Blockchain technology is gaining momentum in the automotive industry as major automakers are doubling their efforts to validate the potential of this disruptive technology in the sector.
The Mobility Open Blockchain Initiative (MOBI), an automotive-focused blockchain project created by major car manufacturers, recently started its first European conference in Munich to explore distributed ledger technology and common standards for applying blockchain in the mobility industry.
Exploring blockchain technology standards in mobility
Hosted by German automaker giant BMW at its IT Centre in Munich, the two-day colloquium brought together all members of MOBI as well as blockchain firms and government agencies. The colloquium main agenda items included knowledge sharing as well as developing and promoting blockchain standardization measures to be applied to the development of applications and technologies in the mobility industry.
MOBI was formed in May last year as a collaborative effort with the goal to explore blockchain integration into the mobility sector in order to make transportation safer, efficient, and widely accessible.The consortium was launched by over 30 founding members including BMW, Ford, General Motor, and Renault. Other contributing companies include IBM, IOTA, Blockchain at Berkeley, Fetch.ai, and Hyperledger.
BMW has been experimenting with blockchain for quite some time. Besides playing a key role in MOBI, the company has a blockchain supply chain tracking solution to ethically source cobalt for its car batteries. Additionally, the automaker has unveiled its blockchain platform designed for tracking mileage in leased cars.
Significance of collaboration in the automotive industry
The automotive sector has always focused on technology. With this trend, the industry is among the first to widely embrace blockchain to explore how this cutting-edge technology can help streamline operations, introduce new end-user functionalities, and drive revenue growth. There are several examples of these advances.
U.S car manufacturer Ford has been piloting a blockchain platform aimed at streamlining its mineral supply chain. In another effort, Volkswagen is building a blockchain-based tracking system to tackle odometer fraud that is rampant in the automotive industry. Hyundai’s commercial finance arm, meanwhile, is piloting IBM blockchain platform to speed up and secure truck financing deals. IBM’s open source platform built on Hyperledger Fabric is designed to enhance supply chain financing transparency.
The blockchain standardization efforts by MOBI once again demonstrate the need for serious collaboration to have wider adoption of blockchain in the automotive industry. Car manufacturing giants have an opportunity to share knowledge and create standards and best practices for blockchain adoption while startups can use these innovative frameworks to build enterprise-ready blockchain solutions.