Vinchain – Automotive Data Marketplace
As Nobel prize winning economist, George Akerlof explained in his 1970 paper, The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism, a market with asymmetric information where one party knows significantly more about the product than the other opens up possibilities for fraud or at least an honest misrepresentation which can affect the price.
To hedge against the risk of buying a ‘bad’ car the buyer reduces the price he/she is willing to pay for the vehicle. This can lead the entire used vehicle market to disappear in a vicious cycle of value depreciation. This cycle can only be stopped by removing information asymmetry.
There is no single reliable database of cars. Commercial databases are stored centrally and are liable to mistakes. They also do not interact with each other, resulting in scattered information. As a result, the buyer of the car risks their investment without being adequately informed.
The Vinchain Solution
Vinchain (VIN) is a decentralized international automotive data marketplace to provide complete transparency of a vehicle’s history.
VinChain solves the problem of asymmetrical information in the used vehicle market by creating a decentralized, immutable, transparent, secure, and reliable vehicle lifecycle repository with a blockchain database that records all information pertaining to vehicles. For each vehicle, the information accumulates during the entire period of use. This history is transparent and accessible to everyone.
Accuracy of vehicle information is safeguarded by use of trustless distributed storage. This guarantees absolute reliability and security of data. Every day hundreds of thousands of used cars are sold in the world, and each buyer wants to get reliable information about the technical condition of the car. This is an important security, financial, and safety issue.
How It Works?
Each car will be issued a blockchain passport. Vinchain will unite all data providers and create a continuous history of the car, devoid of the disadvantages of centralized databases. When requested by a market participant, the information corresponding to the requested VIN number will be searched and selected in the blockchain. Each record will have information about data provider, date, VIN and the use of the car.
An end user will pay VinCoin in exchange for all information related to a vin number that is currently being stored on-chain. For a user wishing to retrieve information from the VinChain system the transactional costs will always be VinCoin. Market volatility should be linked to the fluctuation of car history data and not speculation. Over time, as more information providers are verified, VinChain will allow for more widely crowdsourced information on car histories.
Each blockchain request is paid in tokens, each report contains data about the car from various suppliers and each vendor whose data was used in the report receives payment tokens. Vinchain receives a percentage as commission from each request made on the blockchain.
Vinchain has 3 main objectives it seeks to achieve with the project,
1. Create a block with different levels of access and information protection. Data security level should correspond to the needs of government agencies.
2. Unite the participants in the automotive industry, such as manufacturers, insurance companies, dealers, service stations, developers of navigation systems, into a single ecosystem for data exchange purposes.
3. Create an infrastructure and provide direct access to the database for each market participant.
- Alex Miles – Chief Executive Officer
- Andrei Krainik – Strategic Partnerships
- Sergei Pakhomov – Full Stack Developer
- Stacy Denver – Head of Sales
- Sergei Shostyr – UI/UX Specialist
VINCHAIN ICO Details
- Platform – Ethereum(ERC20)
- Presale – December 1, 2017 to December 24, 2017
- Crowdsale – March 22, 2018
- Hard cap – 600,000,000
- Price per token – 0.0001 ETH
Automotive blockchain database ICOs are spawning all over the place. There is nothing fundamentally unique about Vinchain’s project from, say, the VLB project. It simply boils down to personal opinion as to which project has the greater potential. The one difference would be that while VLB’s primary market is Russia, Vinchain’s primary market is USA. It’s a solid, unexceptional project.