There are two cryptocurrency startups, the Fusion Foundation, and the AUtomotive eXchange Platform (AXP) that will be working in order to put 10 million used cards on a blockchain. The intention is to integrate Fusion’s blockchain platform digitizing 10.5 million cars from AXP’s database.
This would allow these vehicles to be tracked and audited in case it is needed. It is also worth mentioning that the automotive industry has been experiencing an increasing lack of transparency and inaccuracies during the last years.
The CEO and co-founder of AXP, commented about it:
“There’s a million vehicles on the road that have “washed” titles, which means there is fraud there. The insurance industry is hit with billions in fraud because of missing information, drivers providing the wrong information and inaccurate reporting.”
There are around 25,000 car dealers across the United States that use the AXP network. The Chief Product Officer at the Fusion Foundation, John Liu, explained that the pilot, that is now underway, could reach state-based government agencies. That includes the Department of Motor Vehicles (DMV). Apparently, the intention is to go live by the first half of 2019.
Fusion has raised $40 million in an Initial Coin Offering (ICO) a year ago. According to Reuters, the firm has very ambitious goals regarding the tokenization of assets. The firm has also partnered with other companies related to asset management and car financing.
According to DJ Qian, the founder of Fusion, explained that they have built their firm based on Ethereum. The network will also feature some public and permissioned components. The number of nodes in the network will be taking into account what is needed to support a secure blockchain.