Blockchain has witnessed burgeoning development over the last decade, mainly due to the rise of cryptocurrency. Recently, technology gained prominence in the automation industry as well. With the increasing demand for digitalization, blockchain is likely to be integrated into autonomous cars to facilitate ease of operation for consumers.
The rapid rise in the popularity of electric cars and the incorporation of IoT has revolutionized the field of automotive engineering. The integration of blockchain and IoT will augment the interconnectivity between different devices in the vehicle and the network, allowing better control of the vehicle in heavy traffic and extreme driving conditions.
An autonomous vehicle system equipped with blockchain payment methods will facilitate faster and smoother on-road transactions. Electronic payments using e-wallets will significantly reduce the time spent at a toll station. Blockchain transactions are transparent and secure, as it is impossible to alter the data stored across millions of computers that serve as nodes for the blockchain network. The emergence of ride-sharing services has brought extensive opportunities for electronic transactions using blockchain technology.
Another branch of automotive industry which stands to gain from blockchain in insurance. Ford and GM have partnered with Mobility Open Blockchain Initiative to provide user-based insurance, making use of blockchain servers to store insurance contracts. This way, automatic payments will be made by the vehicle system whenever the driver violates the terms of the agreement. It will enable the insurance company to keep track of the driver’s history, helping them to determine the premium amount. In a blockchain system, even if the code is individualized, the base is open to everyone on the network. It is almost impossible to hack such a system since the information is shared between millions of computers.
The integration of blockchain into the automotive industry is inevitable. The decentralized autonomous vehicles (DAV) foundation has developed a network with the capability of linking an expansive number of autonomous vehicles, enabling the peer-to-peer exchange of information between them. It is only the first step toward complete machine autonomy. The day when blockchain is fully integrated into autonomous vehicles is not far off in the future.