How blockchain technology helps to increase the value of your car

October 31, 2018

VINchain uses blockchain technology to provide accurate, comprehensive, and up-to-date vehicle history information. This information can help increase the value of your car.

INTRODUCTION

VINchain provides vehicle owners with the ability to provide accurate, comprehensive, and up-to-date vehicle history. Together with their app and the Onboard Diagnostic Device (OBD), the technology offers many opportunities for everyone in the automotive industry, from car dealerships to fleet management, car service centers to individual vehicle owners.

PROBLEMS WITH VEHICLE HISTORY

The traditional system of collecting and reporting a vehicle's history is riddled with problems. Information isn't very transparent and you're often left in the dark about where the history report came from or who submitted the data.

While there are industry leaders in vehicle history reporting — CarFax and AutoCheck, to name a few — they cannot guarantee 100% accurate information. At best, you get a report that gives a vague idea about what happened to the car. If car owners take their vehicle to a private repair shop following an accident, then there's actually a chance the accident or vehicle damage won't even land on a report.

It's important to remember that people aren't incentivized to provide critical information about their automobile to vehicle history companies. And with high prices for getting reports, it's clear that a better, more transparent vehicle history system is needed.

WHAT IS BLOCKCHAIN TECHNOLOGY

VINchain is built on blockchain technology. A blockchain is essentially an immense set of data that is easily accessible, secure, and completely transparent. The technology was popularized by cryptocurrencies such as Bitcoin and Ethereum. Each time someone adds data to the chain, it gets put in a block with its own unique fingerprint. When more information gets added, the new block of data contains a fingerprint of the previous block, ensuring a cryptographic link. When all these blocks are linked up, it forms a chain (hence, the name "blockchain"), and it's a very robust and secure way to store and share data. One of the many benefits of blockchain is that it's completely immutable. Once information is on the chain it cannot be deleted, omitted, or changed. This is the perfect use-case for vehicle history, which is never supposed to change.

HOW BLOCKCHAIN CAN INCREASE THE VALUE OF YOUR CAR

The beauty of a blockchain is the data created by events cannot be altered once it has been created. VINchain offers an OBD device that can be plugged into any car, and it can read and store information from the vehicle onto the VINchain blockchain. With the help of VINchain’s OBD, a vehicle’s entire history is logged from the time that the device is plugged in.

This information is encrypted and securely stored on the VINchain blockchain. Once the information is secured on the blockchain, the owner of the OBD device will also own the information he/she uploaded. This means that it's 100% up to the owner to decide if they would like to share this information with anyone. If the owner does want to share this information, then they are rewarded with VINchain tokens. VINchain tokens have a monetary value and can be exchanged for real money or traded in the VINchain network for vehicle history reports and other vehicle data.

In addition to getting rewarded for uploading data, the vehicle owner also has an entire history of their vehicle on the blockchain. This means that the whole history is completely immutable and can be easily shared with a potential buyer. When it's time to sell the vehicle, for instance, the user can get instant access to this information and prove the condition of the vehicle to the buyer. This gives the user more power to negotiate a better price for the sale, and it gives the buyer peace-of-mind.

PAY LESS FOR INSURANCE

If you look after your car and drive well, VINchain’s blockchain technology can also help you get lower insurance premiums, thereby increasing the value of your car even further. This is because VINchain has developed a special scoring system for insurers that allows them to calculate the risk of certain events more accurately, rewarding good drivers with lower premiums.

BLOCKCHAIN IN THE AUTOMOTIVE INDUSTRY

Blockchain technology is coming into its own, and every day, more people are discovering new ways to use the technology. The automotive industry is no exception. Luxury car manufacturer Porsche, for example, is leading the charge by experimenting with things like opening and closing car doors, giving vehicle access to other drivers like mechanics or valets for certain periods of time, and accelerating learning in autonomous driving. All of these things add to the value of the cars, and it’s only a matter of time before other manufacturers also get in on the blockchain action.

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