Blockchain-based BlocVehicle Set to Breathe New Life into Used Car Market

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by Darya Rudz · 4 min read
Blockchain-based BlocVehicle Set to Breathe New Life into Used Car Market
Photo: BlocVehicle / YouTube

A new platform enables generation of profits by leasing out individual cars. By sharing vehicle history data, anyone can rent a car easily at reasonable rates, which can become a foundation of an economy business model, based on vehicle sharing.

Currently, the world is seeing the emergence of a hyper-connected society in which digital technologies connect a person to others, people to things and online world to offline. Without space and time constraints, people can share their lives through social networks, creating a bond of global relationships. Their private lives are connected to the Internet which has become an essential part of modern world.

The problem is, however, that the information produced in the web and the financial gain that may come from it are being held by ‘Big Brothers’ like Facebook, Google and Twitter. A lot of the online transactions are also governed and managed by intermediary agencies as well, requiring unnecessarily high costs for individuals.

Suppose the systems of these internet platform providers and intermediary agencies are hacked. Severe damage to service users will ensue, which indicates the need for a new technology with a decentralized system and a P2P transaction method requiring no intermediaries in between. Now such a technology exists. This is BlocVehicle, an economy of sharing service, where anyone can buy, sell, or share their used cars directly with others.

BlocVehicle is a platform that allows people to buy or sell their used cars without any interference from dealerships. With the creation of a consortium with five other venture businesses, BlocVehicle was recently founded in Singapore, with plans to build ‘a foundation of network that deals in ‘P2P vehicle transaction’, according to the CEO of BlocVehicle, Chang-ha Lee. The project is of 2.6 million dollars (USD) in its scale. The participants of the consortium includes; BaNET Information Technology Co. Ltd., Saltware Inc., Softbase Inc., Compass Systems Inc., and ICK International Inc..

According to the whitepaper, the mission of the BlocVehicle Team is to build a decentralized blockchain-based network that will allow all users to store their car history data in a public ledger, and to make it accessible. The ultimate purpose of BlocVehicle is to breathe life into a new form of an ecological system of sharing and buying/selling vehicles between BlocVehicle users, primarily by basing its system on the car history data that is uploaded to a blockchain. To achieve that, P2P network is used. BlocVehicle will provide P2P car sharing service and P2P dealings of second-hand vehicles.

The litepaper reads:

“Any user may register his/her vehicle for car sharing/rental to any individual user. Users who register their vehicles for car sharing/rental may be able to generate profit, while users who apply for rentals may be able to drive a vehicle in certified conditions within reasonable rates.”

It is further explained:

“Any user will be able to initiate a dealing of second-hand vehicles by themselves without having to go through a dealer. Paying dealership fees will become unnecessary, and as the blockchain system guarantees complete transparency, scams or frauds will be impossible in the transaction.”

The tokens of BlocVehicle are called Vehicle Tokens (VCL tokens), the currency accepted is Ethereum. The finite number of 1,000 million VCL will be supplied in total, with no additional tokens. Pre-ICO will start on August 15, and last till September 14. Then ICO will take place, lasting till October, 31. The ICO will be conducted in three steps, during which 300,000,000 VCL is expected to be distributed. Bounty programs are being run simultaneously with the token promotions as well, which may be good news for many of the ICO hunters and crypto enthusiasts.

In 2016, the total number of transactions of used-cars was recorded to be about 90 million, which is a sizable market on its own. According to the latest report of Technavio, the used-card markets worldwide is expected to have more than 128.42 million transactions until the year of 2021, with the anticipated compound annual growth rate of 7%.

Additionally, the number of travelers – who remain one of the largest portions of the customers in the rental-car business – has exceeded 1.2 billion with higher-than-4% annual growth rate. Alongside this, there are more than 1.2 billion vehicles driven around the world at any given moment, all of which that can potentially become a rental vehicle on its own, a part of the ultimatum that BlocVehicle is currently planning for as well.

With the added prospect of potentially growing into an open platform structure that may enable the participation of existing businesses of similar field, BlocVehicle is expected to cause an interesting ripple to how the market is today.

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