The notion of cryptocurrency is not new. It's been over 13 years since Bitcoin was initially introduced. Since then, numerous fresh examples of cryptocurrencies have appeared, and it has remained a topic of significant interest to a wide range of individuals. Interest in cryptocurrencies has lately been raised as a result of numerous noteworthy news articles about bitcoin and the automobile sector. 

The biggest turning point was when Elon Musk and his company Tesla, invested in bitcoin, a whopping sum of 1.5 billion dollars. For more info click here.

What is a cryptocurrency?

A cryptocurrency is a type of digital money that can be used to buy and sell goods and services online. Some of them are quite tiny and may be limited to a single business. This type of cryptocurrency is similar to the tokens you'd find in a video arcade. You'd trade your actual money for these tokens, and the tokens would be the only currency accepted in the arcade. 

How is blockchain technology aiding the changes in the automobile industry?

Carmakers are looking into blockchain, a technology best known for its use in cryptocurrencies like Bitcoin, as a method to boost security in increasingly linked automobiles. As the ordinary automobile moves closer to becoming completely connected, electric, and/or driverless, a more sophisticated database will be required to keep up – and blockchain is shaping up to be the answer.  

There are a few ways in which cryptocurrency is changing the automobile industry:

● Payment security: Blockchain originally gained public attention as the technology that underpins cryptocurrencies like Bitcoin; cryptocurrency is still the most common application of blockchain technology. Car owners, on the other hand, may soon be able to use blockchain to pay for the power needed to charge their electric vehicles. 

● Autonomous data: As a self-driving car navigates the globe, the blockchain may be tasked with recording information on the trip's specifics. This localization data might include anything from road and building details to traffic conditions in general. Because the data is cryptographically protected, only authorized parties would be able to access it in real-time. Hacking is a huge business, and it doesn't pose as much of a threat to people as it does to OEMs.

● Decentralized vehicle sharing: In a revolutionary way, blockchain can also change the future of car sharing. Cab services like Lyft and Uber are looking forward to using cryptocurrency as a legitimate currency for their rides.  If blockchain is combined with the app, then it might be possible that a new future of cab sharing is seen. One of the goals of blockchain is to eliminate middlemen between riders and drivers while ensuring more secure data management. If a rider cancels, the contract may allow the driver to get a share of the payments. Riders might use such a website to interact directly with drivers, evaluating individual reputations and selecting a driver based on price, quality, and other market criteria. 

● Trustworthy car sharing: Not only do blockchain-based systems make it easier to share rides, but they also make it easier to share car ownership. For example, instead of everyone living in a high-rise having a car or relying on other forms of transportation, a group of individuals may share a fleet of ten automobiles in the future. 

Therefore, bitcoin and blockchain are surely changing the automobile industry one day at a time. Now we have to look forward to how it rolls out in the near future. As a safe and unique type of encryption, blockchain has the potential to be one of the crucial technologies that allow the automobile sector to enter the new era of smart vehicles. 

Conclusion

Whether it's via safeguarding financial data or increasing the trustworthiness of shared ownership, blockchain has the potential to transform the way data is managed in future cars — and it's already happening.