Automotive company MG, owned by Chinese auto company SAIC Motor, has integrated blockchain technology with its newly fashioned car, MG Astor.
The new SUV utilized blockchain-powered “Digital Passport” to record the user’s driving data, according to a LiveMint report. MG has partnered with a blockchain-based Indian agency, Koinearth, for the project. According to reports, the agency will facilitate the commercialization of the new SUV.
Other automotive companies such as Renault, Ford, GM, Honda and BMW are designing a similar product. But, the newly designed MG Astor is the first commercialized car in India that includes a digital passport.
More information about the new SUV
The newly launched car records data pertaining to the user’s driving prowess. By collaborating with Koinearth, MG will be able to upload the data into a “Digital Passport” giving the car a digital identity. Driving data about gas consumption, speed, and maintenance services are automatically stored on the passport.
For the customers, the digital passport is an interface, which shows the car’s recorded data. Koinearth CEO Praphul Chandra said the digital passport is the center of the blockchain-based technology connecting the platform to the insurance firms, auto-makers, and resellers who can use the data.
In the automobile industry, driving data can impact insurance rates and resale value. Following the user’s data or development, insurance companies can easily calculate the probability of a person having an accident. Given this, individuals with poor driving data will be charged more by the insurance companies.
While on the car resale value aspect, the comparison of the standard and quality of cars can be done by individuals who will buy a second-hand automobile. This will be facilitated more accurately by the mileage and the blockchain-empowered digital passport technology.
Digital documentation to bring accuracy
Unfortunately, information is inaccurate and not fully shared resulting in higher insurance rates for good drivers.
Blockchain technology can resolve these issues since the drivers can share their data with insurance companies to calculate fair insurance rates. As for the resale aspects, providing the car’s driving history and mileage to potential buyers will yield a more accurate price.
With the new MG Astor, customers can now choose with whom to share their cars history and data. And in the case of resales, car owners who decline to share their data will be at disadvantage.
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