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Within a short time span, blockchain was successful in making its impact on various industries including the transportation and logistics sector. It has the capability of completely transforming the way of conducting business by poise changing or even replacing the infrastructure based on its “trust”component.
Blockchain technology got the grip from dispute resolution to administrative efficiency and order tracking.

How Blockchain Works?

A blockchain is a form of distributed ledger technology where transaction data is shared by the nodes (computers) on a network to which transactions are recorded and validated.
Validation may be done by a consensus mechanism performed by the network or otherwise. A block is a part of a blockchain, which records a set of transactions. Once a block is filled, a hash of the contents is created and stored in the subsequent block. This makes the data in each block immutable. Each time a block gets completed, it is stored on each node in the network.

Blockchain and IoT in telematics

To get the most out of blockchain solutions, one needs to integrate it with other technologies such as the Internet of Things (IoT), Artificial Intelligence (AI) and machine learning. With effective supporting technologies in place, the different players across the value chain will gain the ability to track the movement of items in real-time, verify transactions, and automating repetitive processes.

It is expected that by 2020, the number of connected devices will be raised to 50 billion. With the introduction of V2V and V2I communications, the number of connected devices will only proliferate, however, this will lead to the challenge of securely storing that data. With the integration of IoT and Blockchain, the issue of core data capture and security can be solved.
The amalgamation of IoT and blockchain in telematics empowers the manufacturers to add more sensors that will enable the secure capture and storage of engine diagnostics data along with other vehicle performance information.
This information can be further analyzed by using machine learning algorithms to predict the required vehicle maintenance. Blockchain when used in telematics, provides thedecentralized data storage, eliminate a single point of failure, provides a tamper-proof record and enable smart devices to autonomously communicate with one another

Key benefits of using block chain technology

Moreover, the combination of IoT and Blockchain can also be used to ensure the safe delivery of perishable food products by controlling the temperature throughout the transportation process. It also can be used to automate order fulfillment, invoicing and settlements using smart contracts. Each of these capabilities makes Blockchain an ideal component of an IoT solution.

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