Blockchain against fraud in used car sales
According to a study by the EU, so-called "speedometer fraud" is a widespread problem in the European Union. Many dealers and buyers of used cars have to deal with the consequences of the problem. Especially when scammers have manipulated the odometer to make the car look younger. The blockchain technology should help.
According to the study, consumers are the least trusted in second-hand car trade compared to other sectors. This is mainly because of the fact that odometer readings are often manipulated. After the purchase, it often turns out that the used car has suddenly traveled much more miles than you could read from the odometer.
The manipulation is very simple - starting at just under 50 euros, you can order "Odometer Correction Services" on Ebay - and simply correct the mileage of the car to the desired mileage. This can have some inconvenient consequences.
According to a study involving Germany, France, the Netherlands, Belgium and Luxembourg, these states only account for between 5% and 12% of purchased second-hand cars - as long as they are intra-country trade. However, as soon as trade crosses borders, this number will then expand significantly. Already one has to deal with values between 30 and 50%. The estimated economic damage for this problem is between 5.6 and 9.6 billion euros across the EU.
The technology is also interesting with regard to the autonomous transport of people. The blockchain could create a kind of superior database that collects, compares and archives the information about the different vehicles - of course anonymously and securely. Already existing solutions collide namely, according to study with the data protection laws, especially in Germany. With the automated comparison of the data by Smart Contracts the data of the used cars could thus be easily adjusted. That would increase the security of the used car purchase, without violating the privacy rights.
Tachogen fraud on European used cars
According to the study, consumers are the least trusted in second-hand car trade compared to other sectors. This is mainly because of the fact that odometer readings are often manipulated. After the purchase, it often turns out that the used car has suddenly traveled much more miles than you could read from the odometer.The manipulation is very simple - starting at just under 50 euros, you can order "Odometer Correction Services" on Ebay - and simply correct the mileage of the car to the desired mileage. This can have some inconvenient consequences.
According to a study involving Germany, France, the Netherlands, Belgium and Luxembourg, these states only account for between 5% and 12% of purchased second-hand cars - as long as they are intra-country trade. However, as soon as trade crosses borders, this number will then expand significantly. Already one has to deal with values between 30 and 50%. The estimated economic damage for this problem is between 5.6 and 9.6 billion euros across the EU.
Blockchain against fraud
Now the EU wants to tackle the problem with the help of Blockchain. Above all, the technology should create more transparency in this respect, despite the protection of privacy. For example, you could compare the mileage and GPS data decentralized without having to use personal data.The technology is also interesting with regard to the autonomous transport of people. The blockchain could create a kind of superior database that collects, compares and archives the information about the different vehicles - of course anonymously and securely. Already existing solutions collide namely, according to study with the data protection laws, especially in Germany. With the automated comparison of the data by Smart Contracts the data of the used cars could thus be easily adjusted. That would increase the security of the used car purchase, without violating the privacy rights.
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