Part 2 - "Mobility in the Blockchain Series: Click & Drive"

Blockchain and Bitcoin are all the rage. My objective of Part 2 "Mobility in the Blockchain" Series is to outline the opportunities and challenges including practical and possible business applications done with a particular focus on the automotive business environment. Part 1 presented an overview of Blockchain technology, its current developments and advocated the need for a legal framework in order to have a safe and sound basis to conduct business.

New and relevant business models are currently being developed in the automotive sector, such as the "Cardossier" (www.cardossier.ch) that considers the entire vehicle ecosystem (see Chart above) in a holistic way. According to Dr. Martin Sprenger, President of the Cardossier Association in Switzerland, the application is a digital dossier on a Blockchain basis where all relevant information about the entire lifecycle of a vehicle is stored in a traceable and secure manner involving the stakeholder and actors that are given and granted access.

The application is a digital dossier on a Blockchain basis in which all relevant information about the entire lifecycle of a vehicle can be stored in a traceable and secure manner.

In the various phases of a vehicle's life, numerous events and circumstances play their role. What is more, the following actors are involved: vehicle manufacturers, importers, dealers, buyers, owners and sellers, insurers, rental, financing and leasing companies, several garages/workshops and also the Driving and Vehicle Licensing Authorities (DVLA). Not to forget the scrap merchants that, at the end of a car's lifecycle, ensure that the different parts of the vehicle are disposed into the relevant recycling channels. This innovative concept based on open-source ?Corda“ R3 Blockchain platform allows that all relevant and necessary business transactions could be conducted within a permissioned Blockchain and among the actors on a "peer-to-peer basis" (P2P) in the most efficient and effective way. Cardossier enables transactions between identifiable parties, not only with privacy and legal certainty, but also in co-existence of participants along the same ecosystem.

Decentralised applications (DApps) that connect users and providers directly will emerge. Practical examples and use cases for DApps are: your driving license, vehicle registration document (from the manufacturer’s Certificate of Conformity (CoC)) or the international motor insurance certificate (Green Card) to be safely available in the Blockchain.

Such new services can also lead to “decentralised identity” (DID) management that simplifies the process of issuing legal personal documents. As Daniel Buchner from Microsoft explains, the Identity Overlay Network (ION) developed in conjunction with the Decentralized Identity Foundation is evolving fast and becoming a new DID protocol. Other promising options for DID management are the purpose-built ?Hyperleder Indy“ and ?ID2020“. Remo Glauser notes that Cardossier amalgamates DID with the notion of self-sovereign identity (SSI) by removing the trusted third-party and giving identity control to the car data owner per se. Cardossier enforces all data protection rights according to GDPR for the ecosystem participants, e.g. the one that enters data also controls and manages it. It is important to note that the Data Protection Committee of Cardossier is supervising and protecting the code of conduct for all its ecosystem’s members and participants. Finally, it is all about trust “for and in” the vehicle ecosystem.

Blockchain mobility DApps, buying a fast lane pass and concierge James

There will also be new DApps for different types (e.g. market place State of the DApps) of mobility wants and needs: whether for buying or selling a vehicle, i.e. asset management or self-driving in a safe and most economical mode. Be it for paying a city toll or buying a "fast lane pass” on the motorway. For instance, I could imagine that one might be able to communicate and negotiate with all the vehicles on the road via a secure Blockchain protocol, so that for a certain price that is agreed to pay, vehicles can then be overtaken in order to have unrestricted travel. In the end, you pay for being faster and the economic value is that you are in less time at the chosen destination.

It as argued that the Blockchain technology will also support autonomous driving with many convenient services, whether in the form of entertainment in the car, for planning the cheapest purchases in the vicinity of the vehicle or simply for finding a pleasant accommodation or lovely restaurant in a beautiful setting. In other words, the concierge drives with you. Instead of Alexa or Siri, this could be James. On top of Internet of Things (IoT), a new Economy of Things will emerge (IBM Institute of Business Value). Through data or asset tokenisation and smart contracts at the touch of a button, i.e. “click & drive”, your Blockchain DApp not only creates mobility as a service, but also increases the security of its transactions.

Through data or asset tokenisation and smart contracts at the touch of a button, i.e. “click & drive”, the Blockchain DApp not only creates mobility as a service, but also increases the security of its transactions.

