Blockchain has expanded its tentacles into many industries. This now includes the automobile sector with new players feeling the unrelenting arm of blockchain technology.
One aspect of blockchain everyone, especially in the auto industry has been buzzing about is the use of blockchain for payments. The excitement about this technology is not too far to see. The transparency and security of the blockchain technology make it an excellent option. Auto giants can successfully implement blockchain payments in cars.
Recently, five top Auto companies have a partner to begin testing blockchain payments in cars. The five companies to join this alliance are BMW, Honda, General Motors, Ford, and Renault. Nikkei Asian Review reported back in October that the field trial of automatic payments option for bills like highway fees and parking charges will be carried out in the United States the following month. This will be done using a blockchain vehicle id system.
The Alliance and the Project
The alliance was formed with the aim of testing a system capable of handling vehicle identification systems. The system was built utilizing the Mobility Open Blockchain Initiative, which allows each automobile to be given a digital ID. The service and ownership histories will be reflected in these IDs. Such information will be used to identify vehicles on the highway. This enables the car owners to automatically make the payment without the need for special tags. Such tags are commonly used in the present e-toll systems.
Practical use cases of Blockchain payments in cars could happen in the case of connected electric cars. When an electric car is done recharging its batteries, payment for the service can be done automatically using the system developed. Other fees recorded such as maintenance and tolls can also be paid for seamlessly.
Other blockchain-based projects under development in the Auto sector could see the use of cryptocurrency utilized too. General Motors and Honda are working on another project that involves the fusion of blockchain with smart electric grids with the mobility initiative support. The idea of the project is to reward owners of electric cars using cryptocurrency. In turn, they supply power back into the power grid in the case of a power outage.
Mobility Open Blockchain Initiative
The international mobility consortium driving the project is the Mobility Open Blockchain Initiative (MOBI). The nonprofit smart mobility group has many big players in the tech industry. This includes Accenture, IOTA, and IBM as members. As well as many automobile companies too among them we have the likes of BMW. The aim of MOBI is to shape mobility worldwide through the use of blockchain and other similar technologies. The result of this will be a low cost, more accessible, greener mobility with less pollution.
The Auto Industry Is About To Change
The use of blockchain payment in cars is just one of the many projects that could transform the automobile industry. We have related projects also under development by other auto manufacturers apart from the five mentioned above. A pilot project was recently carried out by Daimler AG the parent company for Mercedes-Benz and Dürr AG using the R3 Marco Polo network to carry out a transaction. Projects like these spell exciting times for the auto industry and we can only get thrilled about it.