Blockchain to drive new opportunities in the transportation industry
Thu, 12 Mar 2020, 15:26 pm UTC
Blockchain has potential to help the transportation industry.
The blockchain technology has many applications and according to Richard Ma of the Forbes Technology Council, it can help mobility. The leaders in the transportation industry are constantly looking for ways to be competitive. They also look for opportunities to increase efficiency, improve security and reduce environment impact while refining their customers’ experience.
Blockchain can improve vehicles by verifying its history, supplying chain tracking, increasing automation, and improving ride sharing. The blockchain technology would be helpful in preventing age-old problem of mileage fraud. The extra layer of traceability could reduce fraud that will significantly impact its resale value. It can also be used in tracking accidents and subsequent repairs, service or maintenance work.
Blockchain’s smart contracts can also make payments smooth and seamless by reducing the barriers like requiring credit cards or bank accounts. In the leasing and financing sector, smart contracts could deactivate the unlocking system of cars with outstanding lease payment.
In addition, it can facilitate peer-to-peer (P2P) growth by allowing shareholders to access and share relevant records like insurance policies. It can create positive impact to the environment as well.
“As blockchain technology drives more opportunities and decreases individual costs for mobility, traditional car ownership is disincentivized. With less demand for ownership, the number of cars on the street will also drop,” Ma wrote.
Ma recognized that there will be challenges like scalability and security management. Another barrier would the limited capacity to integrate the new technology into the existing systems, but the good thing is that the industry is changing and it is willing to embrace the new technology.
“While there are always challenges to integrating new technology, it’s clear that blockchain will change the way the mobility sector operates and unlock new solutions we never thought possible,” Ma concluded.
Meanwhile, Hyperledger Executive Director Brian Behlendorf also shared that blockchain can be used to meet the goals of the Paris Agreement. Blockchain technology can be used to track how automobile batteries are created and how their emission rates are.
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