Cars on the Blockchain
Using the blockchain technology can be a promising technology in the motor industry and for the owners of cars. This distributed ledger technology, best known for cryptocurrencies such as bitcoin, can be implemented in vehicles. The blockchain is a data container which keeps record of transactions. These data containers are secure, tamper free and anonymous. Once a transcation is done on the blockchain it is not changeable.
Tests are done using the blockchain techonoly by opening the car’s doors via an apps. With blockchain technology, you don't need a middleman and the owner of the car can directly communicate with the car via a app.
Blockchain technology have the potential for car owners to pay it monthly by using a smart contract. It is basically a software programme into which the contract conditions are set, and the contract can then self-execute, once the pre-set conditions are met, directly to the car dealer. No banks are involved with this new technology. So what if you don't pay your instalment? Well then you can't drive because the blockchain controls the car and the dealer can easily by using the blockchain not allow the door to open.
Missing payments are impossible on the blockchain. So there are some problems still to work around especially in an emergency. Once the conditions are set on the smart contract you can’t change it. It is permanently on the blockchain.
Vehicles will be able to record their trip on the blockchain for example, traffic patterns and weather conditions. Every car is a moving "device" which means all the cars will be linked up with the blockchain and will serve as servers which give information to the blockchain. It is also called nodes. Nodes are essential for maintaining the blockchain. Nodes are just a copy of the blockchain which exist on a computer, phone or hardware device, in this case the car.
So everyone is linked to the blockchain and will exactly know where you are and where you’re driving, the time you leave and the time you reach your destination. Once all this information is on the blockchain nobody can take it away.
Car manufacturers can allow cryptocurrency tokens to reward people when driving their cars and assurance companies can give tokens for safe driving.