Crypto startup, VeChain teams up with auto manufacturer BMW to create a security platform for vehicles. The security platform promises to reduce fraud in the automotive sector.
The alliance between the German car manufacturer and the blockchain startup was strengthened after the successful completion of the BMW program, known as Startup Garage. The partnership was revealed in 2019 at the VeChain Summit in San Francisco when BMW Group introduced the decentralized application, VerifyCar.
The application created by the team gives users more control over how and who they pass on their data to. With the app, recipients of data on the VeChain network are able to distinguish between digital fingerprints and reference stamps. Data on the mileage of the car is collected in real-time and stored on VeChain using BMW’s hardware.
According to BMW:
“By accessing the app, the user decides who he would like to pass on which data, e.g. a workshop or a potential buyer. The recipients can compare the data with the ‘digital fingerprints’ or reference stamps on the VeChain blockchain. If clear data and the reference on the blockchain match, the recipient knows that the data is authentic.”
Estimates by BMW reveal that manipulation of vehicle data in Germany costs 3,000 EUR per unit sold. Manipulation can occur where salespeople modify components to look new or less used. Car owners have also been known to carry out similar acts of fraud. In certain cases, car owners try to change the mileage of their vehicles.
VeChain operates to enhance supply chain management and business processes. Its decentralized technology platform is meant to streamline processes for complex supply chains. The startup has been growing from strength to strength with new partnerships. Earlier in the month, it partnered with Travala.com to integrate VET as a worldwide payment for 2.2. million hotels.