Volkswagen AG is currently testing three concrete potential applications for distributed ledger technology – beyond the example of cryptocurrencies like Bitcoin. One is a mileage clocking system that Bartkowiak and Sinram are developing. It makes it hard to manipulate odometers, because every odometer reading can be saved permanently using a sophisticated system. Thus the used car market becomes more transparent and secure for Volkswagen cars, which helps Volkswagen vehicles better retain their value. “Customers can save their odometer readings in a distributed ledger system at regular intervals. The data cannot be changed retroactively without somebody noticing that they’ve been manipulated,” explains Sinram.

One thing needs to be made clear here. “We place a premium on protecting data, and especially personal data,” says Bartkowiak. So no customer data are saved on public or Volkswagen networks for these blockchain applications, but rather only “fingerprints” of privately secured data. The data remain where the customer saved them – on a smartphone, or a computer, or in the cloud – and are only accessible to that particular customer. If desired the customer can decide to have a unique encrypted series of digits generated from these data with which the blockchain can then work. In this way, the customer’s data remain protected.

In a second area of application, Porsche is developing a blockchain model that is better than conventional systems at protecting cars from hackers. It enables Porsche owners to give other individuals – such as parcel delivery personnel – a virtual key to open or even use their car. “We’re doing pioneering work here,” says Oliver Döring, Porsche’s financial strategist. “We’re also testing how well a non-public distributed ledger system is suited for this.” Porsche is working on this project with the Berlin-based start-up XAIN.