One of the world’s leaders in blockchain technology development has continually been IBM throughout almost every aspect of the industry. IBM was one of the first global companies to create and utilize an in-house stablecoin for payment settlements. They have provided major funding to blockchain educational programs, and have lead several focused industry groups toward building blockchain ecosystems, such as their partnership with global shipping leader Maersk with the TradeLens platform.
In their most recent report related to blockchain technology and cryptocurrencies, IBM examined the impact the technology is having on the current automotive industry, as well as the possibilities for the future as the technology develops further. Vehicles produced today are host to many of the capabilities that consumers only had at their disposal while at home only several years ago. With incorporated mobile devices, cars can perform a multitude of tasks in conjunction with the goals of the driver, and this is paving the way for completely driverless cars as well.
Where does Blockchain fit?
The research addresses three main subjects using private research, and surveys from a group of executives from the automotive industry.
Blockchain’s expected impact on automotive business models and functional areas
How automotive first movers are leveraging blockchain today
Recommended actions for seizing blockchain opportunities in automotive
The group consisted of an equally distributed group of executives in the automotive industry from 10 countries and 10 departments within each company. The countries included China, India, Germany, UK, Japan, Brazil, S. Korea, Mexico, United States and France. The departments of each company included IT, Marketing, Finance, Sales, Research/Engineering, Aftersales, Manufacturing Connected Vehicles, Supply Chain and Mobility Services. The survey highlighted the already growing presence of blockchain for their companies.
62% of surveyed executives say blockchain will be a disruptive force in the automotive industry within three years
54% of surveyed executives expect new business models to influence investments in blockchain
54% of Auto Pioneers will implement their first commercial blockchain network at scale within the next three years
Three Major Fixes
IBM’s research was able to pin down three of the most pressing issues of the automotive industry that blockchain technology will help provide solutions for.
Imperfect information - Logistics participants in the transaction don’t have access to the same information. Too often, information may also be incorrect or inconsistent, leading to bad decisions or transport delays during reconciliation.
Information risks - Technological risks to information, from hacking to cybercrime and privacy concerns, are on the rise. These incur growing costs, as well as damage brand reputations.
Inaccessible information - The potential value of abundant data and information greatly constrained by the technical challenges of storing, processing, sharing and analyzing it. Also, some information still exists in manual form. As a result, much of it is not collected or remains inaccessible.
By: BGN Editorial Staff