The automotive company MG, owned by the Chinese automaker SAIC Motor, has integrated blockchain technology into its newly designed car, the MG Astor.
According to a LiveMint report, the new SUV used a blockchain-powered “Digital Passport” to record the user’s driving data. For the project, MG has collaborated with Koinearth, an Indian blockchain-based agency. According to reports, the agency will help the new SUV’s commercialization.
Other automakers, including Renault, Ford, GM, Honda, and BMW, work on a similar product. However, the newly designed MG Astor is India’s first commercialized car to include a digital passport.
More details about the new SUV
The newly released car collects data on the user’s driving abilities. MG will upload the data into a “Digital Passport,” giving the car a digital identity by collaborating with Koinearth. The passport automatically stores driving data such as gas consumption, speed, and maintenance services.
For customers, the digital passport is an interface that displays the recorded data from the car. According to Koinearth CEO Praphul Chandra, the digital passport is at the heart of the blockchain-based technology that connects the platform to insurance companies, automakers, and resellers who can use the data.
Driving data can have an impact on insurance rates and resale value in the automobile industry. Insurance companies can easily calculate a person’s likelihood of an accident based on the user’s data or development. As a result, individuals with poor driving records will be charged more by insurance companies.
In terms of car resale value, individuals looking to purchase a used vehicle can compare the standard and quality of vehicles. The mileage and blockchain-powered digital passport technology will help with this more precisely.
Digital documentation will improve accuracy
Unfortunately, information is inaccurate and incomplete, resulting in higher insurance rates for safe drivers.
Because drivers can share their data with insurance companies to calculate fair insurance rates, blockchain technology can help to resolve these issues. In addition, in terms of resale, providing potential buyers with the car’s driving history and mileage will result in a more accurate price.
Customers can now choose who they want to share their car’s history and data with the new MG Astor. In the case of resales, car owners who refuse to share their data will be penalized.