The European Parliament has published a report which proposes to use the blockchain as an effective solution to prevent twisting of the vehicle mileage.
In the report “mileage Correction: measures to prevent (Odometer tampering: measures to prevent it)”, published by the Directorate General for domestic policy, stated that the twisting of the mileage of cars remains a problem in the European Union, affecting almost all markets of used cars in the EU. The study defines technological development and it solutions to resolve this problem.
One such solution is the use of blockchain technology. The report says:
Blockchain technology, which is currently offered in the automotive industry and electronics, will allow to download data on mileage and GPS cars and fix them to the “digital journal”.
It also said that the use of cryptography provides high level of user protection, as well as the accuracy and control of data.
In the future, this technology will facilitate data evaluation. You can also create its provision through the development of concept cars of the future (with network capabilities), which will provide remote access to all relevant data of the vehicle.
One of the three measures to prevent twisting of run named using the distributed registry. The second measure is the possibility of identifying a standardized basic concepts on the basis of international standards (ISO). And the third is the equipment of vehicles with electronic control units and components with special technical solutions that will be developed and implemented separately by car manufacturers.
According to the study, odometers twisted 10-50% of used cars in different markets in the EU. This is due to the lack of effective cooperation at the supranational level and inadequate exchange of information about total mileage on the odometers of the cars sold between countries.
The report stated:
Cars with twisted odometers range from 30 to 40% of the total number of vehicles that are sold between countries. These figures prove that mileage correction is a serious problem and a widespread phenomenon in Europe, affecting almost all markets of used cars in the European Union.
Moreover, it also affects the interests of buyers. According to estimates, losses of the EU from mileage correction vehicles account for about seven billion euros every year. In the end, polls conducted by the European Commission showed that the whole sales used cars has the lowest level of trust of European consumers.