Automobile company MG, owned by Chinese auto company SAIC Motor, has integrated blockchain technology into its redesigned MG Astor car.
According to a LiveMint report, the new SUV used a blockchain-powered “digital passport” to record the user’s driving data. MG has teamed up with a blockchain-based Indian agency, Koinearth, for the project. According to reports, the agency will facilitate the commercialization of the new SUV.
Other auto companies such as Renault, Ford, GM, Honda, and BMW are developing a similar product. But the redesigned MG Astor is the first commercialized car in India to include a digital passport.
More information about the new SUV
The newly introduced car records data on the user’s driving ability. Working with Koinearth, MG can upload the data to a “digital passport”, which gives the car a digital identity. Driving data on gas consumption, speed and maintenance services are automatically saved in the passport.
For customers, the digital passport is an interface that displays the data recorded by the car. Praphul Chandra, CEO of Koinearth, said the digital passport is the center of the blockchain-based technology that connects the platform with insurance companies, automakers and resellers who can use the data.
In the automotive industry, driving data can affect insurance rates and resale value. Based on the data or the development of the user, insurance companies can easily calculate a person’s likelihood of an accident. Because of this, people with poor driving data are charged more by the insurance companies.
As for the resale value, the comparison of the standard and quality of cars can be done by people who buy a used car. This is made easier by the mileage and the blockchain-supported digital passport technology.
Digital documentation for more accuracy
Unfortunately, the information is inaccurate and not fully disclosed, resulting in higher insurance rates for good drivers.
Blockchain technology can solve these problems as drivers can share their data with insurance companies to calculate fair insurance rates. For the resale aspect, providing the vehicle’s driving history and mileage to potential buyers results in a more accurate price.
With the new MG Astor, customers can now choose who they want to share their vehicle history and data with. And when it comes to reselling, car owners who refuse to pass on their data are disadvantaged.
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