The automobile industry is a lucrative field of investment for the blockchain industry with dozens of opportunities and untold riches just waiting in the inefficient bowels of the cumbersome automotive market. There are dozens of avenues of approach and some project have already begun working on introducing their offering into the industry.
Automotive startups have proven to be quite diverse in the blockchain industry and currently offer a number of services, including sales of used vehicles, storage and processing of data on the use of vehicles, sales of elite and exotic vehicles, storage of vehicle data by VIN number, warehousing, accounting, data processing for providing more profitable and individualized services to motorists, sales data on vehicles, sales of new vehicles, including electric vehicles, 3D printed vehicle sales, and so on and so forth. The question remains, however, whether these ventures are successful or utter failures.
There are a number of blockchain projects currently on the market that have proven to be both successful and not so much. We will start our review of such projects with CarVertical.
CarVertical
The project comes from Lithuania, it offers a blockchain-based platform for storing and exchanging data on vehicles. Users can control the level of availability of their vehicle’s data to the public. In addition, the project will offer a marketing service for motorists, which will be provided based on vehicle data (insurance records, maintenance history, repairs, etc.). The platform will aggregate user data and offer certain services with the help of machine learning, such as when to insure the vehicle, when to pass planned maintenance, etc. The data is collected with the help of insurance companies, government agencies and other authorities. The project also offers the possibility of installing a special miner in the OBD slot of the vehicle, which will send the necessary data from the onboard computer in exchange for tokens.
Advantages
An interesting niche project. Thoughtful scheme of exchange and data trade.
Disadvantages
Insufficient functionality when compared to competitors. Work only with used vehicles.
The project has collected 20 million dollars, it is not surprising, because work with data is a very promising topic.
We continue our review with the Australian project Bitcar.
Bitcar
The project offers a trading P2P-platform for sales of luxury and rare vehicles. The target audience of the project is owners of such vehicles who want to sell them, as well as auto investors, who consider buying an expensive car as an investment.
The blockchain platform operates on two ERC20 tokens, the BITCAR, a token for the ICO and project liquidity provision, and the CAR, a stablecoin reflecting the cost of the vehicle model in dollars.
Advantages
Well thought out project monetization scheme. Flexible system of motivation for individual and corporate users.
Disadvantages
Lack of more or less detailed information about the expenditure of funds.
The project expected to collect 22 mln., and raised a total of $9.23 mln. Not bad for the market with such a narrow audience.
Gaus Trade
The next project on our review list is Gaus Trade, a project from Estonia. This project offers a blockchain platform for direct sales of new vehicles from the manufacturer to end buyers. This allows for a significant reduction on the price of vehicles for buyers by removing intermediaries from the supply chain and increasing sales for manufacturers.
Transactions are conducted in the project’s token, which is tied to the value of the vehicle in dollars. The blockchain provides security and transparency of operations. The transaction includes insurance with the possibility of lending, while the smart platform contract provides for the possibility of a refund. Also, the platform offers 3% cashbacks for each purchase.
Advantages
This is a conceptually new blockchain-based product for the automotive market. Wide functionality for the primary market of vehicles. The smart contract is fully operational. A simple and clear operational scheme for buyers and sellers. A well-considered ICO procedure with a flexible bonus system. Realistic idea. The presence of additional functions (insurance, crediting).
Disadvantages
Lack of opportunities for selling used vehicles.
The project’s ICO is set to launch soon with the private sale having already raised 300,000 USD. Gaus Trade is one of the most promising blockchain in auto industry projects with huge potential.
Some projects have not made it on our list, but we would be delighted to say a few words about them.
Mass Vehicle Ledger
Mass Vehicle Ledger (South Korea). The project offers a platform for storing vehicle data, such as its service history, fuel consumption, owners, road accidents, etc. Users of the platform can also order various services, such as repair, insurance, chauffeur calls and rental. The project is aimed not only at individual users, but also at the B2B sector, such as insurance companies, auto services, taxi companies. The platform runs on a mobile application. The platform becomes operational immediately after the purchase of the vehicle.
The ICO has not yet been conducted.
AMO Coin
AMO Coin (South Korea). The project offers a platform designed for trading data for both individual users and corporate clients. Users upload data about their vehicle and driving to the platform using the data collector connected to an OBD port and through the platform application. As a reward, they receive tokens. Afterwards, the platform transmits the data to corporate clients, which process it and offer various services that the user can purchase on the platform.
Among such services are: exchange of spare parts, forecasting problems with the vehicle, customized insurance products and auto repair, P2P-Used Vehicles Trade, video and Audio Streaming, LDM-service for determining the level of traffic in the selected area.
The project does not develop services independently. It provides a platform on which companies develop services with specified functions.
The ICO has not yet been conducted.
AutoBay
AutoBay (Argentina). The project offers a trading platform for large dealers and users. The data about the vehicle is loaded into the blockchain. A wide range of functions will be implemented for dealers, such as the availability of tariffs for uploading large quantities of proposals to the platform and advertising promotion. There will also be a possibility of selling the vehicles through an auction. In addition, the project offers payment by installments and lending through its platform.
The ICO has not yet been conducted.
Automotive
The project was created by a team that already operates a portal for the sale of used vehicles in the US (dashub.com). The project proposes to transfer this service to the blockchain. In the future, the team intends to add many new functions based on vehicle data that will be collected in the blockchain.
The ICO has not yet been concluded.
VLB
Vehicle Lifecycle Blockchain (Russia). This project offers a blockchain platform that will aggregate all the available information about a vehicle, such as its maintenance, repair, insurance history using VLB tokens are entered. Then the data is processed and provided to corporate clients and the state. The potential clients insurance companies, service centers, dealers, the Ministry of Internal Affairs, etc. Corporate clients process this information and form a pool of services for platform users. The project was conceived as a means to optimize the relationship between vehicle owners and contractors. An example of its application is the reduction of the size of insurance prices, the cost of repairs, etc. The project seeks to offer individual conditions to users who provide exhaustive information about their vehicles.
The project has raised 2 million USD.
By Kirill Bezverhi, Roman Bruskov.