Blockchain technology has the potential to revolutionize the mobility industry by introducing transparency, security, and efficiency in various aspects of transportation. With its decentralized and immutable nature, blockchain can transform the way we manage and experience mobility services.
Firstly, blockchain can enhance the security and privacy of transactions in the mobility sector. By utilizing cryptographic algorithms, blockchain ensures that data and transactions are securely stored and cannot be altered or tampered with. This can be particularly beneficial for handling sensitive information such as personal identification, payment details, and vehicle history, reducing the risk of fraud and unauthorized access.
Secondly, blockchain enables the creation of decentralized and peer-to-peer networks for ride-sharing and car rentals. Through smart contracts, individuals can directly connect and transact with each other without the need for intermediaries. This eliminates the dependence on centralized platforms, reduces transaction costs, and empowers users to have greater control over their mobility choices.
Furthermore, blockchain can facilitate the development of an efficient and reliable supply chain management system for the mobility industry. By tracking the entire lifecycle of vehicles, including manufacturing, maintenance, and ownership history, blockchain ensures transparency and trust among all stakeholders. This can streamline processes such as vehicle recalls, insurance claims, and resale transactions, leading to improved efficiency and customer satisfaction.
Across finance, healthcare, technology, and other industry sectors, blockchain has proven immensely disruptive. The technology is making strides and making itself felt with unparalleled capabilities. Mobility, a sector perpetually rife with challenges, is exploring the use of blockchain. Fortunately, technology offers solutions to some of the pressing challenges in the sector.
In the U.S alone the mobility services sector is expected to grow to $251 billion by 2030.
In the coming years, public and private transportation will go under a massive impact. Self-driving cars are already among us. Newer inventions are in progress, and blockchain technology will change how we experience mobility.
Considering the size of the mobility sector and various characteristics of blockchain –decentralization, transparency, and smart contracts, mobility can be transformed in prospering ways.
Blockchain engineers have found profound applications of blockchain technology in the industry. Technology proposes highly effective applications that have the potential to change the mobility landscape.
Here’s how Blockchain Technology can transform the sector
1. EV Charging
Depleting the level of fuel across countries is forcing economies to build more electric cars. However, the lack of charging infrastructure is a challenge for many countries. Inductive loops at traffic signals, though generates small power, is a viable method of charging. The charging process can be easily monetized profitably.
Connectivity among vehicles increases operational efficiency. Autonomous vehicles, for instance, can share data with each other to learn and work on a better operational strategy. In platooning, several vehicles move behind each other with a constant distance between them and the constant exchange of information to ensure safety and speed. The leading vehicle in the platoon minimizes wind resistance for the following vehicles which increases savings and saves energy. This saving needs to be passed on to the leading vehicle, which also detects bumps and bypasses potential danger, and passes sensor data to the following vehicles.
With a smart contract-based blockchain system on board, this saving can be moved to the leading vehicle. Further, the transport infrastructure will be able to communicate with vehicles and optimize traffic. Further, blockchain technology can validate the data coming from sensors.
3. Temporary vehicle function
Extra auto parts, features, etc. are typically paid for at the time of purchase of a car. A later upgrade or enablement is generally expensive or not possible. With blockchain smart contract extra features can be made available when required. For instance, you may require cruise control while on a long drive, which may not be required on a daily routine. With smart contracts, cruise control can be unlocked for a period of time and paid for.
4. Car insurance
Vehicle black box documents the exact vehicle status. Blockchain technology enables logging and documentation of vehicle status. In autonomous vehicles, this black box can enable one to figure out the exact reason for an accident. The data from the black box can further help in facilitating insurance claims upon meeting the right criteria.
In all the above cases, payments will be made on meeting conditions. This is a multi-party process without the deed for trust. There’s no central party to validate the transaction. Blockchain makes the entire process transparent after gathering real data from sensors.
Given the above examples, blockchain has found a significant application in mobility, still, technologists and blockchain engineers are exploring further uses in the sector. Blockchain has been influential across various industries, but mobility takes altogether a different approach to incorporating blockchain that impacts at a very large scale and brings out a revolutionary change.
Mobility is rife with challenges. Large-scale commute poses challenges that are still unaddressed. The speculation of autonomous vehicles coming in soon, it will change the way we commute and address some challenges on its way. Blockchain, however, will add the x-factor to mobility and take it in areas that have so far remained unexplored.