Tokenization will be one of the most significant impacts that blockchain technology has on society as a whole. The ability to securely store and easily access data related to almost all daily transactions and activities will transform industries and services across the globe. In the automotive industry, for instance, with its abundance of paperwork, from insurance to MOTs and car tax, tokenization will affect all areas of vehicular ownership.
Tokenization processes in the automotive industry
Francis Hachem, the founder and CEO of CodeNekt, an application that collects vehicle and driver data to help users control the monitoring and maintenance of their cars, expects blockchain to revolutionize the global automotive industry.
The inspiration for his product, he explains, came to him in France while he was stuck in a traffic jam in the middle of July five years ago. He was looking at the signs on the side of the road warning about pollution in the air and at the stickers on the cars in front of him that allow people to enter Paris – or not – based on how old their vehicle is and on how much CO2 it releases into the air. He says he could also see insurance stickers and contrôle technique
(roadworthiness test) stickers, which made him wonder why in 2017, people still needed those stickers on their cars.
“Imagine having a great car, like a Ferrari or a Rolls Royce, and then having to put stickers all over it. Especially when we’re all connected, we all have smartphones, and everything is digital.”
He explains he returned home and started thinking about a solution that would allow drivers to digitize these stickers and their relationships with insurance companies, car dealers, and parking garages, all from the convenience of a smartphone. Such a solution didn’t exist, so he decided to create it.
This is just one example of the many ways tokenization will change all of our lives for the better in the coming years.
What are the goals of CodeNekt
His mission, he explains, is to help users digitize all their vehicular documents and use automation to connect all the different areas related to mobility, such as insurance plans or parking garages, “making the driver’s life and experience more manageable.”
This is a great vision. Digitalization also helps reduce our carbon footprint, save fuel, and avoid cumbersome paperwork. The CodeNekt app can analyze how you drive and then advise you on how to drive more efficiently, reducing your carbon footprint. Once the app starts following your mobility journey, it can calculate the cost of your travels with your car and any other vehicles you use.
This information is collected through your smartphone’s accelerometer, a component that can measure your travel, to collect information related to you and your vehicle. CodeNekt combines this with the GPS points and its algorithm to calculate your journey. The app already knows what kind of car you have and the year it was made, so it can quickly obtain your CO2 consumption.
The final goal, Francis explains, is bringing mobility to everyone:
“We’re organizing the constitution of a charity fund because we want to offer financial help to people who can’t afford to pay for driving lessons or a license. We want the CDK community to participate in paying for lessons all around the world, from France to Brazil and from Spain to South Africa”.
The CDK token is the native token for the services provided by CodeNekt, the first to generate an NFT to store vehicle information, including mileage, technical issues, or repairs. This NFT is transferred to the new owner if you sell your car. This guarantees that all the information related to a vehicle is accurate, secure, and unaltered. Buying a car with a CDK NFT means you get a suitable vehicle, and your insurance company knows it has a contract with you based on an appropriate vehicle. And this is just one of its many features. In the future, you can use the token to pay for services like a parking garage. This is a unique opportunity in the automotive space.
Considering the advantages, the tokenization of vehicle-related data is sure to become commonplace in the coming years. Not only does it give drivers more autonomy, but the peace of mind from knowing that vehicle information is tamper-proof is also invaluable. Tokenization will make selling a second-hand vehicle more seamless than ever. Bonuses such as added sustainability and convenience prove it is the best solution for vehicle owners.