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Eliminating Fraudulent Practices with DLT
According to statistics released by the United States Department of Transportation, more than 450,000 vehicles with false odometer readings are sold each year to unsuspecting American car buyers. And this fraudulent practice costs car buyers in the region alone, a massive $1 billion annually.
In a bid to significantly reduce fraudulent practices such as rolled back odometers, flood-damaged vehicles touted in better condition and others, BMW, Ford, and other leaders in the automotive industry are joining forces with the Mobility Open Blockchain Initiative (MOBI) Vehicle Identity (VID) II Working Group to roll out the second iteration of the blockchain-based vehicle identity system.
Fostering Transparency
The team says VID comes with two key practical use cases: Vehicle registration and maintain traceability. Specifically, blockchain-based vehicle registration makes it possible for formerly disconnected vehicle registration systems in various locations to connect via a secure, shared, and trusted ledger.
The team says the maintenance traceability feature is designed to provide car buyers, regulators, and insurers with a tamper-proof history of each vehicle, thereby curbing fraudulent practices and vehicle information asymmetry.
Commenting on the project, Tram Vo, the COO, and Co-Founder of Mobi reiterated that the blockchain-based vehicle identity solution would open up new opportunities for the monetization of vehicles, while also promoting seamless value transfer.
“A secure digital vehicle identity sets the foundation for a fully automatic network for usage-based transportation services. We expect this network for frictionless transfer of value in the New Economy of Movement to open up trillions of dollars of new opportunities to monetize vehicles, services, data and infrastructure.”
What’s more, the team expects the VID II solution to lay a solid foundation for more transparent, efficient and safer vehicle registration and maintenance, while also enabling both automobile buyers and sellers to have accurate and reliable records.
This way, sellers will have increased market value for their vehicles, while buyers, on the other hand, will have an increased sense of security, knowing fully well that the entire details of their vehicles are accurate.
In related news, last September, BTCManager reported that VeChain (VET) has launched some innovative solutions for the automotive industry, including a system that tracks the entire lifecycle of each vehicle.