The crypto market was running full steam ahead until January’s bump but it’s not stopping its drive to the hills. Despite the global sanctions and everything that’s bringing the economies down or making them volatile, the crypto sector is prospering. The emerging segment of Crypto Auto is a fantastic testament to the innovations brought by Web3 and blockchain technologies.
But, What is Crypto Auto? Or better, What can the Crypto Blockchain Technology revolutionize in the world of Automobiles?
Crypto Auto – A Concept or Reality?
The concept of Crypto Auto concerns using Web3 or similar technologies to innovate or manage the processes within the Automobile Sector. The concept of Blockchain Auto isn’t limited to only using crypto-based technologies. It’s also about using their applications parallelly or adjacently to the traditional methods.
Based on the adoption of blockchain technologies within various other industries, the concept is not more than just a virtual idea. Several startups as well as notable top car manufacturers around the world are already working on implementing Crypto Automobile technologies in their businesses.
Hence, arises the question of precisely what magnitude of possibilities can the blockchain unlock for Automobiles?
Can Crypto Blockchain Technology Drive the Automobile Sector?
To dismiss any doubt(s) regarding whether the Blockchain EV technologies could succeed, one must truly understand its necessity & uses. About the former aspect, the need for having such technologies will primarily serve to eliminate several hierarchical stages that delay the sales or services.
The uses thereof, which are several, can suitably drive the momentum of the Automobile sector forward in the post-pandemic era.
Why is Crypto Auto Blockchain Required in 2022?
Using blockchain technologies broadens the scope of seeing new business models & practices emerge in the automobile industry. Managing sustainable EVs by Web3 technologies like blockchains only adds to improving the longevity of the industry, as well as inviting innovations in the technology space.
For instance, a Blockchain Car could be no different from an EV despite having ties to automated smart contracts.
Those contracts can either govern or manage the vehicle functions, which can solve modern infrastructure problems like traffic congestion.
In contrast, while no consumer would hand over such governance to technology, it can still help the owners in multifarious ways. Read below to learn about the different blockchain tech applications that can meet the automotive market needs.
Blockchain Auto Applications for Crypto Automobile Sector
The Blockchain EV Applications mentioned below could also subset the long-existing market of traditional vehicle engines, albeit with adding improvements.
1. Vehicle Identification & Tracking
The transparency maintained by the decentralized blockchain technology could benefit businesses in retaining vehicle transaction information for a longer period. Similarly, it can help vehicle owners identify and track or locate OEM spare parts and avoid using fakes that are known to cause fatal accidents.
A Crypto Auto application ensuring retaining & delivering such information immutably can become the spine for the Blockchain EV automobiles market.
2. Ownership Transfers & Sales
Transferring a vehicle onto the name of another entity has always been a tedious and time-consuming procedure. Blockchain Auto Smart Contracts can negate such hassles and make it easy to transfer ownership on a temporary or permanent basis. Such technology can also aid the vehicle rental market, besides making all automobile sales and transfer activities tamper-proof.
3. Loyalty Ownership Tokens
The existing loyalty programs offered by dealerships and car manufacturers are outdated or outrightly slow. Here, a planned crypto Automobile framework managed by smart contracts can serve to trigger rewards when specific actions are implemented.
For instance, a person can earn loyalty rewards as tokens or crypto tokens for the duration of their vehicle ownership. The reward could then be allowed to be exchanged against service or merchandise related to the brand.
Simultaneously, having such rewards exchangeable with other tokens could also add value to the experience of being a loyal customer.
4. Auto Insurance
Since blockchains can be immutable ledgers, their use can make managing or obtaining automobile insurance simple and fair. By having the data from vehicle sensors stored on the blockchain and sent to the insurance provider, customers can avail of better deals on accurate values.
The Crypto Auto tech via the use of smart contracts could also function to automatically apply for insurance claims, in cases of accidents or otherwise.
5. Vehicle Recall & Services
Driving a faulty vehicle is a hazard to everyone on the road, including the driver and any passengers. However, sometimes vehicle manufacturers avoid recalling them by fearing bad press. The use of Web3 technologies to audit vehicle manufacturing data and initiate vehicle recall requests as needed can save lives, money, and time.
Top Crypto Auto Blockchain Startups
The above-mentioned applications of crypto auto tech are already being explored and developed by numerous startup companies. The prominent ones making the most of it or innovating the automobile industry are mentioned below.
It is a type of Crypto Auto business running a blockchain platform that connects people, service providers, and cars. The integrated database would help users monetize their vehicle ownership or acquire one, with a single click.
It is a company that has developed a particular kind of Blockchain Auto service called the CarPass. Its function is to centralize all vehicle information to prevent and eventually negate vehicle fraud(s).
It’s a type of blockchain-based protocol that enables a driver or passengers to have a wireless peer-to-peer transportation network.
The company offers to build loyalty rewards and network infrastructure solutions by leveraging smart contracts on the Crypto Automobile blockchain.
5. One Car Payment
The company has developed a blockchain-based payment algorithm that offers a consumer their vehicle ownership costs as singular monthly payments.
The Crypto Auto industry is still pending several modern innovations that can completely replace traditional business models and practices. However, exceeding launches of Blockchain EV businesses using Web3 technologies can become the catalyst for bringing the revolution to the masses.
Furthermore, perhaps the global adoption of such technologies can become an imminent change that just might probably save the environment.