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What are the Roles of Microsoft Azure and Amazon Web Services in BMW Group's Blockchain Pilot?

BMW Group, a famous global premium manufacturer of motorcycles and automobiles, seeks to expand its pilot blockchain project, dubbed PartChain, to its international supply chains that are muddled in complexity. According to an official announcement, blockchain technology will be instrumental in propelling the traceability and transparency of crucial raw materials and parts as it will ease data sharing.

BMW Group merges blockchain and cloud technologies

BMW Group houses popular brands, such as Rolls-Royce, BMW Motorrad, MINI, and BMW. The Group has 31 assembly and production plants spread across fifteen countries with a workforce of 133,778 employees.

In 2019, PartChain was successfully piloted in the purchase of front lights, and the manufacturer wants to go a step forward to incorporate more international suppliers in the blockchain project. It was initially used in three locations belonging to the automotive lighting supplier, as well as two of the BMW Group’s plants.

For the seamless traceability of parts, BMW Group has combined blockchain and cloud technologies by using Microsoft Azure and Amazon Web Services as this enables the tracking down of components’ origin without permitting any manipulation.

Andreas Wendt, a board member of BMW AG, noted, “PartChain enables tamper-proof and consistently verifiable collection and transaction of data in our supply chain.”

By leveraging on blockchain and cloud technologies, BMW Group intends to thrust the digitalization of purchasing to unprecedented heights as information within international supply chains will be shared and exchanged anonymously and safely.

Blockchain guarantees transparency

Transparency is fundamental when it comes to the supply of finite resources like batteries. By deploying blockchain technology, BMW Group will be in a position to have a transparent extraction of raw materials.

Earlier this year, Mercedes Benz partnered with Circular, a blockchain startup, to trace carbon emissions in the cobalt supply chain. Blockchain technology is, therefore, being integrated into the automotive industry for environmentally friendly practices, as well as the transparency and traceability of raw materials.

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BMW Uses Coinweb And BNB Chain For Loyalty Program

The German automobile company BMW intends to use blockchain technology into its day-to-day business operations and develop a blockchain-based customer loyalty program for BMW’s clients in Thailand.Coinweb, a blockchain infrastructure startup, has been hired by the well-known vehicle manufacturer to serve as its decentralized architecture supplier, and BNB Chain will be used for settling transactions.Two separate stages will be required for the implementation of blockchain technology into BMW’s process.First, the decentralized technology will be included into BMW’s day-to-day operations with the intention of eliminating laborious and time-consuming manual procedures and simplifying the organization’s vehicle finance offerings.During the second stage of the project, Coinweb would be responsible for developing a specialized Web3 application for the customer loyalty program that BMW uses.A rewards system that is based on blockchain technology will be used by the program to incentivise BMW Group consumers.The customer’s tier and position within the ecosystem will be defined by the amount of loyalty points that they have accumulated as a result of the different activities that they have taken.In the future, BMW owners will be able to utilize their credits toward the purchase of products and services from BMW as well as from a connected environment. Transactions will be settled using Binance’s underlying native BNB chain.According to Bjorn Antonsson, head of leasing for BMW Thailand, the company has been closely following the development of decentralized technology and the myriad of ways it may be put to use over the last few years.

Antonsson had high hopes that the incorporation of blockchain technology into their day-to-day operations would result in the elimination of the manual paperwork as well as a contribution to the company’s increased efficiency and transparency.It is not a recent phenomenon that vehicle manufacturers have shown an interest in decentralized technology, and BMW has been associated with the technology since 2018.In the beginning, BMW used blockchain technology in order to monitor its cobalt supply and make certain that its goods were being sourced in an ethical manner. The Italian automaker Alfa Romeo employed blockchain technology to keep track of automobile data, and Ferrari’s latest contract has signaled that the company may also include NFT technology.