Blockchain Applications in the Automotive Industry

Blockchain Applications in the Automotive Industry


The future trends of the automobile industry show a massive adoption of blockchain technology. Various automobile companies have started developing Blockchain projects on hybrid blockchain networks to bring transparency and trust and improve operational efficiencies. Now the services offered by these automobile companies are more integrated, personalized, and connected to infrastructure. Traditional IT infrastructure cannot achieve it, so automobile companies use blockchain for this technological transformation. The inclusion of Blockchain technology in the automotive industry is focused on reducing data manipulations and faster operational turnarounds with better quality control to support the industry's growth. In 2020,the automotive blockchain market was 0.35 b USD which is expected to increase to 5.29 b USD by 2030, which is a 31.91% CAGR growth.

Blockchain Milestones of the Automotive Industry

The automotive industry embarked on a technical transformation using blockchain technology when, in Q1 of 2017,' car wallet' was made for car sharing and toll payment. The automobile giant Daimler joined the hyper ledger blockchain project to contribute to developing blockchain business applications across several industries. In the same Q1, 2017, the transfer of car ownership over a smartphone using a vehicle identification number was achieved using blockchain technology, which was another milestone. In mid-2017, Porsche also started working on developing blockchain technology for cars in partnership with XAIN. At the same time, another automobile company, Toyota joined Consensus 2017 to initiate various blockchain projects for automobiles.

Looking at the future potential of this powerful technology, three major automobile companies – Ford, General Motors (GM), and BMW associated with IBM and launched a project – Mobility Open Blockchain Initiative (MOBI), in May 2018. The project's focus was to develop blockchain solutions for the automobile Industry.

Applications of Blockchain in the Automotive industry

A study by IBM suggests that a 62% increase in use cases of blockchain in 2021 can be utilized for the automobile industry. This trend will grow faster with advanced developments in DLTs, Blockchain-as-a-service (BaaS), Crypto-payments, and Initial coin offerings (ICO). In various business processes of the automotive industry, blockchain technology will play a significant role.

  • Supply chain management: Blockchain will be used in keeping and tracking car parts and other components, which will be helpful for OEMs.
  • Vehicle mobility services: Vehicle rental, leasing, carpooling, car sharing, etc., can be managed by blockchain technology more efficiently.
  • Vehicle insurance: Accident insurance, Claim management, Finance, Insurance contracts, and various related operations will get automated by blockchain.
  • Integration with other technologies: One may think about using blockchain with other technologies in addition to smart contracts. Blockchain, the Internet of Things (IoT), and AI technology, for instance, can be combined to provide quick service delivery for both drivers and passengers. These technologies have a wide range of intriguing potential applications, from toll road payments, online shopping, and food delivery, to blockchain-based payments.

Challenges in Blockchain Applications

It is vital to think about security at every level of the technological stack when developing an automotive blockchain application and how to control network governance and permissions. Using both conventional and technologically specific security measures is part of a comprehensive security plan for an automotive blockchain solution. A blockchain application for the automotive industry may encounter security issues like unauthorized access to data, penetrating a corporate network, or conducting unverified transactions. Hackers can carry out these exploits in

  • Blockchain Applications: Data manipulations and the compromise of many entities may occur due to unauthorized access to data through blockchain applications.
  • Smart Contracts: Coding mistakes can completely invalidate the deterministic behavior of smart contracts. The security of the participating nodes, along with the code's integrity and business logic, will be essential for the process's overall dependability and the reliability of the output it generates.
  • Network Infrastructure: Advanced persistent threats (APTs) may use security holes in network infrastructure that may get exploited.

The biggest issue with blockchain-based processes is that once launched, they are challenging to amend if there are any operational problems. That's why it's essential to test your blockchain solution with a trusted auditor comprehensively.

Security of Automotive Blockchain applications

To reduce the risks of attacks on blockchain infrastructure, smart contracts, and Dapps, BlockChainSentry has developed the Enterprise Blockchain Security services. Using the output from our state-of-the-art BCS deep scan engines, our teams of experts audit the source code line by line, pinpoint vulnerabilities and suggest remediation measures.

Our security engineers have extensive, hands-on experience with blockchain technology, including various platforms, programming languages, vulnerabilities, and attack strategies. In addition to our line of cutting-edge Blockchain scanners, our services include:

  • Blockchain Application Security Assessment
  • Smart Contract Security Audits
  • End-Point Network Protection

BlockChainSentry's Enterprise Blockchain Security services are designed to meet both public and private blockchain requirements. Our all-inclusive solutions ensure faultless operation of network infrastructure, smart contracts, and Blockchain apps.

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