December 13, 2018 | AtoZ Markets – The recent report, which was conducted by the American multinational information technology company IBM, showed that significant part of the auto industry executives believe that the blockchain will be a disruptive force in the industry in the next three years.
Blockchain Might Revolutionize the Car Industry
Recently, the IBM Institute for Business Value published a report entitled “Daring to Be First which stated that by making supply chain management and financial transactions transparent the blockchain technology can revolutionize the auto industry. According to the company report, 62% of auto executives believe that the blockchain technology will be a ” disruptive force in the industry by 2021.” IBM research outlined that 95% of car-makers plan to make from “moderate” to “significant” investments in the blockchain over the next three years. In addition, an American multinational information technology company indicated that:
54% of executive expect new business models to influence investments in the blockchain.
54% of the car-makers will implement their first commercial blockchain network at scale within 3 years.
The car industry leaders believe that the distributed ledger systems will boost the use of self-executing and self-enforcing smart contracts.
“The inability to track and verify thousands used to assemble a vehicle can result in parts that do not work properly when they are integrated with others. Performance issues and customer dissatisfaction can then occur.” as IBM reported. Auto executives are counting on the blockchain promise of secure, traceable transactions and improved transparency of information to streamline supply chain management. The German auto giant Porsche has been testing blockchain applications in its vehicles since February 2018, as IBM reported. The company has been developing blockchain applications to park cars, lock and unlock vehicles, and make loaning out a company car to an employee easier. Because all transactions are recorded on a distributed ledger, car owners would be able to monitor who used their vehicle and when.
The Blockchain Technology Implementation in Other Private Sectors
IBM has been researching blockchain technology for several years. In October 2018 the firm collaborated with the French grocery mega-chain Carrefour to improve food safety by tracking chicken, eggs, and tomatoes as they travel from farms to stores. Europe’s largest retailer with over 12,000 locations around the world integrated Food Trust, IBM’s designed blockchain data system as part of its supply chain to detect and prevent outbreaks of salmonella linked to eggs and poultry. Despite concerns following bitcoin, it is believed, that the blockchain technology can revolutionize healthcare, banking, supply chain management, and the entertainment industry. This Spring, Signet Jewelers, which is the world’s largest retailer of diamond jewelry joined Tracr, the diamond blockchain program launched by South African company De Beers Group.The blockchain project by providing mine-to-customer traceability will ensure that the gems are not illegal mined by slaves in African conflict zones. The project also ensures that there is no theft or illicit substitution along the way, so the end user can be assured of their diamond’s authenticity and provenance.
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