The company is evaluating the use of blockchain technology to improve the supply chain of raw materials, as well as to facilitate the commercialization of automobiles
The renowned Japanese automobile company Toyota announced it started working on blockchain solutions to store important data. The name of this new plan is Toyota Blockchain Lab, and it will be possible thanks to the collaboration of subsidiary companies specialized in the matter. The tests will soon begin in conjunction with the collaborating corporations and 6 companies that belong to Toyota.
One of the main objectives of Toyota is to create tools that facilitate the promotion of innovative technologies. For this reason, the company seeks to implement blockchain technology as part of the “Women City” macro project, the renowned smart city plan. The idea of Toyota is to become a “mobility company”, using current technologies.
Although the development tests begin at this moment, the subsidiaries officially launched the Toyota Blockchain Lab in mid-April 2019. Some of the subsidiaries that participated are Toyota Motor Corporation and Toyota Financial Services Corporation.
The company offered data that shows that the laboratory is divided into four research and creation areas. Among them is the BUILD project, a tool that belongs to an identity management program that will use blockchain technology.
Currently, some services manage the identity of each person when registering on different platforms. In this way, it can be cumbersome to conduct each registration in all the tools necessary for the operation of new technological solutions. This can be time consuming and money consuming.
However, implementing a decentralized blockchain-based system can ensure a single registration system that goes from one form platform to another with the authorization of the user. This would help service providers to offer a more secure system and prevent hacking incursions. For the user, it would be a way to facilitate the control of the tools, their registration, and their personal information.
A Record of the vehicle’s Parts
Another way of using blockchain technology could allow knowing and controlling the situation of each vehicle. All of this, keeping a record related to the parts handling, repair, and change operations in a platform visible and shared only by authorized parties.
In this way, the vehicle manufacturing company, the insurance company, and the user could store the history of each car without running the risk of losing the information.
Some data that could store the blockchain platform is information such as the owner’s identity documents, mileage, repairs, and shared uses. Having this information could help to create a valuation of the vehicle that can help during the sale of the car.
The use of this technology could still open a vast field of solutions and tools that can help make life easier for users. Some of these applications can help with instant payment of tolls, instant payments for parking lots, permission to share the vehicle with another user or a simple traffic license update process.
Another possible use of blockchain technology is helping the company to take greater control of the supply chain by creating a history of movements with companies that supply raw materials, among others. This is something that can also assist Toyota in vehicle distribution and marketing.
Different Uses of Blockchain Technology
Toyota also talked about an option that it has been evaluating to implement blockchain technology. It would be possible to digitize the value of the vehicles, allowing them to “tokenize the property”. This would help in the contracting of services and leases.
Although this is part of different plans that the company is evaluating in development and research, company spokespersons highlighted their commitment and motivation to improve these solutions.
Toyota already has more than 3 years developing an assembly plan for an entire blockchain system that allows updating its services and improving the efficiency of its products. Blockchain technology could be a support for all these plans to become true.
By María Rodríguez