High Octane Blockchain: How Decentralized Ledger Technology will Innovate the Auto industry

Cars have come a long way over the years, influencing the world around them and, in turn, being influenced by the world.

The Ford Model-T had a stately and carriage-like design, and thanks to its efficient assembly line production, it was a taste of luxury that many could afford. The aesthetics of Art Deco and awe of the Space Age in the 1950’s brought us those colorful Cadillacs with their recognizable tailfins. The abundance of increased performance and minimalist design that has immersed this current internet era has yielded smooth smart cars produced almost entirely by automated machines.

Now we find ourselves on the cusp of the fourth industrial revolution, and while the visual elements this will bring to the auto industry have yet to be seen, the practical applications of Blockchain technology cannot be ignored.

Manufacturing

Any mechanic can tell you it takes a lot of parts to build a car, though they’ll probably try to upsell you on pieces or services you don’t really need. What’s worse, less reputable garages may use cheap materials in their work, or even illegal parts from chop shops. Decentralized ledger technology will assist greatly in the distribution of quality tools and parts, not to mention the inventory tracking capabilities helping to locate stolen parts from dismantled vehicles. Even the gathering of resources, such as precious metals and fuels needed in the manufacturing process, can be tracked and recorded to ensure only ethically procured raw materials are used.

Finance

Once the cars are built, they need to be sold, and blockchain can improve how that happens. Globalization has made the auto industry an international concern, cars are produced in factories on one end of the world only to end up being sold on the other end, and in some cases driven all across the globe. Streamlining the shipping manifests and sales documents between manufacturers and dealerships will ensure all vehicles get where they need to go, just as a decentralized ledger of loans and payments between banks and buyers will improve the purchasing process.

Insurance

The only thing worse than getting caught up in the bureaucracy of one company is getting entangled in the bureaucracy of two different companies. No one likes having to deal with all the red tape and paperwork, but blockchain can help soothe the pain. Increasing coordination between different insurance providers will make processing claims far easier, preventing lost paperwork from slowing everyone down. In addition, having a clear record combining title ownership with accident and repair history all in one place will greatly aid in value assessment.

Innovation

As we stated at the beginning, cars have been improving for as long as we’ve been driving them, and they show no signs of stopping now. Things like Smart Cars and Ride Share Apps seemed impossible not so long ago, yet now they’re so common we take them for granted. Well, maybe the public at large does, but experts in the automotive field study the data they collect on these trends very carefully, and a decentralized ledger system is just what they need. The gathering of research and distribution of findings isn’t limited to private enterprises either, blockchain can be applied to the government level as well. Driving data and accident records can be analyzed to identify problem areas in our infrastructure, like how to improve hazardous roads or alleviate high traffic areas.

Blockchain can play a role in every step of the automotive industry, and this is only the beginning. The world hasn’t even scratched the surface of blockchain’s potential, but eager and daring professionals are doing their best. We here at Export Portal count ourselves amongst them, as we are already developing our own proprietary blockchain technology to provide our trusted buyers and sellers with the kind of efficient economic ecosystem they deserve. Hop in and buckle up, it’s going to be one heck of a ride.