Why Blockchain Is Important For Mobility And Commerce in 2020?

Jun 06, 2020

The human existence is based on trust especially when it calls for financial transactions. Since there are many intermediaries such as banks, financial institutions facilitate these transactions in for small fees. Similarly the mobility segment just like car rental service is also dependent on these intermediaries for smoother operations. So whether it’s mobility or commerce, there’s a huge requirement to assure the trust and transparency so that users feel more confident about the transaction security.

Uprising blockchain technology has brought a new perspective with a belief that intermediates must not have the liberty to charge transaction fees for their services; rather, sharing and trust must be the focus of both service and transactions. This shifting towards blockchain network is game changer with trust and transparency, elimination of intermediary transaction costs, and reduction of fraud risk.

What is Blockchain Technology?

The technology of blockchain is a continual growing list of records or data blocks with each block having a unique pass key. A group is formed as each newly added activity builds a block that’s added to previous blocks, hereby creating a blockchain. Since blockchain is a distributed ledger that’s not owned by any intermediate, rather it is distributed in a connected network with shared ownership. Also blockchain cannot be altered; can be attached with more blocks that are usually verified and distributed across the entire network. There is neither a centralized database nor the need for intermediaries, which adds trust and transparency to the technology.

How Blockchain will rewrite the future?

The benefit of Blockchain technology is not limited to financial transactions only (hyped in context of Bitcoin transaction). This technology will have far-reaching impact on mobility and e-commerce sectors too. This industry has huge number of daily transactions and they are much dependent on these intermediaries. Let’s dive bit deeper to understand the role of blockchain in revolutionizing mobility and commerce.

Smart Contracts
Corruption is the key concern around contracting in the past even without meeting the required set of conditions. However things will not remain the same as blockchain bring smart contracts to overcome the corruption risk. In blockchain, role of intermediaries will be eliminated as contracts will be coded for automatic execution when a pre-defined set of conditions met. 

Smart Insurance 
The insurance sector has witnessed the far-reaching impact of blockchain technology. It offers peer-to-peer insurance with assurance of transparency and speed in the entire operation. While the decentralized system eases the premium collection process, adds transparency to process of claim disbursal and minimize security breaches too.

Shared Transactions 
Apps like Uber have been making money by adopting the role of intermediaries and exploit drivers by taking a good share of the earnings. Moreover by adopting blockchain technology, everything will change things for better. It offers a direct, peer-to-peer system where payments go directly into the drivers’ account and there will not be any intermediary to share the earnings.

V2V Data Sharing 
As Blockchain technology escalates automotive segment, it promotes seamless Vehicle-2-Vehicle data sharing for safer driving. This shared data is related to road safety including factors like traffic status, road conditions, and weather data to ensure complete safety for vehicle owners. This data is distributed on a transparent, decentralized, and secure network ensuring the data transmitted is always safe and valid.

Conclusion
After visualizing the benefits of blockchain technology, the adoption will be necessary rather than going for selection in coming times. Businesses must try to explore the adoption process for staying ahead in the competition. However there’s a need to search for a reliable technology partner to come up with a digital strategy for adopting the technology in a seamless manner. At RPA Technologies, we are a team of technology specialists with full-scale expertise in range of disruptive technologies. We make sure that businesses are able to avail the extensive benefits of digital transformation for rapid growth. Get in touch with us to unleash the unmatched potential!