Siemens is Entertaining Blockchain Use For Carsharing Transportation Citing Many Valuable Benefits

Blockchain Technology the underlying tech behind the invention of Bitcoin and many more cryptocurrencies has surely got everyone interested. While there are many skeptics on the use of digital assets in the financial ecosystem, but the support for blockchain tech is tremendously unanimous. Ever since blockchain came into the public domain back in 2009, many firms, businesses, and government around the globe have found ways to implement the technology for a larger good.

Blockchain technology basically cuts the most concerning part of any business, the middlemen. As of now, the tech is being used in a supply-demand chain, agricultural industry, food supply industry, healthcare, real estate and many more. The most recent use case has been proposed by Siemens for carpooling. Siemens wants to join the league of big firms cashing on the blockchain tech like IBM, Amazon, Facebook and several others have done in recent past.

Andreas Kind, Siemens's cooperate technology head of cybersecurity and blockchain head said,

“We are in the space where we want to come up with industrial extensions of blockchain systems, […] blockchain systems for enterprises,”

Kind explained that they are quite bullish on implementing the 21st-century tech at an enterprise level. Like many other enterprises who decide to explore various use cases of blockchain, test them progressively before zeroing upon the best use case implementation of the technology. Kind said,

“Siemens is exactly in this kind of phase, now we’re at the point where we’re really zoomed into a set of use cases that are related to Siemens’ business.”

Kind said that they are done with the exploration part and finding the best suitable use case for their business and looking to implement permissioned blockchain.

Siemens is Targeting Mobility Arena To Use Blockchain

Kind, the cybersecurity and blockchain head noted that they have zeroed upon the mobility sector to use the blockchain in. He said that Siemens has a separate branch devoted to the mobility sector, called Siemens Mobility.

Siemens Mobility is a sidearm of Germany based Siemens AG which works towards providing transport solutions for both humans and goods. Kind also mentioned that Siemens is looking to adopt blockchain for carsharing, which is quite a norm today, but no one has thought of implementing blockchain into it.

The Good&Bad of the Present Carsharing Industry

Carsharing is quite a popular mode of commute, especially in metropolitan cities. The trend is backed and promoted by the governments as it helps in reducing carbon footprints and helps in resolving traffic density as well. People often prefer the service because it helps them cope up with the responsibilities that come along owning a car, like parking, insurance, and various car payments.

Car sharing comes in as a reliable commute option as it allows anyone to rent a car for as short as 1 hour time period. Kind explained,

“There’s a big transformation happening. So in the future, there will be many more opportunities around mobility services, rather than simply selling a car, and you see it already in the context of carsharing for instance. People want to go from A to B rather than having a car and moving because it’s just much more convenient sometimes than having your own car.”

However, the current system of car-sharing comes with its own issues as well, one of the most prominent one being fuel cards. Under a car-sharing subscription

“you don’t have to worry about paying for the parking, you don’t have to worry about fueling the car, so everything is included, “

But, many times one might need to refill the gas tank if it is left empty by the last user. This can be tricky as car-sharing service providers have inked deals with particular gas stations, and in order to reclaim the gas amount, the customer needs to refill the tank, only at these gas stations. Finding these gas stations can be tricky. Even when they find the associate gas stations, there are too many complications, like using the fuel card for the fill-up and one must carry an identification associated with the car-sharing subscription.

These complications become even more troublesome as fueling cards get stolen quite often. Kind explained,

“It’s not only inconvenient for the drivers, but it’s also inconvenient for the companies because fueling cards get stolen [and] they get sold on the internet,”

Kind noted as one example of fraudulent play.

“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,”

he explained.

“That’s exactly where blockchain can add value.”

How Blockchain can Help In Eliminating These Issues

Siemens plans to implement blockchain in the car-sharing industry to eradicate complexities with the current industry.

“The transaction could be in-car delivery, it could be [in] simple carsharing, like unlocking a car,”

Kind also noted many interacting parties, such as managers, the “organization owning the cars,” “garage providers,” etc.

“All this should be completely seamless in the way the transaction is happening, and blockchain is really the right technology here,”

Kind said.

Siemens cooperate technology team who participated in the Bosch 2019 Connected World Conference showcased the use of blockchain tech for smart parking, as one of the many use cases of the technology.

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