Since the time we are seeing Internet of Things rising, we’re also witnessing Bitcoin and blockchain’s practical applications rise manifold.  The idea of harnessing the potential of Internet of Things to create Driver-less Cars will bring about a sea change in a person’s daily routine.

But these cars will have certain peculiar requirements. These cars will be composed of certain special sensors and devices for communicating within the car. Additionally, cars will be equipped to communicate in vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) modes. Therefore, driverless cars will need to pay for reliable communication services.

Not only this, the use of driverless cars will call up for payments for a hell load of a wide variety of other services, such as self-parking, tolls, Wi-Fi hotspots, radars, laser rangefinders, and navigation data. Further, a plan will be laid to furnish certain unforeseen new services to support the success of driverless cars.

For smooth operation, driverless cars will require the use of various above mentioned services, many of them being paid for on a per-use basis. Therefore, in order to add to users’ convenience, these payments must not involve subscription to numerous service providers, and must not be heavy on pockets due to expensive fees charged by banks or credit and debit card issuers.

Bitcoin and its blockchain ledger technology can step in and beautify the advancement plans.  The soul of novelty in this technology rests in the fact that it is decentralized-it does not require trusted authority. So contrary to legal contracts, blockchain smart contracts have no physical enforcing authority. Smart contracts are, indeed, computer algorithms that can verify, execute, and enforce the terms of a business agreement with no human intervention. This, thereby, eliminates role of a lawyer, a policeman, or an accountant.

Henceforth, successful and profitable synchronization of IoT, blockchain technology and entrepreneurship, the world will be able to come up with Bitcoin-based capabilities for frictionless micropayments befitting driverless car technology.

The following examples illustrate that driverless car is a promising area for growth and innovation, and definitely benefitted from smart contracts or smart assets:

Google is all-set to roll down the ramp with the RideWith application, equipped with “Waze’s navigation system to learn the routes drivers most frequently take to work and match them up with people looking for a ride in the same direction,” according to Reuters. “Commuters pay fellow drivers a small fee for a ride to and from work.”

The driverless taxi or shared autonomous vehicle (SAV) is another innovative concept, which Professors Kara M. Kockelman and Daniel J. Fagnant presented in early 2016.

Though the Wall Street Journal claims that, year 2020 might witness Nissan, Toyota, and Honda rolling out their first driverless cars, the technology might encounter several ethical barriers. It would be tough for the government officials to adapt to the future of land transportation. Further, car insurance and proof of ownership protocols will be modified accordingly. And, in these areas, to be specific, bitcoin and blockchain will disrupt the present ways of managing car insurance, ownership, and security.