The Role Of Blockchain In The Development Of The EV Industry

The combination of digitally enabled autonomous driving, linked vehicles, electrification, and shared mobility is defining the future of mobility. Environmental concerns and advances in electric vehicles (EVs) are driving change.

While barriers to EV adoption still exist, the EV sector is striving to overcome obstacles such as significantly higher prices, a lack of charging infrastructure, inefficient engines, and battery-related concerns. Vehicle manufacturers (sometimes referred to as Original Equipment Manufacturers (OEMs), Battery Technology Suppliers (BTS), Infrastructure Providers (IP), governments and regulators, and System Integrators (SI) are among the key industry participants aiming to accelerate adoption. The fragmented nature of these firms' investments, however, results in a slower and less significant influence on EV uptake.

While there are a lot of effective methods for addressing issues linked to EV adoption, the significance of the term "Blockchain" could be a game-changer. A platform-based ecosystem strategy may be applied across the spectrum of EV adoption maturity in various markets. The "4T" characteristics of trust and security, transparency and auditability, traceability and automation, and transaction of blockchain technology can enable the EV ecosystem. Both electric vehicles and blockchain technology have surpassed the hype; now is the time to investigate the opportunities they bring.

Before we dive into the context, let’s list down the basics of blockchain.

• What is blockchain?

A blockchain is a public or private distributed ledger or database. The system eliminates the need for a central authority to authenticate transactions and prevent double spending. Before being added to the ledger, each piece of information is mathematically encrypted and added as a new "block" to the chain of historical records. Smart contracts can be built on blockchain to activate transactions when certain circumstances are met.

Bitcoin introduced blockchain in 2009. Bitcoin's success showed distributed ledger technology's ability to conduct safe and transparent transactions, leading to the rise of competing cryptocurrencies. Since then, companies have studied blockchain applications to streamline business operations and build new business models.

Blockchain's benefits are:

1. Transparency: Blockchain technology can revolutionise customer relationships by improving data and information openness. This transparency allows anyone in the network to watch each transaction and make decisions based on the activity, creating trust.
2. Decentralized: Blockchain is a distributed network of nodes. No single entity controls data flow. Every network member can view the ledger, making transactions transparent. Blockchain's decentralised nature eliminates intermediaries in payments and real estate.
3. Immutability: Decentralized blockchains have irreversible input data.
4. Transaction security: The blockchain can't be changed or modified. Permitted members can check transaction data.
5. Trust: Distributed and decentralised data storage boosts blockchain's security and trust. Since data is stored in various locations, hackers can't easily attack. Cryptographic security prohibits fraud and unlawful actions.
6. Cost: Blockchain reduces costs through speed, efficiency, and automation. It lowers manual duties like reviewing, auditing, and reporting by eliminating middlemen.
   

Blockchain and the Automobile Industry

• Blockchain can revolutionise the EV industry. Blockchain technology benefits every process in the automobile value chain, including purchasing, manufacture, distribution, and servicing.

Blockchain and the EV Industry

• Several nations have set specific targets to phase out the production of internal combustion engines in favour of electric vehicles to reduce their carbon footprint.
• The automobile sector currently employs blockchain technology. Given that the majority of autos will be electric in the future, these use cases will also apply to the EV business.
• Using Blockchain for EV operations will aid in the expansion of the sector. For instance, it may be difficult to own an electric vehicle due to the lack of charging facilities and the high price of the vehicle. Blockchain can alleviate these concerns for transactions involving electric vehicles.
• Cost-cutting Applications based on the blockchain enable tracking and tracing. The monitoring and tracing capability enables manufacturers of electric vehicles to monitor the arrival of raw materials. Some resources, such as wolframite and cobalt, originate from difficult-to-trace industrialised countries. Before being processed and produced in factories, materials pass through numerous hands. Thus, Blockchain can be utilised to accurately store provenance-related information regarding raw materials, preventing their manipulation.
• Using Blockchain for the production of electric vehicles also permits the tracking of incoming material shipments. Monitoring based on the blockchain enables electric vehicle manufacturers to respond rapidly to recalls. Manufacturers may only recall EVs built using components or materials supplied by their material concern partners. This increases supply chain efficiency. A smaller supply network minimises the manufacturing costs of electric vehicles. Blockchain reduces the cost of EV manufacturing, and thus, the cost of purchasing an electric vehicle.
• Power Trading for Electric Vehicles: Electric vehicle charging facilities are not as common or readily accessible as gasoline or diesel stations. Consequently, EV drivers worry about running out of battery power on long excursions when there are no charging stations nearby. Therefore, the owner of an EV must plan their excursions with their vehicle's range, charging time, and the availability of charging outlets in mind. This significant hurdle limits the global adoption of electric vehicles and discourages many people from purchasing them.
• If governments or businesses can resolve this issue, EV adoption will skyrocket. The concept of blockchain-based peer-to-peer EV charging may aid in resolving the issue of charging station availability. This concept proposes use Blockchain to trade electricity for charging electric vehicles. EV owners may have their own chargers to power their vehicles. By sharing their electric vehicle (EV) chargers, blockchain applications enable car owners to trade electricity.
• Through digital P2P charging systems, owners can make their chargers open to the public when they are not in use. Share&Charge, Chargemap, Aerovironment, Easy Park, and Charge are some examples
  

Is blockchain-based payment the future?

• EV owners who purchase power from these individuals will pay in cash via the internet. Consequently, EV drivers may leave their vehicles running and search for nearby private charging stations if they run out of juice mid-trip. Moreover, power exchange on a secure blockchain network may increase the use of private EV chargers.
• As is customary, Blockchain safeguards both parties in monetary and power exchanges. Moreover, the usage of Blockchain for charging electric vehicles expands charging choices. In addition, there are no significant costs associated with P2P EV charging because it utilises existing infrastructure that would otherwise be idle.
• By investing in such infrastructures, EV manufacturers may get an early competitive edge over other automakers, given that EVs will become the norm in the future. Tesla, for instance, has already made major investments in electric car charging infrastructure.
• Eventually, smart cities may integrate energy-sharing systems into their smart grids. The connection would aid in managing and allocating electricity to regions with the highest demand. Evidently, utilising Blockchain for electric car operations eliminates the primary issue associated with EV ownership. Thus, Blockchain facilitates the global deployment of electric vehicles.

Creating Electronic Vehicle Passports

• Prior to making a purchase, purchasers of pre-owned EVs must be aware of a number of things. These include the vehicle's mileage, accident history, service history, interior and battery condition, and the functionality of safety features such as ABS, airbags, EBD, Hill Descent Control (HDC), and ESP, among others.
• Using blockchain applications, used car dealerships can generate a digital "passport" for each electric vehicle. These applications enable buyers to verify the aforementioned facts about any used EV. They may also hire third-party specialists to examine the characteristics of a car.
• They use their phone to scan a QR code on the seller's app. Using this application, prospective EV buyers can obtain expert-verified information. As with any blockchain-based system, the apps' records are protected against modification.

According to us, the hype and the potential is totally worth it, Blockchain and EV's we totally see it coming, Do You?