Blockchain is a decentralized peer-to-peer system in which each participant maintains a copy of the ledger, eliminating single points of failure. It was originally developed to solve the problems associated with crypto-currencies [23], and it securely manages various data types. The ledger consists of blocks with two parts: the body, containing transactions like monetary exchanges and medical data, and the header, containing metadata such as timestamps and transaction hashes. This structure forms a linked chain, making falsification difficult as the chain lengthens [24]. Fig. 1 illustrates the architecture of the blockchain, showing how these blocks are interconnected and highlighting the importance of the hashes that link them together.

Blockchain includes public (permissionless) blockchains, accessible to everyone, and private (permissioned) blockchains, requiring authorization. Its main characteristics are immutability, decentralization, and the permanence of validated transactions. It offers partial anonymity for transaction participants and uses algorithms for traceability, ensuring a secure, decentralized, and transparent platform [26].

Two key components of blockchain technology significantly enhance its functionality: cryptography and smart contracts.

● Cryptography is fundamental to blockchain security. It uses algorithms to encrypt data, ensuring that information is stored securely and only accessible to authorized parties. Each transaction is digitally signed using a pair of cryptographic keys (public and private), enabling participants to confirm the authenticity of transactions. While preserving the confidentiality of sensitive information. This mechanism not only strengthens the integrity of the blockchain but also preserves the privacy of users [15].

● Smart contracts are automated contracts that have their terms and conditions coded directly into the software. They run on the blockchain and automatically execute and enforce the conditions when certain conditions are met. This means that intermediaries are no longer needed. This process increases efficiency, reduces costs, and improves transparency since all participants can independently verify performance. Moreover, once deployed, smart contracts are immutable, offering higher security for the transactions they manage [27].

By integrating the elements of blockchain, cryptography, and smart contracts, businesses within the automotive sector can substantially enhance their operations, particularly in the real-time tracking of vehicles and components throughout the supply chain. This technological convergence optimizes logistics and inventory management efficiency, safeguards sensitive information, and enhances transparency. In the context of connected vehicles, these solutions strengthen security measures, protect against data tampering, and facilitate safer interactions between vehicles, manufacturers, and consumers.

The Internet of Vehicles (IoV), or connected vehicle concept, refers to vehicles equipped with internet connectivity that utilize Vehicular Ad-hoc Networks (VANET) technology [28]. This advanced integration allows for the real-time transmission of crucial safety data among vehicles, thereby significantly enhancing the driving experience by optimizing safety and efficiency. Recent developments in this field are increasingly focused on the application of blockchain technology in the automotive sector. This technological shift aims to improve the traceability and management of vehicle flows and automotive parts [29].

Blockchain technology is celebrated for its robust security and reliability in data handling. It operates by recording and distributing data across a network, effectively eliminating the risks of duplication or tampering. The key features that make blockchain an innovative solution in the automotive sector include its cryptographic security measures, consensus mechanisms, and immutable nature, ensuring that recorded data cannot be changed retroactively [29].

Furthermore, blockchain’s decentralized architecture removes the need for a central authority, enhancing transparency and user trust. These attributes are key to transforming the way vehicle data is managed, making processes more secure, transparent, and efficient [30].

By integrating blockchain with IoV, businesses can achieve real-time tracking of automotive components, streamline operations, and bolster the security of sensitive data exchanges. Fig. 2 illustrates the IoV or connected vehicle blockchain, highlighting its integration and functionality within the automotive ecosystem.

Recent studies have shown that blockchain can significantly improve security, privacy, and trust in IoV systems. In 2024, Yadav et al. proposed a blockchain-based trust model to improve data integrity and reliability in vehicle-to-vehicle communications. Although their model addresses vulnerabilities in vehicle-to-vehicle communication, some security flaws remain, particularly in managing real-time interactions [20].

Similarly, in 2024, Hussain et al. have investigated blockchain for enhancing trust and access control in IoV, focusing on decentralized systems [33]. However, while their framework improves decentralized access, it is still limited to real-time vehicle interactions. Building on this, in 2023, Castillo et al. have introduced a decentralized simulation workflow to test security protocols in connected vehicles, but their approach faces challenges, as the simulation relies on non-representative datasets, suggesting the need for more comprehensive testing [19].

In addition to these efforts, studies such as Azath et al. and Verma et al. focused on blockchain’s ability to identify malicious nodes and enhance data integrity within vehicular networks [21]. These efforts demonstrated blockchain’s potential but also revealed limitations in scaling solutions for large IoV networks and managing trust effectively.

