functional areas and 10 countries.” The report then states that only a small amount of auto businesses are ready for blockchain use cases, but as the e-commerce market becomes more prevalent, these spaces will need to incorporate the distributed ledger to keep up.

One example detailed in the report is Daimler AG’s MobiCoin. This is a blockchain-based project meant to incentivize users for “eco-friendly driving habits.” Drivers who earn these coins can turn them in for VIP tickets to popular events such as Berlin’s Fashion Week or the MercedesCup Final.

Additional Use Cases

Other reports of blockchain use cases in the real world include IBM partnering with grocery store Carrefour to track eggs, tomatoes, chicken, and more on their trip from farms to retail locations. The company has over 12,000 stores across the world and will be using blockchain technology over the next couple of years. This supply chain tracking will also help Carrefour look into salmonella breakouts, as they could trace the phenomenon back to their starting point.

In May of this year, the largest diamond retailer in the world, Signet Jewelers, partnered with a diamond blockchain program called Tracr from South Africa. This collaboration ensures that all diamonds are legitimate, and not illegal “conflict diamonds” coming from African war zones.

Tracr also helps check that no diamonds are stolen or illegally replaced during their move to retailers. It is the very first blockchain project to do so. These use cases and more are a great look for mainstream adoption.

The post The Auto Industry Believes Blockchain Will Disrupt It Within 3 Years appeared first on Blockonomi.