Blockchain in the Automotive Realm
Updated: Nov 18, 2019
Blockchain technology is making waves in the automotive industry. One recent example is Hyundai Commercial adopting Blockchain to modernize its business model, part of a partnership with IBM.
Hyundai Commercial is “a corporate finance company that provides leasing and financial services for commercial vehicles and construction equipment."
The two companies will use open source Hyperledger blockchain to create a new supply chain financing ecosystem for the Hyundai Commercial network.
The cool part about this is that network participants such as car dealers, distributors and manufacturers, will have instant access to a real-time view of all the transactions on the blockchain. (see my previous post: So. What is the Blockchain?) Whereas in the past, information would need to be manually processed, this technology will increase overall efficiency.
Another way that Blockchain is impacting the automotive industry, is with the non-profit cryptocurrency organization, Fusion Foundation, which recently partnered with automotive giant, Automotive eXchange Platform (AXP). AXP (check out the site it's very cool) is a popular dealer in the used car market and this partnership will allow it to bring its business to the blockchain. They are currently using Fusion's platform to digitize their database, comprising of around 10 million cars, making it a breeze to track and audit.
Why we love it? This system will have a direct impact on two of the biggest issues in the auto industry: wrong/missing information and lack of transparency. It will also be used for titles, financing, DMV fees, fraud reduction and everything in between.