A quick introduction to blockchain in Automobile industry
Blockchain is a revolutionary technology that works on blocks & hashes. But before that let’s try to understand what is meant by Decentralization. Decentralization is at the core of the concept of blockchain. Let’s take a step back,
What is block chain
In simplest terms, it is an interlinked chain of blocks. Each block contains some data. It also has a hash value (consider it as a fingerprint identity of the block). Each block is also linked with its previous block. Thus a given block has two hash values, it’s own & of its previous block
Recommended read: Blockchain And Automotive Industry: An Introduction
So what’s all the buzz about?
Blockchain acts as a distributed ledger, open to its users. Once any data is recorded, it becomes very difficult to change it. Because if we change the data in a block. the hash value also changes.
And if the hash value changes, that block no more remains the same block and all the subsequent blocks become invalid. This is one of the reasons why blockchain is considered secured
Blockchain is a decentralized system. It uses peer to peer network. The chain is open to its users, Each user has the same copy of the chain. If someone creates a new block, each user then verifies that block to make sure it’s legit
If everything is good, then the block enters the chain of all the users. If any malicious activity is found, the block gets rejected. This method improves the security a lot
So the question is, is it useful in the Automotive industry?
We can use blockchain technology to create a virtual interconnected network of vehicles. A vehicle can be assigned a unique identity within this network. That car can communicate with other vehicles
We can also create a virtual twin of a physical vehicle. This can facilitate payments/ transactions that eliminate the requirement of a 3rd party assurer. Vehicles can report accidents in real-time
Vehicles can communicate speed, location, the direction of travel, braking, intention and more…
We will talk more about blockchain & new technologies. So keep watching this space
Blockchain and Metaverse are closely related to each other, as both the new technologies are being heavily getting invested by new many big brands. Find out about Automobiles in the Metaverse