VINchain Profile

About VINchain (from Website)

VINchain is a decentralized vehicle database that will collect all relevant information about used vehicles, including repair records, accident history, mileage, and any other relevant information. (Source: Website)

VINchain’s solution and problem they are trying to solve

VINchain is working on an open blockchain-based system for vehicle history. Vehicle data should be tracked and saved through their system. VINchain is an extremely interesting idea because one of the problems they address is the well-known „Lemon-car“ problem originating in George Akerlof’s “The Market for Lemons: Quality Uncertainty and the Market Mechanism“ paper. In short, the problem describes that only bad used cars („lemons“) will prevail on a market due to asymmetric information; buyers know little about a car’s state and are therefore less willing to pay a premium price for what could be a potentially bad car („lemon“). Sellers know their car’s condition and are therefore less willing to sell their car for less than the premium price (assuming it is not a lemon). As a consequence, only lemons prevail on the market. Warranties and other technical inspection agencies are one of the countermeasures used to counteract the lemon problem. VINchain’s blockchain-based solution would be another. Viewed from the „problem perspective“, definitely an interesting project. However, viewed from an „execution perspective“ less so; there are numerous hurdles to be overcome on all sites, most notably user and company adoption.

 

More about VINchain here

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