BYD, one of the largest Chinese car brands and world’s top selling plug-in electric car manufacturer partners VeChain (VET) and DNV GL. VeChain announced the partnership with BYD on medium few hours ago. During the event in Shanghai on the VeChainThor public blockchain platform, BYD debuted their carbon banking solution as co-developed with DNV GL and VeChain.
In the initial release of a series of proof of concepts established between the three partnering parties, BYD announced that they have completed a carbon banking solution for the car models. This solution utilizes VeChain’s automobile lifecycle management solution that encompasses nearly every branch of the automotive industry. This will be the first enterprise level application moving the data of millions of cars, buses, trains, and other vehicles onto a public blockchain platform. Shu Youxing, President of BYD Automotive Intelligent Ecological Research Institute, said:
“THIS TECHNOLOGY NOT ONLY IMPROVES OUR CURRENT OFFERING BUT ALLOWS US TO CREATE COMPLETELY NEW MARKETS. THE UNIQUE ASPECTS THAT VECHAIN PROVIDE WILL EMPOWER CARBON MONITORING DEVELOPMENT AND SUSTAINABLE ECOSYSTEMS. THIS SOLUTION IS A GLIMPSE INTO WHAT WE THINK WE CAN ACHIEVE THROUGH THIS PARTNERSHIP.”
Together with BYD and DNV GL, VET has co-developed an app, the app will collect all the driving data from BYD vehicles such as mileage, fuel and electricity consumption. VeChain has aslo created a smart contract on the VeChainThor blockchain based on emission reductuion formula provided by DNV GL’s carbon experts. VET will then issue credits to car users according to the formula. Apps installed on BYD NEVs will collect driving data through open APIs on Di-Link.
The carbon bank solution benefits the car drivers with carbon credits based on their vehicles’ driving performance and carbon reduction. This solution will provide the key tools to its users to built a blockchain-based ecosystem which will be a good step to improve the global environment. That system will keep all the record on the VeChainThor Blockchain and will make it available to its clients. With this solution, companies will be able to access a platform that helps easy data management, sharing, and analytics. Data will no longer be considered be disintegrated, but unified and reliable. Sunny Lu, CEO and co-founder of VeChain stated:
“As the global leader in green car manufacturing, BYD offered us the the opportunity to pioneer real change. It takes innovators like BYD to make the world a cleaner place. Carbon banking will be a new reality for billions.”
With the VeChainThor blockchain technology, BYD will benefit from data access control and the market-defining Internet of Vehicle information. 4S shops and repair garages will function as data providers, consolidating basic vehicle information (mileage, damage, maintenance, etc.) and cataloging all assets of repairs. This data will then be utilized by insurance and financial service providers in an effort to provide accurate, cost-effective product packages to their customers.
The car market will benefit from an effective life cycle management solution which includes new energy vehicle subsidies, lower carbon emissions, verified data driven analysis, reduced policy premiums, and other such value-added services. Governmental bodies will return to subsidy-driven policies with the ability to accurately monitor the use of energy vehicles. Insurance agencies will have a more complete picture of driver’s habits and records, resulting in driver-specific packages, costs, renewals, and extensions. Several insurance companies, such as The People’s Insurance Company of China (PICC), have partnered with VeChain to design this solution and have stated it creates new value in their businesses.
VET by partnering with BYD have done a great deal, a deal that will certainly not only boost VeChain and BYD but the entire world by saving the environment which is one of the biggest problems of the world. VeChain aims to connect blockchain technology to the real world by providing a comprehensive governance structure, a robust economic model, and IoT integration. VeChain is the pioneer of real-world applications using public blockchain technology.