For now, everyone knows that cryptocurrency is something that the world has started to use because of how rich it can make someone. It has officially been over 12 years since bitcoin has been introduced in the country. Ever since cryptocurrency came into existence, there have been several other types of cryptocurrencies available and therefore has been a significant topic of interest among various individuals.
And therefore the interest in cryptocurrencies has been a hot topic in many news articles, specifically in the automobile sector. We believe that the biggest turning point of cryptocurrency would be when the CEO of Tesla Motors invested in the cryptocurrency with a sum of 1.5 billion dollars.
What is cryptocurrency?
Well, cryptocurrency is a form of digital money that can be used to sell or buy products and services on the internet. Now some of these might be minute and limited to a single business. To make it simple, these types of cryptocurrency are kindred to the tokens you find in a video game arcade. And when to get cryptocurrency you would have to trade money to get your hands on cryptocurrency just like the mechanism in a gaming arcade.
How is the Automobile Industry getting shaped by blockchain technology?
We know it can be hard to believe but the technology that is behind cryptocurrency is aiding the automobile industry in many ways. Makers of cars are looking into the technology that is most suitable in its use in bitcoins as a method to heighten protection for frequently connected vehicles. Now that the modern car is gradually shifting to be completely connected, electric, and/or driverless, a more refined database will be required to follow up – and blockchain is becoming the answer.
And these are the ways the automobile industry is bringing change with the blockchain technology that we are talking about:
Even though there is already GPS technology which is already a favorite among many, people in the automotive industry now are relying on blockchain technology because it is even more seamless and cost-effective to do the same task without any noise. This clearly also means stealing cars could finally become an actor in history.
Barring duplication and hacking
Now that the blockchain technology is here, there would be an identification number that would be given by the ledger, which would prevent the forging of vehicles from an automaker who utilizes blockchain technology. Additionally, the advanced technology will also make it impossible to hack into self-sufficient vehicles, so drivers could be assured that their vehicles are safe at all times.
Segregated Vehicle Sharing
Many cab services are trying to use cryptocurrency as a method of payment/ legitimate currency for their rides. And if the app and blockchain get combined, there might just be a new future of cab sharing which hasn’t been seen before. One of the prime goals of blockchain is to get rid of the middlemen who come between riders and drivers while guaranteeing added secure data management.
If a rider cancels, the agreement may allow the driver to get a share of the payments. Riders might use such a website to communicate directly with drivers, evaluate personal privileges and choose a driver based on cost, state, and other market standards.
Enhancing Supply Change Management
The supply chain of automobiles can be weirdly complex but they are necessary when it comes to creating modern vehicles. And through blockchain distributed paths, the creation of these vehicles gets a high degree of transparency with even the toughest supply chains. This allows makers a chance to cut costs and increase efficiency.
In the end, whether it’s safeguarding personal data or increasing trust in ownership whether shared or segregated, blockchain does have the capability to bring a change in the way cars are about managed for the future. And in some spaces, it is already happening.