A comparative analysis of these studies reveals that while blockchain enhances the security of vehicle-to-vehicle communications and trust in IoV persistent challenge such as performance and privacy concerns—continue to affect scalability. Therefore, Research gaps remain regarding the scalability and computational load of blockchain solutions in large, dynamic IoV ecosystems. Future work should focus on refining test environments, improving real-time interactions and resolving scalability and privacy issues to fully exploit the potential of blockchain in connected vehicles.

In this chapter, we analyze blockchain-based solutions for the security of connected vehicles and their integration into the automotive supply chain. The findings are organized into three primary categories: security measures, integration with the automotive supply chain, and the enhancement of physical flow within the automotive supply chain. This organization was established through a systematic literature review and empirical studies, concentrating on the key themes recognized throughout the research process.

● Security Features: This section describes the various security protocols employed in blockchain technology to protect connected vehicles and ensure data integrity. The classification within this section was derived from analyzing different security frameworks and their effectiveness in real-world applications.

● Integration with the Automotive Supply Chain: Findings in this category emerged from case studies that illustrate how blockchain can be leveraged to streamline processes within the automotive industry. The results were categorized based on the degree of integration and the specific benefits observed in different supply chain scenarios.

● Enhancing Physical Flow: The analysis in this section focuses on how blockchain technology facilitates the physical flow of materials within the automotive supply chain. The results are organized according to the main improvements observed, such as increased transparency, trust, and efficiency in product movement. These results have been synthesized from case studies and a thorough review of existing literature, ensuring a comprehensive understanding of the effect of blockchain technology on vehicle safety and supply chain management.

Fig. 4 presents a conceptual mind map outlining the key elements needed to revolutionize automotive security, including AI integration, blockchain technology and future research, all aimed at improving security. The map explores aspects such as cryptographic security, supply chain integration, anomaly detection and quantum-resistant encryption. It also addresses challenges such as scalability, energy consumption and transaction latency, while highlighting the importance of regulatory frameworks and technical solutions for future progress.

Blockchain, recognized as a distributed and immutable ledger, has gained significant traction for ensuring data integrity, security, and resistance to tampering [34]. Its application in connected vehicle security offers an extension of existing solutions towards data provenance [35]. Within a blockchain system, data provenance and privacy are achieved through robust management of authentication and key provisioning, employing unique crypto fingerprints/key pairs (private and public keys) assigned to vehicles and associated data records [36].

Current advancements in the field primarily explore experimentation with local Proof of Work (PoW) or, more commonly, Proof of Elapsed Time (PoET) mechanisms, often relying on trusted Intel CPUs, as well as permissioned license-plate-based blockchain ledgers linked to vehicles via Dedicated Short-Range Communication (DSRC) or cellular connections [37]. Additionally, smart contracts linked to specific vehicle data are useful in blockchain-driven supply chain integrity management, streamlining leasing, and car maintenance services [38]. Blockchain is also adept at facilitating secure vehicular data sharing, mitigating challenges like tampering and privacy breaches [39].

Furthermore, blockchain technology can effectively protect user privacy and increase security in smart vehicles, benefiting users and reducing security threats [40]. A blockchain framework effectively protects connected and autonomous vehicles, offering a 79% success rate in preventing security issues like smart device compromise and user rating alteration [31].

The cryptographic algorithms ensure the secure encryption of the key exchange for communication purposes [31]. Each vehicle’s unique signature is meticulously maintained within the model to promptly detect any fraudulent activities; even minor deviations in signatures trigger immediate alerts. Vehicles securely transmit traffic bytes within the model, including end-to-end encrypted message payloads readable solely by the intended recipient possessing the AES keys [49]. During message sharing via radar systems, vehicles sign their message packets, with signed radar frames subsequently transferred. The recipient can authenticate the sender and proceed with the decryption process [50]. All these message frames and radar shares are stored as blocks within the vehicle’s blockchain network for future verification by law enforcement agencies [31].

In the context of connected vehicle technology, current security measures address the multitude of safety concerns surrounding automotive safety [51]. These measures safeguard all security protocols. Firstly, only authenticated users gain access to the connected vehicle network, with vehicle identity keys linked to digital private keys and public addresses recorded in the blockchain [52].

The integration of blockchain technology provides an essential security framework, enabling swift detection and mitigation of both known and zero-day external and internal threats without disrupting operations [53]. The immutability of the universal ledger ensures superior security levels crucial in the connected vehicle environment, where accidents can occur without time for system updates or antivirus sweeps. Additionally, the absence of centralized points of control alleviates the burden of managing heavy traffic flow, ensuring the network remains scalable as per its original design [54]. Within the Operational Environment Domains, this system acts as a barrier against cyber-terrorist activities, allowing data flow within the system to remain undetected.