The new "electronic" person might take full responsibility for its actions

Since the passenger in the future is only going to be human "cargo", autonomous driving will presumably require a new responsible person. It is advocated that a new legal concept and approach might emerge: After the natural person (people) and the legal person (corporation), most probably there will be an "electronic" person (self-decisive electronic system), that will take full responsibility and liability. In other words, a kind of new law object or legal personhood might be created that is responsible and liable. A natural (r)evolution in policy and law making is under way.

After the natural person (people) and the legal person (corporation), most probably there will be an "electronic" person (self-decisive electronic system), that will take full responsibility and liability.

As Prof. Dr. Thomas Klindt postulates: "Our legal system needs a third legal person that can be held liable". What is more, "electronic persons show similarities with corporations, in the sense that they are both means for their owners (shareholders) to achieve a particular purpose", says Stefen De Schrijver. According to Andreas M. Antonopoulos, bestselling author and one of the world-leading expert on Bitcoin and an open Blockchain, the use of this technology can also contribute to the further democratisation of citizens in all areas of life.

Challenges and risks that need to be addressed and managed

Of course, there are more challenges ahead, such as the transition to autonomous vehicles driving on the roads, namely the management of mixed traffic (both traditional and autonomous vehicles driving simultaneously). Moreover, what happens if a car goes crazy and how could it be stopped? What is the Police able to do? But also other risks need to be considered such as cybercrime, ethics and the protection of life with loads of autonomous vehicles on the road. This triggers significant questions with regards to insurance and also who is going to be responsible and liable for what. From a Blockchain technology perspective, interoperability, scalability, network governance, token transfer across Blockchains and Blockchain-enabled interfaces into legacy systems needs still particular attention. In addition, a new Corporate Governance management mode for the Blockchain will emerge to manage the strategic and operative level incorporating the new technology. For all these particular cases, pragmatic answers and practical solutions need to be developed and implemented.

By building bridges, Blockchain technology is a means to its end and it will disrupt how we conduct business beyond recognition

I would like to conclude this Blockchain Series with the words of Dr. Stephan Karpischek, co-founder of Ethersic: "Once you have understood what Blockchain is, you can no longer sleep at night". My metaphor is: "Each Blockchain that is created can be seen like an individual small bridge and your token is the key to cross that bridge you own, until you pass the key on or sell it to someone else, i.e. transfer value".  

Blockchain technology with its tokens, smart contracts, DIDs and DApps will not only democratise how business is conducted, but also revolutionise govermental administrations, markets and its industries. You can become your own banker, importer, notary, dealmaker and so forth. Hence, today's intermediaries might not be needed any longer. "Absolut(e) digitalisation takes over and the Blockchain technology constitutes the bridge for a new Economy of Things with digital tokens". In this vein, a paradigm shift will take place by creating trust and flexibility in the Blockchain universe and it is hoped that we will enjoy many new and exciting mobility experiences in the future to come, i.e. just click & drive.

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This article was written and published as an introduction to the "18th Blockchain Meetup Liechtenstein on the new token law" contributing to the panel discussion. The Cardossier Concept of 360° Vehicle Life Cycle Management with Blockchain Technology is presented on the 19th Blockchain Meet-up Liechtenstein.

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Author: Dr. Otto C. Frommelt is Director of the National Road Office of the Principality of Liechtenstein a Member of the Platform Future Mobility and the Cardossier Association. He worked at the Volvo Group in leading Management and Board positions worldwide for more than 30 years. He is also Business Ambassador, Mentor, Keynote Speaker, an international Scenario, Strategy and Foresight Expert. @DOCFTWEET?

Nota bene (NB): Part 3 - "Mobility in the Blockchain Series: Click & Drive" will discuss the journey of creating a new DApp for the automotive industry actors, regulatory authorities and customers. By rapid prototyping, a real life micro use case is developed of how a DApp in the Vehicle Ecosystem of Blockchain Mobility can work. Its objective is to drive mobility into the future by Blockchain technology DApps. The process will demonstrate how token and smart contracts will enhance speed, efficiency and traceability. Moreover, it will highlight some of the challenges, I foresee such as how to interface legacy systems, Blockchain interoperability and scalability (in process and forthcoming in 2020).

(c) first published 27 June 2019, updated on 17 July, 25 September and 30 October 2019 with my learnings from the Oxford Blockchain Strategy Programme, Sa?d Business School, University of Oxford