Automakers & Tech Firms Working On A Blockchain-Based Vehicle ID Standard
Image Source: Unsplash

Automakers including Ford and BMW are working with leading tech firms to create common standards for a blockchain-based vehicle ID system. The goal of the system is to reduce fraud in the vehicle sector by ensuring customers can access verifiable data about a car’s history. The project is known as the Mobility Open Blockchain Initiative (MOBI).

Common Blockchain-Based Vehicle ID System

On January 19, 2020, the Vehicle Identity (VID) II Working Group announced the release of the second phase of the industry-wide blockchain-based vehicle identity standard. The VID II Standard is an advancement of the VID I standard, which is essentially a birth certificate for each vehicle as it leaves the factory line.

The main use cases for VID are vehicle registration and traceability of a vehicle’s maintenance history. Vehicle registration via the blockchain will allow numerous disjointed vehicle registration systems globally to connect via a secure and shared ledger. The maintenance traceability will offer a tamper-proof record of the buyer, regulators, and insurers of a car. Consequently, it will help to reduce issues of fraud within the car industry.

Other use cases for VID are supply chain traceability, electric vehicle charging, automotive financing, autonomous vehicle data exchange, and more. In short, VID helps to improve asset visibility, which creates an anchor for data provenance, autonomous economic agents, and other use cases.

Member Of The VID II Working Group

The working group is co-chaired by some of the biggest players in the car sector, such as BMW and Ford. Other participants in the working group are tech firms such as AutoData Group, AWS, Bosch, Car IQ, DENSO, DMX, Hitachi America, IBM, Honda, Kar Auction Services, Ownum, USAA, and Luxoff.

What The Leaders Had To Say

According to the Head of Emerging Technologies at BMW, Andre Luckow, the company strives to create seamless digital solutions. He added that

“The reference architecture in the VID II standard is a crucial building block in the transformation to a frictionless and trusted mobility ecosystem.”

According to Tram Von, the co-founder and COO of MOBI, a vehicle ID system would set the foundation for a fully automated network for usage-based transportation services. Von added that they expected the network to open up trillions of dollars in new opportunities to monetize vehicles, services, data, and infrastructure.

Commenting on the issues, Cynthia Flanigan, Director, Vehicle Research and Technology, Ford Research and Advanced Engineering, said that Ford believed the research into a vehicle ID system could lead to a better ownership experience. Flanigan added that the technology could help to simplify the purchase process in the future.

The Blockchain Could Create A More Transparent Future

The VID II system, which is based on common blockchain-based standards, could create a more transparent, efficient, and safe registration/maintenance future for the car industry. Both sellers and buyers will have more transparent records.

For sellers, it will ensure they are rewarded for a stellar maintenance record. For agencies, it will ensure that they benefit from efficient processes and record keeping.

The integration of the blockchain into a common vehicle ID standard will benefit everyone. It will promote the use of the blockchain in more industries globally once the benefits start to become obvious.

VID II is a building block to a future with more transparent, efficient, and safer vehicle registration and maintenance. Both the buyer and seller will have a more reliable record that can open up opportunities for increased market value for the seller and an increased sense of security for the buyer. Agencies that process vehicle records will reap the benefits of efficient processing and tracking of records.

MOBI and its members hope that the VID standards, together with other MOBI standards for blockchain applications in mobility, will reduce frictional inefficiencies, improve mobility services, and enable new business models.

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.

This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.