Forefront Communications

Digital Journal: How Blockchain Can Reduce Automotive Industry Fraud

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Sam Belden

Sam Belden

Fusion (developer of the first open source cryptofinance operating system) has been selected by the Automotive eXchange Platform (AXP) to drive down fraud and accelerate innovative financing options in the auto industry.

The auto industry has struggled with a lack of transparency together with widespread information inaccuracies, from titling to financing. The not-for-profit Fusion Foundation aims to tackle these issues through its blockchain technology.

Fusion will be working with another cryptocurrency startup – the Automotive eXchange Platform (AXP) – to put 10 million used cards on a blockchain. Chief Product Officer John Liu explains more.

Digital Journal: What are the general advantages of blockchain?

John Liu: Blockchains bring cost-efficiencies to value exchange and information sharing by removing middlemen or counterparties who profit from information asymmetry. They can also support the digitization of assets, opening access to market opportunities by eliminating physical boundaries and enabling fractional participation in financial transactions.

Furthermore, blockchains make it possible to share data transparently across ecosystems in which counterparties implicitly or loosely trust each other. All participants have permissioned views to the same transaction audit trail (changes to data or financial transactions) so mistakes or fraud can be prevented. Additionally, blockchains remove siloed information so that participants benefit from single-record keeping—that is, they do not re-enter the same information multiple times, resulting in wasted efforts and data inconsistencies.

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