Russian blockchain startup HashCoins is developing a service for certification of vehicle titles based on EmerCoin blockchain, which seeks to make the work of relevant state offices more efficient. The new solution may also prove useful to manufacturers of various motor vehicles, including cars, trucks, tractors, motor bikes, and light airplanes, all of which demand some sort of certification.
Creation of a motorcar ledger is an attempt to demonstrate how blockchain-based systems actually work. HashCoins decided not to make it a closed system by using Emercoin’s open ledger.
â€śWe see no need in using private blockchains, as one may encrypt non-public data before sending it. EmerCoin blockchain allows recording up to 20 KB of data. This would suffice to store data on motorcars, land plots, and so on,â€ť HashCoins representatives told Fork Log.
The company says such ledger could be very useful to end users, as it enables them to trace the entire history of a car (change of ownership, insurance events, technical examinations, etc.), thus protecting themselves from a possible scam.
â€śFor the state and businesses, creation of blockchain-based ledgers would seriously mitigate risks of data loss, cut expenses for administering and data storage, and make their activities open and transparent,â€ť insists the company.
HashCoins names seven aspects to support such a system:
- Blockchain is decentralized, and thus invulnerable to hacks.
- As data is stored in a decentralized manner, it does not require any maintenance of a server infrastructure, which by itself may save big money. This would have required serious expenses considering the number of cars today.
- The system works offline, so the entire data on a car is available 24/7 regardless of whether there is internet connection. The information requires periodical syncing to remain valid.
- Moving info on every car in the country on blockchain can solve the car thefts problem. Entering the vehicle’s VIN, engine number and body shell in the system would render the theft for the sake of reselling the car useless. Selling parts of a vehicle would also become quite problematic.
- A blockchain-based system would also tackle the problem of manipulating the car’s mileage.
- When buying a used car, potential customer can use a special service to check its info validity including the number of accidents involving the car in question, and the time and place of its operation. At the same time the owner’s data can be hidden.
- The system can unify databases of the state traffic inspectorate and insurers to solve the problem of fake car insurance policies, and facilitate the obtainment of valid ones.
- The list of possible applications may be even longer, however, as HashCoins stresses, the system’s main advantage is its cost of implementation, which is incomparably lower than other solutions.
Prospects of Implementation
According to the company, the Baltic States are already going to implement such projects, while state-owned and private companies from Russia and Belarus also show some interest. HashCoins has prepared a presentation for one of the Baltic States. The team has also discussed possible implementation of the system with Russian government entities and several private firms.