Just about every financial transaction in the automotive world is about to get a blockchain makeover.
The ability to conduct real-time, peer-to-peer micro-transactions means that everything from charging fees, to parking tickets, infotainment, personalised insurance and monthly instalments on your new car, will be made automatic and perfectly accurate.
Like most other verticals, automotive finance is slow to change. But large scale change is on the horizon, with cost reduction across the board, greater transparency and innovative services for automobile makers and owners just around the metaphorical corner. The world of finance is being taken apart and rebuilt brick by brick, and blockchain technology is doing all the heavy lifting.
Increased levels of transparency and autonomy when conducting transactions.
Of the roughly three million new car sales in Germany every year, two thirds are going to corporate customers. The same holds true for the many other regions in Europe. As a result, the market of preowned cars is seeing a considerable surge in interest. It's an area where blockchain technology could bring considerable change, both for sellers and buyers.
Car industry participants in the future will become data owners and get fingertip access to all the necessary information relating to their vehicles. This will help them make more informed decisions, whether it is companies streamlining their fleet management systems or people looking to purchase used cars.
Blockchain technology combined with other emerging technologies like the Internet of Things, AI and Big Data will enable vehicles to identify users, autonomously finance themselves and conduct maintenance. Thanks to the availability of complete, verifiable and transparent car histories, sellers of well maintained cars will be able to demand higher prices for their vehicles. Buyers on the other hand will be able to make more informed decisions with this information.
Ride sharing is another phenomenon that has taken the world by storm over the past few years. One of the most applicable use cases of blockchain is enabling vehicles to directly receive payments for usage. An open and incorruptible database paves the way for cheaper rides on safer and better maintained cars.
Considering just how much the automotive industry is focusing on the concept of smart cars and mobility provision, a technology like the distributed ledger can serve as the binding glue that holds this ecosystem together for all parties.
From making payments for fuel, to micro-transactions for charging fees, parking tickets and infotainment, consumer interaction with the smart cars of tomorrow will be impacted by blockchain technology. Accurate monthly instalments are just the tip of the proverbial iceberg here.