BMW, an important and famous automobile producer, is testing blockchain technology for tracking mileage in rented cars. The pilot is being carried out by its startup innovation program unveiled during the last February.
BMW Tests Blockchain Technology
Distributed ledger technology (DLT) is changing the way enterprises and businesses work. The BMW Group UK will be working with DOVU, who developed a blockchain system with Alphabet to help BMW testing DLT. The main purpose is to motivate drivers to log mileage in rented cars.
Alex Morris, head of product for DOVU, explained:
“What we’re doing is we’re essentially trying to build out this circular economy on the DOVU platform. [Drivers] can earn tokens, but down the line, they’ll also be able to spend tokens on services – for example, they might be able to get replacement tires or something like that using the DOVU ecosystem. The partner, in this case, BMW, defined the categorization of the reward and that’s defined in a smart contract. As long as the parameters are met for the smart contract, they’ll receive tokens.”
BMW has decided to embrace blockchain technology and this new mileage tracking because the present automatic mileage systems are unreliable. Additionally, they do not provide the information that the company could be using for improving their products.
“Right now, mileage is the most important factor for the resale value of their vehicles. The problem is quite an important one for them to solve, so when we suggested tokens to incentivize them to do that they were very excited,” commented Mr. Morris.
Some days ago, important car makers, including BMW, decided to explore together possible uses of blockchain technology for the automotive industry. An initiative known as MOBI has been launched on May the 5th, with the intention to make transportation ‘safer, more affordable, and more widely accessible using blockchain technology.’
He platform wants to pay attention to different use cases for distributed ledger technology, including digital identity, history location, supply chain, congestion fees, autonomous machine payments, commerce platforms, carbon pricing, and more.
In a statement, Chris Ballinger, MOBI’s CEO said:
“Blockchain and related trust enhancing technologies are poised to redefine the automotive industry and how consumers purchase, insure and use vehicles. By bringing together automakers, suppliers, startups, and government agencies, we can accelerate adoption for the benefit of businesses, consumers and communities.”