Blockchain In Automotive Industry: Applications Explained | Auto News

The intervention of Blockchain technology, which was primarily used in the mining and finance industry, started in the automotive industry a few years back when it kickstarted its journey of exploring its potential in enhancing supply chain transparency, vehicle history tracking, and secure data exchange. 

“The applications of Blockchain technology expanded over time in areas including digital vehicle identities, secure payments, and even autonomous vehicle data sharing. All these functionalities have triggered the adoption of blockchain in the automotive manufacturing industry remarkably,” a software engineer and Blockchain technology expert Ohm Patel said.

He said, “Blockchain has introduced transparency and traceability. Since it creates immutable ledger transactions, it enables automobile manufacturers to keep a record of the origin, movement, and authenticity of parts throughout the supply chain by recording every step of the product journey. This reduces the risk of fraud in the industry, where quality and safety are of utmost importance.”

“Blockchain technology plays a paramount role in ensuring data integrity in the manufacturing process of automobiles. It doesn’t allow to manipulate or alter records, which is essential in maintaining the accuracy of production data, quality control, and compliance with industry standards,” Patel said.

“By using decentralized networks and smart contracts, Blockchain facilitates faster and more secure transaction processes between parties,” he said. “It also eliminates the intermediaries as it automates processes, thereby ensuring transactions are tamper-proof and efficiently processed,” he added.