Blockchain-based vehicle data marketplace model secures and efficiently shares connected car data, including black box video, while allowing data owners to control their data and access control lists [55]. Blockchain technology enhances connected vehicle security by providing comprehensive and end-to-end protection, ensuring trusted and secure vehicles [10]. Additionally, it ensures trusted communications and prevents falsified information in cooperative ramp merging applications, thereby securing connected vehicle security [56].

Blockchain technology has attracted worldwide interest for its role in authenticating, securing, and optimizing business processes [57]. The Automotive industry is innovative in integrating blockchain technology into different business areas. The combination of the blockchain with the Internet of the vehicle V2V and V2X to secure communication for the benefit of road safety has become part of the academic research interest [58]. Blockchain technology has been suggested for revolutionizing the existing centralized-based identification frameworks to secure the communication among the vehicles and the entire vehicle network mentioned as, Secure and Intelligent Vehicle Network (SIVN) and later Extended SIVN (ESIVN) [59].

In many cases of the automotive supply chain, even a very hostile attacker may not be able to alter the bogus data, since the whole block before getting added to the blockchain, passes through a complex mechanism while getting verified by several thousands of nodes in the network [9]. Therefore, the final block would contain the true information related to the particular auto and that legitimacy can be verified through the smartphone application given. Moreover, if the data is legit, then the del dealer will pay the same amount of gas which will make sure the automotive supply chain entities may never alter the data [60].

Car manufacturers utilize the connected vehicle control unit as an IoT gateway for external communication [36]. Enhancing the security of connected vehicles solely through anti-hacking systems is challenging due to the numerous access points [61]. The blockchain serves as an immutable peer-to-peer ledger capable of recording product data within the vehicle supply chain. As participants in the automotive supply chain change rapidly under the circular economy paradigm, ensuring the credibility of Vehicle ID, cross-chain product data, and billing on the blockchain network is crucial [62]. Blockchain standards for Vehicle-to-X communication are evolving to improve data interoperability. However, some argue that blockchain primarily focuses on network security, trust, and governance management rather than enhancing data interoperability [63]. Agreement among participants on a standard and allocation of IT resources for development and operation is necessary.

Blockchain, as a decentralized technology, addresses the shortcomings of centralized database systems, including single points of failure, unauthorized data access, and insufficient privacy and security [64]. Consequently, blockchain emerges as a promising solution for optimizing the physical flow within automotive supply chains [65]. Many companies across industries have developed blockchain supply chain solutions based on permissioned blockchains (private blockchains) due to their superior security, privacy, and performance compared to public blockchains. Although permissioned blockchains offer security, only authorized nodes can access transaction data [66]. However, with the automotive supply chain’s increasing complexity and the integration of external entities for Vehicle-to-X communication, the public may perceive a participant as a “trusted” company within the blockchain network, raising concerns regarding product security and integrity throughout the supply chain [67].

Supply chain physical flows have the same status as information and financial flows in logistics management. Nowadays, organizations seek for combined physical and informational flow to move around the resources (or products) from supplier to internal organization through a network of distribution and end users [68]. Automotive parts suppliers in the automotive industry at the different levels of the product structure send these parts assembled or disassembled to the assembly plant shop line either locally or worldwide. It is clear that the part message during the messaging process is to be trustworthy and secure, so the role of the suppliers is the most crucial one in the process [30]. Blockchain technology is designed to prove the traceability, authenticity, and integrity of various kinds of products in the supply chain. A highly secure blockchain-based solution streamlines cross-border automotive part movements by assigning digital compliance certificates to individuals, organizations, or countries using blockchain and smart contract technologies [69].

Blockchain, hailed as distributed ledger technology focused on security and confidentiality [30], ensures privacy by restricting access to authorized roles only. The real-time parts management system must embrace blockchain technology to establish a networked and transparent traceable system. The privacy-enhancing transport market discourages combining access control with data posting, a practice known as subjective access policy [70]. With the advent of the Internet of Vehicles (IoV), drones, vehicles, and roadside units can securely communicate and share interconnected transport data over the blockchain. Blockchain effectively manages all links between transport data and owner keys for specific nodes, preventing tampering with vehicle nodes executing behavioral tasks and allowing vehicles to participate in consensus methods for link-sharing agreements [35].

Blockchain technology has established itself as a leading solution for Internet of Vehicles (IoV) applications, providing a secure, scalable, transparent, and tamper-proof data-sharing platform among entities [35]. Introducing a novel blockchain infrastructure tailored for IoV systems ensures secure, anonymous transactions for embedded systems [71]. This infrastructure prioritizes lightweight and rapid verification, allowing the Industrial Internet of Vehicles (IIoV) to transform non-trust environments for resource exchange. Specifically, blockchain-based reputation mechanisms are implemented to maintain vehicle and parts reputation scores [71].

