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Siemens Interested in Blockchain Based Car Sharing

Saad Ullah

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Siemens, the global technology and automation giant has announced that it is looking into blockchain powered car sharing technology, according to a report by Forbes.

Blockchain Rental

Siemens Mobility, a subsidiary of Siemens that works primarily on automation, will be using the decentralized ledger technology (DLT) to leverage car sharing, according to Andreas Kind, the Siemens Corporate Technology’s head of Cyber Security and Blockchain.

Carsharing is a fast emerging concept in which vehicles are rented for a short period of time. With this business model, car rental companies allow customers to fuel up vehicles with their own dedicated fuel cards. The problem arises that these cards are redeemable only on specific fuel stations and this means that sometimes customers have to drive a long distance just to get fuel. Loss or theft of card is also a major concern. According to Kind, using blockchain can be very helpful in this regard,

It’s not only inconvenient for the drivers, it’s inconvenient for the companies because fuelling cards get stolen [and] they get sold on the internet […] That’s an example where, in an industrial context, you need something, a technology, that brings together different participants that [don’t] fully trust each other […] That’s exactly where blockchain can add value.

Expanding Blockchain

Siemens is looking into the use of blockchain in other areas of its operations. Siemens’ Corporate Technology is also looking into its use for smart parking. Other areas under consideration are manufacturing and supply chain.

Siemens, although proclaiming to be at the forefront of automation and digitization, is behind other companies in adopting blockchain. The feasibility and efficiency of the technology has been time and again proven in different applications. While the company is still debating and considering whether it should use the decentralized technology, many other firms are already using it. From tax validating of cigarette by Philip Morris to authenticating genuine products of Louis Vuitton, blockchain is being rapidly adopted around the world.

Grand View Research, a market research and analysis firm, has said that transport management systems will reach a USD 198.82 billion market by 2025. With a growth rate of 16.2%, the transport management sector can greatly benefit from blockchain technology.

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