Popular car companies to trial blockchain-based payment system

We have come a long way since horse-drawn carriages. In an ever-moving world driven by innovation, even the basics of the wheel are being revolutionized by blockchain technology.

Blockchain was first introduced to the world through its implementation in cryptocurrency, outlined in Bitcoin's whitepaper in 2009, and has since developed into the internationally used technology it is today. To cryptocurrency, blockchain technology acts as a transparent and uncontrolled digital ledger, allowing anyone to see the encrypted network information but giving nobody the ability to edit it. The transparent and easily obtainable information system offered by blockchain allows instant transactions within the digital ledger. These benefits may be emphasized by cryptocurrency but blockchain technology has far more capabilities for revolution than crypto alone. These assets are finally being noticed by big corporations such as car brands. Now five major car companies are joining forces to create and drive their new blockchain system forward.

Car brands utilizing blockchain technology

Multiple major car brands will be coming together to propel the sectors of blockchain technology and motor vehicles. BMW, Honda, Ford, General Motors, and Renault will be working with the Mobility Open Blockchain Initiative (MOBI). These groups alongside MOBI hope to innovate the sphere of transportation through blockchain, distributing and driving adoption through their car brands. MOBI intends to optimize the mobility, energy and infrastructure sectors simultaneously and over time. MOBI will assign these car brands with Vehicle Identification (VID), which will allow drivers to view service history, official ownership documents as well as provide users with a connected wallet which would allow the vehicle to automatically pay for toll gates or traffic fines. At a large adoption view, this implementation of blockchain technology can greatly improve road safety via vehicle communications and decrease traffic congestion using the data storage and sharing systems, as well as advancing the safety of those traveling via third party vehicles or organizations. These are just the basic principles MOBI hopes to incorporate. There are far more exciting things to come from these car companies and blockchain technology.

This is what Head of Blockchain and Emerging Technologies at BMW Group Andre Luckow has had to say:

"We are convinced [, however,] that blockchains represent a real opportunity and will eventually break up the established, centralised market by making it possible to create more decentralised platforms and so give consumers more control over their data. Plus, secure transactions can also be facilitated without intermediaries, paving the way for trialing new business models."

His enthusiasm is further backed by the statement of the founder and CEO of MOBI, Chris Ballinger, quoted below:

"Our vision is to use blockchain technology to help us shape a future of mobility that is greener, safer, and improves the quality of life in our cities. Clearly defined, universal standards are indispensable for achieving this. We are delighted to be driving this new technology forward in partnership with the BMW Group."

Car companies are finally catching up

It's been a long time coming, 10 years after its introduction, but big industry sectors are finally realizing the potential of blockchain technology. The sectors of gaming and social media have recently taken a great liking and use case to blockchain technology, utilizing it to enforce advanced data storage and encrypted information to speed up and secure certain industry aspects. The potential use cases of blockchain are far greater than anything we could possibly imagine today, with new niches and projects popping up every day, the revolution has only now started evolving.

As we wait for more information to become available, learn more about blockchain and cryptocurrency with Bitvalex, a licensed digital wallet and cryptocurrency exchange. Find out more about the economic freedom blockchain is bringing to the world. Buy, sell and store cryptocurrency with Bitvalex and unlock endless possibilities and information at the push of a button.

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