The automotive industry is evolving with time and undergoing a paradigm shift. With fossilized fuels at a premium, companies are innovating and exploring other forms of fuels from basic electricity to advanced batteries. In the midst of all this flux, the fundamental challenges faced by the Auto industry remain the same, and they need to be handled appropriately to ensure the auto industry evolves into a stronger and powerful entity. These fundamental challenges among others include managing data, customer experiences, and technological innovations. Blockchain solutions, with its inherent features of immutability, security and distributed nature can resolve these challenges in the auto industry. Let us take a deep dive to see the Blockchain solutions in action.
Immutable Vehicle History:
An immutable ledger maintained between the manufacturer, dealer, auto repair shop and the customers, can bring a delightful experience to the parties who are connected.
Blockchain provides transparency across interactions, which Renault has successfully leveraged in its new launch. The French automaker is piloting a digitized car maintenance program, which uses Blockchain as a shared ledger to log all auto repair and maintenance history to collect and integrate vehicle history parameters using IoT devices.
The spare parts supplier, who acts as an intermediary to the auto repair shops and the manufacturers, can be a part of the Blockchain ledger. The manufacturer, supplier, and the repair shop will see the same ledger, which supports data transparency. The data transparency makes sure that the supplier is providing genuine parts to the repair shop. Repair shops can place a new order, report for a replacement, and also mention the quality issue, which helps the supplier to figure the quality needs quickly.
The manufacturer can create a unique ID for every part, which will ideally help the manufacturer as well as the supplier to track the lifecycle and recall the history of a specific spare part through the immutable ledger.
Blockchain Solutions and IoT applications:
The manufacturer can track the road conditions, customer driving behaviors, replacement of parts, and service history by installing the IoT sensors in the vehicles. These smart vehicle sensors will send the collected data to the immutable ledger. The immutable ledger prevents the data from being manipulated, rendering it safe and pristine.
The vehicle history data is invaluable to auto finance providers. By requesting to be added on as a participant in the Blockchain, auto financiers can access this data to understand the history of the vehicle before approving finance.
Vehicle Insurance Providers:
The vehicle insurance providers will be delighted to have the customer driving behaviors to provide better insurance services. They can also use Smart Contracts in Blockchain technology to make accident settlements fast, transparent, and user-friendly.
TrustedAuto – Proposed Blockchain Solutions:
We just saw all the amazing features of Blockchain ledger and the advantages it provides to the auto industry. But, that’s not all. We can design the program further in a way that it will incentivize the parties involved through a Smart token system.
Different manufacturers may come up with their Blockchain solutions. It is hard for all the manufacturers to come up with a common platform that fits everybody’s requirement.
The proposed solution is- TrustedAuto, which will allow even an existing car, which is not part of the Blockchain solutions, to have an opportunity to become a part by any one of the parties – dealer, repair shop or customer. A new agency or platform can come up with schemas for different transactions that occur in the lifetime of a vehicle.
Incentive – AutoCoin:
For every different entry in the ledger, the involved parties earn a predefined number of utility crypto coins. For instance, when the manufacturer or the customer registers a vehicle to the system, they earn a few coins. When the user reports a vehicle service, both the repair shop and the user earn a few coins.
This incentive scheme will encourage the parties to keep track of vehicle history. Reporting proper and regular service will motivate the customer to maintain a good maintenance track of the record. A trusted maintenance record will help the customer to ensure a good resale value for the vehicle.
Blockchain Solutions and IoT devices:
New IoT devices can be developed to support the ledger. The IoT devices will report various incidents to the ledger automatically. But, before adding it to the ledger, the owner would be notified about the data. The owner of the data can add comments; however, the data captured by the device cannot be completely modified. These smart IoT devices add credibility to the data.
The customers can get incentives from the insurance company based on his driving record. For this, the insurance companies need data like vehicle speed and driving conditions. Smart IoT devices can record these data and share it with the insurance companies. The incentive program will promote the customer to install and use these devices on his vehicle.
Security and Vehicle Data:
In a Blockchain solutions network, the vehicle proprietor owns the data, and only the owner has access to vehicle history. Other parties can access the vehicle data only with proper authentication, which ensures data security.
Interaction with other Blockchains:
TrsutedAuto platform will be working with different Blockchain solutions collaboratively to provide a better user experience. For example, a manufacturer might have its Blockchain ledger, and it can communicate with other networks to bring complete vehicle data to the requested party.
TrsutedAuto application will provide different services to the users by collaborating the data with various participants in the system.
For example, repair shops can advertise various location-based services using this application. The user can schedule an appointment for a service and make payment using the same app. The insurance companies can provide ads to the vehicle owners using this app (lead generation).
The same platform can also provide various vehicle-related service using advanced data analysis and Artificial Intelligence solutions. To discover more on how Blockchain solutions can transform the automotive industry, talk to our team!