A utomotive space is immense in terms of market value and breadth of various sectors that it is comprised of. In Europe and North America the size of the vehicle lifecycle industry is upwards of $1.8 trillion and encompasses such sectors as: vehicle sales, after market spare parts, car insurance, auto finance, and auto repair. Uniting these segregated sectors into a cohesive blockchain-based ecosystem exposes myriads of exciting business opportunities and streamlines existing industry practices.

There are two aspects of the interactions between the participants of the Vehicle Lifecycle Industry that make blockchain advantageous as the underlying technology behind modernizing the relationships in the industry. These two aspects of paramount importance are: i) integrity and recency of records, and ii) conditionality of certain relationships.

First, accuracy and immutability of records is essential for enforcing various warranty protections, maximizing resale value of vehicles, ascertaining the authenticity of spare parts, achieving more accurate and cost effective insurance claim management, monitoring the adherence to various recommendations to business partners, and optimizing insurance policy pricing through reliable actuarial inputs.

Second, formation of certain legal and operational relationships between industry participants may be contingent upon specific conditions being met. For example, an auto loan may only be granted if the car owner takes out an insurance policy from a provider acceptable to the lender. Or a title may be transferred from the seller to the buyer only if it is free from any encumbrances. While this aspect does not need the continuity of blockchain per se, it can be effectively addressed through the use of smart contracts.

CarFix is the developer of Vehicle Lifecycle Blockchain that has already created a broad ecosystem of industry players in the vehicle lifecycle industry and is currently selling VLB Tokens to develop the blockchain to support it.

To learn more, visit www.vlb.io and download the White Paper.