When Blockchain meets Urban Mobility- Changing the face of Transportation Industry
Blockchain is vast, yet complicated, and is capturing every industry. Blockchain invention is open to anyone, from money, titles, deeds, and intellectual property, can be moved or stored securely. According to the statistics, the Blockchain market is set to grow from $411.5 million in 2017 to $7,683.7 million by 2022, with the Compound Annual Growth Rate by 79.6%. Some of the reasons why Blockchain market is increasing and adopted widely - simplified business process, transparency, and ICO for the growth of the market.
Since, every industry has adopted this innovation; automobile industry too has understood its importance. With the innovation like ride-sharing, Internet of Things, smart driving, and Blockchain taking place, it has certainly affected the mobility view of people. Right from the year 1886, when the first automobile by Carl Benz was created, number of innovation has taken place. Various automobile brands have adopted innovations, giving a greater push in the industry. One reason why Blockchain could be a game changer for the automobile industry is because it can help with security and privacy concerns in the part of payments and smart contracts. Similar to the financial sector witnessing dramatic change, automobile industry too has witnessed a major change. It has revolutionized the mobility method of users.
Blockchain plays a very crucial part in the business today. It allows information to get verified and exchanged. There are three different types of blockchain- Public, Permissioned and Private. In public blockchain, everyone has the access and has no central authority. In permissioned blockchain, participants should be pre-approved. It may replace legal documents. In private blockchain, there is a complete restriction.
Although, Blockchain is new in the urban mobility industry, it is certain that it will change the face of the industry in near future.
How Blockchain can be good for Urban Transport?
How Blockchain can be good for Urban Transport?
The potential of Blockchain is really vast and shows real promise to the urban transport industry. It has the power to improve the urban transit and digital manifestations. The mobility related transactions and data collection has become much easier. Blockchain has unique ability to record the transactions and secure non-proprietary identities without centralized intermediary.
Data in the blockchain is completely secured due to cryptography feature, which ensures that data added in the blockchain is real. Since the blockchain technology is complicated in nature, automobile industry requires skilled professional understanding the in-depth of this innovation.
Furthermore, there are multiple benefits of implementing blockchain in mobility:
There are proven cases where implementation of Blockchain technology has benefited urban mobility. It helps in improving data integrity, enables decentralization, and establishes digital identities for vehicles. Some of the benefits mobility can have with blockchain are-
· Reading and writing of encrypted transactions linking chronologically through hashing algorithms. With this there will be no data manipulation.
· Sharing of data through distributed ledger on different platforms
Blockchain the Reality:
If we consider the reality happening in the urban mobility with Blockchain, DOVU, a Jaguar- backed Blockchain startup is the best example. This smart urban transport technology, co-founded by Irfon Watkins is helps in securing marketplace by letting the users offset mobility costs in exchange of transportation data.
According to Irfon, “DOVU is a token you earn and spend by sharing and changing the way you travel. People contribute to the future of their cities through actions. Smart cities need smart citizens. Whether you’re working on connected cars, public transport, or autonomous vehicles, the DOV token facilitates a new transfer of value. Earn tokens by sharing car data, or driving green. Use your tokens for ecosystem services such as parking, EV charging, and much more.”
When DOVU was released, it was a revolution in data sharing under Blockchain for urban transport. The DOV token is a reward and can be widely accepted in bud ride or car insurance. Powered by Ethereum, DOVU is an open-source blockchain based platform featuring smart contract functionality.
Versatility in Data Collection and Sharing:
One of the intriguing parts of Blockchain in mobility is its versatility in collecting data. This allows in handling multiple data which can be later digitized. Moreover, the innovation also offers point-to-point consent solution-establishing try between consent party and receiving party. Additionally, it enforces data integrity while distributing data among interested parties.
Next is the enforcement of data integrity. If hundreds of service provider or integrated smart technology system like-street signal and Internet of Things- place all data on a single blockchain platform, it will make the access much easier. This also makes the data sharing easy.
