How The Blockchain Is Impacting The Automotive Industry in Poland

As we keep hearing more about blockchain over the years, the words “revolutionary potential” and “transforming everyday reality” keep arising around it. The blockchain indeed has the leverage to transform certain domains, and the automotive sector could be altered.

In this article, we explore the ways the automotive industry can be altered, and we take the Polish market (one of the biggest across the EU) to explore the potential (and real) impact blockchain technology could bring to the table.

Let’s have a closer look at the potential benefits, such as improved supply chains, streamlined vehicle registrations, and more effective financing and car insurance. We’ll also take a look at a more distant future to figure out potential blockchain implications on the Polish automotive market.

Volkswagen and Supply Chains Enhancements

One of the primary benefits of blockchain in the automotive industry is its ability to provide a secure and immutable record of transactions across the supply chain. In Poland, where automotive companies rely on a complex network of suppliers and sub-suppliers, blockchain enables manufacturers to track the origin of raw materials, such as cobalt and lithium used in electric vehicle batteries. By implementing blockchain-based tracking solutions, Polish automotive firms can ensure that materials are sourced responsibly and comply with European Union regulations.

One of the biggest manufacturers who’s actively using blockchain is Volkswagen. Their ultimate aim is claimed to be to ensure that all their raw materials are sourced in a socially and environmentally fitting way.

They partnered with Minespider to get an effective blockchain-run protocol for the suppliers, sub-suppliers, miners, and recyclers—to work within a unified system. Minespider’s protocol is designed with a three-layer architecture to balance transparency with data security:

• Public Information Layer – with the general data accessible to all stakeholders, promoting transparency.
• Private Data Layer – where sensitive supply chain data is stored in private, unchangeable data blocks, ensuring confidentiality.
• Encryption Layer – Advanced encryption further protects critical information, securing it against unauthorized access.

This approach allows Volkswagen to leverage the benefits of an open-source blockchain while keeping its proprietary data safe. 

In Poland, where car production is a major industry, brands like Fiat, Opel, and Volkswagen rely on complex supply networks. Blockchain helps in tracking parts from suppliers to assembly lines, reducing errors and fraud.

Volkswagen is not the only manufacturer that uses blockchain technology for their supply chain checks. Mitsubishi Motors Europe and Groupe Renault are among the early adopters as well.

CarVertical and Blockchain Use in Vehicle Ownership and Registration

In Poland, vehicle registration and ownership transfers have traditionally relied on fragmented, paper-based systems. 

CarVertical’s adoption of blockchain technology is set to transform the automotive market. By integrating blockchain, CarVertical creates a single, immutable ledger for a vehicle’s history — from its manufacturing details to maintenance records and previous ownership transfers. This technology is especially relevant in Poland, where data inconsistencies and regional discrepancies have long posed challenges.

Blockchain’s decentralized nature ensures that every recorded entry is secure and tamper-proof, reducing the risks of fraud such as odometer manipulation or hidden accident histories. CarVertical consolidates data from various sources, including government registries, insurance records, and service logs, offering Polish buyers and sellers a reliable, transparent vehicle history report. This not only boosts consumer confidence but also streamlines the often cumbersome process of verifying a car’s background.

Ultimately, CarVertical’s blockchain initiative in Poland represents a significant step toward modernizing vehicle registration. This is the way to a more secure, transparent, and efficient automotive market — benefiting individuals, dealerships, and regulatory bodies.

Etherics and Automotive Financing and Insurance

By adopting blockchain technology and leveraging innovations from companies like Etherisc, Poland’s automotive financing and insurance sectors are well-positioned to transform traditional processes in the financial sector of the automotive industry.

The company uses a decentralized insurance protocol to build insurance products. It’s also not just about insurance. Car loans can also be enhanced by using blockchain technology.

Blockchain-enabled smart contracts offer a powerful solution by automating the loan approval process and reducing reliance on traditional paperwork. Automation can decrease administrative overhead by up to 25%, expediting loan disbursements and making financing more accessible to consumers.

Coming back to the topic of insurance, fraud in this section has been a persistent issue in the Polish market. Blockchain’s transparent and immutable ledger helps insurers validate claims swiftly and accurately, curbing fraudulent activities. 

This enhanced verification process can lead to a reduction in processing costs by up to 30%, as noted by McKinsey. Moreover, with claims processing becoming more efficient, insurers are seeing potential reductions in claim resolution times by as much as 40%, ultimately benefiting policyholders through quicker payouts.

Looking Further: The Role of Blockchain in the Future of Transportation

Blockchain, which enables the storage and transmission of information, provides greater transparency and data reliability. By leveraging this technology, verifying the other party in a communication process becomes much easier. It is, therefore, no surprise that blockchain is often associated with the future of transportation, where Machine-to-Machine (M2M) communication will dominate.

In a world filled with autonomous vehicles, seamless information exchange between road users and infrastructure will be crucial. There will be no room for time-consuming verification and authorization processes that require the involvement of vehicle owners or operators. Equipped with embedded systems and IoT sensors that send and receive vast amounts of data, connected cars will need to be properly secured. Partnering with a blockchain software development partner can help implement a decentralized and virtually tamper-proof blockchain system, ensuring the necessary level of protection.

Agata Slater, Blockchain Consultant at IBM, during the main panel discussion at the recent Technology of Tomorrow Conference in Warsaw, Poland noted that web3 will act as a new iteration of the Internet that uses decentralized blockchain to create new business models, new services, and new customer experiences. ‘Web3 could meet the expectations of both customers and businesses in the automotive industry,’ were her exact words.

Conclusion

In conclusion, blockchain is not just a buzzword but a transformative force in Poland’s automotive industry. 

By enhancing transparency across supply chains, modernizing vehicle registration, and streamlining financing and insurance processes, blockchain is addressing long-standing challenges while paving the way for a more efficient and secure ecosystem. 

Early adopters like leading car manufacturers, blockchain-based databases of used vehicle records, and platforms for creating parametric insurance products are already demonstrating how this technology can create trustworthy records, reduce fraud, and lower operational costs.

Moreover, as the industry gears up for a future dominated by connected and autonomous vehicles, blockchain’s role in facilitating real-time, machine-to-machine communication becomes ever more critical. With initiatives steering the transition toward web3, stakeholders — from manufacturers to regulators — are set to benefit from innovative business models and improved customer experiences. Ultimately, the integration of blockchain technology in Poland’s automotive sector heralds a new era of digital transformation, promising a safer, more transparent, and resilient industry.