Carmakers like Daimler, BMW and General Motors are pioneering in experimentation with blockchain technology. For instance, Daimler recently collaborated with Singaporean blockchain-oriented data-sharing platform Ocean Protocol to explore the use of blockchain in data sharing.

Mercedes with the help of this technology will decentralize information to see how data streams across the supply chain and within the company can be monetized.

This move by Daimler will hopefully make large enterprises more confident about decentralizing data to extract crucial information from the supply chain. The data sharing will enable more transparency among everyone involved in the supply network, while still keeping a tab on who can access which data.

Transparency and security

A business network is a treasure trove of valuable information. But most of this data is lost or remain scattered throughout the system. Businesses are realizing just how valuable this disseminated data is, but harmonizing the information can cost the companies millions.

This expense can be slashed if companies leverage on blockchain to collect and share the data over its network. Ocean Protocol founder Bruce Pon said in an interview with CoinDesk that the information technology department of any company can be turned into a profit center from a cost center with the help of this blockchain technology.

To ensure that crucial data remains secured, Ocean Protocol has come up with a secret ingredient called “federated machine learning” in its blockchain-based sharing platform. This protects the training data that will remain behind the confines of the company’s firewalls, prohibiting direct access.

Car of the future

Mercedes is leveraging on blockchain technology to not only decentralize data but for the success of its Ambition2039 initiative as well. In another revolutionary move, Mercedes is planning to launch a carbon neutral car by 2039 with the help of blockchain. But Daimler is aiming to create more than just electric cars.

It includes looking at the manufacturing of parts and batteries for the cars to track the emission of gases that are relevant to the environment. The focus at first will be on securing and analyzing data along the cobalt supply chain, which is one of the most important components of the car manufacturing process.

Cobalt is brought into the supply chain from recycling facilities. The blockchain technology is supposed to monitor and track carbon emission through this cobalt supply chain. This will also enable tracking the number of recycled materials used in the process.

Blockchain and the automotive industry

Daimler also aims to be transparent about sustainability requirement compliance such as human rights, business ethics and proper working conditions in its business network.

To achieve this, the Mercedes maker has included all its direct suppliers into the system and calls on them to carry the compliance upstream into the supply chain.

BMW was the first to use the blockchain technology to source cobalt ethically. And now Mercedes is utilizing the technology to track carbon emission along the cobalt supply chain.

The automotive industry is embracing the blockchain technology to bring in futuristic changes in the industry. Big enterprises like BMW and Mercedes are paving the way that will hopefully soon be followed by more car makers worldwide.

Sources – CoinDesk, Forbes

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About the author

Srimayee Sen Sarma

Contributing Author

Srimayee has over 10 years of experience in creating content. Driven by her passion for writing, She has had her articles published with a byline in newspapers, magazines, blogs, and websites. Her other passions include reading, gardening and traveling.