- Self-Owning Car:
This self-owing car concept was first introduced by Mike Hearn in the year 2013. This vehicle represents own financial entity. However, there was something missing, and that was the trust between the parties- natural and corporate entities. These both are liable and tangible, which machines aren't. With the implementation of Blockchain technology, this trust issue is eliminated. With having Blockchain, the vehicle has its own accounting identity. The vehicle will also earn and spend money. Using this technology, the owner can earn revenues through carsharing. For customers, there will be no payment and accounting process. With the implementation of Blockchain and AI, vehicles will be able to maintain self.
One of the advantages in this scenario is the vehicles becoming financial entity. In fact, the self-own car can make the transaction without facing any difficulty.
- Learning and Vehicle Financing:
With the implementation of smart contracts, it can make leasing and vehicle financing much easier and organized. For instance, with the implementation, it can be possible to prevent cars, whose leasing paid, will have deactivated unlocking system.
With the implementation of blockchain technology, the car owner can secure digital identify at carsharing. With just single registration, it can be used for all caresharing offers from different service providers in the eco-system. During carsharing, user generates personal data. With blockchain, personal information is saved in the car without becoming a transparent customer.
- Keyless Authentication
Using smart contract, user can have easy access right and right of use is managed. Moreover, functions like local and temporal limitation is implemented. This right is then assigned to the person, participating in the blockchain ecosystem.
Establishing of Mobility Consortium:
As the blockchain technology has transformed the transportation mobility, tech leaders established the Mobility Open Blockchain Initiative (MOBI). The aim of this establishment is foster collaboration and explores themes completely relevant urban mobility and transportation.
IBM, one of the tech giants, has joined hands to bring technical expertise and required resources supporting consortia in getting early to scale. IBM is well-known for forming consortia in other industries, compared to others who face challenges and security issues. According to IBM implementing MOBI could be a game changer in urban transport.
How Blockchain can be used in mobility and how it can add value?
- Helps in verifying vehicle identity
- Track auto components through supply chain
- For automated payment machine
- Facilitate car and ride sharing
As there are benefits of implementing blockchain in urban transport, there are some limitations too. At present, blockchain transactions and validations are quite sluggish. It takes hours to complete the transaction, and mass transit system need instant transaction validation.
Another limitation here is currency valuation that fluctuates irregularly. Since there is volatility in cryptocurrency, guaranteeing the trip in mass transit will have same price would be difficult. Moreover, the immutability is the biggest drawback. Once the transaction is complete, it becomes close to impossible to modify and reverse. Moreover, if the blockchain code is weak, hackers will easily enter into the data and hack the system. If this happened, the automobile industry will face a huge setback.
One of the major drawbacks of blockchain is that the big data won't be self-correcting. When the data is collected and added to the blockchain, it will remain for long. If there is an error, it could lead to issues in transit.
Future of urban transport with Blockchain:
With blockchain technology improving more and more, the future of urban mobility and transportation is highly positive. Moreover, with the consortium effort like MOBI, it will further help in taking the industry in a right direction. Urban public transportation will certainly become more complex and crowded. This would open more doors to Blockchain and the payment mechanism will be simplified. These digital payment mechanisms will carry cryptocurrencies, creating transparency.
Big transport players are lately recognizing the positive approach of blockchain. The Blockchain in Transport Alliance (BITA) is created to educate transport professionals. Currently, there are more than 2000 transport and automobile companies. Overall, with the implementation of blockchain can increase the efficiency in the shipping process, including streamlining payments.
One of the major factors to watch for in transport future is the smart contracts. In the future, smart contracts will be automatically created. Once all the conditions are met and the transaction is recorded on the blockchain, payments will be cleared instantly.
With blockchain technology, automobile and transport companies will execute transaction at the minimum costs. Overall, it would encourage in building ecosystems in the transportation and urban mobility to have complete transparency in the business. The shared blockchain ecosystem will help in building cooperation among all parties. Moreover, it will take the transportation and urban mobility industry to a whole new level.
To sum up, Blockchain may look high at mobility, but ranks low with functional matters. But this doesn't mean that no automobile company would avoid implementing it in the future. Blockchain technology is something we will see establishing itself in every other industry. However, it is very important this innovation is understood well and learn its ability to streamline the process in the transport industry.