Vinchain intends to implement a token to smooth the processing of car information queries on the VinChain system. An end user will pay VinCoin in exchange for all information related to a vin number that is currently being stored on-chain.
The information queries are designed to rely on extremely simple token economics for the client facing aspects of the payment system.
In order to have a successful token system currently, it’s necessary to leverage simple economics.
The VinChain token will primarily be a usage or utility token leveraged to create a stable transaction rate and to allow fluid fee payments and profit distributions for all information providers.
When a user exchanges a token for information on a vehicle all active participants in the network currently providing information on that vehicle are compensated with part of the token.
Initially token allocation will be primarily linked to events . An event is any specific thing that has happened to a vehicle. If the vehicle changes owners, that’s an event.
Challenge:
The problem is captured and explained by Nobel prize winning economist George Akerlof in his published scientific work "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism" in 1970. He described the mechanics of markets where one party (the sellers) know significantly more about the product than the other party (the buyers). This is also known as "markets with asymmetric information".
The used car market is an example. When selling a car, the seller typically knows significantly more about the vehicle than the buyer. This is a problem for the buyers as that opens them up for possible fraud. To hedge against the risk of buying a ‘bad’ car the buyer reduces the price he/she is willing to pay for the vehicle. This can lead the entire used vehicle market to disappear.
How it happens:
- A buyer cannot fully distinguish a good car from a bad one, so they are willing to pay less for the vehicle. This reduces the average price of the vehicle.
- Because of the lower average price, most sold cars are of poorer quality, so those who sell good cars leave the market.
- Because of this the average price of a car reduces even further.
The sellers of medium-quality cars are forced to leave the market. - The quality of the cars will deteriorate again, and the average amount the buyers are willing to pay will fall in proportion. This cycle will continue until the buyers stop purchasing cars because they will assume that they are all of poor quality.
How It Works:
(i) When requested, the information corresponding to the requested VIN number will be searched and selected in the blockchain, and
(ii) Each record will have information about data provider, date, VIN and the use of the car.
Solution:
VinChain use a blockchain database that records all information pertaining to vehicles. For each vehicle, the information accumulates during the entire period of use. This history is transparent and accessible to everyone.
To protect accuracy of the information, the technology of distributed storage is used. This guarantees absolute reliability and security of data.
Every day hundreds of thousands of used cars are sold in the world, and each buyer wants to get reliable information about the technical condition of the car. This is an important security, financial, and safety issue.
Commercial bases are closed and do not exchange information among themselves. As a result, the buyer of the car risks their own safety and losing money.
VinChain solves this problem with the help of blockchain technology. For each car, we will issue a blockchain-passport, which will be stored in a distributed registry.
The blockchain-passport of the car connected to the vin-code, placed in the VinChain blockchain system, at any time is available to any user and service provider who has access to the system.
Annual auto sales
The market for all cars in the world in 2016 totaled 1.38 billion pieces. With the cost of a history report at $15, the total volume of VinChain's market is $20 billion.
Project goals:
Change the global market of used cars by making it honest, transparent, reliable and with equal access to information for each participant.
Project Objectives:
1 Create a block with different levels of access and information protection. Data security level should correspond to the needs of government agencies.
2 Unite the participants in the automotive industry, such as manufacturers, insurance companies, dealers, service stations, developers of navigation systems, into a single ecosystem for data exchange purposes.
3 Create an infrastructure and provide direct access to the database for each market participant.
Preventing attacks through blockchain (vinSSL):
A. The user sends an SSL certificate to the client to the vinchain server.
B. The vinchain server verifies the authenticity of the received certificate with the signature stored in the distributed network.
C. A secure SSL session is set only if the certificate is authentic (replacement is not possible).
Conclusion:
Vinchain intends to implement a token to smooth the processing of car information queries on the VinChain system. An end user will pay VinCoin in exchange for all information related to a vin number that is currently being stored on-chain. The information queries are designed to rely on extremely simple token economics for the client facing aspects of the payment system. In order to have a successful token system currently, it’s necessary to leverage simple economics.
Furthermore, it is a long term goal of the project to leverage the economic control of having a usage coin in order to eventually reach a relatively stable token price relative to traditional state-backed currencies.
More Information Connect To Vinchain
Official Website: https://vinchain.io/en
Whitepaper Link: https://vinchain.io/files/white_paper.pdf
Telegram Channel: https://t.me/vinchainio
Official Facebook Page: https://www.facebook.com/vinchainio/
Official Twitter: https://twitter.com/VINChain_io
Official Medium: https://medium.com/@VINChain
Authorized By:
My Bitcointalk Username: bright4mech
My Bitcointalk Profile link:
https://bitcointalk.org/index.php?action=profile;u=1298523
ETH wallet address: 0x6707A43E7c34E560828f2785Eb01A4b1327877C0
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