Fusion Foundation and Automotive eXchange Platform (AXP) have announced a partnership for the realization of a project that aims at bringing the US used car market on the blockchain.
In particular, the goal is to integrate Fusion’s existing blockchain platform with AXP’s current database of 10.5 million vehicles so that they can be monitored and checked. In addition, AXP’s network already includes approximately 25,000 car dealers in the USA who are in close contact with insurance and financing companies.
In fact, the aim of the project is to eliminate the lack of transparency and inaccuracies about vehicle information, especially with regard to new insurance policies and purchase financing.
Max Kane, CEO and co-founder of AXP, said:
“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”.
According to John Liu, chief product officer of the Fusion Foundation, the pilot project is already underway and could be eventually extended to state government agencies such as the Department of Motor Vehicles (DMV).
The final service will be released by the end of June 2019 and should manage between 60 and 100 million dollars of funding for the purchase of used cars.
DJ Qian, founder of Fusion, said that the blockchain they built is inspired by that of Ethereum, but has both public and private (permissioned) components.
He claims that running a node will be as easy as running those of Bitcoin or Ethereum, although at first only a select group of validators will be able to run them.
“We don’t need the government or dealers to worry about running a node yet. We want them to use an application that they are familiar with. The number of nodes will be as much as we need to support a secure blockchain”.