Porsche is testing blockchain applications in vehicles in collaboration with German start-up XAIN, the company said in a press release last month. The two partners are currently testing applications, including locking and unlocking the vehicle via an app, temporary access authorizations and new business model based on encrypted data logging.
According to the German carmaker, transactions based on blockchain technology are fast and secure. The car becomes part of the blockchain, making a direct offline connection possible, without diversion through a server. The process of opening and closing the car via an app can be done in 1.6 seconds, which is up to six times faster than before. The technology also makes it possible to assign temporary access authorization for the vehicle.
Significance: Blockchain is a decentralized way of data transaction between business partners. It records every change in transaction chronologically arranged data blocks, making it transparent and tamper-proof. Porsche has said that it wants to use blockchain technology to keep customers' personal and financial data safe in the future. There is much debate about how automotive companies will keep customer data safe when cars become ever connected in the future, and banking and purchases will be possible from a vehicle.
Porsche says it is the first carmaker to successfully test blockchain technology in a vehicle. The company is working on new business models based on this technology and believes blockchain holds tremendous potential. “We can use blockchain to transfer data more quickly and securely, giving our customers more peace of mind in the future, whether they are charging, parking or need to give a third party, such as a parcel delivery agent, temporary access to the vehicle. We translate the innovative technology into direct benefits for the customer,” said Oliver Döring, financial strategist at Porsche. Last year, it was reported that Toyota Research Institute (TRI) was exploring blockchain technology for use in the development of a new mobility ecosystem that could accelerate development of autonomous driving technology.