Cars sit idle most of the time but people can safely and easily monetize their vehicles while they’re not using them through blockchain technology. However as we know how the sharing economy works, anyone willing to join a platform such as Uber has to share a percentage of their earnings with the platform. Typically it is aroung 25% of what customers pay. Uber drivers are still working and a lot more are still joining the platform and willing to pay the percentage just for the privilege of being part of the car-hailing giant’s digital matrix or may be more.
These kind of transactional fees are unreasonable to those who truly believe in blockchain technology. They believe in a future where such transaction fees won’t exist and we can even do away without some companies entirely. They envisage a world where sharing would be more frictionless and the platforms would play less of a role than they do now. The purpose of moving the sharing economy to blockchain’s decentralized network is to remove any third party involvement and effectively have the platform in our hands. Many app developers are now working on blockchain based applications.
First sketched out by bitcoin inventor Satoshi Nakamoto in 2008, blockchain is best known for being the basis of Bitcoin, the cryptocurrency. It is a decentralised ledger spread across hundreds or thousands of computers and has no single point of entry which makes it super secure and hard to break in; the record is permanent and cannot be tampered with and if anyone dares do that there is a record on all the computers in the blockchain network. Since 2008 blockchain technology has been part of numerous protocols adapted as a way to track the movement of all kinds of digital assets from insurance contracts and loyalty points to electrons on electricity grids. Each transaction within a time period is recorded in a block, which refers back to a previous block, creating chains of blocks.
“Blockchains have the potential to reduce the transaction and trust costs that prevent car owners from monetizing their vehicles and driving data,” says Chris Ballinger, director of mobility services at the Toyota Research Institute (TRI) in an interview. “The ability to monetize their car could potentially provide greater financial security and better options to car owners facing financial difficulty or in need of extra cash.”
As we move into the future of mobility there are high chances ride-sharing may become a primary means of transportation. With that in perspective, people can get some good use out of their vehicles that tend to sit idle for around 96% of the time. By allowing people to rent out their vehicles while they are not using them can have significant positive economical and societal benefits. “In the case of car sharing, a smart contract might verify that you actually own the car, state that you’re willing to share it with people with reputation scores of, say, 90% and above, and that the car is available on Tuesdays and Thursdays,” explains Fast Company’s Ben Schiller.
Anyone looking to rent a car would need to meet these specifications then the protocols would let the person drive the car around. Blockchain technology goes beyond Bitcoin and has the potential to form an amazing future of shared mobility as per leading blockchain development company in the world. It can enable a safe and secure car-sharing network, which could prove vital once autonomous vehicles are on the road.