01 September, 2020
Automotive giant BMW's partnership with VeChain continues to bear fruit. After the successful completion of the Startup Garage, VeChain announced the development of a VerifyCar decentralized application based on the VeChainThor blockchain.
VerifyCar is designed to protect against fraudsters who manipulate vehicle data for a profitable sale. According to BMW, on average, sellers inflate the price by around € 3,000 by hiding mileage, repair history, navigation maps and modifying parts to look like new.
Work on the project is still ongoing and according to the German press, much attention is paid to user control over their data.
The Fuchsbriefe edition notes that BMW will not store data collected from the vehicle on the public blockchain VeChain. Instead, the blockchain will be used to create a "fingerprint" that verifies the authenticity of information while it is stored in the owner's car. Having gained access to a decentralized application, the owner can decide for himself who he wants to transfer the data to, for example, a workshop, an insurance company or a potential buyer.
The digital fingerprint also gives both parties confidence that the information has not been tampered with.
In addition, once the dApp is ready, it can be sold to all car manufacturers, including competitors BMW, which will reduce the unique benefits of the solution, but create a favorable network effect for the distribution of the application. The article notes:
“If VerifyCar comes out and is successful, it will be one of the first blockchain-based mainstream applications from the German industry. The potential benefits of this decentralized application seem promising.”