Using blockchain technology, Koopman Logistics Group developed the VIN ledger for car manufacturers, importers, dealers, leasing companies, rental companies and other large fleet owners. Transactions around vehicles are recorded centrally and are fraud-proof in a general ledger or register, using the VIN number (vehicle identification number) as the basis. All parties that play a role in the life cycle of a vehicle share this information without having to give up control.
The equal playing field on which these parties share this information makes the VIN ledger innovative. Earlier initiatives were never successful due to anxiety around sharing sensitive company transaction data with a third party. Blockchain technology removes the need for a third party. It also safeguards sensitive information.
The VIN ledger provides transparency, encourages cooperation and brings efficiency to the entire logistics chain from manufacturer to end-user. The VIN ledger also thwarts fraud and helps reduce the economic impact of odometer tampering (between 5.6 and 9.6 billion euros* per year in Europe).
The VIN ledger was developed in close cooperation with IBM Netherlands’ Client Innovation Centre, a frontrunner in the field of hyperledger blockchain. The solution was tested in a pilot this year with a large importer/dealer organization and a car manufacturer. Discussions to further develop the service and to introduce it on the market as an independent European platform are currently underway with several automotive parties.
* Source: CRM study, used car management, November 2017