From early on in their development, blockchains have been considered for creating online marketplaces of various types of data. These datasets can range from vehicle driving data used to train self-driving cars, to other useful information like vehicle history data which can significantly simplify the automotive market. The automotive market suffers from a lack of vehicle history data which is very useful for new and used cars as it helps buyers accurately gauge the condition of a vehicle. Here’s a look at how the startup AutoBlock is planning to employ blockchains for tracking vehicular data.
Problems with Automotive Industry Sales
The global car sales are increasing at a decreasing rate because of a host of factors such as environmental concerns, widespread use of ride-sharing services like Uber and Lyft, competition from upcoming electric cars and the growing popularity of self-driven cars. Additionally, the sale of used cars is also declining according to a recent report released by The Society of Motor Manufacturers & Traders (SMMT). According to the AutoBlock white paper, there are over 6,000 car dealers in the U.K. that are competing over the market share of retail sales. AutoBlock argues that larger companies, such as Autotrader and eBay, are maintaining a monopoly on the market, pushing prices down and smaller car retailers into the corner. AutoBlock aims to improve these conditions by bringing car sales to a single unified platform which caters to both fiat and cryptocurrencies. Using blockchains to facilitate everything from the listing to the actual transfer will result in reduced effort and cost through a decentralised marketplace because of perks such as free listings, free advertising, and low transaction costs.
The auto industry gathers much of its required data from centralised databases, such as those maintained by car manufacturers, and are therefore subject to manipulations and lack of transparency. By using blockchains for storing and maintaining these datasets, the information becomes much more transparent and accessible. There exists a need for a decentralised global database that gives users immediate access to a wide range of vehicle valuations by age, mileage, spec, and location to help them make a more informed decision. Currently, there are very few, if any, car dealership that accepts payments for cars through cryptocurrencies. There’s a clear need for online dealerships that can accept payment for cars in cryptocurrencies as blockchain is steadily gaining more users across the world.
Solutions Offered by AutoBlock
AutoBlock’s main focus is the hybrid blockchain platform “autocoincars.com” which allows for the seamless transfer of vehicle data using smart contracts. The blockchain powered platform allows for all kinds of vehicles to be listed including new, used and antique cars. What’s unique about this platform is that it allows for people to purchase cars with the currency of their choice – whether it is fiat or crypto. Since there is a dearth of car dealers that accept cryptocurrencies, AutoBlock has created AutoCoin which can handle automated conversion from any other cryptocurrency or from fiat. With AutoCoin, users and dealers get charged significantly lower transaction fees and also are prevented against identity theft since their bank details are not needed for the transaction. AutoCoin also enables cross-border international payments without going through intermediaries. Dealers also benefit from the free exposure of vehicles offered for sale worldwide via autocoincars.com.
AutoBlock and the AutoCoin powered platform can fill a unique niche that has so far been underserved by combining blockchain technology with the large dataset of valuable data. Information ranging from vehicle maintenance and ownership history to mileage and condition can help make better decisions for both businesses and consumers. Such a repository of data has a great deal of value for insurance companies to access full vehicles specifications. Additionally, the information is also precious for valuations for those buying or selling used cars