As the 21st century progresses, new technologies as blockchain and machine learning are implemented in fields that you never thought were possible. That’s the case of the automotive industry and carVertical.
If you are familiar with cryptocurrency then you probably heard of blockchain before. In simple terms, blockchain consists of a growing list of “blocks” (data records) that are “chained” using cryptography. The data linked this way is resilient to alteration, in other words, besides being secure blockchain data is trustable.
Machine learning, on the other hand, use complex algorithms and statistical models to understand patterns and perform tasks without the need for explicit instructions. You can think of machine learning as a subset of artificial intelligence.
You may be wondering what all this has to do with carVertical and the automotive industry. In simple terms, carVertical developed an innovative business model in which they use blockchain to store huge amounts of vehicles history data. Afterward, stored vehicle records are analyzed using machine learning to calculate their real value.
The implications of such an approach are nothing short of revolutionary.
Revolutionary? That’s a bold statement, especially considering that carVertical is far from being the only company collecting car history information. What makes carVertical so special then?
While other companies store the information gathered from public and private databases into their own private data centers, carVertical goes a step further. carVertical store the scattered data coming from trusted sources as to national car registries, police forces, Interpol, paid databases, auto auction sites, certified dealerships, car manufacturers, and insurance companies, using blockchain technology. In other words, carVertical is the first automotive service in its class decentralizing the car history information using secure and transparent methods. The paradigm change introduced by carVertical allowed the company to build the World largest vehicle history database by overcoming data gathering difficulties. Usually, the bigger obstacle that faces other automotive companies when collecting car history information is the unwillingness from issuing parties to disclose such information due to privacy and security concerns. carVertical secure and transparent model already gained the trust of many government agencies, manufacturers, and insurance companies that understand information is decentralized and thus its usage is transparent to everyone. Proof of recent blockchain awareness in the automotive industry is that top manufacturers such as Volkswagen, Toyota, Porsche, and Daimler are looking into ways to integrate blockchain technology into their own products.
The trust generated by blockchain allows carVertical to offer next-generation services such as carWallet. Public and private databases are invaluable sources of vehicle history information, but what about the car owner? What about the car itself? carVertical’s carWallet aims to create incentives for car owners so they share detailed information about their vehicles. Using carWallet app car owners will be able to claim a virtual ID for second-hand vehicles. Then, once the owner identity is verified, carWallet app can be used to manage maintenance records, perform insurance, technical inspection tasks, and more. The virtual car ID is used to add that information to the global decentralized vehicle history registry along with the other data coming from state registers, public and private databases. The result? Highly detailed car history records that can be used by other carVertical services.
The guarantee of decentralized, secure, and unaltered vehicle history information is also a big step in the right direction to prevent frauds in the automotive insurance sector. The transparency and trustworthy of carVertical services allow insurance companies to craft “personalized policies” for each user based on car data, usage statistics and more.