JP Morgan’s car finance arm is financing the creation of a tracking system blockchain technology. The purpose of the project, Which Arose from a patent application, is to digitize the financing of the floor plan and make the lending process more efficient vehicle. The fact was Reported by the news site. Coindesk , Friday, November 22.
The concept of the project is to link contracts in smart blockchain anchored to the Vehicle Identification Numbers (VIN) That each car Receives in the United States. As the VIN remains in the vehicle Until it is demolished, it would be possible to Identify, with the help of sensors and in real time, the state, geographical location, age and service life of the car battery.
ACCORDING to the head of research and development of the Chase Auto dealership network, Kevin Point, the floor plan lending process includes a periodic physical inspection or an audit of the Entire dealer inventory. According To Point, vehicle tracking inventories in a distributed registry will Provide long-term cost savings; and detailed:
“THIS MEANS THAT A HUMAN BEING WHOS TRAVELS TO THE DEALERSHIP, IDENTIFIES THE VEHICLES AND THEN A RECONCILES THAT INVENTORY, AND VERIFIES IF THE LOAN IS OPEN AT THE DEALERSHIP AND THE BANK ACCOUNTING SYSTEM.”
Practical application of blockchain.
JP Morgan has – been investing in blockchain for a long time and is now looking for Opportunities to make the use of technology practical. ACCORDING to the leader of the JP Morgan blockchain, Christine Moy, the project is still a pilot, as it is in the test phase with real dealership partners, but it is not yet in production.
Also ACCORDING TO Moy, JP Morgan and Chase Auto are working to benefit The entire vehicle and equipment industry in General:
“ASSET NETWORK IS THE BASIS OF ESTA APPLICATION AND USE CASE IN PARTICULAR BUT IT CAN BE THE CORNERSTONE ALSO OF MANY OTHER APPLICATIONS AND VALUE-ADDED SERVICES FOR CAR MANUFACTURERS, BANKS AND OTHER FINANCIAL COMPANIES RELATED TO DEVICES. WITH TELEMATIC CONNECTIVITY, “I ADDED.