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How BMW is Using Blockchain to Revolutionize its Supply Chain

Blockchain is a technology that allows data to be stored and shared in a secure and transparent way. It has many potential applications in various industries, such as finance, healthcare, and logistics. One of the pioneers in adopting blockchain technology in the automotive sector is BMW, the German luxury car maker.

November 8, 2023 at 1:00 pm

Updated November  8, 2023 at 1:00 pm

BMW Blockchain
BMW Blockchain

What is blockchain and why is it important for the automotive industry?

Blockchain is a system of distributed ledgers that records transactions and data in a decentralized and immutable way. Each transaction or data entry is verified by a network of nodes and stored in a block, which is linked to the previous block, forming a chain. This way, the data is transparent and verifiable by anyone who has access to the network and cannot be altered or tampered with.

Blockchain has many advantages for the automotive industry, especially for the complex and global supply chains that involve multiple partners and stages. Some of the benefits of blockchain are:

Traceability: Blockchain can provide a clear and accurate record of the origin, movement, and quality of the components and raw materials used in car production. This can help ensure compliance with environmental and social standards, prevent counterfeit or defective parts, and optimize inventory and logistics management.

Security: Blockchain can protect the data and transactions from unauthorized access, manipulation, or theft. It can also enable secure and efficient data sharing among the supply chain partners, without the need for intermediaries or central authorities.

Efficiency: Blockchain can reduce the administrative and operational costs and time involved in the supply chain processes. It can also automate and streamline the processes, such as smart contracts, payments, and verification, using predefined rules and conditions.

Innovation: Blockchain can enable new business models and opportunities for the automotive industry, such as peer-to-peer car sharing, vehicle identity and ownership, digital mobility services, and data monetization.

How is BMW using blockchain to drive supply chain transparency?

One of the projects that BMW is using blockchain for is Part Chain, which aims to ensure seamless traceability of components and raw materials in its supply chain. The project was launched in 2019, with a pilot involving the purchasing of front lights. In 2020, BMW expanded the project to include more suppliers and components.

PartChain uses cloud technologies, such as Amazon Web Services and Microsoft Azure, in addition to blockchain solutions. This allows the origin of components to be tracked between all the participating partners, without any risk of manipulation. The data is collected and stored in a standardized and anonymized format, ensuring data privacy and security.

The goal of PartChain is to create an open platform that will allow data within supply chains to be exchanged and shared safely and transparently across the industry. This will enable the BMW Group and its partners to improve the quality, efficiency, and sustainability of their supply chains.

How is BMW using blockchain to improve customer experience and foster innovation?

Besides supply chain transparency, BMW is also using blockchain to enhance its customer experience and foster innovation. Some of the examples are:

VerifyCar: VerifyCar is a blockchain-based app that allows customers to check the mileage and service history of a used BMW car. The app uses the VeChainThor blockchain to store the data of the car, such as the mileage, service records, and accident reports. The data is verified by BMW and cannot be manipulated by third parties. This way, the app can help customers avoid fraud and make informed decisions when buying a used car.

BMW Vantage: BMW Vantage is a blockchain-based loyalty program that rewards customers for their interactions with BMW, such as test drives, purchases, and feedback. The customers can earn Vantage tokens, which are stored on the Lition blockchain, and redeem them for various benefits, such as discounts, services, and experiences. The program also allows customers to share their data and preferences with BMW, which can help the company tailor its products and services to the customers’ needs and wants.

Startup Garage: Startup Garage is a program that supports and collaborates with innovative startups that have potential applications for the automotive industry. The program focuses on four areas: customer-centricity, sustainability, digitalization, and future mobility. Blockchain is one of the technologies that the program is interested in. The program provides the startups with access to BMW’s resources, expertise, and network, and helps them develop and test their solutions.


Blockchain is a technology that has the potential to transform the automotive industry and create value for both the car makers and the customers. BMW is one of the leaders in adopting and experimenting with blockchain technology in various aspects of its business, such as supply chain transparency, customer experience, and innovation. By doing so, BMW is not only improving its efficiency, quality, and sustainability, but also enhancing its competitiveness and reputation in the market.


Remember, investing in cryptocurrencies involves risks, and it’s important to conduct thorough research and seek professional advice before making any financial decisions. (Please keep in mind that this post is solely for informative purposes and should not be construed as financial or investment advice.)


Blockchain is a distributed ledger technology ensuring secure and tamper-proof transactions, shared across a network.

Yes, blockchain enhances cybersecurity by making data difficult to hack or alter through its decentralized structure.

Blockchains record cryptocurrency transactions like Bitcoin securely and transparently.

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