Relatively spared until then, the automotive sector begins to take an interest in the NFT phenomenon. Can blockchain really transform a slowing industry?
While the auto industry has so far been relatively spared from the NFT phenomenon, the “tokenization” of the industry has gained momentum in recent months. Moreover, it is not surprising for a sector that is always at the forefront of technology and innovation. But to what extent can NFTs be of interest to the automotive sector? Can blockchain really transform a slowing industry?
NFT to ensure the traceability of vehicle maintenance
From a practical point of view, it is in the second hand vehicle market that NFTs find their full meaning as they have a distinct advantage in vehicle tracking. The idea is simple: any modification or maintenance of a vehicle enriches the NFT associated with it, a sort of digital key. This makes it impossible to change the mileage or omit a glitch when reselling the vehicle. In fact, while it is easy to verify the integrity of the seller and secure the transaction, it is much more difficult to guarantee the authenticity of the invoices sent or the origin of the replaced parts.
The NFTs will make it possible to make Akerlof’s theory obsolete by remedying the problem of information asymmetry, and thus putting an end to still too many scams on the second-hand market. Currently the potential customer cannot, a priori, know the quality of the car put up for sale. By “encapsulating” the car’s information and stats into an NFT, they become tamper-proof. The NFT can be transferred to its new owner, thus allowing to guarantee the follow-up of the participants and the transparency of the interventions. Maintenance traceability will provide tamper-proof history to buyers, resellers, workshops and insurers.
NFTs are therefore not only of interest to motorists but also to professionals in the sector by offering them a better understanding of the vehicle fleet. Each NFT will be associated with a single vehicle, the latter’s information will be transmitted directly from its electronic system. A collection of data obviously simplified by the ever increasing electrification and connectivity of vehicles. As cars get smarter, it becomes easier and easier to retrieve this data and then store it on the blockchain.
It continues to exist thanks to NFTs
Beyond this purely practical aspect, some manufacturers are now betting on blockchain to be able to hold their own and continue to exist in a gloomy environment for the automotive industry (shortage of semiconductors, inflation on material previews, declining car sales. , etc.). Their goal: to improve their image and attract a new generation that is ultra-connected and eager for change. Purely virtual concept cars, original sketches of iconic models, 3D modeling of models whose production has been discontinued … Brands compete with ingenuity to stand out from the competition. Taking an interest in NFTs means demonstrating that the brand is not a relic of the past but is truly aimed at the future.
If these initiatives are not immediately a lifesaving relay for growth, a market is emerging in which we will have to be present if the sector is to continue to exist. A passing trend or an underlying trend, one thing is certain: the car is undergoing a real revolution.