Knowledge hub

Goodbye car ownership, hello clean air - Monitoring car usage using blockchain

The future of transportation will be enabled by two emerging technologies that are rapidly becoming mainstream. The self-driving vehicle and blockchain-enabled, secure peer-to-peer (P2P) transactions. Using blockchain, trip charges will be automatically deducted from the passenger’s blockchain-enabled digital wallets or charged to their credit card. Access and identity tokens and P2P transactions will enable the easy, secure sharing of not only vehicles but infrastructure. The blockchain-enabled identity of each user will carry proof of identity, age, insurance coverage and ability to pay, while protecting the anonymity of the passengers and information about their travels, as well as the security of their payment mechanisms. The smart contracts governing such transactions will be based on standard templates that assure accurate, instant collection of taxes and regulatory reporting, wherever the trip takes place.

Over time, ownership models will evolve. By registering vehicles on the blockchain “ownership” and “access” will be tokenized, meaning owners can trade their shares in the vehicles or their rights to use them directly through the blockchain without the involvement of third parties. Some vehicles will continue to be owned by individuals or legal entities. Others will have multiple owners whose identities and shares in the vehicle can change in real time. Car companies will not necessarily generate sales via car dealers. They will simply deploy cars in areas where their use can generate an economically viable cash flow, and trade ownership to other parties when algorithms show that would maximize cash flows. Secure, immutable information about the ownership and usage of the vehicle will be stored on the decentralized platform.

Before the full force of these changes is upon us, is the time for innovative business leaders to join government and civic leaders to reimagine not only our transportation systems. Regulators and lawmakers must decide how to replace tax revenue lost through lower vehicle use and to clarify liability and insurance requirements 


Read more at:

https://www.weforum.org/agenda/2016/12/goodbye-car-ownership-hello-clean-air-this-is-the-future-of-transport