Blockchain technology is about expansion and collaboration, which is probably why there are so many partnerships in the industry. Every company has services worthy of being offered to others, which is exactly the case between IOTA and Volkswagen. They announced the collaboration in February of this year, but their new project was only recently announced, which was mainly done to promote IoT (Internet of Things) in the automotive industry. This couple works side by side to apply their skills to a new product called Digital CarPass.
Digital CarPass will not be available to consumers until the first quarter of 2019, but the goal is for this new product to work with the network to track information on Volkswagen vehicles. The technology will treat details such as mileage to ensure that their vehicles work best. This is just an ongoing project, based on information provided by Benjamin Sinram, who is the head of Volkswagen's blockchain.
Volkswagen currently has five blockchain pilots in the works, although Digital CarPass is at the forefront. This project will mark an important milestone in collaboration with IOTA, although a public test will be the best way to see how effective the technology is. More specifically, the goal is to expand the IoT into a wider field, and this product is the first of many ways to do it.
Internet of Things is defined by Dictionary.com as "a network of devices, equipment and other everyday objects with computer chips and sensors that can collect and transmit data over the Internet." This concept is simple enough to integrate for many companies, such as auto insurance companies that offer a device that can monitor their customers' driving habits, or even the chip that is added to many debit and credit cards for greater protection. With the increasingly popular blockchain technology, experts believe the IoT sector will have an impact of 20 to 30 billion devices by 2020.
Together with Volkswagen's desire to integrate the blockchain with the IOTA, many other automakers have created the Mobility Open Blockchain Initiative (MOBI). MOBI is currently a collaboration between Renault, BMW, Ford and General Motors. IOTA has decided to collaborate on this project too.
Experts believe that the integration of DLT registries with the automotive industry could improve market efficiency by improving communication between stakeholders. With the data collected with Volkswagen, companies can get real-time details on each vehicle for potential and imminent repairs. The calls become exponentially easier to identify. The data could also help customers discover the best time for inspections, along with the nearest garage that is able to run it.
The IOTA is essentially undertaking an operation that could challenge the entire automotive industry in a way that would improve it beyond where it is now. IOTA's Tangle technology handles resizing problems better than DLT alone. IOTA is also collaborating with the Taiwanese government to digitize identifying information for a "smart city" in Taipei.