BMW, a German-based car producer is currently testing a blockchain platform to track mileage for rental cars within its innovation program, reported Coindesk on May 8.
The pilot program is being conducted in partnership with DOVU, which is one of the startups working with the global auto giant through its innovation program. DOVU and Alphabet created a system called BMW’s fleet manager, in which the mileage of rented or borrowed cars are recorded.
Alex Morris, DOVU’s head of product explained that this project is to see the impact of the mileage on a car and the ones who volunteer to participate will receive tokens in exchange for their information.
“What we’re doing is we’re essentially trying to build out this circular economy on the DOVU platform. Drivers can earn tokens, but down the line they’ll also be able to spend tokens on services – for example, they might be able to get replacement tires or something like that using the Dovu ecosystem. The partner, in this case BMW, defined the categorization of the reward and that’s defined in a smart contract. As long as the parameters are met for the smart contract, they’ll receive tokens.”
The ones who participate have to keep a log of the mileage they are doing every week, which is stored on the DOVU blockchain.
“Right now mileage is the most important factor for the resale value of their vehicles,” Morris mentioned. “The problem is quite an important one for them to solve, so when we suggested tokens to incentivize them to do that they were very excited.”
The ultimate goal of this project ” is to become this kind of ubiquitous rewards system that can work across vehicles, make some kind of unified wallet for token rewards that you can use on your BMW, but maybe jump into your second car and earn more tokens and then spend those throughout the ecosystem,” he expressed.