Technical innovations happen constantly in small and big ways across our modern society, but very few breakthroughs and have a far-reaching impact. Consider Wi-Fi and the smartphone, to name a few. Increasingly, savvy observers are adding blockchain technology to the list of creations that could transform our universe. Many believe that internet revolutionized the information transfer and blockchain will reform the value transfer.
The first manifestation of blockchain was in 2009 in the digital currency bitcoin, not incidentally created by a cryptographic expert or experts. The currency required no involvement of third-party financial institutions since it exists online and also needed digital methods for making transactions between willing entities. The result is an ingenious, simple protocol allowing transactions to be both anonymous and secure within a tamperproof public ledger. There are thousands of entrepreneurs and investors who are betting on blockchain technology to reimagine transactions of all types, and not surprisingly, the financial sector is most aggressively in hunt.
While blockchain is currently at its nascent stage, an industry that should step ahead to take advantage is the automotive sector.
The automotive players should consider the gamble and the benefits their businesses. The innovators in the vehicle space need to look no further than at what blockchain protocols can mean to other mammoth industries. Consider that a central clearinghouse maintains its own central ledger and verifies all financial trades, at times taking days to settle a single transaction. Now imagine that transaction using blockchain, eliminating the clearinghouse and giving each financial institution its own copy of the ledger that happens automatically. The result is transactions approved in seconds or minutes with increased efficiency, greater security and reduced costs.
These benefits can be reaped in many other functions and industries. Blockchain definitely will have enormous impact in the automotive world
To learn more, how automotive industry should embrace blockchain. Click here.
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