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Blockchain Solution for the Motor Industry: World’s largest Auto Companies Lead by Example

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Blockchain is now taking over the conventional business models more than ever before. This is clearly notable from the way in which even traditional companies are to the use of this technology to conduct their business. One of the recent developments that backs this up is the coalition between four of the world’s largest car makers, who have seen the need to join tech providers in creating a consortium that will make use of blockchain technology to further improve the automotive sector.

The Fantastic Four Take it a Notch Higher

Ford, BMW, Renault and General Motors have come together, as per the revelation from Mobility Open Blockchain Initiative (MOBI). Apart from the four players, there are other parties that have also shown interest in joining. These include manufacturers of car parts like ZF and Bosch as well as major. Others in the mix are IBM, Accenture, Hyperledger and Censensys. Notably, there have been several proof-of-concepts in the industry lately as can be seen from the likes of ZF and IBM, who tested a crypto car wallet last year. With its broad representation however, the consortium seem to be distinguishing itself even further and making a bold statement that this could be the way to go.

Data Sharing and Payments Between Cars in the Offing

One of the main goals MOBI hopes to achieve is enabling data sharing and payments between cars. It hopes to go down this route, instead of pushing to have a specific type of distributed ledger. According to the CEO and chairman of MOBI, Chris Ballinger, his experience from his stint at Toyota Research Institute made him think more broadly in terms of how a consortium could be a bridge between the traditional form of doing business and the digital world. He has come to this conclusion after performing several proofs-of-concept with startups. He believes that in order to make positive steps ahead, there is need to have a decentralized business network. Ballinger went on to add:

You really have to have common standards and common ways for cars to communicate, to identify themselves and make payments. But if each auto company is trying to develop its own car wallets or its own way of paying tolls, or providing a ride sharing service, it just doesn’t work; it’s the Tower of Babel.

The MOBI consortium is a revolutionary undertaking especially considering that it is the first coordinated response to ever come out of the auto industry.  This is in response to the realization that vehicle data is a resource so valuable that blockchain would come in handy to help the motor industry manage it.

Image Credit: Deposit Photos

What do you think about the car-giants’ decision to form a consortium of blockchain coalition? Is this a step in the right direction for the auto industry? Let us know of  your views in the comments section below.

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