Haven't you always wanted to know everything about your car? Even the most experienced and knowledgeable person in vehicles doesn’t know the whole truth about a vehicle’s history. This is because they do not have enough access to reliable, secure and transparent historic information about vehicles. The VinChain project was conceived as an initiative to fix the problem of Quality Uncertainty and the Market Mechanism. This problem was investigated by Nobel prize-winning economist George Akerlof in 1970. In his study, he explains the idea of ‘markets with asymmetric information’, where the sellers always know significantly more about the product than their buyers.
For example, in general, when buying a used car, many customers cannot truly distinguish between a good car and a bad one, so they set a lower price they are willing to pay for the vehicle. As a consequence of being less informed, this reduces the average price of the vehicle, leading to the entire used car market to disappear. Moreover, the higher priced cars considered ‘good' are also at risk of leaving the market as their quality is decreased. This fixed mindset that all second had vehicles are of poor quality creates a cycle that makes buyers withdraw, resulting in the complete disappearance of the market.
Therefore, VinChain aims to stop this cycle by removing this phenomenon of asymmetric information. So maybe after reading this, you are still wondering, what is this project actually? More specifically, VinChain is the world’s first decentralized international automotive database that will collect and reveal all the information (full history) about any vehicle.
What makes VinChain helpful and profitable?
- there are no intermediaries, just you and the data provider;
- the project builds loyal relations between dealers and buyers;
- transactions are secured with Blockchain technology;
- the information is always transparent, up-to-date with no possibility of losing any data or being influenced by sellers (resistance to network attacks);
- the rewarding system is fair and clear (you, as a provider, will receive tokens for every single request that is made by anyone on that info depending on the value of the information you give to VinChain)
Where does the information come from?
Information about the vehicle is provided in the databases by all the participants in the system: manufacturers, auto services, insurance companies, banks and leasing companies, dealers, etc. during the entire period of its use. VinChain aims to make as many partnerships as it’s possible in order to collect all the information related to a vehicle. This information is transparent and accessible to everyone with access to the system.
How does it actually work when a person uses the system?
In short, the steps of the VinChain system work as follows:
- Request for information is received
- The entire chain is searched for data
- Reports are created and provided as a structured form
- The members of the relevant registry (info providers) receive fee for information provided
VinChain App
The application allows users to receive the best offers and discounts on service, refueling, washing, finding your car in a large parking lot, etc. It also collects information about your personal driving style and tells you how to drive more economically. Keeping all this information on the blockchain, it confirms its reliability and allows owners to appreciate the value of their car. Moreover, while using the VinChain app and website, the users are able to control the information they share and determine what are the offers and discounts relevant to them.
Learn more
We all want reliable information when it comes to our car, so why don’t you join VinChain by subscribing to their newsletter, so you could be the first to know all the most important news.
To find out more about VinChain and their vision for the future, you can also visit the official website at https://vinchain.io/en
Other relevant information you might want to learn about:
- The process of rewarding users with tokens
- How can you use, purchase, sell or exchange tokens?
- How all the data collected will be useful?
- How does a full example of a VinChain vehicle report look like? (sample report)
- More benefits of the App
Thank you for your time,
Jack Andrew