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Some of the world’s biggest names in the automotive industry - BMW, Ford, GM and Renault – have finally tapped the world of blockchain technology. The team-up, which comprises more than 30 founding members,  creates a new blockchain-based venture for the automotive industry – the Mobility Open Blockchain Initiative (MOBI). MOBI aims to revolutionize transportation by making it “safer, more affordable, and more widely accessible using blockchain technology.”

Why Blockchain?

Blockchain technology is closely linked with cryptocurrencies such as Bitcoin and Ethereum. These cryptocurrencies serve to change the way transactions are done. Although revolutionary in itself, this is not all the blockchain is good for.

Blockchain is a global digital ledger that has a wide variety of applications. One popular use is keeping a time-stamped records of virtual transactions. It runs on a decentralized global network of computers that logs the transaction data and keeps them secure on the public ledger.

MOBI Chairman Chris Ballinger explains how else the blockchain can be utilized for the automotive industry when he explained that it is “a technology where the network effects will be very strong. Blockchain and related trust enhancing technologies are poised to redefine the automotive industry and how consumers purchase, insure and use vehicles. If you’re not in at the very start, it may be too late.”

He went on to say:

“By bringing together automakers, suppliers, startups, and government agencies, we can accelerate adoption for the benefit of businesses, consumers and communities.”

Keeping Up With The Trend

Other companies making use of the technology include GE Global Research. The company is researching on new ways to connect consumers to producers of electricity and other sources of energy. GE Global Research Lead Scientis of Complex Systems Engineering comments on the application of the technology by saying:

“Blockchain is this type of technology that comes in waves. It will happen, absolutely, whether we are there to take advantage of it or not.”

Apparently, GE does not intend to get left behind in the adoption process. The same can be said of the automotive industry when BMW, Ford, and others followed suit. Applications for the automotive industry can include quality control as it enables tracking of vehicles in part in the supply chain processes. Smart contract technology in blockchain can also be maximized so payments can be much easier for consumers when enabled for parts purchases in retail outlets or fees incurred in-vehicle charging stations.

Although the blockchain can be used for a wide variety of applications, MOBI intends to solely focus on the automotive industry.

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