The Automotive Industry Is the Next Adopter Of Bitcoin And The Blockchain

The vehicles can communicate with the cloud and intelligent cities powered by the cloud to provide aftermarket assistance such as remote diagnostics, assistance with car theft, or vehicle rental services for longer trips. Also, bitcoin and blockchain can improve the customer experience and device usage by improving payment and payment security and access to auto services such as vehicle service contracts, roadside assistance, remote diagnostics, etc. So, if you are looking for success in btc trading, you must consider using a reliable trading platform. 

The automotive industry began its adoption of the internet and e-commerce in the late 1990s to early 2000s because it offered a new way for them to lower their cost of doing business by expanding their inventory on a global scale, finding new sources for components, lowering inventory levels by using lean manufacturing techniques, and improving customer service capabilities (i.e., processing orders faster) through an online portal.

For example, in 2001, BMW introduced the first internet-connected car navigation system, Onboard. Today, 60% of automakers use RFID tags or other sensors to incorporate Internet of Things technology into their vehicles. 

There are three main reasons why the automotive industry is next to adopt bitcoin, blockchain, and new technologies:

Improved Productivity at Each Automotive Factory Site:

  The automotive industry is highly fragmented because it operates in more than 100 countries worldwide. As a result, the number of parts and components suppliers to a single automaker can be huge and range from one supplier to thousands depending on the complexity of a particular automobile model. 

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Most automobile parts are that companies physically produce through a process called an assembly, where parts are brought to a work center and joined together according to pre-manufactured specifications. The physical assembly line is the traditional approach in which each step of production is automated. However, more and more companies are trying to develop more complex models of automobile manufacturing that require less mass production. 

For example, BMW has developed the concept of cobots (coBOTter), which are intelligent robots that can assemble vehicles with the help of virtual robots on a computer screen (for example, a 3D factory). Cobots can save 5% on labor costs by only using some workers for quality control and inspection rather than having them handle all aspects of assembly production. Also, bitcoin and blockchain can help reduce costs by cutting out the intermediary, e.g., using smart contracts for supply chain transactions.

Improved Value Chain Relationships:

The automotive industry operates globally, with over 30 countries involved in the value chain, from parts suppliers to assembly plants and warehouses. As a result, each customer order can include thousands of parts and components from suppliers in different countries. In addition, the fragmentation of the industry means that it is difficult for a single company to learn about its competitors’ inventory levels and product development schedules (i.e., what’s new, what’s next on the market), which creates an environment ripe for misinformation and confusion among automakers, suppliers and dealerships alike. Blockchain technologies can help increase trust between companies, enabling more information sharing and better inventory management when the new generation of cars arrives on the market.

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Reduced Manufacturing Costs:

  The automotive industry has rapidly evolved from short-term production cycles to longer product life cycles; due to this transition, parts, and components that people need to manufacture at a more complex level with more variety and customization. Automotive companies are now designing cars that one can upgrade based on user input (e.g., new software, new hardware, etc.) that contains data on specific features of each vehicle. Bitcoin and blockchain offer the possibility of creating a decentralized product ID system to help manage all manufacturing and product use data. 

For a long time, the assumption has been that the customers are driving this change, but this is a fallacy from both ends. The best way to bring about the fundamental changes we want is by cooperating across industries and with different stakeholders. For example, the automotive industry is one of the most important pillars of our society, i.e., people need them to be on board with both bitcoin and blockchain technology to make its success happen.

The automotive industry is the last of the major industries to adopt internet and e-commerce technologies. It is likely because it required significant capital investment to enter this space; therefore, many companies needed help to make the necessary investments. 

For example, when car owners receive their new vehicle in the dealership, it takes them a few hours or days to browse through their car’s software (i.e., operating system) before they can use it for its intended purpose (i.e., driving). Its adoption of new consumer technologies also lagged behind other industries because its physical product requires many parts and components. 

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In summary, blockchain and bitcoin have the potential to revolutionize the automotive industry through disruptive technologies such as smart contracts and consumer-friendly technologies like IoT sensors. Also, they can help to increase productivity at each automobile factory site and improve value chain relationships through product identification systems. In addition, blockchain can help to reduce costs by cutting out the intermediary at each stage of the value chain, reducing redundancies, and improving productivity by excluding malicious users that are not a part of the ecosystem.

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