How Blockchain is used in Automobiles Industry

Written by - Deepak Prasad

Blockchain in Automobiles

Blockchain is a decentralized technology that powers cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and others. Most of the blockchains are used for mining cryptocurrencies, but some of them are used in the automotive industry to implant the technology into future cars. Nowadays, the automotive industry is shifting from being a hardware-focused machine to being a software upgrade.

Automakers have evolved cars into live data centers with endless sensors and upgraded software onboard. Because safety is provided by the blockchain in automobiles, it is now easier to implement safe autonomous data. The competition is high day by day in automakers because cars in this century are getting access to different cutting-edge technologies. Many of the automakers are working together to implant blockchain technology into the base of the automobile. Giant brands like Ford and BMW have implemented blockchain in automobiles in their manufacturing processes.

Although this is a new concept for many tech companies and has already begun the creation of cryptocurrencies like Bitcoins, Blockchain offers a solution to a variety of future issues and makes life easier for motorists. Blockchain technologies promise to fix the situation through a decentralized change network, so-called smart contracts with electricity providers.


Blockchain in Car Manufacturing

1. Supply chain management

During the delivery period, the car's parts could be damaged, stolen, or replaced. Therefore, blockchain allows the manufacturers to complete these pieces. In the event of a recall, the process is made easier by blockchain technology because it stores data about the pieces' provenance. The modifications and manufacturing problems can be easily seen with the help of blockchain.


2. Manufacturing Methodologies

Blockchain in automobiles is used to manage a wide range of manufacturing processes. It includes storing data from invoices of landing for vehicle components, quality inspection records from the manufacturing process, and work in progress information for each vehicle assembly.


3. Finances

The human data insertion operations utilized in vehicle manufacturing, such as transaction fees and modifications, can be streamlined with blockchain. Throughout the life-cycle of a car, blockchain keeps track of all these processes.


4. Vehicle security and data protection

The more linked a car is, the more vulnerable it is to cyber intrusions that can be fatal. Blockchain in automobiles is used due to its strong cryptographic foundations and  the ideal place to store data because it cannot be modified.


5. Sensible Insurance

In a decentralized network, blockchain technology provides an non-manipulable and transparent log of vehicle sensor data. This unimpeachable documentation of a blockchain "black box" could aid in the resolution of accident conditions, especially in the context of driverless vehicles. Insurance could potentially be integrated with other vehicles, such as a user profile in car sharing, thanks to blockchain in automobiles.


6. Telematics in Car

Telematics represents all its software-based navigation, vehicle-to-vehicle communications, and other safety services that have a hand in vehicle and passenger safety. Because of the high level of encryption, no one can steal or read the data released by vehicle telematics.


Blockchain In Mobility Sectors

1. Vehicle Leasing

Thanks to blockchain-based smart contracts, we were able to optimize and automate many operations in the vehicle leasing and financing department. Deactivating the unlocking system, for example, can prevent an automobile from being utilized if the leasing rate has not yet been paid by using blockchain in automobiles.


2. Car Sharing

The case of car sharing, blockchain technology may be able to provide a secure digital identity. Personal preferences and settings might be safely saved in the car via blockchain, avoiding exposure to third parties. This could potentially make peer-to-peer car-sharing possible. Meanwhile, customers may benefit from blockchain because a single registration can be utilized for all car-sharing offers from service providers.


3. Car Rental

The blockchain records all of the cars' current operations, such as maintenance and cleaning. This car rental firm will receive a report on the vehicle's present condition in this manner.


Blockchain Implementation in the Automotive

There are already a number of distinct initiatives being developed by major manufacturers. Ford has started a blockchain in automobiles experiment on IBM's platform to assure ethical cobalt sourcing. It intends to prevent companies from using child-mined cobalt in lithium-ion batteries by tracing the cobalt supply chain on the blockchain.

The goals of the Volkswagen Group's engagement with Minespider are to optimize supply chains, eliminate sources of errors, and ensure social and environmental standards. A pilot project will be set up in collaboration with a blockchain expert to establish transparency in the global supply chain for lead. By using digital certificates, blockchain technologies allow you to track raw materials all the way back to their source.

The Volkswagen Group intends to apply this technique to other raw materials and supply chains in the future. It has been committed to the concept that sustainability and social responsibility do not begin at the factory. Due diligence is a huge burden and a major obligation for a corporation with multinational manufacturing facilities and sales activity in over 150 countries. The declared purpose is to employ industrial raw materials that are exploited in an environmentally and socially responsible manner.

Blockchain technology has already been applied in a variety of BMW Group processes and applications. The automotive behemoth is employing technology to efficiently manage the supply chain across its global network. Earlier this year, the BMW Group completed a successful pilot project aimed at streamlining the supply chain for procuring front lighting.

As a result, the PartChain project was launched to assure seamless component traceability in the supply chain, as well as enhanced and real-time data transparency in the complicated supply chain that caters to all supplier partners in the world. BMW's efforts to integrate blockchain solutions into its supply and manufacturing networks are not new. The Mobility Open Blockchain Initiative(MOBI), which was founded in 2018 and co-founded by Germans.



As a secure and unique type of algorithm, blockchain has the potential to be one of the essential technologies that allow the automobile industry to join the next generation of smart vehicles. Whether it's preserving financial data or increasing the integrity of common ownership, blockchain has the potential to change the way information is stored in future automobiles.

Although there may be some skeptics along the way, blockchain offers a tamper-proof and transparent data-sharing procedure that manufacturers will find invaluable in the near future. As a result, while the possibilities appear limitless, automobile technology is still in its early stages of development.

Deepak Prasad

He is the founder of GoLinuxCloud and brings over a decade of expertise in Linux, Python, Go, Laravel, DevOps, Kubernetes, Git, Shell scripting, OpenShift, AWS, Networking, and Security. With extensive experience, he excels in various domains, from development to DevOps, Networking, and Security, ensuring robust and efficient solutions for diverse projects. You can reach out to him on his LinkedIn profile or join on Facebook page.

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