Coinfomania: Where blockchain and cryptos live.

BMW, Ford, Three Others to Debut Blockchain-based Cashless Payment System

Top five automobile companies are jointly working to implement cashless payment and identification system on cars using the blockchain technology, according to an October 14 post on Nikkei Asian Review.

The automakers, which include BMW, General Motors, Ford, Honda, and Renault, will kick-off the initial field tests in November in the United States.

As per the report, the idea for the blockchain-based vehicle identification system is to enable self-paying cars that can allow drivers to automatically pay for parking and highway tolls without any need to use cards or cash.

Developed under the Mobility Open Blockchain Initiative, an international mobility consortium, the ID system assigns a unique digital ID to a particular car, in line with specific data such as ownership and service histories.

The information regarding the vehicle would be used to recognize cars on the road. Also, based on these data, drivers can be to pay fees automatically without any need for specialized tags commonly noticed in current electronic toll collection systems.

Automakers Flock to the Blockchain

Interestingly, automakers are actively exploring possible use cases of blockchain to revitalize the whole auto industry and also, to break loose from the pressure of customers and investors who always demand proof that electric vehicles don’t rely on child labor or conflict minerals.

The advent of blockchain technology has resulted in solutions to common challenges faced by the automakers and can equally improve accountability throughout the supply chain.

A significant development was announced in August, as Volvo Cars introduced the first cars containing recycled cobalt from China, which was mapped using a blockchain. The effort assured full transparency and traceability of essential material in the industry.

For digital currencies, however, British auto manufacturer, Jaguar Land Rover, partnered with a crypto startup, IOTA, to reward drivers in IOTA tokens for participating in a ride-share program and allowing their cars to report useful data automatically.

 

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