We’ve heard of the wonderful strides blockchain technology has taken to enable industries worldwide opt for more sustainable, scalable and transparent supply chain practices and now these efforts have seeped up over to the automotive industry as well.
As per a report by Coindesk, two crypto based startups, The Fusion Foundation and the Automotive eXchange Platform are trying to revolutionize America’s second hand car industry by putting a whopping 10 million cars on the blockchain!
According to the Fusion Foundation’s official website, it “is an infrastructure protocol designed to connect both traditional and cryptofinance systems that support digitized assets. By leveraging the power and functionality of Fusion’s decentralized blockchain; banks, financial institutions, businesses, governments, and individuals can participate in the tokenized economy.”
The partnership which was announced late in February aims to put AXP’s database of over 10.5 million cars and put them on Fusion Foundation’s digital platform to not only ensure that they are traceable and can be tracked but also that their certification is up to standards.
According to the AXP’s official website, they provide three main services which include, “Single portal aggregating vehicle data nationwide”, their partners get the ability to “become a national auto finance lender resulting in more competitive rates for independent dealers and an increase in used vehicle sales” and the issuance of detailed consumer reports as a “vehicle history report is created and being offered to consumers at a fraction of the cost.”
In the announcement, CEO and Co-founder of AXP, Max Kane said that a lack of accurate information on databases and transparency in the American automobile industry has been a problem for ages, “There’s a million vehicles on the road that have ‘washed’ titles, which means there is fraud there. The insurance industry is hit with billions in fraud because of missing information, drivers providing the wrong information and inaccurate reporting.”
The AXP platform has relationships with a variety of car dealers scattered over the U.S which include over 25,000 independent car dealers.
According to Fusion Foundation’s founder, DJ Qian, the company was built on the same principles as the Ethereum blockchain and that, “We don’t need the government or dealers to worry about running a node yet. We want them to use an application that they are familiar with. The number of nodes will be as much as we need to support a secure blockchain.”