Revolutionizing Used Cars with Blockchain Technology

You want to buy a car, but a brand new one is much too expensive and the value of a brand new car drops hugely within the first five years of ownership. So there are two options for used cars: private sale or dealership, both of these options have their cons. The dealership usually does cheap repairs and sweet talks the customer to make their commission, there is little honesty, the car does come with a warranty though. The other option is to buy via a private sale, you usually get a better price but it comes without any guarantees and you cannot get your money back if you want to. What if we could keep the trust element while eliminating the dealership, blockchain is the way to do this and let me explain how. Blockchains like Ve-chain link real world assets to the blockchain, so for example in each new car sold today imagine a scenario where car elements such as the breaks have sensors monotoring the durability and using a microchip computer and internet connectivity to constantly upload this data, and this data is being linked to a blockchain so it is immutable. This is what Ve-chain is designed for, linking this data to a blockchain so no dodgy car salesperson can put a drill in the odometer and wind it backwards or do quick fixes. Imagine every car element constantly being uploaded within the Ve-chain blockchain, and when a part is changed this is detected and also uploaded to the blockchain for people to view. The car owner could keep this information private and provide only potential buyers with a “key” (like a private key) a way to see the car’s history so random strangers cannot look it up. This key they provide potential buyers could also be made to have a 1 hour expiration for example, and only the main “key” could be transferred to the buyer when the car is purchased. In this system which will probably exist in the future people will know exactly what they are buying at zero cost to them.

Now if someone sells this car, the buyer can easily put the number plate onto a search function and find out the car’s history without any trust. This is a very powerful thing, the ability to transact without trust, as it reduces the time and cost of buying a used car making it a much easier process to buy and sell used cars.

FUTURE INSIGHT

With a system like this, car ownership papers would be easily tokenised so that cars themselves could become tokenised assets which can be traded similarly to NFTs but these would represent real world assets. Classic cars could be bought and sold on the blockchain and stored in secure locations, with a pick up fee if you want to take it out, or you could just buy it for speculation and sell it without actually having the car itself if that is what you want to do. Derivatives for tokenised cars would become a thing, such as options and futures contracts for cars. So people could purchase a futures contract for a car in 5 years for example so in 5 years they are obligated to purchase it. Options contracts would be something like paying a few hundred dollars for the option to buy a 2020 corolla for x price in 5 years time, so you could mitigate the risk of the value of cars increasing and make your financial plans accordingly. There would be a tremendous amount of other things and benefits that could be build using smart contracts on top of this key infrastructure of being able to track the car’s history and its tokenisation which will likely happen in the future