Ever wondered why a used vehicle costs so much lower than a new one? Even on models just a month’s old? There are a few economic principles that can explain this behavior, but the main fact is that a car previously owned has a story and most of the time a buyer has no way of knowing that information other than the basic specs revealed by the vehicle and the data provided by the previous owner. This phenomenon is called “information asymmetry,” and it can be explained in a very simple fashion: There is not a single database of used vehicles anywhere around the world.
Learning about a Car’s Backstory
If you make inquiries about this, it’s very likely you’ll find regional databases or even estate registries that have all the information of the vehicles registered on a single state, but there is no cross-reference between this data and the data of other locations around the country.
This is widely known by scammers everywhere, particularly secondhand car sellers who can make a quick buck with a car bought stateside without informing the backstory of the vehicle to the new owner. Since this is a major problem that has affected the secondhand market of vehicles, VinChain is looking to fix these issues with a brand new platform to provide decentralized automotive data describing the complete history of a vehicle.
VinChain’s Solution
Vinchain is a company looking to create a detailed lifecycle track record for every vehicle available using Blockchain technology. The team of Alex Miles, Andrei Krainik, Sergei Pakhomov and Sergei Shostry took a chance to create the world’s biggest database of a vehicle’s lifespan. In this case, the Blockchain logs will be used to store all the information pertinent to the vehicle, from every visit to a workshop to all the parts that have been replaced, to the number of miles traveled. As per the principles of the Blockchain, this information is proof-tampered, inalterable completely auditable.
A registered user will have a record of every single thing done to their vehicle to back up their claims if they ever need to sell it. The goal of the team behind VinChain is to expand their operations worldwide to offer financial assurance to car deals around the planet.
Putting out Information About your Vehicle Out There
When users choose to work with VinChain they will need to create an account to issue a Blockchain passport, from that moment on every single movement done with the vehicle will be placed in a public registry that can be accessed after clearing payment using the platform’s financial tool nicknamed the VinCoin. Every bit of information has an individual cost, and the use of the utility reports rewards to the users uploading their data, the platform itself is kept running based on a sustainable model where each microtransaction leaves a tiny percentage to the company to keep their operations running.
VinChain is hoping to attract the business of independent car owners as well as renting agencies, manufacturers, insurances companies, ethical secondhand dealers, gas service stations, mechanical workshops and even GPS services to keep better track of all the data related to the vehicles registered under their platform. To learn more about their efforts, you can learn more about their projects at https://vinchain.io/en.
IMO, it is much reliable if the history of the vehicle is in the Blockchain. It cant be manipulated by anyone and its effect on us is it will make us safe. Carvertical is one of the best of me when it comes to IoT solution