Furthermore, an innovative scheme has been devised to enable secure, real-time transmission in multi-hop vehicular networks [72]. This approach combines pay channel-based off-chain systems with an on-chain game theory-proof scheme to achieve low latency and time-coordinated systems within this network environment. A lightweight, end-to-end product traceability system for the Internet of Vehicles (IoV) can be achieved using an authorization-based blockchain [73]. This approach enhances transparency and security, enabling secure data exchange between authorized stakeholders while guaranteeing unforgeable information on the provenance and movement of products, thus promoting trust in the supply chain.

A fundamental aspect of automotive manufacturing is its collaborative nature, necessitating extensive data sharing between entities along the supply chain [62]. The significance of this data, encompassing specific vehicle details, emission values, and fuel consumption, crucial for calculating fleet or supply chain-level efficiencies, demands high quality and accuracy.

While data quality can be easily ensured, accuracy mandates validation through a verification mechanism or trust-based relationships. Centralized intermediaries can establish necessary trust relationships among parties, but pose risks of data breaches or modifications.

In contrast, blockchain, a decentralized solution, ensures data trust by combining decentralization and trustworthiness, leading to successful commercial applications [74]. This reduces intermediary costs for governmental authorities, primarily constituted by transaction costs, thereby encouraging technology adoption and contributing significantly to institutional economics.

However, transparency and privacy pose challenges, sparking disputes among consortium members seeking secure information sharing [62]. While crucial information must be shared, the need for privacy protection and data control complicates matters. Entities may find it unacceptable to disclose strategic information to other consortium members without hiding it from others.

The rapid expansion of the automotive industry has exposed it to various malicious activities, posing escalating security threats to vehicle identity, integrity, and resilience within its supply chain [75]. In the automotive manufacturing lifecycle, vehicles incorporate billions of parts, necessitating the transmission of logistics information among numerous stakeholders. Introducing digital technology to revolutionize these processes can mitigate cyber threats and ensure continuous validation of a secure supply chain. However, the vast volume of data poses the initial challenge: establishing an efficient and reliable data-sharing infrastructure among participants striving for comprehensive optimization.

To address these challenges, each car part, laden with vehicle data, contains thousands to millions of attributes, requiring the system to process an unprecedented volume of data points annually. Addressing these challenges mandates a solution centered on extensive decentralization and the absence of intermediary authorities [76].

The manufacturing process starts with the creation of a permissioned blockchain, incorporating public input and API auxiliary validation. During the master control phase, various business aspects are unified using different smart contract templates and calls. Transactions are managed by organizing blocks in chronological order and creating hash digital proofs. Data preservation involves storing significant amounts of data and sharing accumulated information. Credit upload connects obtained credit with hash digital proofs and block numbers. Credit inquiries use timestamps to retrieve historical credit uploads. The parameter starting phase initializes user accounts for bidding and enables owners to participate in specific smart contracts, facilitating successful car starts and tests. Key storage combines user private/public keys and file encryption [77].

The focus is on using blockchain technology to enhance security and logistics in the automotive supply chain, particularly for connected vehicles. While much of the research remains theoretical, various studies have explored practical implementations [78]. For example, Xia et al. discussed a method for exchanging data between vehicles and entities, highlighting improved vehicle operations through shared event information [79]. Demir et al. proposed a tamper-free ledger for auto insurance records, improving the transaction experience and dispute resolution [80]. Patel et al. introduced the VehicleChain scheme, improving secure vehicle-to-vehicle and vehicle-to-infrastructure communications [81]. In addition, Abbade et al. presented a blockchain architecture for secure vehicle data recording, addressing key challenges such as odometer fraud [82].

Notable examples include the Vehicular network Based Consensus Algorithm (VBCA) and Full Duplex Non-Orthogonal Multiple Access (FD-NOMA), which have shown potential for improving data security and operational efficiency [83]. Theoretical evaluations of these technologies suggest improvements in transaction throughput and latency [84]. However, the experimental designs used in these studies vary, and specific details concerning the scale and duration of experiments are often lacking. This highlights the need for further research into practical implementation, including controlled trials that assess the effectiveness of these solutions under real-life conditions. Such future studies could provide valuable insights into the opportunities and challenges offered by blockchain technology, particularly for the automotive supply chain.

The Table 1 below summarizes various articles focusing on the integration of blockchain technology into vehicle networks and automotive supply chains. Each article contributes to enhancing security, efficiency, or trust in these systems using different methods and algorithms. However, they also acknowledge limitations such as integration challenges, resource-intensive algorithms, and privacy concerns. The methods employed include blockchain frameworks, consensus algorithms, cryptographic protocols, and distributed frameworks.