GM, BMW, Ford, Honda and Renault to Roll Out Joint Blockchain-based Payment Service

Oct 18, 2019 at 08:33 // News
Coin Idol
Automotive giants to release a blockchain service

Five giant automobile manufacturers including Renault, Ford Motor Company, BMW, Honda Motor and General Motors (GM) will start field tests by November this year in the United States for a vehicle identification system that is entirely based on blockchain and distributed ledger technology (DLT).

Blockchain-based IDs

The move will enable drivers of these cars to electronically pay parking dues or highway fees without using hard money or credit cards. The corporation of these automakers has led to the development of a vehicle ID system under the edge that uses blockchain and related technologies to make mobility more secure, greener, transparent, economical and easily accessible dubbed Mobility Open Blockchain Initiative (MOBI).

The planned system, allots digital identifications (IDs) to specific autos, connected to data like ownership, rights and service antiquities. This information talking about the life history of the car is to be required and used by traffic authorities when identifying vehicles on the road, permitting for tolls to be settled digitally by the driver without the requirement of any specific codes in contemporary automatic digital fee collection structures.

These automakers believe that the DLT-based network will be massively adopted and applied for linked electric autos, which will be very easy for particular expenses like taxes, upkeep and even rest stop snacks to be properly recorded and all paid simultaneously especially when the car is charging.

Use of Cryptocurrency in Auto Industry Increases

The automotive industry has for a long time been working on innovative projects including services that are associated with cryptocurrency and distributed ledger technology.  In 2018, Ford Global Technologies, secured itself a patent for a system which enables vehicles on highways to effectively connect with one another using virtual currencies and lessen traffic.

Furthermore, Honda Motor together with GM are currently researching on smart grids using DLT or blockchain tech under the umbrellas and supports of the MOBI.

The enterprise is targeting to reward or compensate all electric-vehicle drivers being in cryptocurrency such as Bitcoin, Libra, Ether, Ripple, etc. particularly for providing power into the grid for the period of an outage.

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