Will Blockchain power the next generation of automobiles?
Each day, technology becomes an increasingly larger part of our lives. New gadgets are making headlines at a rate we've never seen. One of the cutting edge technologies that is taking the world by storm is the blockchain.
Blockchains allows you to store information on a globally connected network rather than a central server. Data can be transmitted and accessed instantly, in a decentralized, immutable way. Blockchains also allow cryptocurrenncies to exist by creating an incentive for those that use the network. You can read more about blockchains here.
Blockchain technology has attracted various industries, including automotive. The Toyota Research Institute (TRI) began working with the MIT Media Lab to explore how blockchains could change the automotive industry.
Neha Narula, director of Digital Currency Initiative at the MIT Media Lab, said in a statement:
"Our hope is that other industry stakeholders will join this effort to bring safe and reliable autonomous vehicles one step closer to reality."
Below, we discuss 3 ways blockchain can change the automotive industry.
How can Blockchains change driving?
Usage base Insurance (UBI) - is one of the various ways companies are trying to implement blockchains. Today, insurance rates are based on an annual agreement. With the help of blockchains and its connection to the internet of things (IoT), drivers can send real time info to the blockchain which charges users a rate based on how much they drive. You could pay for your insurance on your trip to the grocery and stop the second you turn your car off.
Ride Sharing - Applications like Uber and Lyft essentially act as a matchmaker between drivers and those who need a ride. With the help of a blockchain users can avoid ridiculous fees and connect with drivers directly. It also offers a safety feature by storing driver profiles that are immutable or unchanging.
Data sharing - With the help of a blockchain, drivers can send real time information like weather, traffic, and trends that will potentially enable the next generation of autonomous vehicles. By improving efficiency and safety, blockchains will help developers and manufacturers build cars that will be able to drive, park, refuel, pay tolls, parking fees, oil changes, and more.