Over the years, IBM has been quietly studying blockchain technology. In October 2018, IBM cooperated with Carrefour, a French grocery super chain, to improve food safety by tracking chicken, eggs and tomatoes from farm to store. Therefore, Carrefour has integrated the blockchain data system Food Trust customized by IBM as a part of its supply chain.

A recent IBM survey found that the automotive industry should look forward to the future of blockchain. According to the survey, up to 62% of senior executives in the automotive industry said that by 2021, blockchain technology will become a disruptive force in the industry. Therefore, 95% of automobile manufacturers plan to invest in blockchain in the next three years.

According to this survey report, IBM points out that blockchain can change the automotive industry in the future by providing transparency for supply chain management and financial transactions. Therefore, 54% of respondents expect that the new business model will affect the investment dynamics of blockchain; 54% of senior executives will implement the first commercial blockchain network on a large scale within 3 years.

Leaders in the automotive industry believe that the originality of the distributed ledger system will support the use of smart contracts, which will help the automotive industry automatically execute self contracts.

How does the blockchain become the backbone of the automobile industry

IBM pointed out that thousands of parts and components entered the vehicle assembly line. Once the integration between parts and components fails and fails to work properly, parts and components cannot be tracked and verified. This makes it difficult to control vehicle performance problems and customer dissatisfaction. Once blockchain is introduced, it can not only trace the transaction commitments, but also improve information transparency and simplify supply chain management.

IBM conducted a questionnaire survey of 1314 senior automotive executives in 10 countries and across 10 functional areas. Although only a few automobile enterprises are ready to use blockchain, in the future, as the e-commerce market becomes more and more common, more and more automobile companies will adopt distributed ledger technology.

For example, since February 2018, German auto giant Porsche has been testing blockchain applications in vehicles. At present, Porsche mainly develops relevant blockchain applications for parking cars, locking and unlocking vehicles, and making it easier for the company’s cars to be handed over to employees.

All future transactions will be recorded in a distributed ledger, so owners can monitor who has used their vehicle and when. This brings more reliable tracking information to the automobile industry under the sharing economy.

Another example is the mobicoin project of Daimler AG. This is a blockchain based project, mainly to encourage users to develop “environmentally friendly driving habits”. Drivers who get these coins can transfer their VIP tickets to popular events such as the Berlin Fashion week or the Mercedes Cup finals.

Responsible editor: CT

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