Siemens Considers Using Blockchain Tech for Carsharing

Self-proclaimed electrification, automation and digitalization global giant Siemens has shown an interest in adopting blockchain-based solutions. In particular, Siemens is exploring the use of blockchain in the transportation industry, as per a report by Forbes on July 15.

According to Siemens Corporate Technology’s head of cybersecurity and blockchain, Andreas Kind, Siemens is looking to incorporate blockchain tech into carsharing via Siemens Mobility — one of Siemens’ subsidiaries.

According to the Enterprise CarShare website, carsharing reportedly refers to using or renting a car for a short period of time. As a popular example, the report cites the rental service Zipcar.

One issue with this system, says Kind, is with the associated fueling cards, which allow the car renters to refill on gas. However, using the card is subject to a number of restrictions on the customer end e.g. they can only use the card at specific stations and they are sometimes stolen. Kind said he believes that this type of technology could be improved via a blockchain solution:

"It's not only inconvenient for the drivers, it's inconvenient for the companies because fueling 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."

Siemens is also considering other areas within the transportation sector for blockchain solutions. Siemens' Corporate Technology reportedly presented on a possible blockchain solution for “blockchain-based smart parking” at Bosch's 2019 Connected World conference.

According to the report, Siemens is also considering blockchain use cases for supply chains and manufacturing. Siemens is also apparently leaning toward using a permissioned blockchain, however, the firm is still in the testing and discovery phase, and is still reportedly exploring the viability of various use cases.

As previously reported by Cointelegraph, Grand View Research has suggested that blockchain is a digital technology driving market growth in the global transportation management systems (TMS) sector. Thanks in part to blockchain and other technological innovations, the TMS market is projected to reach $198.82 billion by 2025 with a compound annual growth rate of 16.2%.