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March 01, 2018

Porsche Introducing Blockchain To Cars

Zuffenhausen-based company Porsche is the first automobile manufacturer to implement and successfully test blockchain in a car.

Automotive manufacturers have always embraced technological advances, and now, they are facing another potentially transformational technology - Blockchain. The German automobile giant, in collaboration with the Berlin-based start-up XAIN, is currently testing blockchain applications directly in vehicles.

Transactions using the blockchain technology are secure, can be processed faster than anything before, and store all the information on the public ledger. Every change is recorded in chronologically arranged data blocks, making it transparent and tamper-proof.

Oliver Döring, Financial Strategist at Porsche, is convinced this holds enormous potential:

“We can use blockchain to transfer data more quickly and securely, giving our customers more peace of mind in the future, whether they are charging, parking or need to give a third party, such as a parcel delivery agent, temporary access to the vehicle. We translate the innovative technology into direct benefits for the customer.”

Stated in the press release, the applications tested include locking and unlocking the vehicle via an app, temporary access authorisations and new business models based on encrypted data logging. This could be developed further, for example, to improve autonomous driving functions.

According to Porsche, the car becomes part of the blockchain, making a direct offline connection possible – that is, without diversion through a server. 

The process of opening and closing the car through the app is up to six time faster than before, and efficient cryptographic encryption takes place. All the information can be monitored by the vechile owner at any time.

Porsche’s blockchain technology, which runs on the Ethereum blockchain, makes a direct offline connection possible without the use of a server, the company explained. Third-party providers can be integrated without the need for additional hardware, simply through smart contracts.


The acronym XAIN stands for eXpandable AI Network defined as a blockchain-based, open or permissioned system with a focus on small, low-energy IoT devices that can be embedded in, for example, cars.

XAIN won the first “Porsche Innovation Contest” on the subject of blockchain in the summer of last year, beating over 100 other applicants in the process. 

Following the contest, Porsche worked in collaboration with XAIN over the course of three months to develop and test applications. Blockchain was introduced into the Porsche Panamera using an energy-efficient mining process from XAIN. In addition, Porsche is currently working on further applications for the technology, including in the areas of charging and parking.

XAIN offers various blockchain and artificial intelligence solutions, with a particular focus on intelligent industrial applications. The company has developed a blockchain system in recent years, which significantly reduces the energy consumption of mining. That means the solution XAIN can offer is also suitable for mobile devices and vehicles.

Keeping up with the technology, Porsche was lately working on a first AI, mobile-driven car with Huawei, powered through Huawei Mate 10 mobile phone. You can read all about the project here.

I think we can all agree that an automotive industry giant, like Porsche, can only help bring blockchain, Ethereum and cryptocurrency to the mainstream. It feels great to see the technology being implemented at such high levels in various industries, actually making a difference.

Porsche AG even made an official VIDEO for their Blockchain implementation

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