Blockchain Could Drive Improvement in the Automotive Industry

Blockchain Could Drive Improvement in the Automotive Industry

Nascent blockchain technology is continuing its path of disruption, this time in the automotive industry. However, it still has a way to go before it is fully adopted.

While Bitcoin and its brethren are still in the throes of price woes, blockchain technology continues to make strides. And even though it has been around for over a decade, it is only now getting its time to shine.

Baby Steps for Blockchain

Baby Steps for Blockchain

In fact, according to Forbes, we’re actually seeing the very early stages of the adoption of the technology. This is quite exciting because if it is already causing such a positive change in its nascent stage, just imagine what we could be seeing in a few years from now.

There have been reports of the technology being used to improve supply chain management processes for major retailers like U.S.-based Walmart and French-based Carrefour. However, a recent study has found that the automotive industry could also stand to benefit from the technology.

The authors of the study, Matthew Jones, Dirk Wollschlaeger and Ben Stanley, explained:

Currently part traceability throughout the lifecycle of a vehicle is very limited, which means counterfeit parts could be used by service centers in some markets. Implementing blockchain-based solutions in the automotive supply chain could solve some of the issues around recalls, fake products and consumer safety.

Even with all of the advantages offered, only 15% of automotive industry executives are embracing and implementing blockchain-based initiatives. The authors believe that this is due to a lack of knowledge about the technology stating that “many executives lack a general understanding of their organizations’ blockchain strategies”.

Finding Skilled Employees

Finding Skilled Employees

However, even if these and other industry executives are educated about the technology, they will still face another hurdle – creating a workforce that is skilled at using blockchain. These include finding and hiring suitable blockchain developers and engineers to actually create and successfully execute these strategies.

Interestingly, employment networking platform, LinkedIn, has cited blockchain-based positions as one of the fastest growing jobs. It has therefore beaten out favorites like machine learning (ML) and artificial intelligence (AI) when it comes to popularity.

While the automotive industry can stand to benefit from the technology, other sectors are already adopting it. BitcoinerX recently reported that a county in the U.S. state of Wyoming will be using it to streamline the storing and recording processes of its land information.

Do you think that this technology can truly make a difference in the automotive industry? Let us know in the comments below!

Images courtesy of Pixabay.


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