By Staff Reporter
Blockchain is increasingly disrupting traditional industries ranging from supply chain to traditional banking to securities market.
Nearly 64% of auto execs believe that the technology will shake up the sector significantly in three years time, according to a survey by IBM.
The interest in blockchain is strongest amongst “auto pioneers,” 54% of which are expected to implement their “first blockchain project to scale” within the next three years.
Blockchain, which helps provide a golden source of truth transparent to all participants, is seen as helping streamline the auto sector.
The IBM Institute for Business Value, in collaboration with Oxford Economics, a consultancy, surveyed 1,314 automotive executives across 10 functional areas and 10 countries.
“Thousands of parts go into the assembly of a vehicle,” the IBM report noted. “The inability to track and verify the parts can result in parts that do not work properly when they are integrated with others. Performance issues and customer dissatisfaction can then occur.”
The survey found that shared ledger will be particularly helpful in bridging the information gap and help fraud prevention, amongst others, in the long and complicated auto manufacturing processes.
Currently, the auto sector is lagging behind other industries in embracing blockchain. Some early efforts include a joint venture between IBM and Indian auto giant Mahindra Group in introducing (see here) blockchain technology in auto supply chain.
Nearly, 64% of the OEMs and 48% of suppliers said they are considering implementing blockchain.
However, 25% of the OEMs and 15% of the suppliers said they are not considering using the cryptocurrency behind Bitcoin to streamline their operations.