Automobile giant Toyota has unveiled that it has been in the process of establishing a blockchain lab since April 2019. Several Toyota Group companies will provide for data to flow over the company in a secure manner utilizing a distributed ledger. 

Concentrate on Identity and Data Sharing

Automobiles and Blockchain don’t appear to go together at first glance; however, when you know the subtleties of operating an automobile manufacturing business, it becomes sufficiently clear.

Larger companies like Toyota tend to manage their financing arms. They provide potential consumers a loan at competitive rates for the purchase of their vehicle. Aside from financing, there are several other wings, such as servicing or maintenance.

When a consumer avails various services, they have to sign up and verify themselves with each entity in a similar manner. The bureaucracy generates redundant work for Toyota and the consumer.

Identity is the principal focus of this initiative, at least in the initial stages. It will support Toyota Group subsidiaries to bestow information cleanly and securely over a permissioned ledger. This ledger will cut out a lot of paperwork and save customers time. As a result, Toyota could understand enhanced business as the difficulty of accessing existing consumers is eliminated.

Internet of Things (IoT) and Supply Chain

Albeit these are strategies for later stages, Toyota’s automation plans are the most exciting part of their blockchain strategy. The company envisions a future where they accumulate vehicle meta-data and utilize it to operate analytics regarding mileage and maintenance needs, as well as value-add services. The integration of IoT will enable consumers to load a wallet, possibly with digital currency, and pay for tolls, parking, etc.

Supply chain management is a broadly discussed use case of blockchains. Toyota’s ideas are no diverse than those already being implemented by Fortune 500 companies worldwide. For an automobile manufacturer, nonetheless, such a system allows improved process efficiency due to the number of parts needed to gather a single-vehicle. Toyota can confirm the integrity of automobile components and keep accurate tabs on production and sales numbers.