Blockchain technology can be utilized to prevent odometer tampering.
This, according to a research paper that was released by the European Parliament, detailing the potential role of blockchain technology in the use case, deriving that it might "present interesting potentials" for successful prevention of fraud through improved transparency and data privacy.
The report, which was called “Research for TRAN Committee – Odometer Tampering: measures to prevent it”, was conducted and issued by the Directorate General for Internal Policies.
It first described how odometer tampering affects the car industry, saying:
“Odometer tampering is still a widespread malpractice in the European Union and it affects almost all second-hand car markets of its Member States.
“This study examines how improvement can be made by presenting the best practices implemented in some Member States and countries outside of the EU, while emphasising their success factors and results achieved. Furthermore, the study highlights the available technological developments and IT solutions to combat the phenomenon with a view to a potential further application by the European automotive industry,” read the research paper.
It then went on how the usage of blockchain technology can help curb such a malpractice.
"The blockchain technology currently proposed by the car engineering and electronics industry would allow downloading mileage and GPS data from vehicles, and securing it on a 'digital logbook'."
The study proposed that blockchain can be backed by a "connected cars" concept that would allow cloud access to all pertinent vehicle data in a future scenario involving autonomous vehicles.
Blockchain technology is just one of three measures that were pinpointed to properly resolve odometer fraud in the paper. The other two were a standardized framework based on international standards (ISO) and outfitting a vehicle with hardware security modules (HSMs) to guard data.
The study is the latest this year after startup company, BigchainDB and German energy firm, Innogy, sought to formulate digital identities for vehicles on a blockchain, back in June.
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