Fast and Furious. Is Blockchain the Next Big Thing in the Automotive Sector?
Many people know that blockchain, or Distributed Ledger Technology (DLT), one of the most known buzzwords of 2017, stands behind Bitcoin and other cryptocurrencies; however, this technology has a much bigger potential than just fintech. Blockchain, which has already disrupted the financial services, has at last arrived in the auto industry.
According to Frost and Sullivan, the automotive industry will spend about USD 169 billion on implementing new technologies by 2025, of which over USD 10 billion will be dedicated to blockchain. Applications of the new technology in the industry are numerous, spanning from accelerating autonomous vehicle development, enhancing security to streamlining the supply chain and business processes. Blockchain technology can also help to estimate the size of the market for unoriginal car parts. That is because thanks to the DLT, car manufacturers can verify proof of provenance for their spare auto parts and track the location of a particular car in their supply chain. Matthew Jones from IBM states that this will significantly reduce companies’ expenses related to recall activities.