Road to Success

To stay ahead of the curve in the current era, businesses across industries are reforming by adopting new-age technologies such as blockchain, AI, and machine learning, among others. In this context, blockchain is emerging as a game changer for industries across the spectrum. According to MarketsandMarkets, the worldwide blockchain industry is projected to grow at a CAGR of 68.4% to $67.4 billion by 2026. The survey also stated that the extensive use of blockchain across industries, the high acceptance of blockchain solutions for payment and smart contracts, and expanding government efforts, among other things, are driving forces behind the expansion of the blockchain sector.

Blockchain has long been linked to bitcoins and other cryptocurrencies, as it is used to record transactions via a worldwide computer network. However, as time passes, the idea is fading and witnessing surge as more sectors are utilising blockchain and its limitless possibilities. According to Research and Market, 56% of Indian businesses are integrating blockchain technology into their core operations. In this perspective, the electric vehicle sector is not behind the lag of realising the technology’s full potential. As a result, blockchain is also playing a significant role in the EV business in order to propel it to new heights in the next few years.

Role of Blockchain in the EV Industry

With the changing times, the EV industry, like others, is experiencing rapid changes and market expansion into more than just a mode of transportation. Automobiles in the twenty-first century are mobile data centres with embedded sensors and disruptive technologies that collect vehicle data. Furthermore, blockchain can boost trust and collaboration among enterprises, consumers, and automobiles by enabling more secure, traceable transactions and enhanced access to and transparency of information.

There is no denying that automakers are paying attention to blockchain and making strategic investments in the field as part of the change. While blockchain can disrupt the status quo, it has far more promise when integrated with IoT, artificial intelligence, and big data. Given that the benefits of growing EV adoption will be multiplied if the power used for charging is clean, blockchain in the industry becomes even more critical.

In today’s modern society, blockchain is already being used in the automotive industry. As most automobiles will be electric, such use cases will also be relevant in the EV business. Using blockchain for EV-related processes will help the EV sector develop. However, along with the benefits, it also has drawbacks, such as a scarcity of charging stations and the high cost of automobiles. Thus, these issues can be addressed by utilising blockchain for EV operations.

Benefits: Blockchain Brings to the Table

Secure Transactions: Cryptocurrency is still the central area in which blockchain technology is deployed. However, automobile owners can soon be able to use blockchain to pay for the power used to charge electric vehicles. For instance: consider what would happen if you charged your vehicle every time, the action triggered an intelligent contract on the blockchain that sent the right amount of money from your account to the charging station. The same might be said about your monthly parking fee, insurance, and any other financial transactions concerning your vehicle.

Reduction in Production Cost: Blockchain-based solutions provide a track-and-trace function. This capability enables EV producers to track the materials as they are delivered for production. Certain materials are sourced from difficult-to-trace developed countries. Such materials pass through multiple hands before being sent to industries for processing and output. As a result, blockchain can be utilized to correctly maintain the provenance-related data of raw materials, preventing the manipulation of goods from such sources. Using blockchain for EV production also allows manufacturers to monitor deviations when materials are being delivered for cost-effective EV production. As a result, the supply chain will become significantly smaller and more cost-effective.

Safeguard Data: As a self-driving vehicle navigates the area, the blockchain could collect data on the trip’s specifics. This localization data might contain everything from road and infrastructure details to general traffic patterns. Other cars in the network might then access this information and know it is accurate and safe since it has been processed using blockchain technology. Because sharing everyone else’s data is the quickest way to autonomous driving, manufacturers may soon use blockchain to exchange all geolocation data safely. Because the data is cryptographically protected, only authorised parties would be able to access it real-time.

Final Takeaway: The Possibilities are Limitless

In the present scenario, blockchain has several uses in healthcare, finance, insurance, and supply chain management, to name a few. Transparency, data security, and cost-effectiveness are some of the common aspects of blockchain-based applications that can be utilised in a variety of sectors. In the EV business, blockchain-based solutions make EV networks, and hence the data held inside them is extremely safe.

All of these blockchain characteristics may be used by the EV sector to lower automobile production costs, build an integrated and consumer-friendly charging infrastructure, and provide accurate and secure data. As a result, through blockchain, the industry enables everyone to embrace EVs more quickly in order to ensure future growth.

The author is chief executive officer, Odysse Electric Vehicles

Follow us on Twitter, Facebook, LinkedIn