Evolving Electric Cars Through Blockchain | Financial Express
By Nemin Vora
To stay ahead of the curve in the current era, businesses across industries are reforming by adopting new age technologies such as blockchain, AI and machine learning, among others. In this context, blockchain is emerging as a game changer for industries across the spectrum. According to MarketsandMarkets, the worldwide blockchain industry is projected to grow at a CAGR of 68.4% to reach $67.4 billion by 2026. The survey also stated that the widespread use of blockchain across industries, the high acceptance of blockchain solutions for payment and smart contracts , and expanded government efforts are, among other things, the driving forces behind the expansion of the blockchain sector.
Blockchain has long been associated with bitcoins and other cryptocurrencies, as it is used to record transactions via a worldwide computer network. However, as time goes on, the idea is fading away and witnessing an increase as more sectors adopt blockchain and its limitless possibilities. According to Research and Market, 56% of Indian businesses are integrating blockchain technology into their core business. In this perspective, the electric car sector is not lagging behind in realizing the technology’s full potential. As a result, blockchain is also playing a significant role in the electric car industry to propel it to new heights in the coming years.
Blockchain’s role in the electric car industry
With the changing times, the electric car industry, like others, is experiencing rapid changes and market expansion into more than just a mode of transport. Cars in the twenty-first century are mobile data centers with built-in sensors and disruptive technologies that collect vehicle data. Furthermore, blockchain can increase trust and cooperation between businesses, consumers and cars by enabling more secure, traceable transactions and improved access to and transparency of information.
There is no doubt that car manufacturers are paying attention to blockchain and making strategic investments in the field as part of the change. While blockchain may disrupt the status quo, it holds far more promise when integrated with IoT, artificial intelligence and big data. Given that the benefits of growing EV adoption will be multiplied if the electricity used for charging is clean, blockchain in the industry becomes even more critical.
In today’s modern society, blockchain is already being used in the automotive industry. Since most cars will be electric, such use cases will also be relevant in the electric car industry. Using blockchain for EV-related processes will help the EV sector develop. But along with its advantages, it also has disadvantages, such as a lack of charging stations and high car costs. Thus, these problems can be solved by using blockchain for EV operations.
Advantages: Blockchain brings to the table
Secure transactions: Cryptocurrency remains the central area where blockchain technology is used. However, car owners may soon be able to use blockchain to pay for the electricity used to charge electric vehicles. For example: think about what would happen if every time you charged your vehicle, the action triggered an intelligent contract on the blockchain that sent the correct amount of money from your account to the charging station. The same can be said for your monthly parking fee, insurance and other financial transactions regarding your vehicle.
Reduction in production cost: Blockchain-based solutions provide a track-and-trace function. This capability enables EV manufacturers to track the materials as they are delivered to production. Certain materials are sourced from developed countries which are difficult to trace. Such materials pass through several hands before being sent to industry for processing and production. As a result, blockchain can be used to maintain origin-related data for raw materials, preventing the manipulation of goods from such sources. Using blockchain for EV production also allows manufacturers to monitor deviations when materials are supplied for cost-effective EV production. As a result, the supply chain will become significantly smaller and more cost-effective.
Protect data: As a self-driving vehicle navigates the area, the blockchain can collect data about the trip’s specifics. This location data can include everything from road and infrastructure details to general traffic patterns. Other cars in the network can then access this information and know that it is accurate and secure since it has been processed using blockchain technology. Because sharing everyone else’s data is the fastest way to autonomous driving, manufacturers may soon use blockchain to securely exchange all geolocation data. Because the data is cryptographically protected, only authorized parties will be able to access it in real time.
Final takeaway: The possibilities are limitless
In the current scenario, blockchain has several applications in healthcare, finance, insurance and supply chain management, to name a few. Transparency, data security and cost-effectiveness are some of the common aspects of blockchain-based applications that can be used in a variety of sectors. In the EV industry, blockchain-based solutions create EV networks, and therefore the data held within them is extremely secure.
All of these blockchain characteristics can be used by the EV sector to lower vehicle manufacturing costs, build an integrated and consumer-friendly charging infrastructure, and provide accurate and secure data. As a result, through blockchain, the industry is enabling everyone to embrace EVs faster to ensure future growth.
The author is CEO, Odysse Electric Vehicles
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