Crypto Mastermind summary:
Continuously recorded vehicle data are planned to be stored on the VerifyCar App via systems provided by BMW. This is a decentralized app developed by VeChain, which is supposed to identify falsified data via blockchain-technology.
The users of the app would have full control over what information they provide to whom. Others would be easily able to check the authenticity of the data by comparing it with the data in the blockchain.
Already in 2019, some of the world’s largest automotive companies supported the development of a blockchain-based vehicle-identification-system. VeChain’s VerifyCar-app would be one of the first blockchain-based mass applications in the automotive sector.
After the successful completion of the „BMW-startup-garage“ program, VeChain now enters the next round with BMW. Already in April 2019, the block chain company entered into a partnership with the German car manufacturer. The next step is now the completion of the decentralized app (dApp) ‚VerifyCar‘. This was developed on the basis of the VeChain Thor-blockchain and is primarily intended to protect users against data forgery. Regularly stored data through the BMW systems in the blockchain is used to identify deviating values.
Counterfeit protection in the automotive sector through blockchain-app
The hardware provided by BMW will be used to continuously record data such as mileage, repairs or services. These data are then secured in the VeChain blockchain. In the app, the respective data can then be viewed in detail.
This would protect users e.g. from sellers who change certain data to simulate a higher value of the vehicle. A car owner who would try to do this would be immediately unmasked, as the changed values would not match with the ones on the blockchain. Thus, the VerifyCar solution is designed to protect against fraud and manipulation in the used-car-sector.
Furthermore, BMW argues that VerifyCar users would have more control over the collected data. The user decides for himself to whom he passes on which data:
„By accessing the app, the user decides who he would like to pass on which data, e.g. a workshop or a potential buyer. The recipients can compare the data with the ‚digital fingerprints‘ or reference stamps on the VeChain blockchain. If clear data and the reference on the blockchain match, the recipient knows that the data is authentic.“
According to BMW estimates, vehicle data manipulation costs about 3.000€ per vehicle in Germany alone. This could falsify the data of many arbitrary components to such an extent that they look new or little used. VerifyCar is intended to put a stop to this procedure.
The future of blockchain technology in the automotive sector
VeChain pays for the costs of operation and development of the system itself. As soon as the app enters the completed phase and is tested, marketing to other car manufacturers is also conceivable. VerifyCar would be one of the first blockchain-based mass applications in German industry. Further contracts would very likely advance the distribution of the app.
BMW, General Motors, Ford, Honda and Renault have already expressed interest in blockchain-based solutions in 2019. In October 2019 the testing of a vehicle-identification-system was announced. This should enable drivers to pay for parking or driving without cash or credit cards. Within the framework of the ‚Mobility Open Blockchain Initiative‘, such a system was developed for usage in the USA.
This means, that there is also increasing demand for blockchain technology in the automotive sector. Tools such as VerifyCar would have many advantages, which makes a potential market for similar products not unlikely.