Will Blockchain Be the Dawn of Automobiles 2.0?

Only a decade since its first application, blockchain technology is already being hailed as a revolutionary development. Even though it was only originally known for powering bitcoin and other cryptocurrencies, its influence has already reached the financial, trade and media sectors in full force. Now, it turns out, blockchain could also usher in a new era for the automotive industry.

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It was not long ago that electric cars were labeled as the next innovation in the automobile space. Now in 2018, and according to a recent UBS study, it is estimated that one out of every six cars sold by 2025 will be an electric car.

These cars, quite naturally, need to be charged at periodic intervals once their battery is depleted. Under these circumstances, a blockchain can be used at the charging station to record the electricity utilized while recharging.

A smart contract can also be built on the same blockchain to deduct a proportional amount from the car owner’s cryptocurrency wallet. Smart contracts can be made for parking costs, tolls and other similar charges as well.

   
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