The automotive world keeps evolving and changing. Technology has brought many exciting innovations to modern vehicles, but it’s also brought some challenges. Traditional methods of managing supply chains, regulations, and security are no longer adequate, which is creating a growing need for blockchain solutions.
So What is Blockchain Technology?
The best place to start when talking about blockchain is to explain what it is. To put it simply, blockchain is a digital ledger. It records all kinds of information and transactions in a decentralized database that can be shared by many people.
It’s called blockchain because information is stored in blocks that are all linked together like a chain. Every block has a time stamp and is connected to the block created before it.
How Is Blockchain Used in Vehicles
When you go to a Ford dealer, the vehicles on the lot most likely have blockchain technology. It’s used in several ways to enhance data security and increase transparency. One of the benefits of blockchain technology is that it cannot be changed.
Since the records in the chain are permanent and cannot be modified, it means that customers shopping for used cars at a Ford dealer can look at an odometer and know that the number is correct.
Ford Uses Blockchain in Vehicle Ownership Management
One of the patents that Ford has filed is a decentralized vehicle management system that uses blockchain and smart contracts to track ownership data. It can track any ownership changes and other user interactions linked to a specific vehicle in real-time. This encompasses all kinds of users, including buyers, sellers, banks, insurance companies, and even regulatory authorities.
Smart contracts on the blockchain keep track of any transactions that occur. These include anything from a sale to title updates, changes in an insurance policy, and when a digital key is created.
Speeding up Autonomous Driving Development
Blockchain technology is helping to speed up the development of self-driving technology because it allows for the transfer of large amounts of data between vehicle owners. In order for autonomous cars to get on the road, manufacturers need to collect huge amounts of data. Blockchain technology makes this much easier with vehicle-to-vehicle communication.
Ensuring Quality in Every Aspect of Auto Manufacturing
One of the biggest issues faced by almost any industry is supply chain tracking. In auto manufacturing, auto parts are purchased and shipped from all over the world. While it helps to decrease costs, it creates issues with transparency. When an automaker such as Ford or Honda receives the parts, they have to rely on the word of their supplies that it went through the proper quality testing. Blockchain provides a record of the testing to ensure quality. This is not just for the manufacturer, but it also creates consumer confidence because every part used to manufacture their vehicle can be traced back to the original maker.
