To focus efforts in the automobile sector, JP Morgan, one of the largest banks in the world, is developing a blockchain platform designed by the company to create an application that helps track cars
Since its creation, blockchain technology has become one of the most important and valuable business tools of the new century. This technology has given companies, governments, and institutions a system capable of facilitating managerial and administrative processes that used to take weeks, and now only a few minutes, to be ready. JP Morgan is very clear about this premise that now plans to strengthen and direct specific economic sectors like the automotive industry.
The Platform Created by JP Morgan
After an important effort made by the company to develop and investigate blockchain technology, it can now be tested at the business level. JP Morgan would seek to use the blockchain platform in its multiple businesses, counting, without doubt, the level of international transactions. They are also evaluating its use in the automotive sector.
The institution would have developed a tool capable of tracking cars using its blockchain platform. This would provide a demanding commitment to suppliers and users. This will work as follows: dealers who purchase their cars using a loan made by the bank will not be able to determine that the loan money used to acquire a vehicle will be a different one.
In this way, this process would help to maintain the security of the bank’s loans. It would make the recognition of vehicles more effective, thus, avoiding the need to require tests and documents necessary to certify that the car is the one specified. In this way, it would cut significant expenses for the institution and the users and would accelerate the settlement of payments and collections of debts with the bank.
JP Morgan is already evaluating the system and testing all the tools to put the network into operation. Current plans determine that they will seek to extend their application to all car dealers who have agreements with the financial institution.
This determines that the use of blockchain technology is increasingly close to being fully applicable to all sectors of the economy.
Blockchain Technology: A Very Wide Field for Business Systems
To determine the impact that blockchain technology has had on current business processes, we must be aware that this technology could be applicable in many aspects. Noting that it can expedite administrative processes, increasing transparency, facilitating accounting records and reducing costs.
Being aware of these advantages, many companies worldwide compete to develop better blockchain tools that help their companies to be more efficient. JP Morgan, one of the largest and most powerful banks in the world, has invested great efforts to create a blockchain platform that not only helps them improve financial processes, but can also be used for other more administrative and managerial purposes.
This is the case of the automotive sector in an innovative attempt to improve the security of buyers and final users.
By María Rodríguez