Car sales begin with a blockchain system that stores driving data

In mid-August 2021, the MG automaker announced the start of using the blockchain to record driving data in a digital passport. The technology has found application in the updated MG Astor crossover.

This car will be sold in India, and MG is collaborating with the Indian blockchain company Koinearth to implement the project. The MG partnership with Konearth will allow you to record data in a digital passport, which drivers will be able to access through the MG application. Users can choose who to transfer data to, and before sending any information to other parties, user consent will be required.

MG will use a blockchain system in cars that stores driving data

In the automotive industry, driving data can affect insurance rates and resale costs. In a world without asymmetric information, insurance companies could calculate the probability of a person getting into an accident based on their driving history. Similarly, people who want to purchase a used car could accurately compare the quality of the cars and rely on the stated mileage.

Blockchain is able to solve some open problems in this area, because drivers can themselves share data on their driving with insurers, which can be used to calculate fair insurance rates. For car sellers, sharing data with potential buyers about driving history and car mileage will allow you to get a more accurate cost, and if drivers do not want to share this data, this may be a sign that the car should have a lower cost on the market as a whole.

A digital passport gives cars digital identification. Technical data on driving, such as gasoline consumption and speed, are automatically recorded and stored in the passport. Other aspects that may affect the vehicle or its general condition, such as maintenance services, may be added to the application by the user himself.^[1]

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