Car manufacturer MG, owned by Chinese auto company SAIC, will use blockchain to record driving data in a digital passport for its new SUV car model, MG Astor. The car will be commercialized in India and MG has partnered with Indian blockchain firm Koinearth for the project, reported Livemint.
In the automotive industry, insurance rates and resale value can be impacted by driving data. In a world without asymmetric information, insurance companies could calculate an individual’s likelihood of getting into an accident based on their driving history. Similarly, people looking to purchase a used car would be able to accurately compare the quality of cars and rely on the stated mileage.
Unfortunately, we don’t live in a world where information is fully shared, which results in higher insurance rates for good drivers and the classical lemons and plums problem in the used cars market.
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