Exploring Blockchain Technology Beyond Cryptocurrencies

The first and most dominant application of blockchain technology is cryptocurrency. However, this isn’t the only application of the technology. Blockchain technology can be used as an organizational tool. Even if it is still in its early stages, many organizations and people are already exploring the possible benefits of the technology. Recently, a survey conducted in the IBM Institute for Oxford Economics and Business Value showed that 62% of executives in the automotive industry believe that blockchain technology will have a disruptive effect in the automotive industry in the next few years.

Blockchain Technology In The Automotive Industry

While the research showed that there are many opportunities presented by blockchain technology, it also stated that just a small percentage of suppliers and OEMs are ready to apply blockchain technology. Very few of them have an accurate understanding of blockchain solutions in the commercial sector.

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Companies like Tesla and other emerging electric software-laden companies have proven that the automobile industry is ready for disruptive innovation. While the common disruptions are in the manufacturing of vehicles, the blockchain technology has made some other behind the scene disruption possible in the automotive industry.

In the automotive industry, blockchain technology can be applied in things like mobility, supply chain and finance. It can be used to track part distribution and aftersales. Dirk Wollschlaeger, Ben Stanley, and Matthew Jones the authors of the study stated:

“Right now, part traceability during the lifecycle of a vehicle is limited. This is why it’s easy to add counterfeit parts to the mix. Some service centers use counterfeit parts. By implementing blockchain technology, we will solve many of the issues surrounding recalls, consumer safety and fake products.”
The report continued:

“Blockchain technology can also improve operational efficiencies in areas like authentication access, financial transactions between parties involved, loyalty, and customer experience. Blockchain will change the way business is done for the better.”

According to the report, 54% of executives in the industry expect that new business models are going to influence investments in blockchain technology. 51% of suppliers and 39% of OEMs only had little knowledge of blockchain organizational strategies. Even at this, it is too early to start counting successes. The authors continued:
“Many of the executives who participated in the study do not have a general understanding of a functional organizational blockchain strategies.”

Another aspect of the development of blockchain technology is skill. The study showed that there is a shortage of skills in the industry. About 42% of suppliers and 37% of OEMs said that shortage of skill is one of the factors that have hindered the adoption of blockchain technology. The more blockchain technology gets applied in different industries, the greater the need for skilled individuals will be. These skilled individuals will be responsible for putting the technology in motion.

During a recent study, LinkedIn estimated that blockchain jobs are the fastest growing jobs in the world over the past 5 years. It showed that there has been a 33x growth in the need for positions related to blockchain technology, machine learning and artificial intelligence. Skills related to Ethereum, blockchain, cryptocurrency, solidity, Node.js, etc. Professionals and executives who intend to build on blockchain will need to deal with many of the concerns before they can enjoy the benefits of blockchain technology.


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