A number of massive names in the automotive industry, including BMW, Renault, and GM, have recently formed a coalition to get a feel for Blockchain. It looks as though one is driving in the direction of incorporating the technology for themselves.
BMW has announced that it is testing a platform using blockchain technology as a means to track the mileage in leased vehicles. The German automotive company has partnered with one of the five startups that joined as a part of BMW Group UK’s Innovation Lab initiative in order to develop the project.
Blockchain startup DOVU, is working alongside the automotive giant’s fleet manager, Alphabet, on a system which will create an incentive for those driving BMW’s leased cars to log mileage while using the automobile.
DOVU’s head of product, Alex Morris, explained that the system will be made in order for BMW to understand how much its vehicles are moving and how much this movement will impact them.
Morris explained to Coindesk:
“What we’re doing is we’re essentially trying to build out this circular economy on the DOVU platform. [Drivers] can earn tokens, but down the line they’ll also be able to spend tokens on services – for example, they might be able to get replacement tires or something like that using the Dovu ecosystem. The partner, in this case BMW, defined the categorization of the reward and that’s defined in a smart contract. As long as the parameters are met for the smart contract, they’ll receive tokens.”
Morris further detailed that tokens-for-rewards might be more reliable than the current mileage tracking systems that are in place at the moment. He said that since mileage is such a critical component in the resale value of vehicles, the problem of unreliable tracking methods is important to solve.
The head of product hopes that this will “become this kind of ubiquitous rewards system that can work across vehicles” – which is not an unachievable goal considering DOVU’s success in completing a $6 million USD initial coin offering fundraise months earlier when working with the venture arm of Jaguar.