Challenges faced by the automotive industry
Dispersed supply chains
In multiparty supply chains, trust between suppliers and consumers can be lost. With siloed data and lack of transparency, materials, components, and fabrication can all be falsely attributed, reducing quality and reliability.
Poor-quality counterfeit and pirated vehicle parts can be difficult to detect, devalue brands, and endanger consumers by underperformance. INTA reports that by 2022, counterfeiting might cost roughly $2.3 trillion of car manufacturers’ profits.
Lack of transparency in supply chains causes malfunctions and excessive profit losses for car manufacturers. In 2018 Ford Motors issued a recall for 1.5 million of its cars due to faulty engines.
Payments processing, documentation, insurance issuance, and validation and contracts — all performed on slow-moving legacy systems, which reduces workflow and operational efficiency.
Loosely secured IoT data
Intel predicts that a single self-driving vehicle will generate 4,000 GB of data per day. Imagine how hacks and thefts of such immense data volumes might endanger peoples’ lives.
AAA reports that in the US alone, drivers annually spend roughly $8,500 each on upkeep. Timely detection and repair of faults could save them time and money.
Lack of universal health safety standards in car manufacturing leads to lung problems, heart disease and strokes. According to The Guardian, 38,000 people globally die every year because of car-generated emissions.
The latest keyless technologies made car thefts easier. The Telegraph points out that in the UK 90% of car thieves are not even detected, which makes advanced protection tools necessary.
Speeding and drunk driving stay among the top reasons for traffic deaths. In this light, the question of how to motivate more responsible driving behavior on roads becomes urgent.
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Blockchain solutions for automotive from Aetsoft
The decentralized structure of blockchains allows for seamless data distribution, with the same supply chain information available to all members of a single network.
Blockchain can assign digital IDs to all vehicle parts in a supply chain to track their provenance. Every forgery attempt will be immediately spotted thanks to real-time alerts.
With digital proof of authenticity of manufactured components, car producers could promptly detect defective parts and order more specific recalls, cutting recall costs and making frequent recalls unnecessary.
Fast & secure operations
Smart contract technology can accelerate processes, allowing for fast and secure payments in digital assets, automated leasing, financing, maintenance, and other procedures.
Safe insights from smart vehicles
Integrated with smart vehicles, blockchain could record such data as average speed and mileage in a permanent log for more meaningful analysis of driver behavior.
Smart contracts might serve as universal health standards for car manufacturing. Producers who don’t comply with these could be automatically banned from the car market.
In addition to authenticating parts, blockchain could provide the same for entire vehicles, storing the identities of their drivers in a ledger to eliminate thefts.
Manufacturers could reward drivers with digital assets and loyalty points for better behavior on the road, incentivizing them to drive safely and responsibly.
Blockchain to disrupt the whole automotive ecosystem
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