In an Automotive World article, Navigant explained why automotive and mobility services companies are investing in blockchain
Blockchain has been an unavoidable buzzword across industries for the past couple of years. While the hype around the word has slowed, experimentation with blockchain solutions in the transportation and mobility industries continues to speed up.
As the industry transforms, vehicles are becoming digital, connected devices. Blockchain allows for a secure and automated exchange between these devices.
“Blockchain's competitive advantage is twofold: service providers can use smart contracts and distributed applications to automate services and business processes, and doing so can significantly reduce transaction costs,” said de Villier. “Together, these characteristics increase the range of products and services that a provider can offer to the end user.”
Additionally, blockchain creates opportunities along the automotive value chain. It can improve the customer experience, like allowing drivers to remotely unlock their cars. It also helps to reduce friction in the administrative processes by tying ownership and title to a vehicle, reducing fraud and making a vehicle more auditable by regulators.
“The car of the future will be a digital, interconnected system that interacts with other devices and its environment,” said de Villier. “As transportation and mobility services evolve, blockchain technology will be a contender for the digital infrastructure that makes that future possible.”
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