Blockchain holds great potential for the future of the automotive industry. Recognizing the benefits of the technology, vehicle producers, IT giants, and financial organizations are already exploring how it can be used in the auto market.
The team behind VLB Token believes the industry can be quickly transformed into an efficient and transparent ecosystem with the use of this innovative technology. VLB, or Vehicle Lifecycle Blockchain, is an ethereum-based platform that is expected to improve the current vehicle lifecycle industry, ensuring increased safety, lower costs, and higher revenues.
The project was developed by CarFix, a Russian maintenance and repair platform that was launched in 2016. The startup has already grown into a major ecosystem that includes more than 500 repair shops, 10 largest spare parts distributors, and leading dealerships. So far, CarFix has processed more than 250,000 repair requests and served 50,000 clients.
The blockchain technology can be used to build a single unchangeable database containing information about every car. The data, which can be used by insurance companies, repair shops, car owners, and other market participants, is always up-to-date and authentic, what guarantees trust between the parties. Besides, it reduces costs by eliminating the need to manually enter and verify data several times.
Lack of trust is one of the serious problems currently faced by the automotive industry. Some car producers tend to hide defects existing in their vehicles even if they know about them form the early stages of production. The blockchain technology will fundamentally change the manufacturing process, making it open and transparent to customers. Vehicle producers will be able to guarantee that their cars have no concealed defects and if a defect is found, it will be immediately repaired by an independent manufacturer or repair shop.
Meantime, insurance companies and repair service providers will be able to boost their revenues by offering personalized and customized solutions to their clients. For instance, insurance companies can develop more efficient policy plans according to car maintenance information, history of road incidents, and other data, while repair shops can deliver better maintenance services based on driving data.
Due to the use of smart contracts, the VLB platform will automate insurance claim procedure, minimize the number of fraudulent claims and car recalls, ensure MSRP (manufacturer’s suggested retail price) adherence by repair shops and car dealers.
With VLB, car manufacturers will be able to develop more efficient supply chains by monitoring real-time data about original spare part demand by region. Besides, the technology will allow government regulators to control that vehicles’ technical parameters meet regulatory requirements.
Last week, CarFix announced they are launching an ICO for the VLB Token on November 27, 2017. The company plans to raise 30,000 ETH that will go on the development and deployment of the project. More than 10,000 ETH worth of VLB Tokens have already been sold to private institutional investors.