World’s Top Vehicle Manufacturers is Leveraging Blockchain-Based “Birth Certificates” to Combat Used Car Fraud

World’s Top Vehicle Manufacturers is Leveraging Blockchain-Based “Birth Certificates” to Combat Used Car Fraud

World’s Top Vehicle Manufacturers is Leveraging Blockchain-Based “Birth Certificates” to Combat Used Car Fraud

According to the latest announcement, Mobility Open Blockchain Initiative, a member-led consortium that works to create and promote high industry standards for smart mobility Blockchain adoption, has launched an initiative in order to track the purchase and maintenance of the history of second-hand vehicles.

Mobility Open Blockchain Initiative (MOBI) is aiming to combat used car fraud with Blockchain-powered “birth certificates.” 

Established in 2018, MOBI missioned to accelerate the adoption of Blockchain technology in the automotive domain.

It was reported that the initiative will utilize distributed ledger technology, Blockchain, to track the registration of vehicles and maintenance history using “VID II,” which is MOBI’s second vehicle identification standard. 

Apart from the automotive industry, other use cases for VID include supply chain, autonomous vehicle data exchange, supply chain, etc.

MOBI’s VID II is co-chaired by the world’s top vehicle manufacturers BMW and Ford. Other supporting initiatives are IBM, Quantstamp, Honda, Hitachi America, AutoData Group, Bosc, Quantstamp, among others. 

How will VID II Help?

According to the report published, the initiative will help reduce fraud in the second-hand vehicle markets and maintain traceability.

The report further revealed that on the Blockchain, vehicle registration grants previously disconnected vehicle registration systems between states and countries to connect using a distributed shared ledger. Furthermore, maintenance traceability will offer a tamper-proof history. 

MOBI COO and Co-Founder Tram Vo expressed his opinions regarding this initiative. He stated that he expects this automatic network for frictionless transfer of value in the New Economy Movement to bring millions of opportunities and possibilities to monetize vehicles, services, and infrastructure.

BMW’s Andre Luckow, believes that the reference architecture in the VID II standard is a key building block in reconstructing a frictionless mobility ecosystem.

Cynthia Flanigan, Director, Vehicle Research and Technology, Ford Research and Advanced Engineering, also believes that this research into vehicle identity technology could bring better opportunities in terms of ownership and help clarify the purchasing process in the near future.

It is believed that the VID standards, along with other MOBI standards for Blockchain applications in the mobility ecosystem, will increase mobility services and lessen frictional inefficiencies to a great extent. 

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