Digital Assets in Cars

The increasing interest and popularity of blockchain and digital assets has brought light to the various impacts they have. They are gradually becoming the mainstay for many industries. Due to the steady growth and multiple security factors they encompass, multiple corporate sectors have grown receptive to their offerings. Companies such as Amazon and IBM oracle have introduced enterprise-grade blockchain systems that are scalable and secure. In the last few years, significant use cases of blockchain and digital assets in many sectors have emerged, and the automotive industry and automobiles are not left out.

In February 2022, Porsche became the first automaker to successfully test blockchain in their cars. However, many carmakers are exploring ways to integrate this game-changing technology into their vehicles. They all aim to take advantage of its potential to dramatically change how information or data is stored and used, enhancing transparency and security, and improving transactions. 

How Could Carmakers Use Blockchain?

Making User-friendly Cars

One way blockchain could be useful is in helping drivers unlock their vehicles. The vehicle could be added to a blockchain, allowing the driver to communicate with it directly via an app. This greatly speeds up the vehicle's response time as the instructions no longer need to go through a third-party server. 

The integration could also enable car owners to grant others temporary access to their vehicles. You could remotely unlock your vehicle via the app, granting a third-party or friend access into the vehicle. 

Improving Autonomous Driving Systems 

Blockchain is a decentralized database of records that could improve autonomous driving systems. As a self-driving vehicle navigates the universe, the blockchain would record data about the journey, which could range from information about regional weather conditions to general traffic patterns. Blockchain shares the data and other vehicles in the network could then access this information. 

Through blockchain, which gives everyone access to everyone else's data, the path to level-five autonomous driving could be accelerated. In agreement with this, Toyota teamed up with MIT Media Lab in 2017, to work out ways to use blockchain to speed up autonomous vehicle technology.

Ensuring Materials are Ethically Sourced 

Two-thirds of the world's cobalt is mined in The Democratic Republic of Congo (DRC). Roughly 20% of this comes from artisanal unregulated mines that often exploit child labour. About 400,000 children spend their days in these mines working for low wages under extremely dangerous conditions. 

Circulor, exploiting blockchain's ability to track supply-chain, aims to track cobalt from the time it leaves a mine until it reaches a manufacturer. The company is already testing the process using "clean" cobalt from countries like Canada and Australia. It could refuse to track the cobalt of any mine that doesn't meet certain standards, including safe working conditions or adult workers, consequently driving the unethical mines out of business.

BMW is collaborating with London-based blockchain startup Circulor to make sure the cobalt they use for their electric vehicles' batteries is ethically sourced. 

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Facilitating Eco-friendly Driving

In February, Daimler AG, Mercedes Benz's parent company, launched a project based on their own blockchain-based cryptocurrency, mobiCOINS. 500 drivers were selected as a test group. For 3 months, they will receive mobiCOINS when they operate their vehicles in environmentally friendly ways, such as maintaining a low driving speed, switching the engine to ECO mode, and coasting to a stop. 

The vehicle shares the driving data with a special app and appropriate mobiCOINS is deposited into the driver's account. Anyone who makes enough coins becomes eligible to win prizes. This is a good way to encourage drivers to operate their vehicles in environmentally responsible ways.

Financial Transactions 

Although blockchain's ubiquity is becoming evident with time, previously, people think of cryptocurrency, such as bitcoin, when the topic of blockchain comes up. Many companies, like Porsche, are utilizing the financial roots of blockchain technology. 

Recharging

Porsche sees the potential for car owners to use blockchain to pay for the electricity to charge electric cars. Whenever your vehicle is charged, a smart contract on the blockchain is triggered and the appropriate amount is deducted from your account and sent to the charging station.

Recently, Vodafone’s Digital Asset Broker was announced. It is an app on the smartphone that integrates with the user's existing mobile wallet and automatically communicates with any charging point that accepts Mastercard payments. It is the latest evolution of Vodafone’s Internet of Things (IoT) technology with which motorists no longer have to use multiple apps for each charging point network that they use. 

Purchasing Cars

The financial applications of blockchain could also extend to paying for the car itself. A smart contract that sends in your car payment on the first of the month could be created. The transactions would be recorded on the blockchain technology and it stops making payments once it reaches $0. 

Also, you can buy a car using cryptocurrency from businesses that accept crypto debit cards. Many trusted auction organizations like Mecum Auctions accept cryptocurrency-based debit cards like BitPay. 

Automotive Blockchain Market

Increasing focus on better quality control, reducing manipulation of data,  and the need for faster business transactions have prompted the growth of the automotive blockchain market.

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Conclusion 

Digital Assets have transforming possibilities in the automotive industry. The potential opportunities are so significant that it seems likely that blockchains and digital assets will be increasingly used in cars.